NASDAQ:NVDA is showing decent growth, but is still valued reasonably.

Last update: Jun 18, 2024

Take a closer look at NVIDIA CORP (NASDAQ:NVDA), an affordable growth stock uncovered by our stock screener. NASDAQ:NVDA boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Understanding NASDAQ:NVDA's Growth Score

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:NVDA, the assigned 10 reflects its growth potential:

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.
The Earnings Per Share has been growing by 50.90% on average over the past years. This is a very strong growth
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.
Based on estimates for the next years, NVDA will show a very strong growth in Earnings Per Share. The EPS will grow by 103.75% on average per year.
Based on estimates for the next years, NVDA will show a very strong growth in Revenue. The Revenue will grow by 27.79% on average per year.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Evaluating Valuation: NASDAQ:NVDA

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:NVDA scores a 5 out of 10:

61.11% of the companies in the same industry are more expensive than NVDA, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of NVDA may justify a higher PE ratio.
A more expensive valuation may be justified as NVDA's earnings are expected to grow with 48.93% in the coming years.

Understanding NASDAQ:NVDA's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:NVDA was assigned a score of 8 for health:

An Altman-Z score of 73.56 indicates that NVDA is not in any danger for bankruptcy at the moment.
NVDA has a Altman-Z score of 73.56. This is amongst the best in the industry. NVDA outperforms 97.22% of its industry peers.
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 83.33% 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.
NVDA has a Quick Ratio of 3.14. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
NVDA has a Quick ratio of 3.14. This is in the better half of the industry: NVDA outperforms 62.04% of its industry peers.

Understanding NASDAQ:NVDA's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:NVDA, the assigned 10 is a significant indicator of profitability:

NVDA's Return On Assets of 55.27% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
The Return On Equity of NVDA (86.68%) is better than 100.00% of its industry peers.
NVDA has a Return On Invested Capital of 67.93%. This is amongst the best in the industry. NVDA outperforms 100.00% of its industry peers.
NVDA had an Average Return On Invested Capital over the past 3 years of 31.07%. This is significantly above the industry average of 10.84%.
The last Return On Invested Capital (67.93%) for NVDA is above the 3 year average (31.07%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 53.40%, NVDA belongs to the best of the industry, outperforming 98.15% of the companies in the same industry.
In the last couple of years the Profit Margin of NVDA has grown nicely.
NVDA has a Operating Margin of 59.84%. This is amongst the best in the industry. NVDA outperforms 99.07% of its industry peers.
NVDA's Operating Margin has improved in the last couple of years.
The Gross Margin of NVDA (75.29%) is better than 94.44% of its industry peers.
NVDA's Gross Margin has improved in the last couple of years.

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Our latest full fundamental report of NVDA contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.