NVIDIA CORP (NVDA) Stock Fundamental Analysis
USA - NASDAQ:NVDA - US67066G1040 - Common Stock
189.605 USD
+0.72 (+0.38%)
NVDA gets a fundamental rating of 9 out of 10. The analysis compared the fundamentals against 112 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 growing strongly while it is still valued neutral. This is a good combination! These ratings could make NVDA a good candidate 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.
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's Return On Assets of 61.53% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
NVDA has a better Return On Equity (86.48%) than 97.32% of its industry peers.
NVDA's Return On Invested Capital of 72.42% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
NVDA had an Average Return On Invested Capital over the past 3 years of 48.58%. This is significantly above the industry average of 10.93%.
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
NVDA has a better Profit Margin (52.41%) than 97.32% of its industry peers.
In the last couple of years the Profit Margin of NVDA has grown nicely.
The Operating Margin of NVDA (58.44%) is better than 99.11% of its industry peers.
NVDA's Operating Margin has improved in the last couple of years.
NVDA has a better Gross Margin (70.20%) than 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NVDA 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 72.80. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
NVDA's Altman-Z score of 72.80 is amongst the best of the industry. NVDA outperforms 96.43% of its industry peers.
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.
NVDA's Debt to FCF ratio of 0.12 is amongst the best of the industry. NVDA outperforms 83.04% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that NVDA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.08, NVDA is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 72.8 |
ROIC/WACC6.37
WACC11.37%
2.3 Liquidity
A Current Ratio of 4.21 indicates that NVDA has no problem at all paying its short term obligations.
NVDA's Current ratio of 4.21 is fine compared to the rest of the industry. NVDA outperforms 63.39% of its industry peers.
A Quick Ratio of 3.60 indicates that NVDA has no problem at all paying its short term obligations.
The Quick ratio of NVDA (3.60) is better than 67.86% 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.
The Earnings Per Share has been growing by 83.26% on average over the past years. This is a very strong growth
Looking at the last year, NVDA shows a very strong growth in Revenue. The Revenue has grown by 71.55%.
The Revenue has been growing by 64.24% on average over the past years. This is a very strong growth!
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 24.91% on average over the next years. This is a very strong growth
Based on estimates for the next years, NVDA will show a very strong growth in Revenue. The Revenue will grow by 24.27% on average per year.
EPS Next Y53.16%
EPS Next 2Y47.28%
EPS Next 3Y35.6%
EPS Next 5Y24.91%
Revenue Next Year59.32%
Revenue Next 2Y45.75%
Revenue Next 3Y35.02%
Revenue Next 5Y24.27%
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
Based on the Price/Earnings ratio of 51.11, the valuation of NVDA can be described as expensive.
NVDA's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.86, NVDA is valued quite expensively.
With a Price/Forward Earnings ratio of 29.22, NVDA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVDA indicates a somewhat cheap valuation: NVDA is cheaper than 62.50% of the companies listed in the same industry.
NVDA's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.11 | ||
| Fwd PE | 29.22 |
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 61.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.97 | ||
| EV/EBITDA | 45.48 |
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.
The excellent profitability rating of NVDA may justify a higher PE ratio.
NVDA's earnings are expected to grow with 35.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)0.61
EPS Next 2Y47.28%
EPS Next 3Y35.6%
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 2.20, NVDA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, NVDA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)16.27%
Div Incr Years1
Div Non Decr Years12
5.3 Sustainability
1.13% 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.
DP1.13%
EPS Next 2Y47.28%
EPS Next 3Y35.6%
NASDAQ:NVDA (10/3/2025, 9:44:10 AM)
189.605
+0.72 (+0.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners68.83%
Inst Owner Change1%
Ins Owners4.18%
Ins Owner Change-5.27%
Market Cap4607.40B
Analysts83.71
Price Target216.25 (14.05%)
Short Float %0.94%
Short Ratio1.25
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)9.68%
PT rev (3m)20.95%
EPS NQ rev (1m)3.76%
EPS NQ rev (3m)6.65%
EPS NY rev (1m)2.53%
EPS NY rev (3m)4.4%
Revenue NQ rev (1m)2.77%
Revenue NQ rev (3m)5.72%
Revenue NY rev (1m)1.77%
Revenue NY rev (3m)3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.11 | ||
| Fwd PE | 29.22 | ||
| P/S | 27.89 | ||
| P/FCF | 63.97 | ||
| P/OCF | 59.81 | ||
| P/B | 46.01 | ||
| P/tB | 49.21 | ||
| EV/EBITDA | 45.48 |
EPS(TTM)3.71
EY1.96%
EPS(NY)6.49
Fwd EY3.42%
FCF(TTM)2.96
FCFY1.56%
OCF(TTM)3.17
OCFY1.67%
SpS6.8
BVpS4.12
TBVpS3.85
PEG (NY)0.96
PEG (5Y)0.61
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%
ROICexcg growth 3Y27.44%
ROICexcg 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 | 72.8 |
F-Score5
WACC11.37%
ROIC/WACC6.37
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 Y53.16%
EPS Next 2Y47.28%
EPS Next 3Y35.6%
EPS Next 5Y24.91%
Revenue 1Y (TTM)71.55%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%55.6%
Revenue Next Year59.32%
Revenue Next 2Y45.75%
Revenue Next 3Y35.02%
Revenue Next 5Y24.27%
EBIT growth 1Y60.48%
EBIT growth 3Y97.28%
EBIT growth 5Y95.87%
EBIT Next Year51.96%
EBIT Next 3Y36.4%
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%