NVIDIA Corp (NVDA, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With a current share price of $907.34 and a modest daily gain of 0.2%, NVIDIA Corp has experienced a significant three-month price increase of 30.59%. A detailed analysis, supported by the GF Score, indicates that NVIDIA Corp is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key aspects of valuation. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. NVIDIA Corp has been assigned a GF Score of 93, reflecting its high potential for market outperformance.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 6/10
Understanding NVIDIA Corp's Business
NVIDIA Corp, with a market cap of $2.27 trillion and annual sales of $60.92 billion, is a leading developer of graphics processing units (GPUs). Initially focused on enhancing PC gaming experiences, NVIDIA's GPUs have become crucial in various applications, particularly artificial intelligence. The company not only produces AI GPUs but also offers Cuda, a software platform for AI model development and training. Additionally, NVIDIA is expanding into data center networking solutions, further solidifying its position in handling complex workloads.
Financial Strength Breakdown
NVIDIA Corp's financial strength is evident in its robust balance sheet and impressive Interest Coverage ratio of 128.29, indicating a strong ability to cover interest obligations. The company's Altman Z-Score of 63.59 suggests a low risk of financial distress, and a Debt-to-Revenue ratio of 0.18 highlights effective debt management.
Profitability and Growth Metrics
NVIDIA Corp's profitability is showcased by its increasing Operating Margin, which has grown significantly over the past five years. The company's Gross Margin also reflects a rising trend, emphasizing its efficiency in converting revenue into profit. Furthermore, NVIDIA's growth is demonstrated by a 3-Year Revenue Growth Rate of 54.3%, outperforming 94.81% of its industry peers.
Conclusion
Considering NVIDIA Corp's robust financial strength, impressive profitability, and strong growth metrics, the GF Score effectively highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other high-scoring companies using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
