NVIDIA CORP (NVDA)
US67066G1040 - Common Stock
NVDA gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. NVDA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
In the past year NVDA was profitable.
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
Looking at the Return On Assets, with a value of 45.28%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NVDA has a better Return On Equity (69.24%) than 98.11% of its industry peers.
The Return On Invested Capital of NVDA (52.66%) is better than 100.00% of its industry peers.
NVDA had an Average Return On Invested Capital over the past 3 years of 31.07%. This is significantly above the industry average of 10.54%.
The last Return On Invested Capital (52.66%) for NVDA is above the 3 year average (31.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 45.28% | ||
| ROE | 69.24% | ||
| ROIC | 52.66% |
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
NVDA's Profit Margin of 48.85% is amongst the best of the industry. NVDA outperforms 98.11% of its industry peers.
In the last couple of years the Profit Margin of NVDA has grown nicely.
NVDA has a Operating Margin of 54.12%. This is amongst the best in the industry. NVDA outperforms 99.06% of its industry peers.
NVDA's Operating Margin has improved in the last couple of years.
NVDA has a Gross Margin of 72.72%. This is amongst the best in the industry. NVDA outperforms 92.45% of its industry peers.
In the last couple of years the Gross Margin of NVDA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 54.12% | ||
| PM (TTM) | 48.85% | ||
| GM | 72.72% |
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
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 about the same amount of shares outstanding.
The number of shares outstanding for NVDA has been increased compared to 5 years ago.
The debt/assets ratio for NVDA has been reduced compared to a year ago.
2.2 Solvency
NVDA has an Altman-Z score of 63.54. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
NVDA has a Altman-Z score of 63.54. This is amongst the best in the industry. NVDA outperforms 98.11% of its industry peers.
The Debt to FCF ratio of NVDA is 0.36, which is an excellent value as it means it would take NVDA, only 0.36 years of fcf income to pay off all of its debts.
NVDA has a better Debt to FCF ratio (0.36) than 81.13% of its industry peers.
NVDA has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.20, NVDA is in line with its industry, outperforming 49.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.36 | ||
| Altman-Z | 63.54 |
ROIC/WACC4.21
WACC12.51%
2.3 Liquidity
A Current Ratio of 4.17 indicates that NVDA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.17, NVDA is in the better half of the industry, outperforming 68.87% of the companies in the same industry.
A Quick Ratio of 3.67 indicates that NVDA has no problem at all paying its short term obligations.
NVDA has a better Quick ratio (3.67) than 66.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.17 | ||
| Quick Ratio | 3.67 |
3. Growth
3.1 Past
NVDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 289.49%, which is quite impressive.
The Earnings Per Share has been growing by 50.90% on average over the past years. This is a very strong growth
NVDA shows a strong growth in Revenue. In the last year, the Revenue has grown by 125.85%.
The Revenue has been growing by 39.06% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)289.49%
EPS 3Y73.17%
EPS 5Y50.9%
EPS growth Q2Q486.36%
Revenue 1Y (TTM)125.85%
Revenue growth 3Y54.02%
Revenue growth 5Y39.06%
Revenue growth Q2Q265.28%
3.2 Future
The Earnings Per Share is expected to grow by 28.56% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.79% on average over the next years. This is a very strong growth
EPS Next Y92.53%
EPS Next 2Y55.22%
EPS Next 3Y42.74%
EPS Next 5Y28.56%
Revenue Next Year85.65%
Revenue Next 2Y51.67%
Revenue Next 3Y40.02%
Revenue Next 5Y27.79%
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.
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
With a Price/Earnings ratio of 69.71, NVDA can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as NVDA.
NVDA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.11.
NVDA is valuated quite expensively with a Price/Forward Earnings ratio of 36.21.
NVDA's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.39. NVDA is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.71 | ||
| Fwd PE | 36.21 |
4.2 Price Multiples
NVDA's Enterprise Value to EBITDA ratio is in line with the industry average.
NVDA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.66 | ||
| EV/EBITDA | 64.64 |
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 42.74% in the coming years.
PEG (NY)0.75
PEG (5Y)1.37
EPS Next 2Y55.22%
EPS Next 3Y42.74%
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 2.04, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
5.2 History
The dividend of NVDA has a limited annual growth rate of 0.91%.
NVDA has paid a dividend for at least 10 years, which is 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)0.91%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
1.33% 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.
DP1.33%
EPS Next 2Y55.22%
EPS Next 3Y42.74%
NVIDIA CORP
NASDAQ:NVDA (5/8/2024, 12:08:10 PM)
904.18
-1.36 (-0.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
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Market Cap2260.45B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.71 | ||
| Fwd PE | 36.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.75
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 45.28% | ||
| ROE | 69.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 54.12% | ||
| PM (TTM) | 48.85% | ||
| GM | 72.72% | ||
| 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 Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.17 | ||
| Quick Ratio | 3.67 | ||
| 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)
Growth
EPS 1Y (TTM)289.49%
EPS 3Y73.17%
EPS 5Y
EPS growth Q2Q
EPS Next Y92.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)125.85%
Revenue growth 3Y54.02%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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