Nvidia Corp (NASDAQ: NVDA)

Sector: Technology Industry: Semiconductors CIK: 0001045810
P/B 35.97
P/E 43.11
P/S 22.85
Market Cap 4,276.26 Bn
ROIC (Qtr) 77.25
Div Yield % 0.03
Rev 1y % (Qtr) 62.49
Total Debt (Qtr) 10.48 Bn
Debt/Equity (Qtr) 0.09

About

NVIDIA Corporation (NVDA) is a technology company that has revolutionized the way we compute and interact with data through its specialized design and manufacturing of graphics processing units (GPUs) and high-performance computing hardware. The company operates in the technology sector, with its main business activities centered on the development and production of GPUs used in various applications such as gaming, professional visualization, and artificial intelligence (AI). NVIDIA's GPUs are designed to provide high-performance computing capabilities,...

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Analysis

Pros

  • Strong operating cash flow of 83.16B provides robust 7.93x coverage of total debt 10.48B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 11.49B provide 11.50x coverage of short-term debt 999M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 153.95B provides 14.69x coverage of total debt 10.48B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 83.16B provides exceptional 336.68x coverage of interest expenses 247M, showing strong debt service capability.
  • Operating cash flow of 83.16B provides strong 13.69x coverage of stock compensation 6.07B, indicating sustainable incentive practices.

Cons

  • Operating cash flow of 83.16B barely covers its investment activities of (28.57B), with a coverage ratio of -2.91, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (28.57B) provide weak support for R&D spending of 16.70B, which is -1.71x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 83.16B provides thin coverage of dividend payments of (977M) with a -85.12 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 11.49B provide limited coverage of acquisition spending of (1.07B), which is -10.68x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Short-term investments of 49.12B significantly exceed cash reserves of 11.49B, which is 4.28x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.

Peer Comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,276.26 Bn 43.11 22.85 10.48 Bn
2 AVGO Broadcom Inc. 1,690.87 Bn 89.31 28.22 64.23 Bn
3 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,514.32 Bn 29.36 12.71 31.18 Bn
4 AMD Advanced Micro Devices Inc 343.27 Bn 103.83 10.72 3.87 Bn
5 MU Micron Technology Inc 269.16 Bn 31.52 7.20 15.28 Bn
6 INTC Intel Corp 249.55 Bn 1,260.33 4.67 46.55 Bn
7 QCOM Qualcomm Inc/De 195.62 Bn 35.30 4.42 14.81 Bn
8 TXN Texas Instruments Inc 163.92 Bn 32.50 9.49 14.05 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 26.53 3.95
EV to Cash from Ops. 51.41 -331.60
EV to Debt 407.87 86.14
EV to EBIT 36.69 -55.96
EV to EBITDA 37.93 20.88
EV to Free Cash Flow [EV/FCF] 55.29 -4.09
EV to Market Cap 1.00 0.80
EV to Revenue 22.84 18.79
Price to Book Value [P/B] 35.97 5.23
Price to Earnings [P/E] 43.11 12.47

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 101.53 2.29
Dividend Payout Ratio % 1.00 8.00
Dividend per Basic Share 0.04 0.62
FCF Dividend Payout Ratio % 1.26 10.38
Interest Coverage 471.72 8.19

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -141.82 -155.77
Cash and Equivalents Growth (1y) % 26.12 44.44
Dividend Growth (1y) % 42.86 5.30
EBIAT Growth (1y) % 57.07 34.22
EBITDA Growth (1y) % 54.93 47.50
EBIT Growth (1y) % 59.25 30.14
EBT Growth (1y) % 59.46 47.04
EPS Growth (1y) % 57.98 36.18
FCF Growth (1y) % 36.75 252.76
Gross Profit Growth (1y) % 52.56 43.92

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 1.16 0.49
Cash Payout Ratio 0.01 0.09
Cash Ratio 0.44 2.23
Current Ratio 4.47 5.43
Debt to Equity Ratio 0.09 0.34
Interest Cover Ratio 471.72 8.19
Times Interest Earned 471.72 8.19

Profitability

Metric Value Industry Percentile
EBITDA Margin % 63.60 -112.44
EBIT Margin % 62.26 -92.10
EBT Margin % 62.13 -132.39
Gross Margin % 70.10 47.63
Net Profit Margin % 53.00 -133.41