NVIDIA CORP (NVDA) Stock Fundamental Analysis
USA - NASDAQ:NVDA - US67066G1040 - Common Stock
186.6 USD
-3.57 (-1.88%)
185.33 USD
-1.27 (-0.68%)
Overall NVDA gets a fundamental rating of 8 out of 10. We evaluated NVDA against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. NVDA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NVDA is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make NVDA suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
NVDA had positive earnings in the past year.
NVDA had a positive operating cash flow in the past year.
In the past 5 years NVDA has always been profitable.
Each year in the past 5 years NVDA had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 61.53%, NVDA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of NVDA (86.48%) is better than 98.21% of its industry peers.
NVDA has a Return On Invested Capital of 72.42%. This is amongst the best in the industry. NVDA outperforms 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 10.86%.
The last Return On Invested Capital (72.42%) for NVDA is above the 3 year average (48.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 61.53% | ||
| ROE | 86.48% | ||
| ROIC | 72.42% |
ROA(3y)40.4%
ROA(5y)31.66%
ROE(3y)60.29%
ROE(5y)48.63%
ROIC(3y)48.58%
ROIC(5y)37.12%
1.3 Margins
NVDA has a better Profit Margin (52.41%) than 97.32% of its industry peers.
In the last couple of years the Profit Margin of NVDA has grown nicely.
NVDA has a better Operating Margin (58.44%) than 99.11% of its industry peers.
NVDA's Operating Margin has improved in the last couple of years.
NVDA has a better Gross Margin (70.20%) than 93.75% of its industry peers.
In the last couple of years the Gross Margin of NVDA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.44% | ||
| PM (TTM) | 52.41% | ||
| GM | 70.2% |
OM growth 3Y16.56%
OM growth 5Y19.26%
PM growth 3Y15.51%
PM growth 5Y16.88%
GM growth 3Y3.87%
GM growth 5Y4.01%
2. Health
2.1 Basic Checks
NVDA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
NVDA has less shares outstanding than it did 1 year ago.
NVDA has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for NVDA has been reduced compared to a year ago.
2.2 Solvency
NVDA has an Altman-Z score of 73.26. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 73.26, NVDA belongs to the top of the industry, outperforming 97.32% of the companies in the same industry.
The Debt to FCF ratio of NVDA is 0.12, which is an excellent value as it means it would take NVDA, only 0.12 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.12, NVDA belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
NVDA has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.08, NVDA perfoms like the industry average, outperforming 58.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 73.26 |
ROIC/WACC6.77
WACC10.7%
2.3 Liquidity
A Current Ratio of 4.21 indicates that NVDA has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.21, NVDA is doing good in the industry, outperforming 64.29% of the companies in the same industry.
NVDA has a Quick Ratio of 3.60. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of NVDA (3.60) is better than 69.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.21 | ||
| Quick Ratio | 3.6 |
3. Growth
3.1 Past
NVDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.87%, which is quite impressive.
The Earnings Per Share has been growing by 83.26% on average over the past years. This is a very strong growth
NVDA shows a strong growth in Revenue. In the last year, the Revenue has grown by 71.55%.
Measured over the past years, NVDA shows a very strong growth in Revenue. The Revenue has been growing by 64.24% on average per year.
EPS 1Y (TTM)67.87%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%54.41%
Revenue 1Y (TTM)71.55%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%55.6%
3.2 Future
The Earnings Per Share is expected to grow by 27.95% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 26.60% on average over the next years. This is a very strong growth
EPS Next Y54.01%
EPS Next 2Y50.01%
EPS Next 3Y41.76%
EPS Next 5Y27.95%
Revenue Next Year59.92%
Revenue Next 2Y48.01%
Revenue Next 3Y39.62%
Revenue Next 5Y26.6%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 50.30, NVDA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of NVDA is on the same level as its industry peers.
NVDA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.56.
With a Price/Forward Earnings ratio of 27.71, NVDA can be considered very expensive at the moment.
NVDA's Price/Forward Earnings ratio is in line with the industry average.
NVDA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.3 | ||
| Fwd PE | 27.71 |
4.2 Price Multiples
NVDA's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as NVDA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.96 | ||
| EV/EBITDA | 45.8 |
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.
NVDA has an outstanding profitability rating, which may justify a higher PE ratio.
NVDA's earnings are expected to grow with 41.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)0.6
EPS Next 2Y50.01%
EPS Next 3Y41.76%
5. Dividend
5.1 Amount
NVDA has a yearly dividend return of 0.02%, which is pretty low.
NVDA's Dividend Yield is a higher than the industry average which is at 2.22.
With a Dividend Yield of 0.02, NVDA pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
5.2 History
On average, the dividend of NVDA grows each year by 16.27%, which is quite nice.
NVDA has been paying a dividend for at least 10 years, so it has a reliable track record.
NVDA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)16.27%
Div Incr Years1
Div Non Decr Years12
5.3 Sustainability
NVDA pays out 1.13% of its income as dividend. This is a sustainable payout ratio.
NVDA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP1.13%
EPS Next 2Y50.01%
EPS Next 3Y41.76%
186.6
-3.57 (-1.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners68.83%
Inst Owner Change0.27%
Ins Owners4.18%
Ins Owner Change-7.45%
Market Cap4.53T
Revenue(TTM)165.22B
Net Income(TTM)86.60B
Analysts83.66
Price Target225.37 (20.78%)
Short Float %0.91%
Short Ratio1.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
Yearly Dividend0.03
Dividend Growth(5Y)16.27%
DP1.13%
Div Incr Years1
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.48%
Min EPS beat(2)0.83%
Max EPS beat(2)2.13%
EPS beat(4)4
Avg EPS beat(4)3.21%
Min EPS beat(4)0.83%
Max EPS beat(4)6.45%
EPS beat(8)8
Avg EPS beat(8)6.27%
EPS beat(12)11
Avg EPS beat(12)6.82%
EPS beat(16)14
Avg EPS beat(16)2.14%
Revenue beat(2)0
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)-0.25%
Revenue beat(4)2
Avg Revenue beat(4)1.08%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)3.72%
Revenue beat(8)6
Avg Revenue beat(8)3.18%
Revenue beat(12)9
Avg Revenue beat(12)4.25%
Revenue beat(16)12
Avg Revenue beat(16)2.21%
PT rev (1m)3.06%
PT rev (3m)19.47%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)4.97%
EPS NY rev (1m)0.55%
EPS NY rev (3m)4.66%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)4.22%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.3 | ||
| Fwd PE | 27.71 | ||
| P/S | 27.44 | ||
| P/FCF | 62.96 | ||
| P/OCF | 58.86 | ||
| P/B | 45.28 | ||
| P/tB | 48.43 | ||
| EV/EBITDA | 45.8 |
EPS(TTM)3.71
EY1.99%
EPS(NY)6.73
Fwd EY3.61%
FCF(TTM)2.96
FCFY1.59%
OCF(TTM)3.17
OCFY1.7%
SpS6.8
BVpS4.12
TBVpS3.85
PEG (NY)0.93
PEG (5Y)0.6
Graham Number18.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 61.53% | ||
| ROE | 86.48% | ||
| ROCE | 82.89% | ||
| ROIC | 72.42% | ||
| ROICexc | 141.33% | ||
| ROICexgc | 158.63% | ||
| OM | 58.44% | ||
| PM (TTM) | 52.41% | ||
| GM | 70.2% | ||
| FCFM | 43.59% |
ROA(3y)40.4%
ROA(5y)31.66%
ROE(3y)60.29%
ROE(5y)48.63%
ROIC(3y)48.58%
ROIC(5y)37.12%
ROICexc(3y)89.64%
ROICexc(5y)69.95%
ROICexgc(3y)107.35%
ROICexgc(5y)92.86%
ROCE(3y)55.6%
ROCE(5y)42.49%
ROICexgc growth 3Y27.44%
ROICexgc growth 5Y20.86%
ROICexc growth 3Y41.67%
ROICexc growth 5Y21.56%
OM growth 3Y16.56%
OM growth 5Y19.26%
PM growth 3Y15.51%
PM growth 5Y16.88%
GM growth 3Y3.87%
GM growth 5Y4.01%
F-Score5
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.12 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 217.82% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.92% | ||
| Profit Quality | 83.17% | ||
| Current Ratio | 4.21 | ||
| Quick Ratio | 3.6 | ||
| Altman-Z | 73.26 |
F-Score5
WACC10.7%
ROIC/WACC6.77
Cap/Depr(3y)121.07%
Cap/Depr(5y)109.82%
Cap/Sales(3y)3.68%
Cap/Sales(5y)4.28%
Profit Quality(3y)87.16%
Profit Quality(5y)90.64%
High Growth Momentum
Growth
EPS 1Y (TTM)67.87%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%54.41%
EPS Next Y54.01%
EPS Next 2Y50.01%
EPS Next 3Y41.76%
EPS Next 5Y27.95%
Revenue 1Y (TTM)71.55%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%55.6%
Revenue Next Year59.92%
Revenue Next 2Y48.01%
Revenue Next 3Y39.62%
Revenue Next 5Y26.6%
EBIT growth 1Y60.48%
EBIT growth 3Y97.28%
EBIT growth 5Y95.87%
EBIT Next Year51.96%
EBIT Next 3Y35.51%
EBIT Next 5Y31.99%
FCF growth 1Y597.69%
FCF growth 3Y95.6%
FCF growth 5Y70.11%
OCF growth 1Y547.41%
OCF growth 3Y91.63%
OCF growth 5Y68.2%
NVIDIA CORP / NVDA FAQ
What is the fundamental rating for NVDA stock?
ChartMill assigns a fundamental rating of 8 / 10 to NVDA.
Can you provide the valuation status for NVIDIA CORP?
ChartMill assigns a valuation rating of 4 / 10 to NVIDIA CORP (NVDA). This can be considered as Fairly Valued.
What is the profitability of NVDA stock?
NVIDIA CORP (NVDA) has a profitability rating of 10 / 10.
What is the financial health of NVIDIA CORP (NVDA) stock?
The financial health rating of NVIDIA CORP (NVDA) is 9 / 10.
What is the expected EPS growth for NVIDIA CORP (NVDA) stock?
The Earnings per Share (EPS) of NVIDIA CORP (NVDA) is expected to grow by 54.01% in the next year.