NasdaqGS:NVDA

Stock Analysis Report

Executive Summary

NVIDIA Corporation operates as a visual computing company worldwide.

Snowflake

Fundamentals

Flawless balance sheet with high 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


Market Performance


7 Day Return

1.2%

NVDA

1.8%

US Semiconductor

1.3%

US Market


1 Year Return

-20.8%

NVDA

19.1%

US Semiconductor

5.9%

US Market

Return vs Industry: NVDA underperformed the US Semiconductor industry which returned 19.1% over the past year.

Return vs Market: NVDA underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

NVDAIndustryMarket
7 Day1.2%1.8%1.3%
30 Day2.5%-1.7%-1.9%
90 Day11.6%4.7%-1.8%
1 Year-20.4%-20.8%21.4%19.1%8.3%5.9%
3 Year187.5%184.3%80.0%69.3%45.6%36.2%
5 Year1005.0%961.6%141.0%116.2%66.1%47.9%

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?

41.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: NVDA ($186.53) is trading above our estimate of fair value ($114.83)

Significantly Undervalued: 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 (41.4x) compared to the Semiconductor industry average (27.7x).

PE vs Market: NVDA is poor value based on its PE Ratio (41.4x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: NVDA is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: NVDA is overvalued based on its PB Ratio (11x) compared to the US Semiconductor industry average (2.7x).


Next Steps

Future Growth

How is NVIDIA forecast to perform in the next 1 to 3 years based on estimates from 38 analysts?

23.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVDA's forecast earnings growth (23.3% per year) is above the savings rate (2.7%).

Earnings vs Market: NVDA's earnings (23.3% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NVDA's revenue (16.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: NVDA's revenue (16.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NVDA's Return on Equity is forecast to be high in 3 years time (29.7%)


Next Steps

Past Performance

How has NVIDIA performed over the past 5 years?

42.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NVDA's earnings have grown significantly by 42.2% 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 (-36.1%) over the past year, making it difficult to compare to the Semiconductor industry average (-6.2%).


Return on Equity

High ROE: NVDA's Return on Equity (26.5%) is considered high.


Return on Assets

ROA vs Industry: NVDA has a higher Return on Assets than the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: NVDA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is NVIDIA's financial position?


Financial Position Analysis

Short Term Liabilities: NVDA's short term assets ($11.4B) exceeds its short term liabilities ($1.3B)

Long Term Liabilities: NVDA's short term assets (11.4B) exceeds its long term liabilities (3.1B)


Debt to Equity History and Analysis

Debt Level: NVDA's debt to equity ratio (19.2%) is considered satisfactory

Reducing Debt: NVDA's debt to equity ratio has reduced from 31.9% to 19.2% over the past 5 years.

Debt Coverage: NVDA's debt is well covered by operating cash flow (152.9%).

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 high level of physical assets or inventory.

Debt Coverage by Assets: NVDA's debt is covered by short term assets (assets are 5.726990x debt).


Next Steps

Dividend

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

0.34%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NVDA's dividend (0.34%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: NVDA's dividend (0.34%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 .


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

What is the CEO of NVIDIA's salary, the management and board of directors tenure and is there insider trading?

10.8yrs

Average management tenure


CEO

Jensen Huang (56yo)

26.5yrs

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 ($USD13.64M) is about average for companies of similar size in the US market ($USD11.20M).

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


Management Age and Tenure

10.8yrs

Average Tenure

57yo

Average Age

Experienced Management: NVDA's management team is seasoned and experienced (10.8 years average tenure).


Board Age and Tenure

16.0yrs

Average Tenure

62yo

Average Age

Experienced Board: NVDA's board of directors are seasoned and experienced ( 16 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$3,453,09620 Sep 19
Colette Kress
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares19,186
Max PriceUS$179.98
SellUS$1,823,71412 Sep 19
James Gaither
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$182.37
SellUS$391,93104 Sep 19
Michael McCaffery
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,361
Max PriceUS$166.00
SellUS$2,489,57128 Aug 19
Michael McCaffery
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$166.56
SellUS$14,509,92018 Jun 19
Harvey Jones
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceUS$145.10

Ownership Breakdown


Management Team

  • Jensen Huang (56yo)

    Co-Founder

    • Tenure: 26.5yrs
    • Compensation: US$13.64m
  • Chris Malachowsky

    Co-Founder

    • Tenure: 26.8yrs
    • Compensation: US$320.00k
  • Deborah Shoquist (64yo)

    Executive Vice President of Operations

    • Tenure: 10.8yrs
    • Compensation: US$3.87m
  • Bill Dally (58yo)

    Chief Scientist & Senior VP of Research

    • Tenure: 10.8yrs
  • Bob Sherbin (60yo)

    Vice President of Corporate Communications

    • Tenure: 10.7yrs
  • Jay Puri (64yo)

    Executive Vice President of Worldwide Field Operations

    • Tenure: 13.8yrs
    • Compensation: US$5.46m
  • Simona Jankowski

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Colette Kress (52yo)

    Executive VP & CFO

    • Tenure: 6.1yrs
    • Compensation: US$4.98m
  • Donald Robertson (50yo)

    VP & Chief Accounting Officer

    • Tenure: 0.3yrs
  • Tim Teter (52yo)

    Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$3.77m

Board Members

  • Mark Stevens (59yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$312.98k
  • A. Seawell (71yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$312.98k
  • Mike McCaffery (65yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$312.98k
  • Mark Perry (63yo)

    Lead Director

    • Tenure: 1.6yrs
    • Compensation: US$312.98k
  • Rob Burgess (61yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$312.98k
  • Jensen Huang (56yo)

    Co-Founder

    • Tenure: 26.5yrs
    • Compensation: US$13.64m
  • Jim Gaither (81yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$312.98k
  • Harvey Jones (66yo)

    Independent Director

    • Tenure: 25.9yrs
    • Compensation: US$312.98k
  • Dawn Hudson (60yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$312.98k
  • Tench Coxe (61yo)

    Independent Director

    • Tenure: 26.3yrs
    • Compensation: US$312.98k

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$113.597b
  • Shares outstanding: 609.00m
  • 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
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 mainstr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:38
End of Day Share Price2019/10/14 00:00
Earnings2019/07/28
Annual Earnings2019/01/27


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.