NVIDIA CORP (NVDA) Stock Fundamental Analysis
NASDAQ:NVDA - Nasdaq - US67066G1040 - Common Stock - Currency: USD
Overall NVDA gets a fundamental rating of 8 out of 10. We evaluated NVDA against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. NVDA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NVDA is not overvalued while it is showing excellent growth. This is an interesting combination. This makes NVDA very considerable 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.
In the past 5 years NVDA has always been profitable.
NVDA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NVDA (65.30%) is better than 99.08% of its industry peers.
NVDA's Return On Equity of 91.87% is amongst the best of the industry. NVDA outperforms 99.08% of its industry peers.
NVDA has a Return On Invested Capital of 76.63%. This is amongst the best in the industry. NVDA outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NVDA is significantly above the industry average of 11.29%.
The last Return On Invested Capital (76.63%) for NVDA is above the 3 year average (48.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 65.3% | ||
| ROE | 91.87% | ||
| ROIC | 76.63% |
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 55.85%. This is amongst the best in the industry. NVDA outperforms 97.25% of its industry peers.
NVDA's Profit Margin has improved in the last couple of years.
The Operating Margin of NVDA (62.88%) is better than 100.00% of its industry peers.
NVDA's Operating Margin has improved in the last couple of years.
NVDA's Gross Margin of 75.45% is amongst the best of the industry. NVDA outperforms 93.58% of its industry peers.
NVDA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 62.88% | ||
| PM (TTM) | 55.85% | ||
| GM | 75.45% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NVDA is creating value.
Compared to 1 year ago, NVDA has less shares outstanding
Compared to 5 years ago, NVDA has about the same amount of shares outstanding.
NVDA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 54.44 indicates that NVDA is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 54.44, NVDA belongs to the best of the industry, outperforming 98.17% of the companies in the same industry.
The Debt to FCF ratio of NVDA is 0.14, which is an excellent value as it means it would take NVDA, only 0.14 years of fcf income to pay off all of its debts.
NVDA has a better Debt to FCF ratio (0.14) than 84.40% of its industry peers.
NVDA has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NVDA (0.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 54.44 |
ROIC/WACC8.15
WACC9.4%
2.3 Liquidity
A Current Ratio of 4.44 indicates that NVDA has no problem at all paying its short term obligations.
NVDA's Current ratio of 4.44 is fine compared to the rest of the industry. NVDA outperforms 65.14% of its industry peers.
A Quick Ratio of 3.88 indicates that NVDA has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.88, NVDA is in the better half of the industry, outperforming 69.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.44 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
NVDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 130.69%, which is quite impressive.
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.
Looking at the last year, NVDA shows a very strong growth in Revenue. The Revenue has grown by 114.20%.
The Revenue has been growing by 64.24% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)130.69%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%72.48%
Revenue 1Y (TTM)114.2%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%77.94%
3.2 Future
The Earnings Per Share is expected to grow by 19.05% on average over the next years. This is quite good.
Based on estimates for the next years, NVDA will show a quite strong growth in Revenue. The Revenue will grow by 19.11% on average per year.
EPS Next Y50.95%
EPS Next 2Y38.82%
EPS Next 3Y29.53%
EPS Next 5Y19.05%
Revenue Next Year54.8%
Revenue Next 2Y38.75%
Revenue Next 3Y30.91%
Revenue Next 5Y19.11%
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
A Price/Earnings ratio of 36.46 indicates a quite expensive valuation of NVDA.
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 (28.98), we can say NVDA is valued slightly more expensively.
With a Price/Forward Earnings ratio of 24.14, NVDA is valued on the expensive side.
NVDA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.38. NVDA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.46 | ||
| Fwd PE | 24.14 |
4.2 Price Multiples
NVDA's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVDA indicates a somewhat cheap valuation: NVDA is cheaper than 65.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.71 | ||
| EV/EBITDA | 30.79 |
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 29.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)0.44
EPS Next 2Y38.82%
EPS Next 3Y29.53%
5. Dividend
5.1 Amount
NVDA has a yearly dividend return of 0.04%, which is pretty low.
NVDA's Dividend Yield is a higher than the industry average which is at 2.75.
With a Dividend Yield of 0.04, NVDA pays less dividend than the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.04% |
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
1.14% of the earnings are spent on dividend by NVDA. This is a low number and sustainable payout ratio.
NVDA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP1.14%
EPS Next 2Y38.82%
EPS Next 3Y29.53%
109.02
+0.29 (+0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners67.04%
Inst Owner Change0.54%
Ins Owners4.22%
Ins Owner Change0.33%
Market Cap2660.09B
Analysts85.71
Price Target169.04 (55.05%)
Short Float %1.13%
Short Ratio0.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.04% |
Yearly Dividend0.03
Dividend Growth(5Y)16.27%
DP1.14%
Div Incr Years1
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.94%
Min EPS beat(2)3.43%
Max EPS beat(2)6.45%
EPS beat(4)4
Avg EPS beat(4)5.3%
Min EPS beat(4)3.43%
Max EPS beat(4)7.38%
EPS beat(8)8
Avg EPS beat(8)11.29%
EPS beat(12)10
Avg EPS beat(12)1.81%
EPS beat(16)14
Avg EPS beat(16)2.57%
Revenue beat(2)2
Avg Revenue beat(2)2.55%
Min Revenue beat(2)1.38%
Max Revenue beat(2)3.72%
Revenue beat(4)4
Avg Revenue beat(4)2.83%
Min Revenue beat(4)1.38%
Max Revenue beat(4)3.72%
Revenue beat(8)8
Avg Revenue beat(8)6.54%
Revenue beat(12)10
Avg Revenue beat(12)2.75%
Revenue beat(16)14
Avg Revenue beat(16)2.46%
PT rev (1m)-4.22%
PT rev (3m)-2.71%
EPS NQ rev (1m)-3.58%
EPS NQ rev (3m)-2.11%
EPS NY rev (1m)-1.98%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)2.52%
Revenue NY rev (1m)-1.35%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.46 | ||
| Fwd PE | 24.14 | ||
| P/S | 20.38 | ||
| P/FCF | 43.71 | ||
| P/OCF | 41.51 | ||
| P/B | 33.53 | ||
| P/tB | 36.27 | ||
| EV/EBITDA | 30.79 |
EPS(TTM)2.99
EY2.74%
EPS(NY)4.52
Fwd EY4.14%
FCF(TTM)2.49
FCFY2.29%
OCF(TTM)2.63
OCFY2.41%
SpS5.35
BVpS3.25
TBVpS3.01
PEG (NY)0.72
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 65.3% | ||
| ROE | 91.87% | ||
| ROCE | 87.7% | ||
| ROIC | 76.63% | ||
| ROICexc | 142.39% | ||
| ROICexgc | 161.64% | ||
| OM | 62.88% | ||
| PM (TTM) | 55.85% | ||
| GM | 75.45% | ||
| FCFM | 46.63% |
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 5Y21.55%
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-Score8
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.14 | ||
| Debt/EBITDA | 0.1 | ||
| Cap/Depr | 173.61% | ||
| Cap/Sales | 2.48% | ||
| Interest Coverage | 333.54 | ||
| Cash Conversion | 76.37% | ||
| Profit Quality | 83.5% | ||
| Current Ratio | 4.44 | ||
| Quick Ratio | 3.88 | ||
| Altman-Z | 54.44 |
F-Score8
WACC9.4%
ROIC/WACC8.15
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)130.69%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%72.48%
EPS Next Y50.95%
EPS Next 2Y38.82%
EPS Next 3Y29.53%
EPS Next 5Y19.05%
Revenue 1Y (TTM)114.2%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%77.94%
Revenue Next Year54.8%
Revenue Next 2Y38.75%
Revenue Next 3Y30.91%
Revenue Next 5Y19.11%
EBIT growth 1Y148.86%
EBIT growth 3Y97.28%
EBIT growth 5Y95.87%
EBIT Next Year53.84%
EBIT Next 3Y28.25%
EBIT Next 5Y16.8%
FCF growth 1Y125.21%
FCF growth 3Y95.6%
FCF growth 5Y70.11%
OCF growth 1Y128.16%
OCF growth 3Y91.63%
OCF growth 5Y68.2%