NVIDIA Stock Analysis (NASDAQ:NVDA)
NVIDIA Analysis Video
View NVIDIA stock analysis video. This is our NVDA analyst opinion covering the buy and sell arguments for NVDA stock.
NVIDIA Corporation Stock Rating (3.8/5)
Our NVIDIA stock opinion is based on fundamentals of the company. This NVIDIA stock analysis is based on latest Q4 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy NVDA stock?
- The Year Over Year (YoY) revenue growth for NVIDIA was 55.1% in 2017 Q4.
- The TTM operating margin was good at 28% for NVIDIA.
- LTM Net margins were good at 23.8% for NVIDIA.
- NVIDIA's return on invested capital of 101.2% is good.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for NVIDIA at 34%.
- The company has a healthy free cash flow margin of 30.9%.
Should you sell NVDA stock?
- NVIDIA is debt laden and has a high debt/equity ratio of 0.49.
- Trading at a PE ratio of 39.5, NVDA stock is overvalued in comparison to industry average multiple of 26.1.
- The company is trading at a price to sales multiple of 8.4, which is higher in comparison to the Semiconductor-General industry average of 2.7, making NVDA stock expensive.