Don't overlook NASDAQ:NVDA—a stock with solid growth prospects and a reasonable valuation.

NVIDIA CORP (NASDAQ:NVDA) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:NVDA is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Growth Analysis 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:

• 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.
• The Earnings Per Share has been growing by 50.90% on average over the past years. This is a very strong growth
• The Revenue has grown by 152.44% in the past year. This is a very strong growth!
• 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.
• NVDA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.58% yearly.
• NVDA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 35.57% yearly.

Assessing Valuation for NASDAQ:NVDA

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:NVDA has received a 5 out of 10:

• Based on the Price/Free Cash Flow ratio, NVDA is valued a bit cheaper than 62.62% of the companies in the same industry.
• 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.
• A more expensive valuation may be justified as NVDA's earnings are expected to grow with 62.97% in the coming years.

Looking at the Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:NVDA scores a 8 out of 10:

• NVDA has an Altman-Z score of 70.64. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
• NVDA has a Altman-Z score of 70.64. This is amongst the best in the industry. NVDA outperforms 97.20% 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.
• NVDA's Debt to FCF ratio of 0.15 is amongst the best of the industry. NVDA outperforms 85.05% 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 69.16% of its industry peers.
• A Quick Ratio of 3.64 indicates that NVDA has no problem at all paying its short term obligations.
• NVDA has a better Quick ratio (3.64) than 71.96% of its industry peers.

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 99.07% 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 99.07% of the companies in the same industry.
• The Return On Invested Capital of NVDA (78.60%) is better than 100.00% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for NVDA is significantly above the industry average of 11.67%.
• The 3 year average ROIC (31.07%) for NVDA is below the current ROIC(78.60%), indicating increased profibility in the last year.
• The Profit Margin of NVDA (55.69%) is better than 98.13% of its industry peers.
• NVDA's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 62.71%, NVDA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• NVDA's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 75.86%, NVDA belongs to the top of the industry, outperforming 93.46% 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.

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.