NVIDIA CORP (NVDA)
US67066G1040 - Common Stock
Overall NVDA gets a fundamental rating of 8 out of 10. We evaluated NVDA against 107 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 not priced too expensively while it is growing strongly. Keep and eye on this one! This makes NVDA very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year NVDA was profitable.
NVDA had a positive operating cash flow in the past year.
In the past 5 years NVDA has always been profitable.
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 55.27%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NVDA has a Return On Equity of 86.68%. This is amongst the best in the industry. NVDA outperforms 99.07% of its industry peers.
The Return On Invested Capital of NVDA (68.12%) is better than 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 10.93%.
The 3 year average ROIC (31.07%) for NVDA is below the current ROIC(68.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 55.27% | ||
| ROE | 86.68% | ||
| ROIC | 68.12% |
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
The Profit Margin of NVDA (53.40%) is better than 98.13% of its industry peers.
NVDA's Profit Margin has improved in the last couple of years.
NVDA has a better Operating Margin (60.02%) than 99.07% of its industry peers.
NVDA's Operating Margin has improved in the last couple of years.
NVDA has a Gross Margin of 75.43%. This is amongst the best in the industry. NVDA outperforms 94.39% of its industry peers.
In the last couple of years the Gross Margin of NVDA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 60.02% | ||
| PM (TTM) | 53.4% | ||
| GM | 75.43% |
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
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 about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for NVDA has been increased compared to 5 years ago.
Compared to 1 year ago, NVDA has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of NVDA is 0.25, which is an excellent value as it means it would take NVDA, only 0.25 years of fcf income to pay off all of its debts.
NVDA has a better Debt to FCF ratio (0.25) than 82.24% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that NVDA is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.17, NVDA perfoms like the industry average, outperforming 50.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | N/A |
ROIC/WACC5.44
WACC12.53%
2.3 Liquidity
A Current Ratio of 3.53 indicates that NVDA has no problem at all paying its short term obligations.
NVDA has a Current ratio (3.53) which is comparable to the rest of the industry.
A Quick Ratio of 3.14 indicates that NVDA has no problem at all paying its short term obligations.
NVDA's Quick ratio of 3.14 is fine compared to the rest of the industry. NVDA outperforms 64.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.53 | ||
| Quick Ratio | 3.14 |
3. Growth
3.1 Past
NVDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 488.24%, which is quite impressive.
NVDA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.90% yearly.
Looking at the last year, NVDA shows a very strong growth in Revenue. The Revenue has grown by 208.27%.
NVDA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.06% yearly.
EPS 1Y (TTM)488.24%
EPS 3Y73.17%
EPS 5Y50.9%
EPS Q2Q%461.47%
Revenue 1Y (TTM)208.27%
Revenue growth 3Y54.02%
Revenue growth 5Y39.06%
Sales Q2Q%262.12%
3.2 Future
NVDA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.56% yearly.
NVDA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.79% yearly.
EPS Next Y97.79%
EPS Next 2Y59.8%
EPS Next 3Y43.29%
EPS Next 5Y28.56%
Revenue Next Year89.93%
Revenue Next 2Y55.9%
Revenue Next 3Y41.12%
Revenue Next 5Y27.79%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
NVDA is valuated quite expensively with a Price/Earnings ratio of 60.91.
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 28.05.
A Price/Forward Earnings ratio of 33.10 indicates a quite expensive valuation of NVDA.
NVDA's Price/Forward Earnings ratio is in line with the industry average.
NVDA is valuated expensively when we compare the Price/Forward Earnings ratio to 20.07, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.91 | ||
| Fwd PE | 33.1 |
4.2 Price Multiples
NVDA's Enterprise Value to EBITDA ratio is in line with the industry average.
63.55% of the companies in the same industry are more expensive than NVDA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.56 | ||
| EV/EBITDA | 54.57 |
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.
NVDA's earnings are expected to grow with 43.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)1.2
EPS Next 2Y59.8%
EPS Next 3Y43.29%
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 1.79.
Compared to an average S&P500 Dividend Yield of 2.37, 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 0.91%.
NVDA has been paying a dividend for at least 10 years, so it has a reliable track record.
NVDA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.91%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
NVDA pays out 0.92% of its income as dividend. This is a sustainable payout ratio.
NVDA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP0.92%
EPS Next 2Y59.8%
EPS Next 3Y43.29%
NVIDIA CORP
NASDAQ:NVDA (5/31/2024, 7:00:02 PM)
After market: 1101.94 +5.61 (+0.51%)1096.33
-8.67 (-0.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
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Market Cap2696.79B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.91 | ||
| Fwd PE | 33.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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OCF(TTM)
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SpS
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PEG (NY)0.62
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 55.27% | ||
| ROE | 86.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 60.02% | ||
| PM (TTM) | 53.4% | ||
| GM | 75.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.53 | ||
| Quick Ratio | 3.14 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)488.24%
EPS 3Y73.17%
EPS 5Y
EPS Q2Q%
EPS Next Y97.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)208.27%
Revenue growth 3Y54.02%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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