NVIDIA CORP (NVD.DE)
US67066G1040 - Common Stock
NVD gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 57 industry peers in the Semiconductors & Semiconductor Equipment industry. NVD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NVD is valued quite expensively, but it does show have an excellent growth rating. These ratings could make NVD a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year NVD was profitable.
NVD had a positive operating cash flow in the past year.
NVD had positive earnings in each of the past 5 years.
Each year in the past 5 years NVD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NVD (62.20%) is better than 100.00% of its industry peers.
The Return On Equity of NVD (91.15%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 73.58%, NVD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NVD had an Average Return On Invested Capital over the past 3 years of 31.07%. This is significantly above the industry average of 16.58%.
The 3 year average ROIC (31.07%) for NVD is below the current ROIC(73.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 62.2% | ||
| ROE | 91.15% | ||
| ROIC | 73.58% |
ROA(3y)25.98%
ROA(5y)21.83%
ROE(3y)41.88%
ROE(5y)34.84%
ROIC(3y)31.07%
ROIC(5y)25.18%
1.3 Margins
NVD has a better Profit Margin (55.04%) than 100.00% of its industry peers.
NVD's Profit Margin has improved in the last couple of years.
NVD has a better Operating Margin (61.87%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of NVD has grown nicely.
NVD has a better Gross Margin (75.98%) than 96.49% of its industry peers.
NVD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.87% | ||
| PM (TTM) | 55.04% | ||
| GM | 75.98% |
OM growth 3Y25.23%
OM growth 5Y11.18%
PM growth 3Y23.43%
PM growth 5Y6.69%
GM growth 3Y5.34%
GM growth 5Y3.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NVD is creating value.
The number of shares outstanding for NVD remains at a similar level compared to 1 year ago.
NVD has more shares outstanding than it did 5 years ago.
NVD has a better debt/assets ratio than last year.
2.2 Solvency
NVD has an Altman-Z score of 81.01. This indicates that NVD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 81.01, NVD belongs to the top of the industry, outperforming 98.25% of the companies in the same industry.
NVD has a debt to FCF ratio of 0.18. This is a very positive value and a sign of high solvency as it would only need 0.18 years to pay back of all of its debts.
The Debt to FCF ratio of NVD (0.18) is better than 96.49% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that NVD is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.15, NVD is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 81.01 |
ROIC/WACC5.59
WACC13.17%
2.3 Liquidity
NVD has a Current Ratio of 4.27. This indicates that NVD is financially healthy and has no problem in meeting its short term obligations.
NVD has a Current ratio of 4.27. This is amongst the best in the industry. NVD outperforms 89.47% of its industry peers.
NVD has a Quick Ratio of 3.79. This indicates that NVD is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of NVD (3.79) is better than 96.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.27 | ||
| Quick Ratio | 3.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 320.95% over the past year.
Measured over the past years, NVD shows a very strong growth in Earnings Per Share. The EPS has been growing by 50.90% on average per year.
NVD shows a strong growth in Revenue. In the last year, the Revenue has grown by 194.69%.
NVD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.06% yearly.
EPS 1Y (TTM)320.95%
EPS 3Y73.17%
EPS 5Y50.9%
EPS Q2Q%151.85%
Revenue 1Y (TTM)194.69%
Revenue growth 3Y54.02%
Revenue growth 5Y39.06%
Sales Q2Q%122.4%
3.2 Future
Based on estimates for the next years, NVD will show a very strong growth in Earnings Per Share. The EPS will grow by 35.09% on average per year.
NVD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 32.85% yearly.
EPS Next Y123.01%
EPS Next 2Y77.72%
EPS Next 3Y54.7%
EPS Next 5Y35.09%
Revenue Next Year111.2%
Revenue Next 2Y73.2%
Revenue Next 3Y52.65%
Revenue Next 5Y32.85%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 62.89, which means the current valuation is very expensive for NVD.
Based on the Price/Earnings ratio, NVD is valued more expensive than 80.70% of the companies in the same industry.
When comparing the Price/Earnings ratio of NVD to the average of the S&P500 Index (31.77), we can say NVD is valued expensively.
NVD is valuated quite expensively with a Price/Forward Earnings ratio of 33.86.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVD indicates a rather expensive valuation: NVD more expensive than 84.21% of the companies listed in the same industry.
NVD is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.89 | ||
| Fwd PE | 33.86 |
4.2 Price Multiples
NVD's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NVD is more expensive than 77.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.73 | ||
| EV/EBITDA | 55.31 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NVD has an outstanding profitability rating, which may justify a higher PE ratio.
NVD's earnings are expected to grow with 54.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)1.24
EPS Next 2Y77.72%
EPS Next 3Y54.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.03%, NVD is not a good candidate for dividend investing.
NVD's Dividend Yield is slightly below the industry average, which is at 1.31.
With a Dividend Yield of 0.03, NVD pays less dividend than the S&P500 average, which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
5.2 History
The dividend of NVD has a limited annual growth rate of 0.90%.
Dividend Growth(5Y)0.9%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
1.02% of the earnings are spent on dividend by NVD. This is a low number and sustainable payout ratio.
The dividend of NVD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP1.02%
EPS Next 2Y77.72%
EPS Next 3Y54.7%
NVIDIA CORP
FRA:NVD (10/18/2024, 10:37:30 AM)
127.66
-1.28 (-0.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Market Cap3131.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.89 | ||
| Fwd PE | 33.86 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
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OCF(TTM)
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SpS
BVpS
TBVpS
PEG (NY)0.51
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 62.2% | ||
| ROE | 91.15% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 61.87% | ||
| PM (TTM) | 55.04% | ||
| GM | 75.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.27 | ||
| Quick Ratio | 3.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)320.95%
EPS 3Y73.17%
EPS 5Y
EPS Q2Q%
EPS Next Y123.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)194.69%
Revenue growth 3Y54.02%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
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