NVIDIA CORP (NVDA)

US67066G1040 - Common Stock

796.77  -27.46 (-3.33%)

After market: 783.6 -13.17 (-1.65%)

Fundamental Rating

8

We assign a fundamental rating of 8 out of 10 to NVDA. NVDA was compared to 107 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!



10

1. Profitability

1.1 Basic Checks

In the past year NVDA was profitable.
In the past year NVDA had a positive cash flow from operations.
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

NVDA's Return On Assets of 45.28% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
NVDA's Return On Equity of 69.24% is amongst the best of the industry. NVDA outperforms 98.11% of its industry peers.
NVDA has a better Return On Invested Capital (52.66%) than 100.00% of its industry peers.
NVDA had an Average Return On Invested Capital over the past 3 years of 31.07%. This is significantly above the industry average of 11.07%.
The last Return On Invested Capital (52.66%) for NVDA is above the 3 year average (31.07%), which is a sign of increasing profitability.
Industry RankSector 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.
NVDA's Profit Margin has improved in the last couple of years.
The Operating Margin of NVDA (54.12%) is better than 99.06% of its industry peers.
In the last couple of years the Operating Margin of NVDA has grown nicely.
The Gross Margin of NVDA (72.72%) is better than 92.45% of its industry peers.
In the last couple of years the Gross Margin of NVDA has grown nicely.
Industry RankSector 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%

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.
Compared to 1 year ago, NVDA has about the same amount of shares outstanding.
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 58.18. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 58.18, NVDA belongs to the top of the industry, outperforming 98.11% of the companies in the same industry.
The Debt to FCF ratio of NVDA is 0.36, which is an excellent value as it means it would take NVDA, only 0.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NVDA (0.36) is better than 81.13% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that NVDA is not too dependend on debt financing.
NVDA has a Debt to Equity ratio of 0.20. This is comparable to the rest of the industry: NVDA outperforms 49.06% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 0.36
Altman-Z 58.18
ROIC/WACC4.55
WACC11.57%

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.
A Quick Ratio of 3.67 indicates that NVDA has no problem at all paying its short term obligations.
NVDA has a Quick ratio of 3.67. This is in the better half of the industry: NVDA outperforms 69.81% of its industry peers.
Industry RankSector Rank
Current Ratio 4.17
Quick Ratio 3.67

9

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.
The Earnings Per Share has been growing by 50.90% on average over the past years. This is a very strong growth
Looking at the last year, NVDA shows a very strong growth in Revenue. The Revenue has grown by 125.85%.
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

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

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 61.43, NVDA can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as NVDA.
NVDA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.25.
Based on the Price/Forward Earnings ratio of 31.91, the valuation of NVDA can be described as expensive.
NVDA's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, NVDA is valued a bit more expensive.
Industry RankSector Rank
PE 61.43
Fwd PE 31.91

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.
The rest of the industry has a similar Price/Free Cash Flow ratio as NVDA.
Industry RankSector Rank
P/FCF 73.72
EV/EBITDA 58.75

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.
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 40.24% in the coming years.
PEG (NY)0.66
PEG (5Y)1.21
EPS Next 2Y55.22%
EPS Next 3Y40.24%

6

5. Dividend

5.1 Amount

With a yearly dividend of 0.02%, NVDA is not a good candidate for dividend investing.
NVDA's Dividend Yield is a higher than the industry average which is at 2.09.
With a Dividend Yield of 0.02, NVDA pays less dividend than the S&P500 average, which is at 2.45.
Industry RankSector 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

NVDA pays out 1.33% 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.
DP1.33%
EPS Next 2Y55.22%
EPS Next 3Y40.24%

NVIDIA CORP

NASDAQ:NVDA (4/24/2024, 7:20:04 PM)

After market: 783.6 -13.17 (-1.65%)

796.77

-27.46 (-3.33%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1991.92B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.02%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 61.43
Fwd PE 31.91
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.66
PEG (5Y)1.21
Profitability
Industry RankSector 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 RankSector 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
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y