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 came in at average 25.9% for NVIDIA over the last twelve months.
- NVIDIA generates a high return on invested capital of 194.6%.
- The LTM ROE of 37.8% for NVIDIA is attractive.
- NVIDIA has a healthy FCF (Free Cash Flow) margin of 11.8%.
Should you sell NVDA stock?
- NVIDIA is debt laden and has a high debt/equity ratio of 0.36.
- Cash flow from operations is low at 0.6 times the net income.
- NVDA stock is trading at a PE ratio of 46.1, which is worse than the industry average multiple of 25.8.
- The company is trading at a price to sales multiple of 11.1, which is overvalued in comparison to the Semiconductor-General industry average multiple of 2.7.