NVIDIA CORP (NVDA) Stock Fundamental Analysis
NASDAQ:NVDA - Nasdaq - US67066G1040 - Common Stock - Currency: USD
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 overvalued while it is showing excellent growth. This is an interesting combination. This makes NVDA very considerable 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.
Each year in the past 5 years NVDA has been profitable.
Each year in the past 5 years NVDA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 61.29%, NVDA belongs to the top of the industry, outperforming 99.09% of the companies in the same industry.
NVDA's Return On Equity of 91.57% is amongst the best of the industry. NVDA outperforms 98.18% of its industry peers.
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 10.58%.
The 3 year average ROIC (48.58%) for NVDA is below the current ROIC(76.83%), indicating increased profibility in the last year.
| 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.
NVDA's Profit Margin has improved in the last couple of years.
The Operating Margin of NVDA (58.45%) is better than 99.09% of its industry peers.
NVDA's Operating Margin has improved in the last couple of years.
NVDA has a Gross Margin of 70.52%. This is amongst the best in the industry. NVDA outperforms 92.73% 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.
NVDA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NVDA remains at a similar level compared to 5 years ago.
Compared to 1 year ago, NVDA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 62.87 indicates that NVDA is not in any danger for bankruptcy at the moment.
NVDA has a Altman-Z score of 62.87. This is amongst the best in the industry. NVDA outperforms 97.27% 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 has a Debt to FCF ratio of 0.12. This is amongst the best in the industry. NVDA outperforms 82.73% of its industry peers.
NVDA has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
NVDA's Debt to Equity ratio of 0.10 is in line compared to the rest of the industry. NVDA outperforms 55.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 62.87 |
ROIC/WACC6.62
WACC11.6%
2.3 Liquidity
NVDA has a Current Ratio of 3.39. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
NVDA has a Current ratio (3.39) which is comparable to the rest of the industry.
A Quick Ratio of 2.96 indicates that NVDA has no problem at all paying its short term obligations.
NVDA has a Quick ratio (2.96) which is comparable to the rest of the industry.
| 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.
NVDA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 83.26% yearly.
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
NVDA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.04% yearly.
Based on estimates for the next years, NVDA will show a very strong growth in Revenue. The Revenue will grow by 20.07% on average per year.
EPS Next Y46.71%
EPS Next 2Y40.18%
EPS Next 3Y30.87%
EPS Next 5Y20.04%
Revenue Next Year54.42%
Revenue Next 2Y39.3%
Revenue Next 3Y30.45%
Revenue Next 5Y20.07%
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
The Price/Earnings ratio is 49.38, which means the current valuation is very expensive for NVDA.
NVDA's Price/Earnings ratio is in line with the industry average.
NVDA is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.05, the valuation of NVDA can be described as expensive.
NVDA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. NVDA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.38 | ||
| Fwd PE | 28.05 |
4.2 Price Multiples
NVDA's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 55.81 | ||
| EV/EBITDA | 44.09 |
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.
A more expensive valuation may be justified as NVDA's earnings are expected to grow with 30.87% in the coming years.
PEG (NY)1.06
PEG (5Y)0.59
EPS Next 2Y40.18%
EPS Next 3Y30.87%
5. Dividend
5.1 Amount
NVDA has a yearly dividend return of 0.02%, which is pretty low.
Compared to an average industry Dividend Yield of 2.17, NVDA pays a bit more dividend than its industry peers.
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 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
1.28% of the earnings are spent on dividend by NVDA. This is a low number and sustainable payout ratio.
NVDA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP1.28%
EPS Next 2Y40.18%
EPS Next 3Y30.87%
164.92
+0.82 (+0.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners67.35%
Inst Owner Change0.03%
Ins Owners4.18%
Ins Owner Change-0.11%
Market Cap4024.05B
Analysts84.23
Price Target178.79 (8.41%)
Short Float %0.89%
Short Ratio0.96
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)0.89%
PT rev (3m)2.02%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-4.84%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-4.74%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-4.73%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.38 | ||
| Fwd PE | 28.05 | ||
| P/S | 27.08 | ||
| P/FCF | 55.81 | ||
| P/OCF | 52.81 | ||
| P/B | 47.97 | ||
| P/tB | 51.85 | ||
| EV/EBITDA | 44.09 |
EPS(TTM)3.34
EY2.03%
EPS(NY)5.88
Fwd EY3.57%
FCF(TTM)2.95
FCFY1.79%
OCF(TTM)3.12
OCFY1.89%
SpS6.09
BVpS3.44
TBVpS3.18
PEG (NY)1.06
PEG (5Y)0.59
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 | 62.87 |
F-Score6
WACC11.6%
ROIC/WACC6.62
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 Y46.71%
EPS Next 2Y40.18%
EPS Next 3Y30.87%
EPS Next 5Y20.04%
Revenue 1Y (TTM)86.17%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%69.18%
Revenue Next Year54.42%
Revenue Next 2Y39.3%
Revenue Next 3Y30.45%
Revenue Next 5Y20.07%
EBIT growth 1Y79.64%
EBIT growth 3Y97.28%
EBIT growth 5Y95.87%
EBIT Next Year46.18%
EBIT Next 3Y25.86%
EBIT Next 5Y17.57%
FCF growth 1Y1312.74%
FCF growth 3Y95.6%
FCF growth 5Y70.11%
OCF growth 1Y1016.52%
OCF growth 3Y91.63%
OCF growth 5Y68.2%