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 108 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making NVDA a very profitable company, without any liquidiy or solvency issues. 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.
NVDA had a positive operating cash flow in the past year.
NVDA had positive earnings in each of the past 5 years.
NVDA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 65.69%, NVDA belongs to the best of the industry, outperforming 99.07% of the companies in the same industry.
NVDA has a Return On Equity of 95.71%. This is amongst the best in the industry. NVDA outperforms 99.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 78.60%, 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 11.67%.
The last Return On Invested Capital (78.60%) for NVDA is above the 3 year average (31.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 65.69% | ||
| ROE | 95.71% | ||
| ROIC | 78.6% |
ROA(3y)25.98%
ROA(5y)21.83%
ROE(3y)41.88%
ROE(5y)34.84%
ROIC(3y)31.07%
ROIC(5y)25.18%
1.3 Margins
With an excellent Profit Margin value of 55.69%, NVDA belongs to the best of the industry, outperforming 98.15% of the companies in the same industry.
NVDA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 62.71%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NVDA has grown nicely.
With an excellent Gross Margin value of 75.86%, NVDA belongs to the best of the industry, outperforming 93.52% of the companies in the same industry.
NVDA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 62.71% | ||
| PM (TTM) | 55.69% | ||
| GM | 75.86% |
OM growth 3Y25.23%
OM growth 5Y11.18%
PM growth 3Y23.43%
PM growth 5Y6.69%
GM growth 3Y5.34%
GM growth 5Y3.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NVDA is creating value.
The number of shares outstanding for NVDA remains at a similar level compared to 1 year ago.
Compared to 5 years ago, NVDA has more shares outstanding
NVDA has a better debt/assets ratio than last year.
2.2 Solvency
NVDA has an Altman-Z score of 73.41. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 73.41, NVDA belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
NVDA has a debt to FCF ratio of 0.15. This is a very positive value and a sign of high solvency as it would only need 0.15 years to pay back of all of its debts.
NVDA's Debt to FCF ratio of 0.15 is amongst the best of the industry. NVDA outperforms 84.26% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that NVDA is not too dependend on debt financing.
NVDA's Debt to Equity ratio of 0.13 is in line compared to the rest of the industry. NVDA outperforms 49.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 73.41 |
ROIC/WACC6.59
WACC11.92%
2.3 Liquidity
NVDA has a Current Ratio of 4.10. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
NVDA has a Current ratio of 4.10. This is in the better half of the industry: NVDA outperforms 69.44% of its industry peers.
NVDA has a Quick Ratio of 3.64. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
NVDA's Quick ratio of 3.64 is fine compared to the rest of the industry. NVDA outperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.1 | ||
| Quick Ratio | 3.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 201.27% over the past year.
NVDA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.90% yearly.
The Revenue has grown by 152.44% 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 39.06% on average per year.
EPS 1Y (TTM)201.27%
EPS 3Y73.17%
EPS 5Y50.9%
EPS Q2Q%101.49%
Revenue 1Y (TTM)152.44%
Revenue growth 3Y54.02%
Revenue growth 5Y39.06%
Sales Q2Q%93.61%
3.2 Future
NVDA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.58% yearly.
NVDA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 35.57% yearly.
EPS Next Y132.02%
EPS Next 2Y86.51%
EPS Next 3Y63.18%
EPS Next 5Y35.58%
Revenue Next Year117.64%
Revenue Next 2Y82.21%
Revenue Next 3Y59.44%
Revenue Next 5Y35.57%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 53.42, which means the current valuation is very expensive for NVDA.
Compared to the rest of the industry, the Price/Earnings ratio of NVDA is on the same level as its industry peers.
NVDA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 30.30.
A Price/Forward Earnings ratio of 31.02 indicates a quite expensive valuation of NVDA.
The rest of the industry has a similar Price/Forward Earnings ratio as NVDA.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.06, NVDA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.42 | ||
| Fwd PE | 31.02 |
4.2 Price Multiples
NVDA's Enterprise Value to EBITDA is on the same level as the industry average.
NVDA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NVDA is cheaper than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.61 | ||
| EV/EBITDA | 46.35 |
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 63.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)1.05
EPS Next 2Y86.51%
EPS Next 3Y63.18%
5. Dividend
5.1 Amount
NVDA has a yearly dividend return of 0.03%, which is pretty low.
NVDA's Dividend Yield is a higher than the industry average which is at 2.34.
Compared to an average S&P500 Dividend Yield of 2.29, NVDA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
5.2 History
The dividend of NVDA has a limited annual growth rate of 0.90%.
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)0.9%
Div Incr Years1
Div Non Decr Years12
5.3 Sustainability
1.09% 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.
DP1.09%
EPS Next 2Y86.51%
EPS Next 3Y63.18%
NASDAQ:NVDA (2/21/2025, 10:07:09 AM)
139.95
-0.16 (-0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners66.85%
Inst Owner Change-12.05%
Ins Owners4.21%
Ins Owner Change-2.07%
Market Cap3427.38B
Analysts84.93
Price Target175.12 (25.13%)
Short Float %1.16%
Short Ratio1.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
Yearly Dividend0.02
Dividend Growth(5Y)0.9%
DP1.09%
Div Incr Years1
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.2%
Min EPS beat(2)3.95%
Max EPS beat(2)6.45%
EPS beat(4)4
Avg EPS beat(4)6.73%
Min EPS beat(4)3.95%
Max EPS beat(4)9.14%
EPS beat(8)8
Avg EPS beat(8)11.69%
EPS beat(12)10
Avg EPS beat(12)2.02%
EPS beat(16)14
Avg EPS beat(16)2.86%
Revenue beat(2)2
Avg Revenue beat(2)3.17%
Min Revenue beat(2)2.62%
Max Revenue beat(2)3.72%
Revenue beat(4)4
Avg Revenue beat(4)3.76%
Min Revenue beat(4)2.62%
Max Revenue beat(4)5.1%
Revenue beat(8)7
Avg Revenue beat(8)6.21%
Revenue beat(12)10
Avg Revenue beat(12)2.72%
Revenue beat(16)14
Avg Revenue beat(16)2.49%
PT rev (1m)0.79%
PT rev (3m)15.2%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)9.87%
EPS NY rev (1m)0.03%
EPS NY rev (3m)3.74%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)10.76%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.42 | ||
| Fwd PE | 31.02 | ||
| P/S | 30.26 | ||
| P/FCF | 60.61 | ||
| P/OCF | 58.13 | ||
| P/B | 52.01 | ||
| P/tB | 56.8 | ||
| EV/EBITDA | 46.35 |
EPS(TTM)2.62
EY1.87%
EPS(NY)4.51
Fwd EY3.22%
FCF(TTM)2.31
FCFY1.65%
OCF(TTM)2.41
OCFY1.72%
SpS4.63
BVpS2.69
TBVpS2.46
PEG (NY)0.4
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 65.69% | ||
| ROE | 95.71% | ||
| ROCE | 89.31% | ||
| ROIC | 78.6% | ||
| ROICexc | 152.29% | ||
| ROICexgc | 176.16% | ||
| OM | 62.71% | ||
| PM (TTM) | 55.69% | ||
| GM | 75.86% | ||
| FCFM | 49.92% |
ROA(3y)25.98%
ROA(5y)21.83%
ROE(3y)41.88%
ROE(5y)34.84%
ROIC(3y)31.07%
ROIC(5y)25.18%
ROICexc(3y)59.29%
ROICexc(5y)52.58%
ROICexgc(3y)80.08%
ROICexgc(5y)73.6%
ROCE(3y)35.3%
ROCE(5y)28.61%
ROICexcg growth 3Y24.73%
ROICexcg growth 5Y7.76%
ROICexc growth 3Y48.57%
ROICexc growth 5Y6.62%
OM growth 3Y25.23%
OM growth 5Y11.18%
PM growth 3Y23.43%
PM growth 5Y6.69%
GM growth 3Y5.34%
GM growth 5Y3.8%
F-Score8
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.15 | ||
| Debt/EBITDA | 0.12 | ||
| Cap/Depr | 141.28% | ||
| Cap/Sales | 2.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.05% | ||
| Profit Quality | 89.65% | ||
| Current Ratio | 4.1 | ||
| Quick Ratio | 3.64 | ||
| Altman-Z | 73.41 |
F-Score8
WACC11.92%
ROIC/WACC6.59
Cap/Depr(3y)90.91%
Cap/Depr(5y)100.76%
Cap/Sales(3y)4.06%
Cap/Sales(5y)4.68%
Profit Quality(3y)87.12%
Profit Quality(5y)104.5%
High Growth Momentum
Growth
EPS 1Y (TTM)201.27%
EPS 3Y73.17%
EPS 5Y50.9%
EPS Q2Q%101.49%
EPS Next Y132.02%
EPS Next 2Y86.51%
EPS Next 3Y63.18%
EPS Next 5Y35.58%
Revenue 1Y (TTM)152.44%
Revenue growth 3Y54.02%
Revenue growth 5Y39.06%
Sales Q2Q%93.61%
Revenue Next Year117.64%
Revenue Next 2Y82.21%
Revenue Next 3Y59.44%
Revenue Next 5Y35.57%
EBIT growth 1Y244.61%
EBIT growth 3Y92.88%
EBIT growth 5Y54.6%
EBIT Next Year147.13%
EBIT Next 3Y68.86%
EBIT Next 5Y38.69%
FCF growth 1Y1070.97%
FCF growth 3Y79.22%
FCF growth 5Y53.77%
OCF growth 1Y817.51%
OCF growth 3Y68.98%
OCF growth 5Y49.65%