NVIDIA CORP (NVDA) Stock Fundamental Analysis
NASDAQ:NVDA - Nasdaq - US67066G1040 - Common Stock - Currency: USD
NVDA gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making NVDA a very profitable company, without any liquidiy or solvency issues. NVDA is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, NVDA could be worth investigating further for growth and quality investing!.
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.
In the past 5 years NVDA has always been profitable.
Each year in the past 5 years NVDA had a positive operating cash flow.
1.2 Ratios
NVDA's Return On Assets of 61.29% is amongst the best of the industry. NVDA outperforms 99.09% of its industry peers.
Looking at the Return On Equity, with a value of 91.57%, NVDA belongs to the top of the industry, outperforming 98.18% of the companies in the same industry.
With an excellent Return On Invested Capital value of 76.83%, NVDA belongs to the best 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 10.74%.
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
NVDA's Profit Margin of 51.69% is amongst the best of the industry. NVDA outperforms 97.27% of its industry peers.
In the last couple of years the Profit Margin of NVDA has grown nicely.
Looking at the Operating Margin, with a value of 58.45%, NVDA belongs to the top of the industry, outperforming 99.09% of the companies in the same industry.
In the last couple of years the Operating Margin of NVDA has grown nicely.
Looking at the Gross Margin, with a value of 70.52%, NVDA belongs to the top of the industry, outperforming 92.73% of the companies in the same industry.
NVDA's Gross Margin has improved in the last couple of years.
| 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
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.
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 66.30. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
NVDA has a better Altman-Z score (66.30) 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 81.82% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that NVDA is not too dependend on debt financing.
NVDA has a Debt to Equity ratio of 0.10. This is comparable 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 | 66.3 |
ROIC/WACC8.13
WACC9.45%
2.3 Liquidity
A Current Ratio of 3.39 indicates that NVDA has no problem at all paying its short term obligations.
With a Current ratio value of 3.39, NVDA perfoms like the industry average, 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.
Looking at the Quick ratio, with a value of 2.96, NVDA is in line with its industry, outperforming 60.00% of the companies in the same 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.
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
The Earnings Per Share is expected to grow by 20.04% 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 20.07% yearly.
EPS Next Y47.15%
EPS Next 2Y40.75%
EPS Next 3Y30.6%
EPS Next 5Y20.04%
Revenue Next Year55.95%
Revenue Next 2Y40.72%
Revenue Next 3Y32.15%
Revenue Next 5Y20.07%
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
Based on the Price/Earnings ratio of 52.01, the valuation of NVDA can be described as expensive.
NVDA's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.82, NVDA is valued quite expensively.
Based on the Price/Forward Earnings ratio of 29.31, the valuation of NVDA can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as NVDA.
NVDA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.01 | ||
| Fwd PE | 29.31 |
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.
NVDA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.82 | ||
| EV/EBITDA | 46.76 |
4.3 Compensation for Growth
NVDA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NVDA has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NVDA's earnings are expected to grow with 30.60% in the coming years.
PEG (NY)1.1
PEG (5Y)0.62
EPS Next 2Y40.75%
EPS Next 3Y30.6%
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 2.35, NVDA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.02, NVDA pays less dividend than the S&P500 average, which is at 2.39.
| 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 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.
The dividend of NVDA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP1.28%
EPS Next 2Y40.75%
EPS Next 3Y30.6%
173.72
-4.15 (-2.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners67.35%
Inst Owner Change2.39%
Ins Owners4.18%
Ins Owner Change-1.36%
Market Cap4238.77B
Analysts84.23
Price Target186.18 (7.17%)
Short Float %0.86%
Short Ratio1.06
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)4.13%
PT rev (3m)10.14%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-4.74%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-2.51%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-4.47%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.01 | ||
| Fwd PE | 29.31 | ||
| P/S | 28.54 | ||
| P/FCF | 58.82 | ||
| P/OCF | 55.66 | ||
| P/B | 50.56 | ||
| P/tB | 54.64 | ||
| EV/EBITDA | 46.76 |
EPS(TTM)3.34
EY1.92%
EPS(NY)5.93
Fwd EY3.41%
FCF(TTM)2.95
FCFY1.7%
OCF(TTM)3.12
OCFY1.8%
SpS6.09
BVpS3.44
TBVpS3.18
PEG (NY)1.1
PEG (5Y)0.62
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 | 66.3 |
F-Score6
WACC9.45%
ROIC/WACC8.13
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 Y47.15%
EPS Next 2Y40.75%
EPS Next 3Y30.6%
EPS Next 5Y20.04%
Revenue 1Y (TTM)86.17%
Revenue growth 3Y69.25%
Revenue growth 5Y64.24%
Sales Q2Q%69.18%
Revenue Next Year55.95%
Revenue Next 2Y40.72%
Revenue Next 3Y32.15%
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%