NasdaqGS:NVDA

Stock Analysis Report

Executive Summary

NVIDIA Corporation operates as a visual computing company worldwide.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has NVIDIA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NVDA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.8%

NVDA

-1.0%

US Semiconductor

0.06%

US Market


1 Year Return

87.1%

NVDA

38.8%

US Semiconductor

19.4%

US Market

Return vs Industry: NVDA exceeded the US Semiconductor industry which returned 41.1% over the past year.

Return vs Market: NVDA exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

NVDAIndustryMarket
7 Day8.8%-1.0%0.06%
30 Day19.0%3.1%1.1%
90 Day41.1%14.9%8.9%
1 Year87.8%87.1%41.4%38.8%21.9%19.4%
3 Year170.3%167.8%91.3%81.0%48.9%39.3%
5 Year1284.1%1239.5%154.4%130.0%71.9%53.1%

Price Volatility Vs. Market

How volatile is NVIDIA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NVIDIA undervalued compared to its fair value and its price relative to the market?

64.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NVDA ($289.79) is trading above our estimate of fair value ($93.65)

Significantly Below Fair Value: NVDA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NVDA is poor value based on its PE Ratio (63.1x) compared to the Semiconductor industry average (36.4x).

PE vs Market: NVDA is poor value based on its PE Ratio (63.1x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: NVDA is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: NVDA is overvalued based on its PB Ratio (14.5x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is NVIDIA forecast to perform in the next 1 to 3 years based on estimates from 34 analysts?

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVDA's forecast earnings growth (19.1% per year) is above the savings rate (1.7%).

Earnings vs Market: NVDA's earnings (19.1% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: NVDA's earnings are forecast to grow, but not significantly.

Revenue vs Market: NVDA's revenue (14.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: NVDA's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NVDA's Return on Equity is forecast to be high in 3 years time (26.1%)


Next Steps

Past Performance

How has NVIDIA performed over the past 5 years?

33.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NVDA has high quality earnings.

Growing Profit Margin: NVDA's current net profit margins (25.6%) are lower than last year (35.4%).


Past Earnings Growth Analysis

Earnings Trend: NVDA's earnings have grown significantly by 33.6% per year over the past 5 years.

Accelerating Growth: NVDA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NVDA had negative earnings growth (-32.6%) over the past year, making it difficult to compare to the Semiconductor industry average (-27.7%).


Return on Equity

High ROE: NVDA's Return on Equity (22.9%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NVIDIA's financial position?


Financial Position Analysis

Short Term Liabilities: NVDA's short term assets ($13.7B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: NVDA's short term assets ($13.7B) exceed its long term liabilities ($3.3B).


Debt to Equity History and Analysis

Debt Level: NVDA's debt to equity ratio (15.6%) is considered satisfactory.

Reducing Debt: NVDA's debt to equity ratio has reduced from 31.3% to 15.6% over the past 5 years.

Debt Coverage: NVDA's debt is well covered by operating cash flow (250.3%).

Interest Coverage: NVDA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NVDA has a low level of unsold assets or inventory.

Debt Coverage by Assets: NVDA's debt is covered by short term assets (assets are 7.2x debt).


Next Steps

Dividend

What is NVIDIA's current dividend yield, its reliability and sustainability?

0.22%

Current Dividend Yield


Upcoming Dividend Payment

Purchase NVIDIA before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0.2%

Current dividend yield vs market & industry

Notable Dividend: NVDA's dividend (0.22%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: NVDA's dividend (0.22%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: NVDA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: NVDA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NVDA is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NVDA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.1yrs

Average management tenure


CEO

Jensen Huang (56yo)

26.8yrs

Tenure

US$13,642,838

Compensation

Mr. Jen-Hsun Huang, also known as Jensen, Co-founded NVIDIA Ltd. in 1993 and has been its Chief Executive Officer and President since 1993. Mr. Huang co-founded NVIDIA Corporation in April 1993 and has bee ...


CEO Compensation Analysis

Compensation vs Market: Jensen's total compensation ($USD13.64M) is about average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Jensen's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jen-Hsun Huang
Co-Founder26.8yrsUS$13.64m3.5% $6.2b
Colette Kress
Executive VP & CFO6.4yrsUS$4.98m0.026% $47.0m
Deborah Shoquist
Executive Vice President of Operations11.1yrsUS$3.87m0.013% $22.8m
Timothy Teter
Executive VP3.1yrsUS$3.77m0.0020% $3.5m
Ajay Puri
Executive Vice President of Worldwide Field Operations14.2yrsUS$5.46m0.030% $53.8m
Chris Malachowsky
Co-Founder27.1yrsUS$320.00kno data
Donald Robertson
VP & Chief Accounting Officer0.7yrsno data0.000010% $17.7k
William Dally
Chief Scientist & Senior VP of Research11.1yrsno datano data
Simona Jankowski
Vice President of Investor Relations0yrsno datano data
Robert Sherbin
Vice President of Corporate Communications11yrsno datano data

11.1yrs

Average Tenure

57yo

Average Age

Experienced Management: NVDA's management team is seasoned and experienced (11.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jen-Hsun Huang
Co-Founder26.8yrsUS$13.64m3.5% $6.2b
Mark Stevens
Independent Director11.4yrsUS$312.98k0.026% $46.2m
A. Seawell
Independent Director22.2yrsUS$312.98k0.021% $37.7m
Michael McCaffery
Independent Director4.9yrsUS$312.98k0.00045% $798.1k
Mark Perry
Lead Director1.9yrsUS$312.98k0.012% $20.8m
Robert Burgess
Independent Director8.2yrsUS$312.98k0.00096% $1.7m
James Gaither
Independent Director21.2yrsUS$312.98k0.017% $29.8m
Harvey Jones
Independent Director26.3yrsUS$312.98k0.042% $75.0m
Dawn Hudson
Independent Director6.6yrsUS$312.98k0.00050% $886.8k
Tench Coxe
Independent Director26.7yrsUS$312.98k0.21% $366.9m

16.3yrs

Average Tenure

62yo

Average Age

Experienced Board: NVDA's board of directors are seasoned and experienced ( 16.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NVDA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NVIDIA Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NVIDIA Corporation
  • Ticker: NVDA
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$177.351b
  • Shares outstanding: 612.00m
  • Website: https://www.nvidia.com

Number of Employees


Location

  • NVIDIA Corporation
  • 2788 San Tomas Expressway
  • Santa Clara
  • California
  • 95051
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVDANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1999
NVDXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1999
NVDDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1999
NVDA *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1999
NVDASWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1999
NVDA-UETLX (Eurotlx)YesCommon StockITEURJan 1999
NVDAWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1999
NVDABVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJan 1999
NVDABASE (Buenos Aires Stock Exchange)CEDEAR EACH 12 REP 1 COM USD0.001ARARSApr 2019
NVDC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.25 COM USD0.001BRBRLMay 2019

Biography

NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, GPU and Tegra Processor. The GPU segment offers processors, which include GeForce for PC gaming and mainstream PCs; GeForce NOW for cloud-based game-streaming service; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for artificial intelligence (AI) utilizing deep learning, accelerated computing, and general purpose computing; GRID, which provides power of NVIDIA graphics through the cloud and datacenters; DGX for AI scientists, researchers, and developers; and cryptocurrency-specific graphics processing units. The Tegra Processor segment provides processors that are primarily designed to enable branded platforms - DRIVE and SHIELD; DRIVE AGX automotive computers and software stacks, which offer self-driving capabilities; Clara AGX for intelligent medical instruments; SHIELD devices and services designed for mobile-cloud in home entertainment, AI, and gaming applications; and Jetson AGX, an AI computing platform for robotics and other embedded use. The company’s products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants. The company has an alliance with Red Hat, Inc.; a technology collaboration with Microsoft Corp.; and a collaboration with Ericsson. NVIDIA Corporation was founded in 1993 and is headquartered in Santa Clara, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:16
End of Day Share Price2020/02/18 00:00
Earnings2020/01/26
Annual Earnings2020/01/26


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.