192.595 USD
+1.07 (+0.56%)
Overall NVDA gets a fundamental rating of 9 out of 10. We evaluated NVDA against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. NVDA gets an excellent profitability rating and is at the same time showing great financial health properties. 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
- 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
- The Return On Assets of NVDA (61.56%) is better than 100.00% of its industry peers.
- 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.
- Looking at the Return On Invested Capital, with a value of 71.56%, NVDA belongs to the top 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 10.78%.
- 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
- With an excellent Profit Margin value of 53.01%, NVDA belongs to the best of the industry, outperforming 98.23% of the companies in the same industry.
- 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.
- With an excellent Gross Margin value of 70.32%, NVDA belongs to the best of the industry, outperforming 92.92% of the companies in the same industry.
- 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
- 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 less shares outstanding
- The number of shares outstanding for NVDA remains at a similar level compared to 5 years ago.
- The debt/assets ratio for NVDA has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 71.13 indicates that NVDA is not in any danger for bankruptcy at the moment.
- NVDA's Altman-Z score of 71.13 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.
- With an excellent Debt to FCF ratio value of 0.11, NVDA belongs to the best of the industry, outperforming 84.07% of the companies in the same industry.
- A Debt/Equity ratio of 0.06 indicates that NVDA is not too dependend on debt financing.
- 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 | 71.13 |
ROIC/WACC6.55
WACC10.93%
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.
- NVDA has a Quick Ratio of 3.71. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
- NVDA has a better Quick ratio (3.71) than 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.
- The Earnings Per Share has been growing by 83.26% on average over the past years. This is a very strong growth
- The Revenue has grown by 65.22% in the past year. This is a very strong growth!
- 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
- The Price/Earnings ratio is 45.86, which means the current valuation is very expensive for NVDA.
- Compared to the rest of the industry, the Price/Earnings ratio of NVDA indicates a somewhat cheap valuation: NVDA is cheaper than 69.91% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, NVDA is valued quite expensively.
- With a Price/Forward Earnings ratio of 24.56, NVDA is valued on the expensive side.
- 81.42% of the companies in the same industry are more expensive than NVDA, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of NVDA to the average of the S&P500 Index (25.83), we can say NVDA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.86 | ||
| Fwd PE | 24.56 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NVDA is valued a bit cheaper than 63.72% of the companies in the same industry.
- 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 | 60.53 | ||
| EV/EBITDA | 40.22 |
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.
- The excellent profitability rating of NVDA 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)0.77
PEG (5Y)0.55
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.
- With a Dividend Yield of 0.02, NVDA pays less dividend than the S&P500 average, which is at 1.82.
| 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 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 0.98% 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.
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%.