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 108 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 not priced too expensively while it is growing strongly. 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
Looking at the Return On Assets, with a value of 65.30%, NVDA belongs to the top of the industry, outperforming 99.07% of the companies in the same industry.
NVDA has a Return On Equity of 91.87%. This is amongst the best in the industry. NVDA outperforms 99.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 76.63%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NVDA is significantly above the industry average of 11.36%.
The 3 year average ROIC (48.58%) for NVDA is below the current ROIC(76.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 65.3% | ||
| ROE | 91.87% | ||
| ROIC | 76.63% |
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 (55.85%) is better than 97.22% of its industry peers.
NVDA's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 62.88%, NVDA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NVDA's Operating Margin has improved in the last couple of years.
NVDA's Gross Margin of 75.45% is amongst the best of the industry. NVDA outperforms 92.59% of its industry peers.
In the last couple of years the Gross Margin of NVDA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 62.88% | ||
| PM (TTM) | 55.85% | ||
| GM | 75.45% |
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
NVDA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
NVDA has less shares outstanding than it did 1 year ago.
NVDA has about the same amout of shares outstanding than it did 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 56.72. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NVDA (56.72) is better than 98.15% of its industry peers.
The Debt to FCF ratio of NVDA is 0.14, which is an excellent value as it means it would take NVDA, only 0.14 years of fcf income to pay off all of its debts.
NVDA has a Debt to FCF ratio of 0.14. This is amongst the best in the industry. NVDA outperforms 85.19% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that NVDA is not too dependend on debt financing.
NVDA has a Debt to Equity ratio (0.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 56.72 |
ROIC/WACC6.86
WACC11.17%
2.3 Liquidity
A Current Ratio of 4.44 indicates that NVDA has no problem at all paying its short term obligations.
NVDA has a better Current ratio (4.44) than 68.52% of its industry peers.
NVDA has a Quick Ratio of 3.88. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
NVDA's Quick ratio of 3.88 is fine compared to the rest of the industry. NVDA outperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.44 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
NVDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 130.69%, 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
NVDA shows a strong growth in Revenue. In the last year, the Revenue has grown by 114.20%.
Measured over the past years, NVDA shows a very strong growth in Revenue. The Revenue has been growing by 64.24% on average per year.
EPS 1Y (TTM)130.69%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%72.48%
Revenue 1Y (TTM)114.2%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%77.94%
3.2 Future
NVDA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.05% yearly.
NVDA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.11% yearly.
EPS Next Y50.46%
EPS Next 2Y36.98%
EPS Next 3Y29.84%
EPS Next 5Y19.05%
Revenue Next Year56.92%
Revenue Next 2Y39.75%
Revenue Next 3Y30.77%
Revenue Next 5Y19.11%
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.
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 37.27, which means the current valuation is very expensive for NVDA.
NVDA's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.81, NVDA is valued a bit more expensive.
A Price/Forward Earnings ratio of 24.75 indicates a rather expensive valuation of NVDA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVDA is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.91, NVDA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.27 | ||
| Fwd PE | 24.75 |
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 indicates a somewhat cheap valuation: NVDA is cheaper than 62.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.68 | ||
| EV/EBITDA | 32.25 |
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.
NVDA's earnings are expected to grow with 29.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)0.45
EPS Next 2Y36.98%
EPS Next 3Y29.84%
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 2.46, 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 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
NVDA pays out 1.14% of its income as dividend. This is a sustainable payout ratio.
NVDA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP1.14%
EPS Next 2Y36.98%
EPS Next 3Y29.84%
111.43
-2.33 (-2.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners67.04%
Inst Owner Change-11.77%
Ins Owners4.22%
Ins Owner Change0.33%
Market Cap2718.89B
Analysts84.93
Price Target176.48 (58.38%)
Short Float %1.04%
Short Ratio0.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
Yearly Dividend0.03
Dividend Growth(5Y)16.27%
DP1.14%
Div Incr Years1
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.94%
Min EPS beat(2)3.43%
Max EPS beat(2)6.45%
EPS beat(4)4
Avg EPS beat(4)5.3%
Min EPS beat(4)3.43%
Max EPS beat(4)7.38%
EPS beat(8)8
Avg EPS beat(8)11.29%
EPS beat(12)10
Avg EPS beat(12)1.81%
EPS beat(16)14
Avg EPS beat(16)2.57%
Revenue beat(2)2
Avg Revenue beat(2)2.55%
Min Revenue beat(2)1.38%
Max Revenue beat(2)3.72%
Revenue beat(4)4
Avg Revenue beat(4)2.83%
Min Revenue beat(4)1.38%
Max Revenue beat(4)3.72%
Revenue beat(8)8
Avg Revenue beat(8)6.54%
Revenue beat(12)10
Avg Revenue beat(12)2.75%
Revenue beat(16)14
Avg Revenue beat(16)2.46%
PT rev (1m)0.62%
PT rev (3m)2.67%
EPS NQ rev (1m)2.56%
EPS NQ rev (3m)1.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)3.89%
Revenue NQ rev (3m)3.09%
Revenue NY rev (1m)3.02%
Revenue NY rev (3m)3.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.27 | ||
| Fwd PE | 24.75 | ||
| P/S | 20.83 | ||
| P/FCF | 44.68 | ||
| P/OCF | 42.42 | ||
| P/B | 34.27 | ||
| P/tB | 37.08 | ||
| EV/EBITDA | 32.25 |
EPS(TTM)2.99
EY2.68%
EPS(NY)4.5
Fwd EY4.04%
FCF(TTM)2.49
FCFY2.24%
OCF(TTM)2.63
OCFY2.36%
SpS5.35
BVpS3.25
TBVpS3.01
PEG (NY)0.74
PEG (5Y)0.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 65.3% | ||
| ROE | 91.87% | ||
| ROCE | 87.7% | ||
| ROIC | 76.63% | ||
| ROICexc | 142.39% | ||
| ROICexgc | 161.64% | ||
| OM | 62.88% | ||
| PM (TTM) | 55.85% | ||
| GM | 75.45% | ||
| FCFM | 46.63% |
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-Score8
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.14 | ||
| Debt/EBITDA | 0.1 | ||
| Cap/Depr | 173.61% | ||
| Cap/Sales | 2.48% | ||
| Interest Coverage | 333.54 | ||
| Cash Conversion | 76.37% | ||
| Profit Quality | 83.5% | ||
| Current Ratio | 4.44 | ||
| Quick Ratio | 3.88 | ||
| Altman-Z | 56.72 |
F-Score8
WACC11.17%
ROIC/WACC6.86
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)130.69%
EPS 3Y88.81%
EPS 5Y83.26%
EPS Q2Q%72.48%
EPS Next Y50.46%
EPS Next 2Y36.98%
EPS Next 3Y29.84%
EPS Next 5Y19.05%
Revenue 1Y (TTM)114.2%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%77.94%
Revenue Next Year56.92%
Revenue Next 2Y39.75%
Revenue Next 3Y30.77%
Revenue Next 5Y19.11%
EBIT growth 1Y148.86%
EBIT growth 3Y97.28%
EBIT growth 5Y95.87%
EBIT Next Year54.67%
EBIT Next 3Y28.56%
EBIT Next 5Y16.79%
FCF growth 1Y125.21%
FCF growth 3Y95.6%
FCF growth 5Y70.11%
OCF growth 1Y128.16%
OCF growth 3Y91.63%
OCF growth 5Y68.2%