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 (3.5/5)
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.