NVIDIA CORP (NVDA) Stock Fundamental Analysis
USA - NASDAQ:NVDA - US67066G1040 - Common Stock
183.22 USD
+1.41 (+0.78%)
183.37 USD
+0.15 (+0.08%)
Overall NVDA gets a fundamental rating of 9 out of 10. We evaluated NVDA against 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 growing strongly while it is still valued neutral. This is a good combination! 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.
In the past year NVDA had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 61.53%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of NVDA (86.48%) is better than 97.32% of its industry peers.
With an excellent Return On Invested Capital value of 72.42%, 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 10.98%.
The 3 year average ROIC (48.58%) for NVDA is below the current ROIC(72.42%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Operating Margin of NVDA has grown nicely.
The Gross Margin of NVDA (70.20%) is better than 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.
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 70.77 indicates that NVDA is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 70.77, NVDA belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
The Debt to FCF ratio of NVDA is 0.12, which is an excellent value as it means it would take NVDA, only 0.12 years of fcf income to pay off all of its debts.
NVDA has a better Debt to FCF ratio (0.12) than 83.04% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that NVDA is not too dependend on debt financing.
The Debt to Equity ratio of NVDA (0.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 70.77 |
ROIC/WACC6.27
WACC11.55%
2.3 Liquidity
A Current Ratio of 4.21 indicates that NVDA has no problem at all paying 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.
NVDA has a Quick Ratio of 3.60. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
NVDA's Quick ratio of 3.60 is fine compared to the rest of the industry. NVDA outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.21 | ||
| Quick Ratio | 3.6 |
3. Growth
3.1 Past
NVDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.87%, which is quite impressive.
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 71.55% in the past year. This is a very strong growth!
NVDA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 64.24% yearly.
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
Based on estimates for the next years, NVDA will show a very strong growth in Earnings Per Share. The EPS will grow by 24.90% on average per year.
The Revenue is expected to grow by 23.94% on average over the next years. This is a very strong growth
EPS Next Y53.16%
EPS Next 2Y47.28%
EPS Next 3Y36.73%
EPS Next 5Y24.9%
Revenue Next Year59.44%
Revenue Next 2Y46.06%
Revenue Next 3Y35.61%
Revenue Next 5Y23.94%
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
With a Price/Earnings ratio of 49.39, NVDA can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as NVDA.
When comparing the Price/Earnings ratio of NVDA to the average of the S&P500 Index (27.40), we can say NVDA is valued expensively.
Based on the Price/Forward Earnings ratio of 28.23, the valuation of NVDA can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVDA indicates a somewhat cheap valuation: NVDA is cheaper than 63.39% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NVDA to the average of the S&P500 Index (22.94), we can say NVDA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.39 | ||
| Fwd PE | 28.23 |
4.2 Price Multiples
NVDA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, NVDA is valued a bit cheaper than the industry average as 61.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.82 | ||
| EV/EBITDA | 44.09 |
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.
NVDA has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NVDA's earnings are expected to grow with 36.73% in the coming years.
PEG (NY)0.93
PEG (5Y)0.59
EPS Next 2Y47.28%
EPS Next 3Y36.73%
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 2.15, NVDA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, NVDA's dividend is way lower than the S&P500 average.
| 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 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.
The dividend of NVDA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP1.13%
EPS Next 2Y47.28%
EPS Next 3Y36.73%
183.22
+1.41 (+0.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners68.83%
Inst Owner Change-2.67%
Ins Owners4.18%
Ins Owner Change-6.62%
Market Cap4452.25B
Analysts83.66
Price Target218.67 (19.35%)
Short Float %0.94%
Short Ratio1.25
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)1.12%
PT rev (3m)17.45%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)6.28%
EPS NY rev (1m)2.53%
EPS NY rev (3m)4.08%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)5.54%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.39 | ||
| Fwd PE | 28.23 | ||
| P/S | 26.95 | ||
| P/FCF | 61.82 | ||
| P/OCF | 57.8 | ||
| P/B | 44.46 | ||
| P/tB | 47.56 | ||
| EV/EBITDA | 44.09 |
EPS(TTM)3.71
EY2.02%
EPS(NY)6.49
Fwd EY3.54%
FCF(TTM)2.96
FCFY1.62%
OCF(TTM)3.17
OCFY1.73%
SpS6.8
BVpS4.12
TBVpS3.85
PEG (NY)0.93
PEG (5Y)0.59
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%
ROICexcg growth 3Y27.44%
ROICexcg 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 | 70.77 |
F-Score5
WACC11.55%
ROIC/WACC6.27
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 Y53.16%
EPS Next 2Y47.28%
EPS Next 3Y36.73%
EPS Next 5Y24.9%
Revenue 1Y (TTM)71.55%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%55.6%
Revenue Next Year59.44%
Revenue Next 2Y46.06%
Revenue Next 3Y35.61%
Revenue Next 5Y23.94%
EBIT growth 1Y60.48%
EBIT growth 3Y97.28%
EBIT growth 5Y95.87%
EBIT Next Year51.96%
EBIT Next 3Y34.3%
EBIT Next 5Y23.77%
FCF growth 1Y597.69%
FCF growth 3Y95.6%
FCF growth 5Y70.11%
OCF growth 1Y547.41%
OCF growth 3Y91.63%
OCF growth 5Y68.2%