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 gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past year NVDA had a positive cash flow from operations.
NVDA had positive earnings in each of the past 5 years.
Each year in the past 5 years NVDA had a positive operating cash flow.
1.2 Ratios
NVDA has a Return On Assets of 61.29%. This is amongst the best in the industry. NVDA outperforms 99.09% of its industry peers.
NVDA has a Return On Equity of 91.57%. This is amongst the best in the industry. NVDA outperforms 98.18% of its industry peers.
The Return On Invested Capital of NVDA (76.83%) is better than 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 10.57%.
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
The Profit Margin of NVDA (51.69%) is better than 97.27% of its industry peers.
In the last couple of years the Profit Margin of NVDA has grown nicely.
NVDA's Operating Margin of 58.45% is amongst the best of the industry. NVDA outperforms 99.09% of its industry peers.
In the last couple of years the Operating Margin of NVDA has grown nicely.
NVDA's Gross Margin of 70.52% is amongst the best of 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
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.
NVDA has about the same amout of shares outstanding than it did 5 years ago.
NVDA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 56.12 indicates that NVDA is not in any danger for bankruptcy at the moment.
The Altman-Z score of NVDA (56.12) is better 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.
NVDA's Debt to FCF ratio of 0.12 is amongst the best of the industry. NVDA outperforms 82.73% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that NVDA is not too dependend on debt financing.
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 | 56.12 |
ROIC/WACC7.67
WACC10.01%
2.3 Liquidity
A Current Ratio of 3.39 indicates that NVDA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.39, NVDA is in line with its industry, outperforming 56.36% of the companies in the same 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
NVDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 85.56%, which is quite impressive.
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.
The Revenue has grown by 86.17% 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)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 Y48.12%
EPS Next 2Y37.88%
EPS Next 3Y30.95%
EPS Next 5Y20.04%
Revenue Next Year54.31%
Revenue Next 2Y39.03%
Revenue Next 3Y31.19%
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.
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
With a Price/Earnings ratio of 42.51, NVDA can be considered very expensive at the moment.
NVDA's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. NVDA is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 24.96, which indicates a rather expensive current valuation of NVDA.
The rest of the industry has a similar Price/Forward Earnings ratio as NVDA.
When comparing the Price/Forward Earnings ratio of NVDA to the average of the S&P500 Index (22.13), we can say NVDA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.51 | ||
| Fwd PE | 24.96 |
4.2 Price Multiples
NVDA's Enterprise Value to EBITDA ratio is in line with the industry average.
NVDA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NVDA is cheaper than 60.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.04 | ||
| EV/EBITDA | 38.85 |
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.
NVDA has an outstanding profitability rating, which may justify a higher PE ratio.
NVDA's earnings are expected to grow with 30.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)0.51
EPS Next 2Y37.88%
EPS Next 3Y30.95%
5. Dividend
5.1 Amount
NVDA has a yearly dividend return of 0.03%, which is pretty low.
Compared to an average industry Dividend Yield of 2.61, NVDA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, NVDA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
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
NVDA pays out 1.28% of its income as dividend. This is a sustainable payout ratio.
The dividend of NVDA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP1.28%
EPS Next 2Y37.88%
EPS Next 3Y30.95%
141.97
-3.03 (-2.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners67.04%
Inst Owner Change1.18%
Ins Owners4.22%
Ins Owner Change0.27%
Market Cap3462.30B
Analysts84.57
Price Target177.22 (24.83%)
Short Float %1.05%
Short Ratio0.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
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)4.84%
PT rev (3m)0.42%
EPS NQ rev (1m)-5%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)-1.87%
EPS NY rev (3m)-1.55%
Revenue NQ rev (1m)-4.8%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.51 | ||
| Fwd PE | 24.96 | ||
| P/S | 23.31 | ||
| P/FCF | 48.04 | ||
| P/OCF | 45.46 | ||
| P/B | 41.3 | ||
| P/tB | 44.63 | ||
| EV/EBITDA | 38.85 |
EPS(TTM)3.34
EY2.35%
EPS(NY)5.69
Fwd EY4.01%
FCF(TTM)2.95
FCFY2.08%
OCF(TTM)3.12
OCFY2.2%
SpS6.09
BVpS3.44
TBVpS3.18
PEG (NY)0.88
PEG (5Y)0.51
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 | 56.12 |
F-Score6
WACC10.01%
ROIC/WACC7.67
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 Y48.12%
EPS Next 2Y37.88%
EPS Next 3Y30.95%
EPS Next 5Y20.04%
Revenue 1Y (TTM)86.17%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%69.18%
Revenue Next Year54.31%
Revenue Next 2Y39.03%
Revenue Next 3Y31.19%
Revenue Next 5Y20.07%
EBIT growth 1Y79.64%
EBIT growth 3Y97.28%
EBIT growth 5Y95.87%
EBIT Next Year46.18%
EBIT Next 3Y26.31%
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%