Looking for growth without the hefty price tag? Consider NASDAQ:NVDA.

Last update: Jan 29, 2025

Take a closer look at NVIDIA CORP (NASDAQ:NVDA), an affordable growth stock uncovered by our stock screener. NASDAQ:NVDA boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

What does the Growth looks like for NASDAQ:NVDA

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:NVDA has received a 9 out of 10:

The Earnings Per Share has grown by an impressive 201.27% over the past year.
NVDA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.90% yearly.
The Revenue has grown by 152.44% in the past year. This is a very strong growth!
NVDA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.06% yearly.
NVDA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.63% yearly.
Based on estimates for the next years, NVDA will show a very strong growth in Revenue. The Revenue will grow by 35.61% on average per year.

Assessing Valuation for NASDAQ:NVDA

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:NVDA, the assigned 5 reflects its valuation:

Based on the Price/Free Cash Flow ratio, NVDA is valued a bit cheaper than the industry average as 63.89% of the companies are valued more expensively.
NVDA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of NVDA may justify a higher PE ratio.
NVDA's earnings are expected to grow with 62.83% in the coming years. This may justify a more expensive valuation.

Assessing Health Metrics for NASDAQ:NVDA

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:NVDA was assigned a score of 8 for health:

NVDA has an Altman-Z score of 67.99. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
NVDA has a Altman-Z score of 67.99. This is amongst the best in the industry. NVDA outperforms 97.22% of its industry peers.
NVDA has a debt to FCF ratio of 0.15. This is a very positive value and a sign of high solvency as it would only need 0.15 years to pay back of all of its debts.
NVDA has a better Debt to FCF ratio (0.15) than 85.19% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that NVDA is not too dependend on debt financing.
A Current Ratio of 4.10 indicates that NVDA has no problem at all paying its short term obligations.
NVDA's Current ratio of 4.10 is fine compared to the rest of the industry. NVDA outperforms 65.74% of its industry peers.
A Quick Ratio of 3.64 indicates that NVDA has no problem at all paying 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.

How do we evaluate the Profitability for NASDAQ:NVDA?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:NVDA, the assigned 10 is noteworthy for profitability:

With an excellent Return On Assets value of 65.69%, NVDA belongs to the best of the industry, outperforming 99.07% of the companies in the same industry.
NVDA has a better Return On Equity (95.71%) than 100.00% of its industry peers.
NVDA has a better Return On Invested Capital (78.60%) than 100.00% of its industry peers.
NVDA had an Average Return On Invested Capital over the past 3 years of 31.07%. This is significantly above the industry average of 11.92%.
The 3 year average ROIC (31.07%) for NVDA is below the current ROIC(78.60%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 55.69%, NVDA belongs to the top of the industry, outperforming 98.15% of the companies in the same industry.
NVDA's Profit Margin has improved in the last couple of years.
NVDA has a better Operating Margin (62.71%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of NVDA has grown nicely.
With an excellent Gross Margin value of 75.86%, NVDA belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
NVDA's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

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.