Investors should take note of NASDAQ:NVDA, a growth stock that remains attractively priced.

Last update: Jul 9, 2024

Uncover the potential of NVIDIA CORP (NASDAQ:NVDA), a growth stock that our stock screener found to be reasonably priced. NASDAQ:NVDA is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Evaluating Growth: NASDAQ:NVDA

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:NVDA scores 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.
NVDA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.90% yearly.
The Revenue has grown by 208.27% in the past year. This is a very strong growth!
NVDA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.06% yearly.
NVDA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.09% yearly.
The Revenue is expected to grow by 32.85% on average over the next years. This is a very strong growth

Analyzing Valuation Metrics

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:NVDA was assigned a score of 5 for valuation:

Based on the Price/Free Cash Flow ratio, NVDA is valued a bit cheaper than the industry average as 62.62% of the companies are valued more expensively.
The 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.
NVDA's earnings are expected to grow with 48.10% in the coming years. This may justify a more expensive valuation.

Unpacking NASDAQ:NVDA's Health Rating

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:

NVDA has an Altman-Z score of 72.09. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 72.09, NVDA belongs to the best of the industry, outperforming 96.26% of the companies in the same industry.
NVDA has a debt to FCF ratio of 0.25. This is a very positive value and a sign of high solvency as it would only need 0.25 years to pay back of all of its debts.
NVDA has a Debt to FCF ratio of 0.25. This is amongst the best in the industry. NVDA outperforms 83.18% of its industry peers.
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.
NVDA has a Quick ratio of 3.14. This is in the better half of the industry: NVDA outperforms 60.75% of its industry peers.

Profitability Examination for NASDAQ:NVDA

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:NVDA scores a 10 out of 10:

The Return On Assets of NVDA (55.27%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 86.68%, NVDA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of NVDA (67.93%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NVDA is significantly above the industry average of 10.82%.
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.
Looking at the Profit Margin, with a value of 53.40%, NVDA belongs to the top of the industry, outperforming 98.13% of the companies in the same industry.
In the last couple of years the Profit Margin of NVDA has grown nicely.
With an excellent Operating Margin value of 59.84%, NVDA belongs to the best of the industry, outperforming 99.07% of the companies in the same industry.
In the last couple of years the Operating Margin of NVDA has grown nicely.
The Gross Margin of NVDA (75.29%) is better than 94.39% of its industry peers.
In the last couple of years the Gross Margin of NVDA has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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.