NVIDIA CORP (NVDA) Stock Fundamental Analysis
NASDAQ:NVDA - Nasdaq - US67066G1040 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to NVDA. NVDA was compared to 110 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 priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make NVDA a good candidate 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.
Each year in the past 5 years NVDA had a positive operating cash flow.
1.2 Ratios
NVDA has a better Return On Assets (65.30%) than 99.09% of its industry peers.
Looking at the Return On Equity, with a value of 91.87%, NVDA belongs to the top of the industry, outperforming 98.18% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 76.63%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NVDA is significantly above the industry average of 11.17%.
The 3 year average ROIC (48.58%) for NVDA is below the current ROIC(76.63%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 55.85%, NVDA belongs to the top of the industry, outperforming 97.27% of the companies in the same industry.
NVDA's Profit Margin has improved in the last couple of years.
NVDA's Operating Margin of 62.88% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
NVDA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 75.45%, NVDA belongs to the top of the industry, outperforming 93.64% of the companies in the same industry.
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.
NVDA has less shares outstanding than it did 1 year ago.
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
NVDA has an Altman-Z score of 64.90. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 64.90, NVDA belongs to the best of the industry, outperforming 98.18% 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's Debt to FCF ratio of 0.14 is amongst the best of the industry. NVDA outperforms 83.64% 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.
NVDA has a Debt to Equity ratio (0.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 64.9 |
ROIC/WACC6.63
WACC11.55%
2.3 Liquidity
NVDA has a Current Ratio of 4.44. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.44, NVDA is in the better half of the industry, outperforming 62.73% of the companies in the same industry.
NVDA has a Quick Ratio of 3.88. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.88, NVDA is doing good in the industry, outperforming 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.44 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 130.69% over the past year.
The Earnings Per Share has been growing by 83.26% 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 114.20%.
NVDA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 64.24% yearly.
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
Based on estimates for the next years, NVDA will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.05% on average per year.
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 Y48.12%
EPS Next 2Y37.88%
EPS Next 3Y28.34%
EPS Next 5Y19.05%
Revenue Next Year54.28%
Revenue Next 2Y38.7%
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
Based on the Price/Earnings ratio of 44.42, the valuation of NVDA can be described as expensive.
NVDA's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of NVDA to the average of the S&P500 Index (26.03), we can say NVDA is valued expensively.
The Price/Forward Earnings ratio is 29.97, which means the current valuation is very expensive for NVDA.
NVDA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.94. NVDA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.42 | ||
| Fwd PE | 29.97 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.26 | ||
| EV/EBITDA | 37.5 |
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.
NVDA has an outstanding profitability rating, which may justify a higher PE ratio.
NVDA's earnings are expected to grow with 28.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)0.53
EPS Next 2Y37.88%
EPS Next 3Y28.34%
5. Dividend
5.1 Amount
NVDA has a yearly dividend return of 0.03%, which is pretty low.
Compared to an average industry Dividend Yield of 2.41, 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 | 0.03% |
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 1.14% of its income as dividend. This is a sustainable payout ratio.
The dividend of NVDA is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP1.14%
EPS Next 2Y37.88%
EPS Next 3Y28.34%
132.83
+1.03 (+0.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners67.04%
Inst Owner Change1.14%
Ins Owners4.22%
Ins Owner Change0.33%
Market Cap3241.05B
Analysts84
Price Target166.93 (25.67%)
Short Float %1.07%
Short Ratio0.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
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)-4.75%
PT rev (3m)-4.68%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)-2.49%
EPS NY rev (1m)-1.87%
EPS NY rev (3m)-1.78%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)3.16%
Revenue NY rev (1m)-1.75%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.42 | ||
| Fwd PE | 29.97 | ||
| P/S | 24.84 | ||
| P/FCF | 53.26 | ||
| P/OCF | 50.57 | ||
| P/B | 40.86 | ||
| P/tB | 44.2 | ||
| EV/EBITDA | 37.5 |
EPS(TTM)2.99
EY2.25%
EPS(NY)4.43
Fwd EY3.34%
FCF(TTM)2.49
FCFY1.88%
OCF(TTM)2.63
OCFY1.98%
SpS5.35
BVpS3.25
TBVpS3.01
PEG (NY)0.92
PEG (5Y)0.53
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 | 64.9 |
F-Score8
WACC11.55%
ROIC/WACC6.63
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 Y48.12%
EPS Next 2Y37.88%
EPS Next 3Y28.34%
EPS Next 5Y19.05%
Revenue 1Y (TTM)114.2%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%77.94%
Revenue Next Year54.28%
Revenue Next 2Y38.7%
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%