NVIDIA CORP (NVDA)
US67066G1040 - Common Stock
Taking everything into account, NVDA scores 8 out of 10 in our fundamental rating. NVDA was compared to 109 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 growing strongly while it is still valued neutral. This is a good 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.
Each year in the past 5 years NVDA has been profitable.
NVDA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NVDA has a better Return On Assets (55.27%) than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 86.68%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of NVDA (67.93%) 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 10.70%.
The last Return On Invested Capital (67.93%) for NVDA is above the 3 year average (31.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 55.27% | ||
| ROE | 86.68% | ||
| ROIC | 67.93% |
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 has a Profit Margin of 53.40%. This is amongst the best in the industry. NVDA outperforms 98.17% of its industry peers.
NVDA's Profit Margin has improved in the last couple of years.
NVDA has a better Operating Margin (59.84%) than 99.08% of its industry peers.
In the last couple of years the Operating Margin of NVDA has grown nicely.
NVDA's Gross Margin of 75.29% is amongst the best of the industry. NVDA outperforms 94.50% of its industry peers.
In the last couple of years the Gross Margin of NVDA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.84% | ||
| PM (TTM) | 53.4% | ||
| GM | 75.29% |
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.
NVDA has more shares outstanding than it did 5 years ago.
NVDA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 63.68 indicates that NVDA is not in any danger for bankruptcy at the moment.
NVDA has a better Altman-Z score (63.68) than 97.25% of its industry peers.
NVDA has a debt to FCF ratio of 0.25. This is a very positive value and a sign of high solvency as it would only need 0.25 years to pay back of all of its debts.
NVDA has a Debt to FCF ratio of 0.25. This is amongst the best in the industry. NVDA outperforms 83.49% of its industry peers.
NVDA has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
NVDA has a Debt to Equity ratio of 0.17. This is comparable to the rest of the industry: NVDA outperforms 49.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 63.68 |
ROIC/WACC5.67
WACC11.97%
2.3 Liquidity
NVDA has a Current Ratio of 3.53. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 3.53, NVDA perfoms like the industry average, outperforming 55.96% of the companies in the same industry.
NVDA has a Quick Ratio of 3.14. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
NVDA has a better Quick ratio (3.14) than 61.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.53 | ||
| Quick Ratio | 3.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 488.24% over the past year.
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 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 35.09% yearly.
Based on estimates for the next years, NVDA will show a very strong growth in Revenue. The Revenue will grow by 32.85% on average per year.
EPS Next Y112.95%
EPS Next 2Y68.37%
EPS Next 3Y48.1%
EPS Next 5Y35.09%
Revenue Next Year102.74%
Revenue Next 2Y64.01%
Revenue Next 3Y45.26%
Revenue Next 5Y32.85%
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 Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 62.81, the valuation of NVDA can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NVDA is on the same level as its industry peers.
NVDA is valuated expensively when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 30.75, NVDA can be considered very expensive at the moment.
NVDA's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of NVDA to the average of the S&P500 Index (20.59), we can say NVDA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.81 | ||
| Fwd PE | 30.75 |
4.2 Price Multiples
NVDA's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, NVDA is valued a bit cheaper than the industry average as 62.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.71 | ||
| EV/EBITDA | 55.13 |
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.
The excellent profitability rating of NVDA may justify a higher PE ratio.
A more expensive valuation may be justified as NVDA's earnings are expected to grow with 48.10% in the coming years.
PEG (NY)0.56
PEG (5Y)1.23
EPS Next 2Y68.37%
EPS Next 3Y48.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.03%, NVDA is not a good candidate for dividend investing.
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 2.30, 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 0.90%.
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)0.9%
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.
The dividend of NVDA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP0.92%
EPS Next 2Y68.37%
EPS Next 3Y48.1%
NVIDIA CORP
NASDAQ:NVDA (7/26/2024, 7:00:01 PM)
After market: 113.038 -0.02 (-0.02%)113.06
+0.78 (+0.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
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Market Cap2781.28B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.81 | ||
| Fwd PE | 30.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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PEG (NY)0.56
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 55.27% | ||
| ROE | 86.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 59.84% | ||
| PM (TTM) | 53.4% | ||
| GM | 75.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
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PM growth 5Y
GM growth 3Y
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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 Y112.95%
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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