NVIDIA CORP (NVDA) Stock Fundamental Analysis
NASDAQ:NVDA - Nasdaq - US67066G1040 - Common Stock
We assign a fundamental rating of 8 out of 10 to NVDA. NVDA was compared to 109 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 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.
NVDA had positive earnings in each of the past 5 years.
In the past 5 years NVDA always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 65.69%, NVDA belongs to the best of the industry, outperforming 99.07% of the companies in the same industry.
NVDA has a better Return On Equity (95.71%) than 100.00% of its industry peers.
The Return On Invested Capital of NVDA (78.60%) is better than 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 11.96%.
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.
In the last couple of years the Profit Margin of NVDA has grown nicely.
The Operating Margin of NVDA (62.71%) is better than 99.07% of its industry peers.
NVDA's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 75.86%, NVDA belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
NVDA's Gross Margin has improved in the last couple of years.
| 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
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.
NVDA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NVDA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 72.24 indicates that NVDA is not in any danger for bankruptcy at the moment.
NVDA has a better Altman-Z score (72.24) than 97.22% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.15, NVDA belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that NVDA is not too dependend on debt financing.
NVDA's Debt to Equity ratio of 0.13 is in line compared to the rest of the industry. NVDA outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 72.24 |
ROIC/WACC5.34
WACC14.73%
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.
The Current ratio of NVDA (4.10) is better than 65.74% of its industry peers.
NVDA has a Quick Ratio of 3.64. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
NVDA's Quick ratio of 3.64 is fine compared to the rest of the industry. NVDA outperforms 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.1 | ||
| Quick Ratio | 3.64 |
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 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
Based on estimates for the next years, NVDA will show a very strong growth in Earnings Per Share. The EPS will grow by 35.63% on average per year.
The Revenue is expected to grow by 35.61% on average over the next years. This is a very strong growth
EPS Next Y131.95%
EPS Next 2Y86.54%
EPS Next 3Y62.83%
EPS Next 5Y35.63%
Revenue Next Year117.6%
Revenue Next 2Y81.76%
Revenue Next 3Y59.15%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
NVDA is valuated quite expensively with a Price/Earnings ratio of 52.56.
Compared to the rest of the industry, the Price/Earnings ratio of NVDA is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.94. NVDA is valued rather expensively when compared to this.
NVDA is valuated quite expensively with a Price/Forward Earnings ratio of 30.51.
60.19% of the companies in the same industry are more expensive than NVDA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, NVDA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.56 | ||
| Fwd PE | 30.51 |
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 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.64 | ||
| EV/EBITDA | 45.55 |
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 62.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)1.03
EPS Next 2Y86.54%
EPS Next 3Y62.83%
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 2.28, NVDA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, 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 their dividend for at least 10 years, which is a reliable track record.
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 2Y86.54%
EPS Next 3Y62.83%
NVIDIA CORP
NASDAQ:NVDA (1/17/2025, 10:26:04 PM)
After market: 137.631 -0.08 (-0.06%)137.71
+4.14 (+3.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners66.85%
Inst Owner Change-0.32%
Ins Owners4.21%
Ins Owner Change-3.97%
Market Cap3372.52B
Analysts84.79
Price Target173.75 (26.17%)
Short Float %1.23%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
Yearly Dividend0.02
Dividend Growth(5Y)0.9%
DP1.09%
Div Incr Years1
Div Non Decr Years12
Ex-DateN/A
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)1.08%
PT rev (3m)17.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.91%
EPS NY rev (1m)0%
EPS NY rev (3m)4.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.56 | ||
| Fwd PE | 30.51 | ||
| P/S | 29.77 | ||
| P/FCF | 59.64 | ||
| P/OCF | 57.2 | ||
| P/B | 51.18 | ||
| P/tB | 55.89 | ||
| EV/EBITDA | 45.55 |
EPS(TTM)2.62
EY1.9%
EPS(NY)4.51
Fwd EY3.28%
FCF(TTM)2.31
FCFY1.68%
OCF(TTM)2.41
OCFY1.75%
SpS4.63
BVpS2.69
TBVpS2.46
PEG (NY)0.4
PEG (5Y)1.03
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 | 72.24 |
F-Score8
WACC14.73%
ROIC/WACC5.34
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 Y131.95%
EPS Next 2Y86.54%
EPS Next 3Y62.83%
EPS Next 5Y35.63%
Revenue 1Y (TTM)152.44%
Revenue growth 3Y54.02%
Revenue growth 5Y39.06%
Sales Q2Q%93.61%
Revenue Next Year117.6%
Revenue Next 2Y81.76%
Revenue Next 3Y59.15%
Revenue Next 5Y35.61%
EBIT growth 1Y244.61%
EBIT growth 3Y92.88%
EBIT growth 5Y54.6%
EBIT Next Year147.24%
EBIT Next 3Y68.6%
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%