NVIDIA CORP (NVDA) Stock Fundamental Analysis
NASDAQ:NVDA - US67066G1040 - Common Stock
177.99 USD
+3.01 (+1.72%)
178.38 USD
+0.39 (+0.22%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
In the past 5 years NVDA has always been profitable.
NVDA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NVDA has a Return On Assets of 61.29%. This is amongst the best in the industry. NVDA outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 91.57%, NVDA belongs to the best of the industry, outperforming 99.09% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 76.83%, 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 10.86%.
The last Return On Invested Capital (76.83%) for NVDA is above the 3 year average (48.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 61.29% | ||
| ROE | 91.57% | ||
| ROIC | 76.83% |
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 51.69%, NVDA belongs to the top of the industry, outperforming 97.27% of the companies in the same industry.
In the last couple of years the Profit Margin of NVDA has grown nicely.
The Operating Margin of NVDA (58.45%) is better than 99.09% of its industry peers.
In the last couple of years the Operating Margin of NVDA has grown nicely.
The Gross Margin of NVDA (70.52%) is better than 93.64% of its industry peers.
In the last couple of years the Gross Margin of NVDA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.45% | ||
| PM (TTM) | 51.69% | ||
| GM | 70.52% |
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.
Compared to 1 year ago, NVDA has less shares outstanding
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
An Altman-Z score of 66.75 indicates that NVDA is not in any danger for bankruptcy at the moment.
NVDA has a better Altman-Z score (66.75) than 97.27% of its industry peers.
NVDA has a debt to FCF ratio of 0.12. This is a very positive value and a sign of high solvency as it would only need 0.12 years to pay back of all of its debts.
The Debt to FCF ratio of NVDA (0.12) is better than 82.73% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that NVDA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.10, NVDA is in line with its industry, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 66.75 |
ROIC/WACC6.72
WACC11.44%
2.3 Liquidity
A Current Ratio of 3.39 indicates that NVDA has no problem at all paying its short term obligations.
NVDA has a Current ratio of 3.39. This is comparable to the rest of the industry: NVDA outperforms 59.09% of its industry peers.
NVDA has a Quick Ratio of 2.96. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of NVDA (2.96) is better than 62.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.39 | ||
| Quick Ratio | 2.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 85.56% over the past year.
Measured over the past years, NVDA shows a very strong growth in Earnings Per Share. The EPS has been growing by 83.26% on average per year.
Looking at the last year, NVDA shows a very strong growth in Revenue. The Revenue has grown by 86.17%.
The Revenue has been growing by 64.24% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)85.56%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%56.86%
Revenue 1Y (TTM)86.17%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%69.18%
3.2 Future
The Earnings Per Share is expected to grow by 24.19% 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 22.89% on average per year.
EPS Next Y47.15%
EPS Next 2Y40.75%
EPS Next 3Y33.41%
EPS Next 5Y24.19%
Revenue Next Year55.95%
Revenue Next 2Y40.72%
Revenue Next 3Y32.56%
Revenue Next 5Y22.89%
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.
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 53.29, 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.
Compared to an average S&P500 Price/Earnings ratio of 27.24, NVDA is valued quite expensively.
A Price/Forward Earnings ratio of 30.03 indicates a quite expensive valuation of NVDA.
NVDA's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, NVDA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.29 | ||
| Fwd PE | 30.03 |
4.2 Price Multiples
NVDA's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as NVDA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.27 | ||
| EV/EBITDA | 47.1 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of NVDA may justify a higher PE ratio.
NVDA's earnings are expected to grow with 33.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)0.64
EPS Next 2Y40.75%
EPS Next 3Y33.41%
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 2.43.
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 | 0.02% |
5.2 History
On average, the dividend of NVDA grows each year by 16.27%, which is quite nice.
NVDA has been paying a dividend for at least 10 years, so it has 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
1.28% 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.
DP1.28%
EPS Next 2Y40.75%
EPS Next 3Y33.41%
177.99
+3.01 (+1.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners67.3%
Inst Owner Change0.97%
Ins Owners4.18%
Ins Owner Change-2.4%
Market Cap4342.96B
Analysts84.17
Price Target188.64 (5.98%)
Short Float %0.82%
Short Ratio1.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
Yearly Dividend0.03
Dividend Growth(5Y)16.27%
DP1.28%
Div Incr Years1
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.13%
Min EPS beat(2)0.83%
Max EPS beat(2)3.43%
EPS beat(4)4
Avg EPS beat(4)3.66%
Min EPS beat(4)0.83%
Max EPS beat(4)6.45%
EPS beat(8)8
Avg EPS beat(8)9.36%
EPS beat(12)10
Avg EPS beat(12)1.62%
EPS beat(16)14
Avg EPS beat(16)2.04%
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)1.38%
Revenue beat(4)3
Avg Revenue beat(4)1.86%
Min Revenue beat(4)-0.25%
Max Revenue beat(4)3.72%
Revenue beat(8)7
Avg Revenue beat(8)5.49%
Revenue beat(12)9
Avg Revenue beat(12)2.72%
Revenue beat(16)13
Avg Revenue beat(16)2.29%
PT rev (1m)5.51%
PT rev (3m)13.01%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-4.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)-4.31%
Revenue NY rev (1m)0.76%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.29 | ||
| Fwd PE | 30.03 | ||
| P/S | 29.24 | ||
| P/FCF | 60.27 | ||
| P/OCF | 57.03 | ||
| P/B | 51.8 | ||
| P/tB | 55.98 | ||
| EV/EBITDA | 47.1 |
EPS(TTM)3.34
EY1.88%
EPS(NY)5.93
Fwd EY3.33%
FCF(TTM)2.95
FCFY1.66%
OCF(TTM)3.12
OCFY1.75%
SpS6.09
BVpS3.44
TBVpS3.18
PEG (NY)1.13
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 61.29% | ||
| ROE | 91.57% | ||
| ROCE | 87.93% | ||
| ROIC | 76.83% | ||
| ROICexc | 168.45% | ||
| ROICexgc | 195.69% | ||
| OM | 58.45% | ||
| PM (TTM) | 51.69% | ||
| GM | 70.52% | ||
| FCFM | 48.52% |
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-Score6
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.12 | ||
| Debt/EBITDA | 0.1 | ||
| Cap/Depr | 198.26% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.7% | ||
| Profit Quality | 93.87% | ||
| Current Ratio | 3.39 | ||
| Quick Ratio | 2.96 | ||
| Altman-Z | 66.75 |
F-Score6
WACC11.44%
ROIC/WACC6.72
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)85.56%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%56.86%
EPS Next Y47.15%
EPS Next 2Y40.75%
EPS Next 3Y33.41%
EPS Next 5Y24.19%
Revenue 1Y (TTM)86.17%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%69.18%
Revenue Next Year55.95%
Revenue Next 2Y40.72%
Revenue Next 3Y32.56%
Revenue Next 5Y22.89%
EBIT growth 1Y79.64%
EBIT growth 3Y97.28%
EBIT growth 5Y95.87%
EBIT Next Year46.68%
EBIT Next 3Y29.76%
EBIT Next 5Y21.89%
FCF growth 1Y1312.74%
FCF growth 3Y95.6%
FCF growth 5Y70.11%
OCF growth 1Y1016.52%
OCF growth 3Y91.63%
OCF growth 5Y68.2%