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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NVDA is not overvalued while it is showing excellent growth. This is an interesting combination. 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.
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
The Return On Assets of NVDA (45.28%) is better than 100.00% of its industry peers.
The Return On Equity of NVDA (69.24%) is better than 98.11% of its industry peers.
NVDA has a Return On Invested Capital of 52.66%. This is amongst the best in the industry. NVDA outperforms 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 10.84%.
The 3 year average ROIC (31.07%) for NVDA is below the current ROIC(52.66%), indicating increased profibility in the last year.
| 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
The Profit Margin of NVDA (48.85%) is better than 98.11% of its industry peers.
In the last couple of years the Profit Margin of NVDA has grown nicely.
With an excellent Operating Margin value of 54.12%, NVDA belongs to the best of the industry, outperforming 99.06% of the companies in the same industry.
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.
NVDA's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for NVDA remains at a similar level compared to 1 year ago.
Compared to 5 years ago, NVDA has more 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 58.32. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
NVDA has a Altman-Z score of 58.32. This is amongst the best in the industry. NVDA outperforms 98.11% of its industry peers.
NVDA has a debt to FCF ratio of 0.36. This is a very positive value and a sign of high solvency as it would only need 0.36 years to pay back of all of its debts.
NVDA has a Debt to FCF ratio of 0.36. This is amongst the best in the industry. NVDA outperforms 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.
With a Debt to Equity ratio value of 0.20, NVDA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.36 | ||
| Altman-Z | 58.32 |
ROIC/WACC4.5
WACC11.69%
2.3 Liquidity
A Current Ratio of 4.17 indicates that NVDA has no problem at all paying its short term obligations.
The Current ratio of NVDA (4.17) is better than 67.92% of its industry peers.
NVDA has a Quick Ratio of 3.67. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.67, NVDA is in the better half of the industry, outperforming 69.81% of the companies in the same industry.
| 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.
NVDA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.90% yearly.
The Revenue has grown by 125.85% 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 39.06% on average per year.
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
Based on estimates for the next years, NVDA will show a very strong growth in Earnings Per Share. The EPS will grow by 21.87% on average per year.
Based on estimates for the next years, NVDA will show a very strong growth in Revenue. The Revenue will grow by 21.23% on average per year.
EPS Next Y92.53%
EPS Next 2Y55.22%
EPS Next 3Y40.24%
EPS Next 5Y21.87%
Revenue Next Year85.65%
Revenue Next 2Y51.67%
Revenue Next 3Y37.97%
Revenue Next 5Y21.23%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 67.64, NVDA can be considered very expensive at the moment.
NVDA's Price/Earnings is on the same level as the industry average.
NVDA is valuated expensively when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
NVDA is valuated quite expensively with a Price/Forward Earnings ratio of 35.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVDA is on the same level as its industry peers.
NVDA's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.64 | ||
| Fwd PE | 35.13 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NVDA.
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 | 81.17 | ||
| EV/EBITDA | 58.9 |
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.
A more expensive valuation may be justified as NVDA's earnings are expected to grow with 40.24% in the coming years.
PEG (NY)0.73
PEG (5Y)1.33
EPS Next 2Y55.22%
EPS Next 3Y40.24%
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 2.09, NVDA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, 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 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 3Y40.24%
NVIDIA CORP
NASDAQ:NVDA (4/26/2024, 7:07:14 PM)
After market: 879.3 +1.95 (+0.22%)877.35
+51.03 (+6.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
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Market Cap2193.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
Dividend Growth(5Y)
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Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.64 | ||
| Fwd PE | 35.13 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
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OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.73
PEG (5Y)1.33
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
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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OCF growth 1Y
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