189.075 USD
+2.6 (+1.4%)
Taking everything into account, NVDA scores 9 out of 10 in our fundamental rating. NVDA was compared to 113 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.
- 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
- NVDA has a Return On Assets of 61.56%. This is amongst the best in the industry. NVDA outperforms 100.00% of its industry peers.
- NVDA has a better Return On Equity (83.43%) than 98.23% of its industry peers.
- NVDA's Return On Invested Capital of 71.56% 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 10.75%.
- The last Return On Invested Capital (71.56%) for NVDA is above the 3 year average (48.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 61.56% | ||
| ROE | 83.43% | ||
| ROIC | 71.56% |
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
- NVDA has a Profit Margin of 53.01%. This is amongst the best in the industry. NVDA outperforms 98.23% of its industry peers.
- In the last couple of years the Profit Margin of NVDA has grown nicely.
- NVDA has a better Operating Margin (59.12%) than 99.11% of its industry peers.
- In the last couple of years the Operating Margin of NVDA has grown nicely.
- NVDA's Gross Margin of 70.32% is amongst the best of the industry. NVDA outperforms 92.92% of its industry peers.
- NVDA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.12% | ||
| PM (TTM) | 53.01% | ||
| GM | 70.32% |
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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NVDA is creating value.
- NVDA has less shares outstanding than it did 1 year ago.
- NVDA has about the same amout of 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 69.38 indicates that NVDA is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 69.38, NVDA belongs to the top of the industry, outperforming 97.35% of the companies in the same industry.
- NVDA has a debt to FCF ratio of 0.11. This is a very positive value and a sign of high solvency as it would only need 0.11 years to pay back of all of its debts.
- NVDA has a Debt to FCF ratio of 0.11. This is amongst the best in the industry. NVDA outperforms 84.07% of its industry peers.
- NVDA has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.06, NVDA is in the better half of the industry, outperforming 60.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.11 | ||
| Altman-Z | 69.38 |
ROIC/WACC6.55
WACC10.92%
2.3 Liquidity
- NVDA has a Current Ratio of 4.47. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 4.47, NVDA is doing good in the industry, outperforming 67.26% of the companies in the same industry.
- A Quick Ratio of 3.71 indicates that NVDA has no problem at all paying its short term obligations.
- NVDA's Quick ratio of 3.71 is fine compared to the rest of the industry. NVDA outperforms 70.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.71 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 60.43% over the past year.
- NVDA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 83.26% yearly.
- Looking at the last year, NVDA shows a very strong growth in Revenue. The Revenue has grown by 65.22%.
- 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)60.43%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%60.49%
Revenue 1Y (TTM)65.22%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%62.49%
3.2 Future
- NVDA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.99% yearly.
- NVDA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 30.03% yearly.
EPS Next Y59.23%
EPS Next 2Y61.91%
EPS Next 3Y49.73%
EPS Next 5Y32.99%
Revenue Next Year64.65%
Revenue Next 2Y59.34%
Revenue Next 3Y47.75%
Revenue Next 5Y30.03%
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
- Based on the Price/Earnings ratio of 45.02, the valuation of NVDA can be described as expensive.
- 69.03% of the companies in the same industry are more expensive than NVDA, based on the Price/Earnings ratio.
- NVDA is valuated expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 24.11 indicates a rather expensive valuation of NVDA.
- NVDA's Price/Forward Earnings ratio is rather cheap when compared to the industry. NVDA is cheaper than 80.53% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, NVDA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.02 | ||
| Fwd PE | 24.11 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NVDA is valued a bit cheaper than the industry average as 62.83% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVDA indicates a somewhat cheap valuation: NVDA is cheaper than 65.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.42 | ||
| EV/EBITDA | 39.13 |
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.
- A more expensive valuation may be justified as NVDA's earnings are expected to grow with 49.73% in the coming years.
PEG (NY)0.76
PEG (5Y)0.54
EPS Next 2Y61.91%
EPS Next 3Y49.73%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.02%, NVDA is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.49, NVDA pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 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)16.27%
Div Incr Years1
Div Non Decr Years12
5.3 Sustainability
- 0.98% of the earnings are spent on dividend by NVDA. This is a low number and sustainable payout ratio.
- NVDA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP0.98%
EPS Next 2Y61.91%
EPS Next 3Y49.73%
NVIDIA CORP / NVDA FAQ
What is the fundamental rating for NVDA stock?
ChartMill assigns a fundamental rating of 9 / 10 to NVDA.
What is the valuation status of NVIDIA CORP (NVDA) stock?
ChartMill assigns a valuation rating of 6 / 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.
Can you provide the expected EPS growth for NVDA stock?
The Earnings per Share (EPS) of NVIDIA CORP (NVDA) is expected to grow by 59.23% in the next year.
Can you provide the dividend sustainability for NVDA stock?
The dividend rating of NVIDIA CORP (NVDA) is 6 / 10 and the dividend payout ratio is 0.98%.