NVIDIA CORP (NVDA) Stock Fundamental Analysis
USA - NASDAQ:NVDA - US67066G1040 - Common Stock
178.88 USD
-1.76 (-0.97%)
180.45 USD
+1.57 (+0.88%)
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. 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 would make NVDA suitable 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.
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.
With an excellent Return On Equity value of 83.43%, NVDA belongs to the best of the industry, outperforming 97.32% of the companies in the same industry.
With an excellent Return On Invested Capital value of 71.56%, NVDA belongs to the best 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 10.84%.
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
Looking at the Profit Margin, with a value of 53.01%, NVDA belongs to the top of the industry, outperforming 97.32% of the companies in the same industry.
NVDA's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 59.12%, NVDA belongs to the best 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.
NVDA has a better Gross Margin (70.32%) than 93.75% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NVDA is creating value.
The number of shares outstanding for NVDA has been reduced compared to 1 year ago.
NVDA has about the same amout of shares outstanding than it did 5 years ago.
NVDA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 67.37 indicates that NVDA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 67.37, NVDA belongs to the top of the industry, outperforming 97.32% of the companies in the same industry.
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.
The Debt to FCF ratio of NVDA (0.11) is better than 83.93% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that NVDA is not too dependend on debt financing.
NVDA's Debt to Equity ratio of 0.06 is in line compared to the rest of the industry. NVDA outperforms 58.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.11 | ||
| Altman-Z | 67.37 |
ROIC/WACC6.73
WACC10.64%
2.3 Liquidity
A Current Ratio of 4.47 indicates that NVDA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.47, NVDA is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
A Quick Ratio of 3.71 indicates that NVDA has no problem at all paying its short term obligations.
NVDA has a Quick ratio of 3.71. This is in the better half of the industry: NVDA outperforms 71.43% 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.
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%.
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
Based on estimates for the next years, NVDA will show a very strong growth in Earnings Per Share. The EPS will grow by 27.95% on average per year.
The Revenue is expected to grow by 26.60% on average over the next years. This is a very strong growth
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
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 42.59 indicates a quite expensive valuation of NVDA.
Based on the Price/Earnings ratio, NVDA is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
NVDA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.45.
NVDA is valuated quite expensively with a Price/Forward Earnings ratio of 26.57.
NVDA's Price/Forward Earnings is on the same level as the industry average.
NVDA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.59 | ||
| Fwd PE | 26.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NVDA is on the same level as its industry peers.
NVDA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NVDA is cheaper than 61.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.22 | ||
| EV/EBITDA | 37.88 |
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 41.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)0.51
EPS Next 2Y50.01%
EPS Next 3Y41.76%
5. Dividend
5.1 Amount
NVDA has a yearly dividend return of 0.02%, which is pretty low.
Compared to an average industry Dividend Yield of 2.22, 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 2.45.
| 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.
NVDA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP0.98%
EPS Next 2Y50.01%
EPS Next 3Y41.76%
178.88
-1.76 (-0.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners68.83%
Inst Owner Change0.27%
Ins Owners4.18%
Ins Owner Change-7.45%
Market Cap4.35T
Revenue(TTM)187.14B
Net Income(TTM)99.20B
Analysts83.66
Price Target236.99 (32.49%)
Short Float %1.03%
Short Ratio1.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
Yearly Dividend0.03
Dividend Growth(5Y)16.27%
DP0.98%
Div Incr Years1
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.13%
Min EPS beat(2)2.13%
Max EPS beat(2)2.13%
EPS beat(4)4
Avg EPS beat(4)2.13%
Min EPS beat(4)0.83%
Max EPS beat(4)3.43%
EPS beat(8)8
Avg EPS beat(8)4.43%
EPS beat(12)12
Avg EPS beat(12)8.5%
EPS beat(16)14
Avg EPS beat(16)2.04%
Revenue beat(2)1
Avg Revenue beat(2)0.67%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)1.84%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)1.84%
Revenue beat(8)6
Avg Revenue beat(8)2.19%
Revenue beat(12)9
Avg Revenue beat(12)4.34%
Revenue beat(16)12
Avg Revenue beat(16)2.19%
PT rev (1m)3.06%
PT rev (3m)19.47%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)4.97%
EPS NY rev (1m)0.55%
EPS NY rev (3m)4.66%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)4.22%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.59 | ||
| Fwd PE | 26.57 | ||
| P/S | 23.23 | ||
| P/FCF | 56.22 | ||
| P/OCF | 52.27 | ||
| P/B | 36.56 | ||
| P/tB | 38.91 | ||
| EV/EBITDA | 37.88 |
EPS(TTM)4.2
EY2.35%
EPS(NY)6.73
Fwd EY3.76%
FCF(TTM)3.18
FCFY1.78%
OCF(TTM)3.42
OCFY1.91%
SpS7.7
BVpS4.89
TBVpS4.6
PEG (NY)0.79
PEG (5Y)0.51
Graham Number21.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 61.56% | ||
| ROE | 83.43% | ||
| ROCE | 81.9% | ||
| ROIC | 71.56% | ||
| ROICexc | 129.8% | ||
| ROICexgc | 143.69% | ||
| OM | 59.12% | ||
| PM (TTM) | 53.01% | ||
| GM | 70.32% | ||
| FCFM | 41.32% |
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 Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.11 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 226.69% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.46% | ||
| Profit Quality | 77.95% | ||
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.71 | ||
| Altman-Z | 67.37 |
F-Score5
WACC10.64%
ROIC/WACC6.73
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)60.43%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%60.49%
EPS Next Y54.01%
EPS Next 2Y50.01%
EPS Next 3Y41.76%
EPS Next 5Y27.95%
Revenue 1Y (TTM)65.22%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%62.49%
Revenue Next Year59.92%
Revenue Next 2Y48.01%
Revenue Next 3Y39.62%
Revenue Next 5Y26.6%
EBIT growth 1Y54.48%
EBIT growth 3Y97.28%
EBIT growth 5Y95.87%
EBIT Next Year51.96%
EBIT Next 3Y35.51%
EBIT Next 5Y31.99%
FCF growth 1Y341.47%
FCF growth 3Y95.6%
FCF growth 5Y70.11%
OCF growth 1Y341.42%
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.