NVIDIA Stock Analysis, Valuation (NASDAQ:NVDA)

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$180.76 $5.08 (2.73%) NVDA stock closing price Sep 21, 2017 (Closing)
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NVIDIA
Updated on : Sep 21, 2017
previous close
NVDA 180.8 (0%)
NASDAQ 6422.7 (0%)
Closing Price On: Sep 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Semiconductor-General
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q2
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
31.3%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.07B
Debt/Equity Ratio:
 0.35
Compared to the industry
Cash Flow
Operating cash flow:
$705M
Net Income:
$583M
Dividend Yield
NVDA dividend yield:
0.3%
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 :
12.9
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
111.1%
Return on Equity:
41.3%
Free Cash Flow Margin:
29.2%
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NVIDIA Stock Analysis

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View NVIDIA stock analysis video. This is our 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 2018 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy NVDA stock?

  • The Year Over Year (YoY) revenue growth for NVIDIA was 56.2% in 2018 Q2.
  • The TTM operating margin was good at 31.3% for NVIDIA.
  • Net margins came in at average 27.4% for NVIDIA over the last twelve months.
  • NVIDIA's return on invested capital of 111.1% is good.
  • The LTM ROE of 41.3% for NVIDIA is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 29.2%.

Should you sell NVDA stock?

  • With a debt/equity ratio of  0.35, NVIDIA is highly leveraged in comparison to Computer and Technology peers.
  • The NVDA stock currently trades at a PE of 50.8, which is expensive, compared to the industry average of 26.
  • The company is trading at a price to sales multiple of 12.9, which is overvalued in comparison to the Semiconductor-General industry average multiple of 2.7.

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