NVIDIA Stock Analysis (NASDAQ:NVDA)

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$101.11 $2.32 (2.24%) NVDA stock closing price Jan 17, 2017 (Closing)
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NVIDIA
Updated on : Jan 17, 2017
previous close
NVDA 101.1 (0%)
NASDAQ 5538.7 (0%)
Closing Price On: Jan 17, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Semiconductor-General
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
23.6%
Sector Average:
4.8%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
3.05B
Debt/Equity Ratio:
 0.57
Compared to the industry
Cash Flow
Operating cash flow:
$458M
Net Income:
$542M
Dividend Yield
NVDA dividend yield:
0.47%
PROS      CONS
Recent Growth
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
High Debt Burden
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
NVDA PS :
8.9
Industry PS :
2.4
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
76.9%
Return on Equity:
26.1%
Free Cash Flow Margin:
21%
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NVIDIA Analysis Video

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View NVIDIA stock analysis video. This is our NVDA analyst opinion covering the buy and sell arguments for NVDA stock.

NVIDIA Corporation Stock Rating (3.7/5)

Our NVIDIA stock opinion is based on fundamentals of the company. This NVIDIA stock analysis is based on latest Q3 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy NVDA stock?

  • NVIDIA's revenue growth came in at 53.6% in 2017 Q3.
  • The TTM operating margin was good at 23.6% for NVIDIA.
  • Net margins came in at average 19.5% for NVIDIA over the last twelve months.
  • NVIDIA has an attractive ROIC (Return on Invested Capital) of 76.9%
  • The LTM ROE of 26.1% for NVIDIA is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 21%.

Should you sell NVDA stock?

  • NVIDIA has a debt/equity ratio of  0.57, which is worse than the average in the Computer and Technology sector.
  • Trading at a PE ratio of 50.3, NVDA stock is overvalued in comparison to industry average multiple of 25.5.
  • NVDA stock is trading at a PS multiple of 8.9, which is a negative when compared to the Semiconductor-General industry average multiple of 2.4.

Comments on this video and NVIDIA stock

Blaf on NVIDIA stock analysis ($91.17)
neutral
I bought 200 shares of this stock at $31 and its trading today at $95 on the stock simulator game. I wish I had bought this for real. :(
1 reply
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ClosingBell on NVIDIA stock analysis ($96.45)
bearish
Yes, you would have bought. I doubt it can continue it's rally even after gaining 200% YTD. Let's see...
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virendra on NVIDIA stock analysis ($96.45)
bullish
Buy on every dip. The AI market is only going one way from here: up. And NVIDIA is a leader in the HPC vendor space. They are way ahead of the pack and probably the safest way to play the Explosive growth of the AI market.
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Ron Deb on NVIDIA stock analysis ($93.65)
neutral
You know I play the game of buy low sell at 40% gain. The best player at a very full market of makers. I see AMD, MU, STM as best growth stocks. NVIDIA I had them 12 months ago in my portfolio. When they started to pick up steam. I read from experts to give me the data when dealing with as many different stocks As Ikeep in my portfolio or are looking for to put in it when one or two stagnates hit their pinnacle growth rate. Investing is the object to make big fast gains when the market is as bullish as it has been. The market has supposed to have corrected for over a year. Everyday is a day to be on guard.
1 reply
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virendra on NVIDIA stock analysis ($93.65)
neutral
So what's your point? Which stock do you suggest to buy now?
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