NVIDIA Stock Analysis, Valuation (NASDAQ:NVDA)

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$223.88 $4.83 (2.11%) NVDA stock closing price Apr 23, 2018 (Closing)
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NVIDIA
Updated on : Apr 23, 2018
previous close
NVDA 223.9 (0%)
NASDAQ 7128.6 (0%)
Closing Price On: Apr 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Semiconductor-General
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
17.8%
Operating Profit
Operating Margin:
33.1%
Sector Average:
5.7%
5 Quarter Net Profit
Net Margins
2018-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$1.36B
Net Income:
$1.12B
Dividend Yield
NVDA dividend yield:
0.25%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
NVDA PS :
14
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
121.7%
Return on Equity:
48.1%
Free Cash Flow Margin:
32.4%
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NVIDIA Stock Analysis

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Investors can watch the Amigobulls NVIDIA stock analysis video here. This is our analyst opinion covering the buy and sell arguments for NVDA stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

NVIDIA Corporation Stock Rating 4/5

Amigobulls NVDA stock analysis uses latest quarter 2018 Q4 financial data like NVIDIA revenue growth, profit margins and cash flows. NVIDIA valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. NVIDIA stock rating is our opinion about the business fundamentals of the company.

Should you buy NVDA stock?

  • NVIDIA's revenue growth came in at 34% in 2018 Q4.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 17.8%.
  • NVIDIA had a healthy average operating margin of 33.1% over the last 4 quarters.
  • LTM Net margins were good at 31.4% for NVIDIA.
  • NVIDIA has an attractive ROIC (Return on Invested Capital) of 121.7%
  • The LTM ROE of 48.1% for NVIDIA is attractive.
  • The company has a healthy free cash flow margin of 32.4%.

Should you sell NVDA stock?

  • The NVDA stock currently trades at a PE of 48.3, which is expensive, compared to the industry average of 25.1.
  • The company is trading at a price to sales multiple of 14, which is higher in comparison to the Semiconductor-General industry average of 2.8, making NVDA stock expensive.

Comments on this video and NVIDIA stock

Amigobulls NVIDIA stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of NVDA stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

NVIDIA revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.