NVIDIA CORP (NVDA) Stock Fundamental Analysis
USA - NASDAQ:NVDA - US67066G1040 - Common Stock
174.88 USD
-2.87 (-1.61%)
175.113 USD
+0.23 (+0.13%)
NVDA gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making NVDA a very profitable company, without any liquidiy or solvency issues. NVDA is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make NVDA a good candidate 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.
Each year in the past 5 years NVDA has been profitable.
Each year in the past 5 years NVDA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 61.53%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 86.48%, NVDA belongs to the best of the industry, outperforming 97.32% of the companies in the same industry.
NVDA's Return On Invested Capital of 72.42% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
NVDA had an Average Return On Invested Capital over the past 3 years of 48.58%. This is significantly above the industry average of 10.87%.
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
Looking at the Profit Margin, with a value of 52.41%, NVDA belongs to the top of the industry, outperforming 97.32% of the companies in the same industry.
NVDA's Profit Margin has improved in the last couple of years.
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.
The Gross Margin of NVDA (70.20%) is better 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
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.
The number of shares outstanding for NVDA remains at a similar level 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 67.77. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
NVDA has a better Altman-Z score (67.77) than 97.32% of its industry peers.
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.
The Debt to FCF ratio of NVDA (0.12) is better than 83.04% of its industry peers.
NVDA has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
NVDA has a Debt to Equity ratio of 0.08. This is comparable to the rest of the industry: NVDA outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 67.77 |
ROIC/WACC6.39
WACC11.34%
2.3 Liquidity
A Current Ratio of 4.21 indicates that NVDA has no problem at all paying its short term obligations.
The Current ratio of NVDA (4.21) is better than 63.39% 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 Quick ratio of 3.60. This is in the better half of the industry: NVDA outperforms 67.86% 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.
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.
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
NVDA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.91% yearly.
NVDA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.27% yearly.
EPS Next Y49.39%
EPS Next 2Y43.16%
EPS Next 3Y36.26%
EPS Next 5Y24.91%
Revenue Next Year59.32%
Revenue Next 2Y45.75%
Revenue Next 3Y35.02%
Revenue Next 5Y24.27%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 47.14, NVDA can be considered very expensive at the moment.
NVDA's Price/Earnings is on the same level as the industry average.
NVDA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 28.52, the valuation of NVDA can be described as expensive.
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 22.71, NVDA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.14 | ||
| Fwd PE | 28.52 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVDA indicates a somewhat cheap valuation: NVDA is cheaper than 61.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59 | ||
| EV/EBITDA | 42.04 |
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.
A more expensive valuation may be justified as NVDA's earnings are expected to grow with 36.26% in the coming years.
PEG (NY)0.95
PEG (5Y)0.57
EPS Next 2Y43.16%
EPS Next 3Y36.26%
5. Dividend
5.1 Amount
NVDA has a yearly dividend return of 0.02%, which is pretty low.
Compared to an average industry Dividend Yield of 2.31, NVDA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.02, NVDA pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
5.2 History
The dividend of NVDA is nicely growing with an annual growth rate of 16.27%!
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 2Y43.16%
EPS Next 3Y36.26%
174.88
-2.87 (-1.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners67.3%
Inst Owner Change1%
Ins Owners4.18%
Ins Owner Change-5.2%
Market Cap4249.58B
Analysts83.71
Price Target216.25 (23.66%)
Short Float %0.85%
Short Ratio1.17
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)14.64%
PT rev (3m)22.03%
EPS NQ rev (1m)4.75%
EPS NQ rev (3m)6.65%
EPS NY rev (1m)1.52%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)3.99%
Revenue NQ rev (3m)5.72%
Revenue NY rev (1m)2.16%
Revenue NY rev (3m)3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.14 | ||
| Fwd PE | 28.52 | ||
| P/S | 25.72 | ||
| P/FCF | 59 | ||
| P/OCF | 55.16 | ||
| P/B | 42.44 | ||
| P/tB | 45.39 | ||
| EV/EBITDA | 42.04 |
EPS(TTM)3.71
EY2.12%
EPS(NY)6.13
Fwd EY3.51%
FCF(TTM)2.96
FCFY1.69%
OCF(TTM)3.17
OCFY1.81%
SpS6.8
BVpS4.12
TBVpS3.85
PEG (NY)0.95
PEG (5Y)0.57
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%
ROICexcg growth 3Y27.44%
ROICexcg 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 | 67.77 |
F-Score5
WACC11.34%
ROIC/WACC6.39
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 Y49.39%
EPS Next 2Y43.16%
EPS Next 3Y36.26%
EPS Next 5Y24.91%
Revenue 1Y (TTM)71.55%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%55.6%
Revenue Next Year59.32%
Revenue Next 2Y45.75%
Revenue Next 3Y35.02%
Revenue Next 5Y24.27%
EBIT growth 1Y60.48%
EBIT growth 3Y97.28%
EBIT growth 5Y95.87%
EBIT Next Year46.68%
EBIT Next 3Y34.02%
EBIT Next 5Y23.77%
FCF growth 1Y597.69%
FCF growth 3Y95.6%
FCF growth 5Y70.11%
OCF growth 1Y547.41%
OCF growth 3Y91.63%
OCF growth 5Y68.2%