189.548 USD
+3.08 (+1.65%)
NVDA gets a fundamental rating of 9 out of 10. The analysis compared the fundamentals against 113 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 not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, NVDA could be worth investigating further 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.
- 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 61.56%, NVDA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 83.43%, NVDA belongs to the top of the industry, outperforming 98.23% of the companies in the same industry.
- NVDA has a Return On Invested Capital of 71.56%. This is amongst the best in 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 3 year average ROIC (48.58%) for NVDA is below the current ROIC(71.56%), indicating increased profibility in the last year.
| 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.
- The Operating Margin of NVDA (59.12%) is better than 99.11% of its industry peers.
- NVDA's Operating Margin has improved in the last couple of years.
- The Gross Margin of NVDA (70.32%) is better than 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.
- Compared to 5 years ago, NVDA has about the same amount of shares outstanding.
- NVDA has a better debt/assets ratio than last year.
2.2 Solvency
- NVDA has an Altman-Z score of 69.38. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
- NVDA's Altman-Z score of 69.38 is amongst the best of the industry. NVDA outperforms 97.35% of its industry peers.
- 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's Debt to FCF ratio of 0.11 is amongst the best of the industry. NVDA outperforms 84.07% of its industry peers.
- A Debt/Equity ratio of 0.06 indicates that NVDA is not too dependend on debt financing.
- NVDA has a Debt to Equity ratio of 0.06. This is in the better half of the industry: NVDA outperforms 60.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.11 | ||
| Altman-Z | 69.38 |
ROIC/WACC6.55
WACC10.92%
2.3 Liquidity
- A Current Ratio of 4.47 indicates that NVDA has no problem at all paying its short term obligations.
- NVDA has a Current ratio of 4.47. This is in the better half of the industry: NVDA outperforms 67.26% of its industry peers.
- A Quick Ratio of 3.71 indicates that NVDA has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 3.71, NVDA is doing good in the industry, outperforming 70.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.71 |
3. Growth
3.1 Past
- NVDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.43%, 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 65.22%.
- NVDA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 64.24% yearly.
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
- Based on estimates for the next years, NVDA will show a very strong growth in Earnings Per Share. The EPS will grow by 32.99% on average per year.
- Based on estimates for the next years, NVDA will show a very strong growth in Revenue. The Revenue will grow by 30.03% on average per year.
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
- 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.
- 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
- A Price/Earnings ratio of 45.13 indicates a quite expensive valuation of NVDA.
- NVDA's Price/Earnings ratio is a bit cheaper when compared to the industry. NVDA is cheaper than 69.03% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. NVDA is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 24.17 indicates a rather expensive valuation of NVDA.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NVDA indicates a rather cheap valuation: NVDA is cheaper than 80.53% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. NVDA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.13 | ||
| Fwd PE | 24.17 |
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.
- Based on the Price/Free Cash Flow ratio, NVDA is valued a bit cheaper than the industry average as 65.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.57 | ||
| 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.
- NVDA's earnings are expected to grow with 49.73% in the coming years. This may justify a more expensive valuation.
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
- The dividend of NVDA is nicely growing with an annual growth rate of 16.27%!
- 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
- 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%.