NVIDIA Corporation
NVIDIA Corporation Fundamental Analysis
NVIDIA Corporation (NVDA.NE) shows weak financial fundamentals with a PE ratio of 33.39, profit margin of 55.60%, and ROE of 1.04%. The company generates $217.6B in annual revenue with weak year-over-year growth of 1.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NVDA.NE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNVDA.NE demonstrates superior asset utilization.
Valuation Score
ModerateNVDA.NE shows balanced valuation metrics.
Growth Score
WeakNVDA.NE faces weak or negative growth trends.
Financial Health Score
ExcellentNVDA.NE maintains a strong and stable balance sheet.
Profitability Score
ExcellentNVDA.NE achieves industry-leading margins.
Key Financial Metrics
Is NVDA.NE Expensive or Cheap?
P/E Ratio
NVDA.NE trades at 33.39 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NVDA.NE's PEG of 1.99 indicates fair valuation.
Price to Book
The market values NVIDIA Corporation at 25.49 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.94 times EBITDA. This signals the market has high growth expectations.
How Well Does NVDA.NE Make Money?
Net Profit Margin
For every $100 in sales, NVIDIA Corporation keeps $55.60 as profit after all expenses.
Operating Margin
Core operations generate 60.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.04 in profit for every $100 of shareholder equity.
ROA
NVIDIA Corporation generates $58.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NVIDIA Corporation generates strong operating cash flow of $103.50B, reflecting robust business health.
Free Cash Flow
NVIDIA Corporation generates strong free cash flow of $97.42B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.69 in free cash annually.
FCF Yield
NVDA.NE converts 2.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
25.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
18.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.04
vs 25 benchmark
ROA
Return on assets percentage
0.58
vs 25 benchmark
ROCE
Return on capital employed
0.75
vs 25 benchmark
How NVDA.NE Stacks Against Its Sector Peers
| Metric | NVDA.NE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.39 | 33.98 | Neutral |
| ROE | 104.37% | 1007.00% | Weak |
| Net Margin | 55.60% | -47797.00% (disorted) | Strong |
| Debt/Equity | 0.07 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 3.91 | 5.66 | Strong Liquidity |
| ROA | 58.06% | -287350.00% (disorted) | Strong |
NVDA.NE outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NVIDIA Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
412.20%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
607.90%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
639.22%
Industry Style: Growth, Innovation, High Beta
High Growth