NVIDIA CORP (NVDA) Stock Fundamental Analysis
USA - NASDAQ:NVDA - US67066G1040 - Common Stock
202.49 USD
-0.4 (-0.2%)
202.62 USD
+0.13 (+0.06%)
Taking everything into account, NVDA scores 8 out of 10 in our fundamental rating. NVDA was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. NVDA gets an excellent profitability rating and is at the same time showing great financial health properties. NVDA is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, NVDA could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
NVDA had positive earnings in the past year.
NVDA had a positive operating cash flow in the past year.
NVDA had positive earnings in each of the past 5 years.
In the past 5 years NVDA always reported a positive cash flow from operatings.
1.2 Ratios
NVDA has a Return On Assets of 61.53%. This is amongst the best in the industry. NVDA outperforms 100.00% of its industry peers.
NVDA's Return On Equity of 86.48% is amongst the best of the industry. NVDA outperforms 97.32% of its industry peers.
NVDA has a better Return On Invested Capital (72.42%) 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 11.03%.
The 3 year average ROIC (48.58%) for NVDA is below the current ROIC(72.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 61.53% | ||
| ROE | 86.48% | ||
| ROIC | 72.42% |
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 52.41%, NVDA belongs to the top of the industry, outperforming 97.32% of the companies in the same industry.
In the last couple of years the Profit Margin of NVDA has grown nicely.
NVDA has a better Operating Margin (58.44%) than 99.11% of its industry peers.
NVDA's Operating Margin has improved in the last couple of years.
NVDA has a Gross Margin of 70.20%. This is amongst the best in the industry. NVDA outperforms 93.75% of its industry peers.
In the last couple of years the Gross Margin of NVDA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.44% | ||
| PM (TTM) | 52.41% | ||
| GM | 70.2% |
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
NVDA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for NVDA has been reduced compared to 1 year ago.
Compared to 5 years ago, NVDA has about the same amount of shares outstanding.
Compared to 1 year ago, NVDA has an improved debt to assets ratio.
2.2 Solvency
NVDA has an Altman-Z score of 77.83. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 77.83, NVDA belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
The Debt to FCF ratio of NVDA is 0.12, which is an excellent value as it means it would take NVDA, only 0.12 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.12, NVDA belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
A Debt/Equity ratio of 0.08 indicates that NVDA is not too dependend on debt financing.
NVDA has a Debt to Equity ratio of 0.08. This is comparable to the rest of the industry: NVDA outperforms 58.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 77.83 |
ROIC/WACC6.14
WACC11.79%
2.3 Liquidity
NVDA has a Current Ratio of 4.21. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
NVDA has a better Current ratio (4.21) than 64.29% of its industry peers.
A Quick Ratio of 3.60 indicates that NVDA has no problem at all paying its short term obligations.
NVDA's Quick ratio of 3.60 is fine compared to the rest of the industry. NVDA outperforms 69.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.21 | ||
| Quick Ratio | 3.6 |
3. Growth
3.1 Past
NVDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.87%, which is quite impressive.
NVDA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 83.26% yearly.
The Revenue has grown by 71.55% in the past year. This is a very strong growth!
Measured over the past years, NVDA shows a very strong growth in Revenue. The Revenue has been growing by 64.24% on average per year.
EPS 1Y (TTM)67.87%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%54.41%
Revenue 1Y (TTM)71.55%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%55.6%
3.2 Future
The Earnings Per Share is expected to grow by 24.90% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 23.94% on average over the next years. This is a very strong growth
EPS Next Y53.39%
EPS Next 2Y48.46%
EPS Next 3Y37.35%
EPS Next 5Y24.9%
Revenue Next Year59.56%
Revenue Next 2Y46.71%
Revenue Next 3Y36.36%
Revenue Next 5Y23.94%
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
A Price/Earnings ratio of 54.58 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 (26.10), we can say NVDA is valued expensively.
Based on the Price/Forward Earnings ratio of 30.71, the valuation of NVDA can be described as expensive.
Based on the Price/Forward Earnings ratio, NVDA is valued a bit cheaper than the industry average as 61.61% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NVDA to the average of the S&P500 Index (22.52), we can say NVDA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.58 | ||
| Fwd PE | 30.71 |
4.2 Price Multiples
NVDA's Enterprise Value to EBITDA ratio is in line with the industry average.
61.61% 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 | 68.32 | ||
| EV/EBITDA | 48.93 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 37.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)0.66
EPS Next 2Y48.46%
EPS Next 3Y37.35%
5. Dividend
5.1 Amount
NVDA has a yearly dividend return of 0.02%, which is pretty low.
NVDA's Dividend Yield is a higher than the industry average which is at 2.18.
Compared to an average S&P500 Dividend Yield of 2.35, NVDA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
5.2 History
The dividend of NVDA is nicely growing with an annual growth rate of 16.27%!
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 1.13% 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.
DP1.13%
EPS Next 2Y48.46%
EPS Next 3Y37.35%
202.49
-0.4 (-0.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners68.83%
Inst Owner Change-2.63%
Ins Owners4.18%
Ins Owner Change-7.2%
Market Cap4920.51B
Revenue(TTM)165.22B
Net Income(TTM)86.60B
Analysts83.66
Price Target218.67 (7.99%)
Short Float %0.91%
Short Ratio1.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
Yearly Dividend0.03
Dividend Growth(5Y)16.27%
DP1.13%
Div Incr Years1
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.48%
Min EPS beat(2)0.83%
Max EPS beat(2)2.13%
EPS beat(4)4
Avg EPS beat(4)3.21%
Min EPS beat(4)0.83%
Max EPS beat(4)6.45%
EPS beat(8)8
Avg EPS beat(8)6.27%
EPS beat(12)11
Avg EPS beat(12)6.82%
EPS beat(16)14
Avg EPS beat(16)2.14%
Revenue beat(2)0
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)-0.25%
Revenue beat(4)2
Avg Revenue beat(4)1.08%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)3.72%
Revenue beat(8)6
Avg Revenue beat(8)3.18%
Revenue beat(12)9
Avg Revenue beat(12)4.25%
Revenue beat(16)12
Avg Revenue beat(16)2.21%
PT rev (1m)1.12%
PT rev (3m)17.45%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)5.36%
EPS NY rev (1m)0.15%
EPS NY rev (3m)4.24%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)4.55%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)3.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.58 | ||
| Fwd PE | 30.71 | ||
| P/S | 29.78 | ||
| P/FCF | 68.32 | ||
| P/OCF | 63.87 | ||
| P/B | 49.14 | ||
| P/tB | 52.56 | ||
| EV/EBITDA | 48.93 |
EPS(TTM)3.71
EY1.83%
EPS(NY)6.59
Fwd EY3.26%
FCF(TTM)2.96
FCFY1.46%
OCF(TTM)3.17
OCFY1.57%
SpS6.8
BVpS4.12
TBVpS3.85
PEG (NY)1.02
PEG (5Y)0.66
Graham Number18.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 61.53% | ||
| ROE | 86.48% | ||
| ROCE | 82.89% | ||
| ROIC | 72.42% | ||
| ROICexc | 141.33% | ||
| ROICexgc | 158.63% | ||
| OM | 58.44% | ||
| PM (TTM) | 52.41% | ||
| GM | 70.2% | ||
| FCFM | 43.59% |
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%
ROICexgc growth 3Y27.44%
ROICexgc growth 5Y20.86%
ROICexc growth 3Y41.67%
ROICexc growth 5Y21.56%
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-Score5
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.12 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 217.82% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.92% | ||
| Profit Quality | 83.17% | ||
| Current Ratio | 4.21 | ||
| Quick Ratio | 3.6 | ||
| Altman-Z | 77.83 |
F-Score5
WACC11.79%
ROIC/WACC6.14
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)67.87%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%54.41%
EPS Next Y53.39%
EPS Next 2Y48.46%
EPS Next 3Y37.35%
EPS Next 5Y24.9%
Revenue 1Y (TTM)71.55%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%55.6%
Revenue Next Year59.56%
Revenue Next 2Y46.71%
Revenue Next 3Y36.36%
Revenue Next 5Y23.94%
EBIT growth 1Y60.48%
EBIT growth 3Y97.28%
EBIT growth 5Y95.87%
EBIT Next Year51.96%
EBIT Next 3Y34.3%
EBIT Next 5Y23.77%
FCF growth 1Y597.69%
FCF growth 3Y95.6%
FCF growth 5Y70.11%
OCF growth 1Y547.41%
OCF growth 3Y91.63%
OCF growth 5Y68.2%
NVIDIA CORP / NVDA FAQ
What is the fundamental rating for NVDA stock?
ChartMill assigns a fundamental rating of 8 / 10 to NVDA.
Can you provide the valuation status for NVIDIA CORP?
ChartMill assigns a valuation rating of 4 / 10 to NVIDIA CORP (NVDA). This can be considered as Fairly Valued.
What is the profitability of NVDA stock?
NVIDIA CORP (NVDA) has a profitability rating of 10 / 10.
What is the financial health of NVIDIA CORP (NVDA) stock?
The financial health rating of NVIDIA CORP (NVDA) is 9 / 10.
What is the expected EPS growth for NVIDIA CORP (NVDA) stock?
The Earnings per Share (EPS) of NVIDIA CORP (NVDA) is expected to grow by 53.39% in the next year.