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

NVIDIA CORP (NASDAQ:NVDA) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:NVDA is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

A Closer Look at Growth for NASDAQ:NVDA

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:NVDA boasts 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.
• The Earnings Per Share has been growing by 50.90% on average over the past years. This is a very strong growth
• The Revenue has grown by 208.27% in the past year. This is a very strong growth!
• The Revenue has been growing by 39.06% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, NVDA will show a very strong growth in Earnings Per Share. The EPS will grow by 35.09% 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 32.85% on average per year.

ChartMill's Evaluation of Valuation

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:

• 62.39% 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.
• 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 48.10% in the coming years.

Understanding NASDAQ:NVDA's Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:NVDA has earned a 8 out of 10:

• NVDA has an Altman-Z score of 63.31. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
• NVDA has a Altman-Z score of 63.31. This is amongst the best in the industry. NVDA outperforms 97.25% 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.
• Looking at the Debt to FCF ratio, with a value of 0.25, NVDA belongs to the top of the industry, outperforming 83.49% of the companies in the same industry.
• NVDA has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 3.53 indicates that NVDA has no problem at all paying 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 63.30% of its industry peers.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:NVDA has earned a 10 out of 10:

• NVDA has a better Return On Assets (55.27%) than 100.00% of its industry peers.
• The Return On Equity of NVDA (86.68%) is better than 100.00% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 67.93%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for NVDA is significantly above the industry average of 10.76%.
• The 3 year average ROIC (31.07%) for NVDA is below the current ROIC(67.93%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 53.40%, NVDA belongs to the best of the industry, outperforming 98.17% of the companies in the same industry.
• NVDA's Profit Margin has improved in the last couple of years.
• NVDA has a better Operating Margin (59.84%) than 99.08% of its industry peers.
• In the last couple of years the Operating Margin of NVDA has grown nicely.
• NVDA's Gross Margin of 75.29% is amongst the best of the industry. NVDA outperforms 94.50% of its industry peers.
• In the last couple of years the Gross Margin of NVDA has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.