NASDAQ:NVDA, a growth stock which is not overvalued.

Last update: Nov 26, 2024

Discover NVIDIA CORP (NASDAQ:NVDA), an undervalued growth gem identified by our stock screener. NASDAQ:NVDA is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Deciphering NASDAQ:NVDA's Growth Rating

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 201.27%, which is quite impressive.
Measured over the past years, NVDA shows a very strong growth in Earnings Per Share. The EPS has been growing by 50.90% on average per year.
NVDA shows a strong growth in Revenue. In the last year, the Revenue has grown by 152.44%.
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 35.09% on average per year.
The Revenue is expected to grow by 32.85% on average over the next years. This is a very strong growth

A Closer Look at Valuation for 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:

Based on the Price/Free Cash Flow ratio, NVDA is valued a bit cheaper than 64.81% of the companies in the same industry.
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.
A more expensive valuation may be justified as NVDA's earnings are expected to grow with 61.91% in the coming years.

Understanding NASDAQ:NVDA's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NVDA has achieved a 8 out of 10:

NVDA has an Altman-Z score of 71.53. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
NVDA has a Altman-Z score of 71.53. This is amongst the best in the industry. NVDA outperforms 98.15% of its industry peers.
The Debt to FCF ratio of NVDA is 0.15, which is an excellent value as it means it would take NVDA, only 0.15 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.15, NVDA belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
NVDA has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 4.10 indicates that NVDA has no problem at all paying its short term obligations.
NVDA has a better Current ratio (4.10) than 64.81% of its industry peers.
NVDA has a Quick Ratio of 3.64. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.64, NVDA is in the better half of the industry, outperforming 69.44% of the companies in the same industry.

Evaluating Profitability: NASDAQ:NVDA

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:NVDA has achieved a 10:

NVDA has a better Return On Assets (65.69%) than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 95.71%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 78.60%, NVDA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NVDA had an Average Return On Invested Capital over the past 3 years of 31.07%. This is significantly above the industry average of 11.20%.
The last Return On Invested Capital (78.60%) for NVDA is above the 3 year average (31.07%), which is a sign of increasing profitability.
NVDA has a Profit Margin of 55.69%. This is amongst the best in the industry. NVDA outperforms 98.15% of its industry peers.
NVDA's Profit Margin has improved in the last couple of years.
NVDA's Operating Margin of 62.71% is amongst the best of the industry. NVDA outperforms 99.07% of its industry peers.
In the last couple of years the Operating Margin of NVDA has grown nicely.
Looking at the Gross Margin, with a value of 75.86%, NVDA belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
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.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.