NVIDIA Stock Analysis (NASDAQ:NVDA)

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$167.5 $2.4 (1.45%) NVDA stock closing price Jul 20, 2017 (Closing)
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NVIDIA
Updated on : Jul 20, 2017
previous close
NVDA 167.5 (0%)
NASDAQ 6390 (0%)
Closing Price On: Jul 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Semiconductor-General
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
29.7%
Sector Average:
6%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.21B
Debt/Equity Ratio:
 0.36
Compared to the industry
Cash Flow
Operating cash flow:
$282M
Net Income:
$507M
Dividend Yield
NVDA dividend yield:
0.31%
PROS      CONS
Recent Growth
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
High Debt Burden
Cash Flow
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
NVDA PS :
13.1
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
107.3%
Return on Equity:
37.8%
Free Cash Flow Margin:
11.8%
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NVIDIA Analysis Video

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View NVIDIA stock analysis video. This is our NVDA analyst opinion covering the buy and sell arguments for NVDA stock.

NVIDIA Corporation Stock Rating (3.5/5)

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's revenue growth came in at 48.4% in 2018 Q1.
  • The TTM operating margin was good at 29.7% for NVIDIA.
  • LTM Net margins were good at 25.9% for NVIDIA.
  • NVIDIA's return on invested capital of 107.3% is good.
  • 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.
  • The company has an operating cash flow which is 0.6 times the net income. This is not a healthy sign.
  • NVDA stock is trading at a PE ratio of 54.4, which is worse than the industry average multiple of 26.6.
  • The company is trading at a price to sales multiple of 13.1, 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

herm on NVIDIA stock analysis ($143.64)
bullish
thumbs up for nvda
reply
ravib321 on NVIDIA stock analysis ($127.89)
bullish
Yeah I agree this is a stock with huge potential growth in terms of VR, graphics, PC industry, as well as AI.
reply
Blaf on NVIDIA stock analysis ($91.17)
neutral
I bought 200 shares of this stock at $31 and its trading today at $95 on the stock simulator game. I wish I had bought this for real. :(
1 reply
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ClosingBell on NVIDIA stock analysis ($96.45)
bearish
Yes, you would have bought. I doubt it can continue it's rally even after gaining 200% YTD. Let's see...
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virendra on NVIDIA stock analysis ($96.45)
bullish
Buy on every dip. The AI market is only going one way from here: up. And NVIDIA is a leader in the HPC vendor space. They are way ahead of the pack and probably the safest way to play the Explosive growth of the AI market.
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Ron Deb on NVIDIA stock analysis ($93.65)
neutral
You know I play the game of buy low sell at 40% gain. The best player at a very full market of makers. I see AMD, MU, STM as best growth stocks. NVIDIA I had them 12 months ago in my portfolio. When they started to pick up steam. I read from experts to give me the data when dealing with as many different stocks As Ikeep in my portfolio or are looking for to put in it when one or two stagnates hit their pinnacle growth rate. Investing is the object to make big fast gains when the market is as bullish as it has been. The market has supposed to have corrected for over a year. Everyday is a day to be on guard.
1 reply
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virendra on NVIDIA stock analysis ($93.65)
neutral
So what's your point? Which stock do you suggest to buy now?
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