Is NVIDIA CORP (NASDAQ:NVDA) a Strong Candidate for Quality Investing?

In this article we will dive into NVIDIA CORP (NASDAQ:NVDA) as a possible candidate for quality investing. Investors should always do their own research, but we noticed NVIDIA CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NASDAQ:NVDA may be interesting 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.
• 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.
• With a favorable Debt/Free Cash Flow Ratio of 0.15, NVIDIA CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• 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.
• The 5-year EBIT growth of NVIDIA CORP has been remarkable, with 54.6% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• 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.

Fundamental Analysis Observations

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall NVDA gets a fundamental rating of 8 out of 10. We evaluated NVDA against 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!.

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

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

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.