NVIDIA CORP (NVDA) Stock Fundamental Analysis
USA - NASDAQ:NVDA - US67066G1040 - Common Stock
190.17 USD
+3.31 (+1.77%)
191.06 USD
+0.89 (+0.47%)
Taking everything into account, NVDA scores 9 out of 10 in our fundamental rating. NVDA was compared to 112 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 could make NVDA a good candidate 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.
In the past 5 years NVDA always reported a positive cash flow from operatings.
1.2 Ratios
NVDA has a better Return On Assets (61.53%) than 100.00% of its industry peers.
NVDA's Return On Equity of 86.48% is amongst the best of the industry. NVDA outperforms 98.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 72.42%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NVDA is significantly above the industry average of 10.93%.
The last Return On Invested Capital (72.42%) for NVDA is above the 3 year average (48.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 61.53% | ||
| ROE | 86.48% | ||
| ROIC | 72.42% |
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
The Profit Margin of NVDA (52.41%) is better than 97.32% of its industry peers.
NVDA's Profit Margin has improved in the last couple of years.
NVDA has a Operating Margin of 58.44%. This is amongst the best in the industry. NVDA outperforms 99.11% of its industry peers.
NVDA's Operating Margin has improved in the last couple of years.
NVDA has a Gross Margin of 70.20%. This is amongst the best in the industry. NVDA outperforms 93.75% of its industry peers.
NVDA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.44% | ||
| PM (TTM) | 52.41% | ||
| GM | 70.2% |
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.
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.
NVDA has a better debt/assets ratio than last year.
2.2 Solvency
NVDA has an Altman-Z score of 72.07. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
NVDA has a better Altman-Z score (72.07) than 97.32% 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.
With an excellent Debt to FCF ratio value of 0.12, NVDA belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
NVDA has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
NVDA has a Debt to Equity ratio (0.08) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 72.07 |
ROIC/WACC6.72
WACC10.77%
2.3 Liquidity
NVDA has a Current Ratio of 4.21. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
NVDA's Current ratio of 4.21 is fine compared to the rest of the industry. NVDA outperforms 64.29% of its industry peers.
A Quick Ratio of 3.60 indicates that NVDA has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.60, NVDA is doing good in the industry, outperforming 69.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.21 | ||
| Quick Ratio | 3.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 67.87% 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 71.55%.
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)67.87%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%54.41%
Revenue 1Y (TTM)71.55%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%55.6%
3.2 Future
The Earnings Per Share is expected to grow by 27.95% on average over the next years. This is a very strong growth
NVDA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.60% yearly.
EPS Next Y54.01%
EPS Next 2Y50.01%
EPS Next 3Y41.76%
EPS Next 5Y27.95%
Revenue Next Year59.92%
Revenue Next 2Y48.01%
Revenue Next 3Y39.62%
Revenue Next 5Y26.6%
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
NVDA is valuated quite expensively with a Price/Earnings ratio of 51.26.
Compared to the rest of the industry, the Price/Earnings ratio of NVDA is on the same level as its industry peers.
NVDA is valuated expensively when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.24, NVDA can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, NVDA is valued a bit cheaper than 60.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, NVDA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.26 | ||
| Fwd PE | 28.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NVDA.
Based on the Price/Free Cash Flow ratio, NVDA is valued a bit cheaper than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.16 | ||
| EV/EBITDA | 44.99 |
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 41.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)0.62
EPS Next 2Y50.01%
EPS Next 3Y41.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.02%, NVDA is not a good candidate for dividend investing.
NVDA's Dividend Yield is a higher than the industry average which is at 2.21.
With a Dividend Yield of 0.02, NVDA pays less dividend than the S&P500 average, which is at 2.42.
| 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
NVDA pays out 1.13% 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.
DP1.13%
EPS Next 2Y50.01%
EPS Next 3Y41.76%
190.17
+3.31 (+1.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners68.83%
Inst Owner Change-2.74%
Ins Owners4.18%
Ins Owner Change-7.42%
Market Cap4.62T
Revenue(TTM)165.22B
Net Income(TTM)86.60B
Analysts83.66
Price Target225.37 (18.51%)
Short Float %0.91%
Short Ratio1.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
Yearly Dividend0.03
Dividend Growth(5Y)16.27%
DP1.13%
Div Incr Years1
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.48%
Min EPS beat(2)0.83%
Max EPS beat(2)2.13%
EPS beat(4)4
Avg EPS beat(4)3.21%
Min EPS beat(4)0.83%
Max EPS beat(4)6.45%
EPS beat(8)8
Avg EPS beat(8)6.27%
EPS beat(12)11
Avg EPS beat(12)6.82%
EPS beat(16)14
Avg EPS beat(16)2.14%
Revenue beat(2)0
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)-0.25%
Revenue beat(4)2
Avg Revenue beat(4)1.08%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)3.72%
Revenue beat(8)6
Avg Revenue beat(8)3.18%
Revenue beat(12)9
Avg Revenue beat(12)4.25%
Revenue beat(16)12
Avg Revenue beat(16)2.21%
PT rev (1m)3.06%
PT rev (3m)19.47%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)5.5%
EPS NY rev (1m)0.55%
EPS NY rev (3m)4.66%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)4.69%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.26 | ||
| Fwd PE | 28.24 | ||
| P/S | 27.97 | ||
| P/FCF | 64.16 | ||
| P/OCF | 59.99 | ||
| P/B | 46.15 | ||
| P/tB | 49.36 | ||
| EV/EBITDA | 44.99 |
EPS(TTM)3.71
EY1.95%
EPS(NY)6.73
Fwd EY3.54%
FCF(TTM)2.96
FCFY1.56%
OCF(TTM)3.17
OCFY1.67%
SpS6.8
BVpS4.12
TBVpS3.85
PEG (NY)0.95
PEG (5Y)0.62
Graham Number18.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 61.53% | ||
| ROE | 86.48% | ||
| ROCE | 82.89% | ||
| ROIC | 72.42% | ||
| ROICexc | 141.33% | ||
| ROICexgc | 158.63% | ||
| OM | 58.44% | ||
| PM (TTM) | 52.41% | ||
| GM | 70.2% | ||
| FCFM | 43.59% |
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%
ROICexgc growth 3Y27.44%
ROICexgc growth 5Y20.86%
ROICexc growth 3Y41.67%
ROICexc growth 5Y21.56%
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-Score5
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.12 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 217.82% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.92% | ||
| Profit Quality | 83.17% | ||
| Current Ratio | 4.21 | ||
| Quick Ratio | 3.6 | ||
| Altman-Z | 72.07 |
F-Score5
WACC10.77%
ROIC/WACC6.72
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)67.87%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%54.41%
EPS Next Y54.01%
EPS Next 2Y50.01%
EPS Next 3Y41.76%
EPS Next 5Y27.95%
Revenue 1Y (TTM)71.55%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%55.6%
Revenue Next Year59.92%
Revenue Next 2Y48.01%
Revenue Next 3Y39.62%
Revenue Next 5Y26.6%
EBIT growth 1Y60.48%
EBIT growth 3Y97.28%
EBIT growth 5Y95.87%
EBIT Next Year51.96%
EBIT Next 3Y35.51%
EBIT Next 5Y31.99%
FCF growth 1Y597.69%
FCF growth 3Y95.6%
FCF growth 5Y70.11%
OCF growth 1Y547.41%
OCF growth 3Y91.63%
OCF growth 5Y68.2%
NVIDIA CORP / NVDA FAQ
What is the fundamental rating for NVDA stock?
ChartMill assigns a fundamental rating of 9 / 10 to NVDA.
Can you provide the valuation status for NVIDIA CORP?
ChartMill assigns a valuation rating of 5 / 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.
What is the financial health of NVIDIA CORP (NVDA) stock?
The financial health rating of NVIDIA CORP (NVDA) is 9 / 10.
What is the expected EPS growth for NVIDIA CORP (NVDA) stock?
The Earnings per Share (EPS) of NVIDIA CORP (NVDA) is expected to grow by 54.01% in the next year.