190.81 USD
+2.29 (+1.21%)
We assign a fundamental rating of 9 out of 10 to NVDA. NVDA was compared to 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes NVDA very considerable 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.
- Each year in the past 5 years NVDA had a positive operating cash flow.
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.
- NVDA has a Return On Equity of 83.43%. This is amongst the best in the industry. NVDA outperforms 98.23% of its industry peers.
- 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 last Return On Invested Capital (71.56%) for NVDA is above the 3 year average (48.58%), which is a sign of increasing profitability.
| 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.
- NVDA's Profit Margin has improved in the last couple of years.
- NVDA has a better Operating Margin (59.12%) than 99.11% of its industry peers.
- NVDA's Operating Margin has improved in the last couple of years.
- NVDA has a Gross Margin of 70.32%. This is amongst the best in the industry. NVDA outperforms 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
- NVDA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- NVDA has less shares outstanding than it did 1 year ago.
- 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
- An Altman-Z score of 70.09 indicates that NVDA is not in any danger for bankruptcy at the moment.
- NVDA has a better Altman-Z score (70.09) than 97.35% of its industry peers.
- The Debt to FCF ratio of NVDA is 0.11, which is an excellent value as it means it would take NVDA, only 0.11 years of fcf income to pay off all of its debts.
- NVDA has a Debt to FCF ratio of 0.11. This is amongst the best in the industry. NVDA outperforms 84.07% of its industry peers.
- NVDA has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- 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 | 70.09 |
ROIC/WACC6.56
WACC10.9%
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.
- 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.
- NVDA's Quick ratio of 3.71 is fine compared to the rest of the industry. NVDA outperforms 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.
- NVDA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 83.26% yearly.
- The Revenue has grown by 65.22% in the past year. This is a very strong growth!
- The Revenue has been growing by 64.24% on average over the past years. This is a very strong growth!
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.
- The Revenue is expected to grow by 30.03% on average over the next years. This is a very strong growth
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
- NVDA is valuated quite expensively with a Price/Earnings ratio of 45.43.
- 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 28.82, NVDA is valued quite expensively.
- NVDA is valuated rather expensively with a Price/Forward Earnings ratio of 24.33.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NVDA indicates a rather cheap valuation: NVDA is cheaper than 82.30% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. NVDA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.43 | ||
| Fwd PE | 24.33 |
4.2 Price Multiples
- 62.83% of the companies in the same industry are more expensive than NVDA, based on the Enterprise Value to EBITDA ratio.
- 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 | 59.96 | ||
| EV/EBITDA | 39.57 |
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.
- 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.
- NVDA's Dividend Yield is a higher than the industry average which is at 0.49.
- 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
- 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
- 0.98% of the earnings are spent on dividend by NVDA. This is a low number and 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%.