Why NVIDIA CORP (NASDAQ:NVDA) qualifies as a quality stock.

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.

Why NASDAQ:NVDA may be interesting for quality investors.

• 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.
• NVIDIA CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 176.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• NVIDIA CORP maintains a healthy Debt/Free Cash Flow Ratio of 0.15, 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.
• NVIDIA CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 105.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• 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 demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

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.

Taking everything into account, NVDA scores 8 out of 10 in our fundamental rating. NVDA was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making NVDA a very profitable company, without any liquidiy or solvency issues. NVDA is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, NVDA could be worth investigating further for growth and quality investing!.

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

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

Disclaimer

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.