Why Quality-Oriented Investors Should Consider NASDAQ:NVDA.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if NVIDIA CORP (NASDAQ:NVDA) is suited for quality investing. Investors should of course do their own research, but we spotted NVIDIA CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of NVIDIA CORP

• NVIDIA CORP has demonstrated significant revenue growth over the past 5 years, with a 39.06% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a robust ROIC excluding cash and goodwill at 170.0%, NVIDIA CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• NVIDIA CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.18, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a robust Profit Quality (5-year) ratio of 105.0%, NVIDIA CORP highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• NVIDIA CORP has consistently achieved strong EBIT growth over the past 5 years, with a 54.6% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, NVIDIA CORP showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

How does the complete fundamental picture look for NASDAQ:NVDA?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall NVDA gets a fundamental rating of 8 out of 10. We evaluated NVDA against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. NVDA gets an excellent profitability rating and is at the same time showing great financial health properties. NVDA is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make NVDA suitable for growth and quality investing!

For an up to date full fundamental analysis you can check the fundamental report of NVDA

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

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.