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 Q1 earnings for 2018. The stock price analysis takes into account a company's valuation metrics.
Should you buy NVDA stock?
- NVIDIA sales grew by 48.4% year on year in 2018 Q1.
- NVIDIA had a healthy average operating margin of 29.7% over the last 4 quarters.
- Net margins stood at a healthy 25.9% (average) for NVIDIA in the Trailing Twelve Months.
- NVIDIA has an attractive ROIC (Return on Invested Capital) of 194.6%
- The LTM ROE of 37.8% for NVIDIA is attractive.
- The company has a good Free Cash Flow (FCF) margin of 11.8%.
Should you sell NVDA stock?
- NVIDIA has a debt/equity ratio of 0.36, which is worse than the average in the Computer and Technology sector.
- The company has an operating cash flow which is 0.6 times the net income. This is not a healthy sign.
- Trading at a PE ratio of 44.9, NVDA stock is overvalued in comparison to industry average multiple of 25.7.
- NVDA stock is trading at a PS multiple of 10.9, which is a negative when compared to the Semiconductor-General industry average multiple of 2.7.