NVIDIA CORP (NVDA)
US67066G1040 - Common Stock
We assign a fundamental rating of 8 out of 10 to NVDA. NVDA was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. NVDA gets an excellent profitability rating and is at the same time showing great financial health properties. NVDA is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, NVDA could be worth investigating further 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.
Each year in the past 5 years NVDA has been profitable.
In the past 5 years NVDA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NVDA (62.20%) is better than 100.00% of its industry peers.
NVDA has a better Return On Equity (91.15%) than 100.00% of its industry peers.
NVDA's Return On Invested Capital of 73.58% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NVDA is significantly above the industry average of 11.05%.
The last Return On Invested Capital (73.58%) for NVDA is above the 3 year average (31.07%), which is a sign of increasing profitability.
| 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
NVDA has a Profit Margin of 55.04%. 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's Operating Margin of 61.87% is amongst the best of the industry. NVDA outperforms 99.07% of its industry peers.
NVDA's Operating Margin has improved in the last couple of years.
The Gross Margin of NVDA (75.98%) is better 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 | 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
NVDA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, NVDA has about the same amount of shares outstanding.
The number of shares outstanding for NVDA has been increased compared to 5 years ago.
NVDA has a better debt/assets ratio than last year.
2.2 Solvency
NVDA has an Altman-Z score of 84.16. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
NVDA has a Altman-Z score of 84.16. This is amongst the best in the industry. NVDA outperforms 98.15% of its industry peers.
NVDA 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 NVDA (0.18) is better than 86.11% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that NVDA is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.15, NVDA perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 84.16 |
ROIC/WACC5.01
WACC14.68%
2.3 Liquidity
A Current Ratio of 4.27 indicates that NVDA has no problem at all paying its short term obligations.
NVDA's Current ratio of 4.27 is fine compared to the rest of the industry. NVDA outperforms 66.67% of its industry peers.
A Quick Ratio of 3.79 indicates that NVDA has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.79, NVDA is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.27 | ||
| Quick Ratio | 3.79 |
3. Growth
3.1 Past
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
NVDA shows a strong growth in Revenue. In the last year, the Revenue has grown by 125.85%.
NVDA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.06% yearly.
EPS 1Y (TTM)201.27%
EPS 3Y73.17%
EPS 5Y50.9%
EPS Q2Q%101.49%
Revenue 1Y (TTM)125.85%
Revenue growth 3Y54.02%
Revenue growth 5Y39.06%
Sales Q2Q%93.61%
3.2 Future
Based on estimates for the next years, NVDA will show a very strong growth in Earnings Per Share. The EPS will grow by 35.09% on average per year.
Based on estimates for the next years, NVDA will show a very strong growth in Revenue. The Revenue will grow by 32.85% on average per year.
EPS Next Y123.65%
EPS Next 2Y78.77%
EPS Next 3Y54.91%
EPS Next 5Y35.09%
Revenue Next Year111.48%
Revenue Next 2Y73.67%
Revenue Next 3Y52.74%
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.
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
NVDA is valuated quite expensively with a Price/Earnings ratio of 55.68.
The rest of the industry has a similar Price/Earnings ratio as NVDA.
NVDA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.68.
The Price/Forward Earnings ratio is 35.20, which means the current valuation is very expensive for NVDA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVDA is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.58. NVDA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.68 | ||
| Fwd PE | 35.2 |
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.
NVDA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.49 | ||
| EV/EBITDA | 57.63 |
4.3 Compensation for Growth
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.
NVDA's earnings are expected to grow with 54.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.45
PEG (5Y)1.09
EPS Next 2Y78.77%
EPS Next 3Y54.91%
5. Dividend
5.1 Amount
NVDA has a yearly dividend return of 0.03%, which is pretty low.
Compared to an average industry Dividend Yield of 2.37, NVDA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.22, 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 Years0
Div Non Decr Years11
5.3 Sustainability
1.02% of the earnings are spent on dividend by NVDA. This is a low number and sustainable payout ratio.
The dividend of NVDA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP1.02%
EPS Next 2Y78.77%
EPS Next 3Y54.91%
NVIDIA CORP
NASDAQ:NVDA (11/20/2024, 8:00:02 PM)
Premarket: 140.48 -5.41 (-3.71%)145.89
-1.12 (-0.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
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Market Cap3578.68B
Analysts
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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 | 55.68 | ||
| Fwd PE | 35.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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OCF(TTM)
OCFY
SpS
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TBVpS
PEG (NY)0.45
PEG (5Y)1.09
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)201.27%
EPS 3Y73.17%
EPS 5Y
EPS Q2Q%
EPS Next Y123.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)125.85%
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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y