NVIDIA CORP (NVDA) Stock Fundamental Analysis
USA - NASDAQ:NVDA - US67066G1040 - Common Stock
177.82 USD
+0.65 (+0.37%)
177.66 USD
-0.16 (-0.09%)
NVDA gets a fundamental rating of 8 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes NVDA very considerable 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.
NVDA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 61.53%, NVDA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NVDA has a Return On Equity of 86.48%. This is amongst the best in 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.
Measured over the past 3 years, the Average Return On Invested Capital for NVDA is significantly above the industry average of 10.87%.
The last Return On Invested Capital (72.42%) for NVDA is above the 3 year average (48.58%), which is a sign of increasing profitability.
| 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
The Profit Margin of NVDA (52.41%) is better than 97.32% of its industry peers.
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.
The Gross Margin of NVDA (70.20%) is better 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.
Compared to 1 year ago, NVDA has less shares outstanding
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
NVDA has an Altman-Z score of 68.86. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 68.86, NVDA belongs to the best of the industry, outperforming 97.32% of the companies in the same industry.
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.
NVDA has a better Debt to FCF ratio (0.12) than 83.04% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that NVDA is not too dependend on debt financing.
The Debt to Equity ratio of NVDA (0.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 68.86 |
ROIC/WACC6.39
WACC11.34%
2.3 Liquidity
A Current Ratio of 4.21 indicates that NVDA has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.21, NVDA is doing good in the industry, outperforming 63.39% of the companies in the same industry.
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
The Revenue has grown by 71.55% in the past year. This is a very strong growth!
NVDA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 64.24% yearly.
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
NVDA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.27% yearly.
EPS Next Y49.39%
EPS Next 2Y43.16%
EPS Next 3Y36.26%
EPS Next 5Y24.91%
Revenue Next Year56.54%
Revenue Next 2Y41.93%
Revenue Next 3Y35.17%
Revenue Next 5Y24.27%
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
NVDA is valuated quite expensively with a Price/Earnings ratio of 47.93.
NVDA's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of NVDA to the average of the S&P500 Index (27.30), we can say NVDA is valued expensively.
NVDA is valuated quite expensively with a Price/Forward Earnings ratio of 29.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVDA is on the same level as its industry peers.
NVDA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.93 | ||
| Fwd PE | 29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NVDA is on the same level as its industry peers.
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 | 60.24 | ||
| EV/EBITDA | 42.78 |
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.
The excellent profitability rating of NVDA may justify a higher PE ratio.
NVDA's earnings are expected to grow with 36.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)0.58
EPS Next 2Y43.16%
EPS Next 3Y36.26%
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 2.35.
With a Dividend Yield of 0.02, NVDA pays less dividend than the S&P500 average, which is at 2.45.
| 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 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 2Y43.16%
EPS Next 3Y36.26%
177.82
+0.65 (+0.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners67.3%
Inst Owner Change1%
Ins Owners4.18%
Ins Owner Change-4.48%
Market Cap4338.81B
Analysts83.71
Price Target212.23 (19.35%)
Short Float %0.88%
Short Ratio1.18
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)13.99%
PT rev (3m)19.75%
EPS NQ rev (1m)5.52%
EPS NQ rev (3m)8.58%
EPS NY rev (1m)1.52%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)4.26%
Revenue NQ rev (3m)6.87%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.93 | ||
| Fwd PE | 29 | ||
| P/S | 26.26 | ||
| P/FCF | 60.24 | ||
| P/OCF | 56.32 | ||
| P/B | 43.33 | ||
| P/tB | 46.34 | ||
| EV/EBITDA | 42.78 |
EPS(TTM)3.71
EY2.09%
EPS(NY)6.13
Fwd EY3.45%
FCF(TTM)2.95
FCFY1.66%
OCF(TTM)3.16
OCFY1.78%
SpS6.77
BVpS4.1
TBVpS3.84
PEG (NY)0.97
PEG (5Y)0.58
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 | 68.86 |
F-Score5
WACC11.34%
ROIC/WACC6.39
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 Y49.39%
EPS Next 2Y43.16%
EPS Next 3Y36.26%
EPS Next 5Y24.91%
Revenue 1Y (TTM)71.55%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%55.6%
Revenue Next Year56.54%
Revenue Next 2Y41.93%
Revenue Next 3Y35.17%
Revenue Next 5Y24.27%
EBIT growth 1Y60.48%
EBIT growth 3Y97.28%
EBIT growth 5Y95.87%
EBIT Next Year46.68%
EBIT Next 3Y34.02%
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%