NVIDIA CORP (NVDA) Stock Fundamental Analysis
NASDAQ:NVDA - Nasdaq - US67066G1040 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to NVDA. NVDA was compared to 110 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
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
Looking at the Return On Assets, with a value of 61.29%, NVDA belongs to the top of the industry, outperforming 99.09% of the companies in the same industry.
With an excellent Return On Equity value of 91.57%, NVDA belongs to the best of the industry, outperforming 98.18% of the companies in the same industry.
With an excellent Return On Invested Capital value of 76.83%, NVDA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NVDA had an Average Return On Invested Capital over the past 3 years of 48.58%. This is significantly above the industry average of 10.58%.
The 3 year average ROIC (48.58%) for NVDA is below the current ROIC(76.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 61.29% | ||
| ROE | 91.57% | ||
| ROIC | 76.83% |
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's Profit Margin of 51.69% is amongst the best of the industry. NVDA outperforms 97.27% of its industry peers.
NVDA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 58.45%, NVDA belongs to the top of the industry, outperforming 99.09% of the companies in the same industry.
In the last couple of years the Operating Margin of NVDA has grown nicely.
NVDA has a Gross Margin of 70.52%. This is amongst the best in the industry. NVDA outperforms 92.73% of its industry peers.
NVDA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.45% | ||
| PM (TTM) | 51.69% | ||
| GM | 70.52% |
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 61.19 indicates that NVDA is not in any danger for bankruptcy at the moment.
NVDA has a better Altman-Z score (61.19) than 97.27% 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.
NVDA has a better Debt to FCF ratio (0.12) than 82.73% of its industry peers.
NVDA has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.10, NVDA is in line with its industry, outperforming 55.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 61.19 |
ROIC/WACC6.77
WACC11.34%
2.3 Liquidity
A Current Ratio of 3.39 indicates that NVDA has no problem at all paying its short term obligations.
NVDA's Current ratio of 3.39 is in line compared to the rest of the industry. NVDA outperforms 56.36% of its industry peers.
A Quick Ratio of 2.96 indicates that NVDA has no problem at all paying its short term obligations.
The Quick ratio of NVDA (2.96) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.39 | ||
| Quick Ratio | 2.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 85.56% 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.
The Revenue has grown by 86.17% in the past year. This is a very strong growth!
NVDA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 64.24% yearly.
EPS 1Y (TTM)85.56%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%56.86%
Revenue 1Y (TTM)86.17%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%69.18%
3.2 Future
NVDA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.04% yearly.
Based on estimates for the next years, NVDA will show a very strong growth in Revenue. The Revenue will grow by 20.07% on average per year.
EPS Next Y46.71%
EPS Next 2Y40.18%
EPS Next 3Y30.87%
EPS Next 5Y20.04%
Revenue Next Year54.42%
Revenue Next 2Y39.3%
Revenue Next 3Y30.45%
Revenue Next 5Y20.07%
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
A Price/Earnings ratio of 47.71 indicates a quite expensive valuation of NVDA.
The rest of the industry has a similar Price/Earnings ratio as NVDA.
When comparing the Price/Earnings ratio of NVDA to the average of the S&P500 Index (27.45), we can say NVDA is valued expensively.
NVDA is valuated quite expensively with a Price/Forward Earnings ratio of 27.10.
NVDA's Price/Forward Earnings is on the same level as the industry average.
NVDA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.71 | ||
| Fwd PE | 27.1 |
4.2 Price Multiples
NVDA's Enterprise Value to EBITDA ratio is in line with the industry average.
NVDA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.92 | ||
| EV/EBITDA | 42.79 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of NVDA may justify a higher PE ratio.
NVDA's earnings are expected to grow with 30.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)0.57
EPS Next 2Y40.18%
EPS Next 3Y30.87%
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 2.19, NVDA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.03, NVDA pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
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 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 1.28% 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.
DP1.28%
EPS Next 2Y40.18%
EPS Next 3Y30.87%
159.34
+2.09 (+1.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners67.35%
Inst Owner Change1.18%
Ins Owners4.18%
Ins Owner Change0.11%
Market Cap3885.91B
Analysts84.23
Price Target178.79 (12.21%)
Short Float %0.89%
Short Ratio0.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
Yearly Dividend0.03
Dividend Growth(5Y)16.27%
DP1.28%
Div Incr Years1
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.13%
Min EPS beat(2)0.83%
Max EPS beat(2)3.43%
EPS beat(4)4
Avg EPS beat(4)3.66%
Min EPS beat(4)0.83%
Max EPS beat(4)6.45%
EPS beat(8)8
Avg EPS beat(8)9.36%
EPS beat(12)10
Avg EPS beat(12)1.62%
EPS beat(16)14
Avg EPS beat(16)2.04%
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)1.38%
Revenue beat(4)3
Avg Revenue beat(4)1.86%
Min Revenue beat(4)-0.25%
Max Revenue beat(4)3.72%
Revenue beat(8)7
Avg Revenue beat(8)5.49%
Revenue beat(12)9
Avg Revenue beat(12)2.72%
Revenue beat(16)13
Avg Revenue beat(16)2.29%
PT rev (1m)7.11%
PT rev (3m)1.9%
EPS NQ rev (1m)-5%
EPS NQ rev (3m)-4.95%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-4.74%
Revenue NQ rev (1m)-4.8%
Revenue NQ rev (3m)-4.82%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.71 | ||
| Fwd PE | 27.1 | ||
| P/S | 26.17 | ||
| P/FCF | 53.92 | ||
| P/OCF | 51.02 | ||
| P/B | 46.35 | ||
| P/tB | 50.09 | ||
| EV/EBITDA | 42.79 |
EPS(TTM)3.34
EY2.1%
EPS(NY)5.88
Fwd EY3.69%
FCF(TTM)2.95
FCFY1.85%
OCF(TTM)3.12
OCFY1.96%
SpS6.09
BVpS3.44
TBVpS3.18
PEG (NY)1.02
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 61.29% | ||
| ROE | 91.57% | ||
| ROCE | 87.93% | ||
| ROIC | 76.83% | ||
| ROICexc | 168.45% | ||
| ROICexgc | 195.69% | ||
| OM | 58.45% | ||
| PM (TTM) | 51.69% | ||
| GM | 70.52% | ||
| FCFM | 48.52% |
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 5Y21.55%
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-Score6
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.12 | ||
| Debt/EBITDA | 0.1 | ||
| Cap/Depr | 198.26% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.7% | ||
| Profit Quality | 93.87% | ||
| Current Ratio | 3.39 | ||
| Quick Ratio | 2.96 | ||
| Altman-Z | 61.19 |
F-Score6
WACC11.34%
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)85.56%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%56.86%
EPS Next Y46.71%
EPS Next 2Y40.18%
EPS Next 3Y30.87%
EPS Next 5Y20.04%
Revenue 1Y (TTM)86.17%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%69.18%
Revenue Next Year54.42%
Revenue Next 2Y39.3%
Revenue Next 3Y30.45%
Revenue Next 5Y20.07%
EBIT growth 1Y79.64%
EBIT growth 3Y97.28%
EBIT growth 5Y95.87%
EBIT Next Year46.18%
EBIT Next 3Y25.86%
EBIT Next 5Y17.57%
FCF growth 1Y1312.74%
FCF growth 3Y95.6%
FCF growth 5Y70.11%
OCF growth 1Y1016.52%
OCF growth 3Y91.63%
OCF growth 5Y68.2%