NVIDIA CORP (NVDA)
US67066G1040 - Common Stock
Taking everything into account, NVDA scores 8 out of 10 in our fundamental rating. NVDA was compared to 108 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make NVDA suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year NVDA was profitable.
In the past year NVDA had a positive cash flow from operations.
NVDA had positive earnings in each of the past 5 years.
NVDA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NVDA has a Return On Assets of 65.69%. This is amongst the best in the industry. NVDA outperforms 100.00% of its industry peers.
NVDA's Return On Equity of 95.71% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 78.60%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NVDA is significantly above the industry average of 11.24%.
The last Return On Invested Capital (78.60%) for NVDA is above the 3 year average (31.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 65.69% | ||
| ROE | 95.71% | ||
| ROIC | 78.6% |
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
NVDA has a Profit Margin of 55.69%. This is amongst the best in the industry. NVDA outperforms 98.15% of its industry peers.
NVDA's Profit Margin has improved in the last couple of years.
NVDA has a better Operating Margin (62.71%) than 99.07% of its industry peers.
NVDA's Operating Margin has improved in the last couple of years.
NVDA has a better Gross Margin (75.86%) than 94.44% of its industry peers.
In the last couple of years the Gross Margin of NVDA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 62.71% | ||
| PM (TTM) | 55.69% | ||
| GM | 75.86% |
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 NVDA is creating value.
Compared to 1 year ago, NVDA has about the same amount of shares outstanding.
NVDA has more 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
An Altman-Z score of 68.81 indicates that NVDA is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 68.81, NVDA belongs to the best of the industry, outperforming 97.22% of the companies in the same industry.
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.
The Debt to FCF ratio of NVDA (0.15) is better than 85.19% of its industry peers.
NVDA has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.13, NVDA is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 68.81 |
ROIC/WACC5.06
WACC15.52%
2.3 Liquidity
NVDA has a Current Ratio of 4.10. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
NVDA has a better Current ratio (4.10) than 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.
NVDA's Quick ratio of 3.64 is fine compared to the rest of the industry. NVDA outperforms 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.1 | ||
| Quick Ratio | 3.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 201.27% over the past year.
Measured over the past years, NVDA shows a very strong growth in Earnings Per Share. The EPS has been growing by 50.90% on average per year.
NVDA shows a strong growth in Revenue. In the last year, the Revenue has grown by 152.44%.
The Revenue has been growing by 39.06% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)201.27%
EPS 3Y73.17%
EPS 5Y50.9%
EPS Q2Q%101.49%
Revenue 1Y (TTM)152.44%
Revenue growth 3Y54.02%
Revenue growth 5Y39.06%
Sales Q2Q%93.61%
3.2 Future
The Earnings Per Share is expected to grow by 35.63% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 35.61% on average over the next years. This is a very strong growth
EPS Next Y131.1%
EPS Next 2Y85.49%
EPS Next 3Y63.71%
EPS Next 5Y35.63%
Revenue Next Year116.54%
Revenue Next 2Y80%
Revenue Next 3Y58.32%
Revenue Next 5Y35.61%
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 Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 51.41, which means the current valuation is very expensive for NVDA.
NVDA's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.73. NVDA is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 30.18, the valuation of NVDA can be described as expensive.
NVDA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.83. NVDA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.41 | ||
| Fwd PE | 30.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NVDA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, NVDA is valued a bit cheaper than the industry average as 64.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.34 | ||
| EV/EBITDA | 43.18 |
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.
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 63.71% in the coming years.
PEG (NY)0.39
PEG (5Y)1.01
EPS Next 2Y85.49%
EPS Next 3Y63.71%
5. Dividend
5.1 Amount
With a yearly dividend of 0.03%, NVDA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.21, NVDA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.24, NVDA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
5.2 History
The dividend of NVDA has a limited annual growth rate of 0.90%.
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)0.9%
Div Incr Years1
Div Non Decr Years12
5.3 Sustainability
NVDA pays out 1.09% of its income as dividend. This is a sustainable payout ratio.
The dividend of NVDA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP1.09%
EPS Next 2Y85.49%
EPS Next 3Y63.71%
NVIDIA CORP
NASDAQ:NVDA (12/20/2024, 8:00:01 PM)
After market: 135.24 +0.54 (+0.4%)134.7
+4.02 (+3.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners63.99%
Inst Owner Change0.04%
Ins Owners0.39%
Ins Owner Change-7.39%
Market Cap3298.80B
Analysts84.57
Price Target171.9 (27.62%)
Short Float %1.13%
Short Ratio1.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
Dividend Growth(5Y)0.9%
DP1.09%
Div Incr Years1
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.2%
Min EPS beat(2)3.95%
Max EPS beat(2)6.45%
EPS beat(4)4
Avg EPS beat(4)6.73%
Min EPS beat(4)3.95%
Max EPS beat(4)9.14%
EPS beat(8)8
Avg EPS beat(8)11.69%
EPS beat(12)10
Avg EPS beat(12)2.02%
EPS beat(16)14
Avg EPS beat(16)2.86%
Revenue beat(2)2
Avg Revenue beat(2)3.17%
Min Revenue beat(2)2.62%
Max Revenue beat(2)3.72%
Revenue beat(4)4
Avg Revenue beat(4)3.76%
Min Revenue beat(4)2.62%
Max Revenue beat(4)5.1%
Revenue beat(8)7
Avg Revenue beat(8)6.21%
Revenue beat(12)10
Avg Revenue beat(12)2.72%
Revenue beat(16)14
Avg Revenue beat(16)2.49%
PT rev (1m)13.08%
PT rev (3m)22.31%
EPS NQ rev (1m)9.91%
EPS NQ rev (3m)9.91%
EPS NY rev (1m)3.33%
EPS NY rev (3m)3.57%
Revenue NQ rev (1m)10.78%
Revenue NQ rev (3m)10.78%
Revenue NY rev (1m)2.39%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.41 | ||
| Fwd PE | 30.18 | ||
| P/S | 29.12 | ||
| P/FCF | 58.34 | ||
| P/OCF | 55.95 | ||
| P/B | 50.06 | ||
| P/tB | 54.67 | ||
| EV/EBITDA | 43.18 |
EPS(TTM)2.62
EY1.95%
EPS(NY)4.46
Fwd EY3.31%
FCF(TTM)2.31
FCFY1.71%
OCF(TTM)2.41
OCFY1.79%
SpS4.63
BVpS2.69
TBVpS2.46
PEG (NY)0.39
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 65.69% | ||
| ROE | 95.71% | ||
| ROCE | 89.31% | ||
| ROIC | 78.6% | ||
| ROICexc | 152.29% | ||
| ROICexgc | 176.16% | ||
| OM | 62.71% | ||
| PM (TTM) | 55.69% | ||
| GM | 75.86% | ||
| FCFM | 49.92% |
ROA(3y)25.98%
ROA(5y)21.83%
ROE(3y)41.88%
ROE(5y)34.84%
ROIC(3y)31.07%
ROIC(5y)25.18%
ROICexc(3y)59.29%
ROICexc(5y)52.58%
ROICexgc(3y)80.08%
ROICexgc(5y)73.6%
ROCE(3y)35.3%
ROCE(5y)28.61%
ROICexcg growth 3Y24.73%
ROICexcg growth 5Y7.76%
ROICexc growth 3Y48.57%
ROICexc growth 5Y6.62%
OM growth 3Y25.23%
OM growth 5Y11.18%
PM growth 3Y23.43%
PM growth 5Y6.69%
GM growth 3Y5.34%
GM growth 5Y3.8%
F-Score8
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.15 | ||
| Debt/EBITDA | 0.12 | ||
| Cap/Depr | 141.28% | ||
| Cap/Sales | 2.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.05% | ||
| Profit Quality | 89.65% | ||
| Current Ratio | 4.1 | ||
| Quick Ratio | 3.64 | ||
| Altman-Z | 68.81 |
F-Score8
WACC15.52%
ROIC/WACC5.06
Cap/Depr(3y)90.91%
Cap/Depr(5y)100.76%
Cap/Sales(3y)4.06%
Cap/Sales(5y)4.68%
Profit Quality(3y)87.12%
Profit Quality(5y)104.5%
High Growth Momentum
Growth
EPS 1Y (TTM)201.27%
EPS 3Y73.17%
EPS 5Y50.9%
EPS Q2Q%101.49%
EPS Next Y131.1%
EPS Next 2Y85.49%
EPS Next 3Y63.71%
EPS Next 5Y35.63%
Revenue 1Y (TTM)152.44%
Revenue growth 3Y54.02%
Revenue growth 5Y39.06%
Sales Q2Q%93.61%
Revenue Next Year116.54%
Revenue Next 2Y80%
Revenue Next 3Y58.32%
Revenue Next 5Y35.61%
EBIT growth 1Y244.61%
EBIT growth 3Y92.88%
EBIT growth 5Y54.6%
EBIT Next Year138.84%
EBIT Next 3Y66.86%
EBIT Next 5Y38.69%
FCF growth 1Y1070.97%
FCF growth 3Y79.22%
FCF growth 5Y53.77%
OCF growth 1Y817.51%
OCF growth 3Y68.98%
OCF growth 5Y49.65%