While growth is established for NASDAQ:NVDA, the stock's valuation remains reasonable.

Here's NVIDIA CORP (NASDAQ:NVDA) for you, a growth stock our stock screener believes is undervalued. NASDAQ:NVDA is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Growth Analysis for NASDAQ:NVDA

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:NVDA has received a 9 out of 10:

• NVDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 488.24%, which is quite impressive.
• Measured over the past years, NVDA shows a very strong growth in Earnings Per Share. The EPS has been growing by 50.90% on average per year.
• NVDA shows a strong growth in Revenue. In the last year, the Revenue has grown by 208.27%.
• Measured over the past years, NVDA shows a very strong growth in Revenue. The Revenue has been growing by 39.06% on average per year.
• NVDA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.56% yearly.
• NVDA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.79% yearly.

A Closer Look at Valuation for NASDAQ:NVDA

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:NVDA boasts a 5 out of 10:

• 64.49% of the companies in the same industry are more expensive than NVDA, based on the Price/Free Cash Flow ratio.
• NVDA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• NVDA has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as NVDA's earnings are expected to grow with 43.29% in the coming years.

Health Analysis for NASDAQ:NVDA

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NVDA has achieved a 7 out of 10:

• The Debt to FCF ratio of NVDA is 0.25, which is an excellent value as it means it would take NVDA, only 0.25 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 0.25, NVDA belongs to the best of the industry, outperforming 82.24% of the companies in the same industry.
• A Debt/Equity ratio of 0.17 indicates that NVDA is not too dependend on debt financing.
• NVDA has a Current Ratio of 3.53. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 3.14 indicates that NVDA has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 3.14, NVDA is in the better half of the industry, outperforming 64.49% of the companies in the same industry.

A Closer Look at Profitability for NASDAQ:NVDA

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:NVDA, the assigned 10 is noteworthy for profitability:

• The Return On Assets of NVDA (55.27%) is better than 100.00% of its industry peers.
• NVDA's Return On Equity of 86.68% is amongst the best of the industry. NVDA outperforms 99.07% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 68.12%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• NVDA had an Average Return On Invested Capital over the past 3 years of 31.07%. This is significantly above the industry average of 10.95%.
• The last Return On Invested Capital (68.12%) for NVDA is above the 3 year average (31.07%), which is a sign of increasing profitability.
• The Profit Margin of NVDA (53.40%) is better than 98.13% of its industry peers.
• NVDA's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 60.02%, NVDA belongs to the best of the industry, outperforming 99.07% of the companies in the same industry.
• NVDA's Operating Margin has improved in the last couple of years.
• NVDA has a Gross Margin of 75.43%. This is amongst the best in the industry. NVDA outperforms 94.39% of its industry peers.
• In the last couple of years the Gross Margin of NVDA has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of NVDA for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.