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Reasonable Growth, Debt Levels, and a High ROIC Make NVIDIA CORP (NASDAQ:NVDA) Appealing to Quality Investors.

By Mill Chart

Last update: Oct 22, 2024

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.


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Highlighting Notable Quality Metrics of NASDAQ:NVDA.

  • Over the past 5 years, NVIDIA CORP has experienced impressive revenue growth, with 39.06% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a notable ROIC excluding cash and goodwill at 170.0%, NVIDIA CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • NVIDIA CORP maintains a healthy Debt/Free Cash Flow Ratio of 0.18, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • The Profit Quality (5-year) of NVIDIA CORP stands at 105.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • 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.
  • NVIDIA CORP has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental analysis of NASDAQ:NVDA

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall NVDA gets a fundamental rating of 8 out of 10. We evaluated NVDA against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. NVDA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NVDA is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, NVDA could be worth investigating further for growth and quality investing!.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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.

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