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Why quality investors should have a look at NVIDIA CORP (NASDAQ:NVDA).

By Mill Chart

Last update: Jan 16, 2025

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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Key Considerations for Quality Investors.

  • 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 notable ROIC excluding cash and goodwill at 176.0%, 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 demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.15, 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.
  • 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 demonstrated consistent growth in EBIT over the past 5 years, with a strong 54.6%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • 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?

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Taking everything into account, NVDA scores 8 out of 10 in our fundamental rating. NVDA was compared to 109 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 priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make NVDA suitable for growth and quality investing!

Check the latest full fundamental report of NVDA for a complete fundamental analysis.

More quality stocks can be found 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.

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