NVIDIA CORP (NVDA) Stock Fundamental Analysis
USA - NASDAQ:NVDA - US67066G1040 - Common Stock
190.17 USD
+3.31 (+1.77%)
191.06 USD
+0.89 (+0.47%)
We assign a fundamental rating of 8 out of 10 to NVDA. NVDA was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. NVDA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NVDA is growing strongly while it is still valued neutral. This is a good combination! This makes NVDA very considerable 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.
NVDA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NVDA's Return On Assets of 61.53% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
NVDA has a better Return On Equity (86.48%) than 98.21% of its industry peers.
NVDA's Return On Invested Capital of 72.42% is amongst the best of 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 3 year average ROIC (48.58%) for NVDA is below the current ROIC(72.42%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 52.41%, NVDA belongs to the best of the industry, outperforming 97.32% of the companies in the same industry.
In the last couple of years the Profit Margin of NVDA has grown nicely.
NVDA has a Operating Margin of 58.44%. This is amongst the best in the industry. NVDA outperforms 99.11% of its industry peers.
In the last couple of years the Operating Margin of NVDA has grown nicely.
Looking at the Gross Margin, with a value of 70.20%, NVDA belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
NVDA's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NVDA is creating value.
The number of shares outstanding for NVDA has been reduced compared to 1 year ago.
Compared to 5 years ago, NVDA has about the same amount of shares outstanding.
Compared to 1 year ago, NVDA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 73.26 indicates that NVDA is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 73.26, NVDA belongs to the best of the industry, outperforming 97.32% of the companies in the same industry.
NVDA has a debt to FCF ratio of 0.12. This is a very positive value and a sign of high solvency as it would only need 0.12 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.12, NVDA belongs to the top of the industry, outperforming 83.93% of the companies in the same industry.
A Debt/Equity ratio of 0.08 indicates that NVDA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.08, NVDA is in line with its industry, 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.
NVDA has a better Current ratio (4.21) than 64.29% of its industry peers.
A Quick Ratio of 3.60 indicates that NVDA has no problem at all paying its short term obligations.
NVDA has a better Quick ratio (3.60) than 69.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.21 | ||
| Quick Ratio | 3.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 67.87% 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 83.26% on average per year.
Looking at the last year, NVDA shows a very strong growth in Revenue. The Revenue has grown by 71.55%.
The Revenue has been growing by 64.24% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, NVDA will show a very strong growth in Revenue. The Revenue will grow by 26.60% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 51.26, which means the current valuation is very expensive for NVDA.
NVDA's Price/Earnings ratio is in line with the industry average.
NVDA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.89.
NVDA is valuated quite expensively with a Price/Forward Earnings ratio of 28.24.
The rest of the industry has a similar Price/Forward Earnings ratio as NVDA.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, NVDA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.26 | ||
| Fwd PE | 28.24 |
4.2 Price Multiples
NVDA's Enterprise Value to EBITDA is on the same level as the industry average.
NVDA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.16 | ||
| EV/EBITDA | 45.8 |
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.
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)0.95
PEG (5Y)0.62
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.
Compared to an average S&P500 Dividend Yield of 2.44, NVDA's dividend is way lower than the S&P500 average.
| 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 paid a dividend for at least 10 years, which is a reliable track record.
NVDA has not decreased their dividend for at least 10 years, which is a reliable track record.
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%
190.17
+3.31 (+1.77%)
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 Cap4.62T
Revenue(TTM)165.22B
Net Income(TTM)86.60B
Analysts83.66
Price Target225.37 (18.51%)
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 | 51.26 | ||
| Fwd PE | 28.24 | ||
| P/S | 27.97 | ||
| P/FCF | 64.16 | ||
| P/OCF | 59.99 | ||
| P/B | 46.15 | ||
| P/tB | 49.36 | ||
| EV/EBITDA | 45.8 |
EPS(TTM)3.71
EY1.95%
EPS(NY)6.73
Fwd EY3.54%
FCF(TTM)2.96
FCFY1.56%
OCF(TTM)3.17
OCFY1.67%
SpS6.8
BVpS4.12
TBVpS3.85
PEG (NY)0.95
PEG (5Y)0.62
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.