NVIDIA Corp (NVDA, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth trajectory. With its shares currently priced at $120.7, NVIDIA Corp has experienced a slight daily loss of 0.16%, yet it boasts a significant three-month gain of 36.96%. A detailed analysis, supported by the GF Score, indicates that NVIDIA Corp is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have been proven to correlate strongly with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. NVIDIA Corp has been assigned a GF Score of 93 out of 100, indicating a strong 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 $2.97 trillion and annual sales of $79.77 billion, is a leading developer of graphics processing units (GPUs). Originally designed to enhance computing platform experiences, particularly in PC gaming, GPUs have evolved into crucial semiconductors for artificial intelligence applications. NVIDIA not only produces AI GPUs but also offers Cuda, a software platform for AI model development and training. Additionally, the company is expanding its data center networking solutions to manage complex workloads more effectively.
Financial Strength Breakdown
NVIDIA Corp's financial strength is evident in its robust balance sheet and impressive Interest Coverage ratio of 187.22, indicating a strong ability to meet interest obligations. The company's Altman Z-Score of 68.28 suggests a low probability of financial distress, further underscored by a healthy Debt-to-Revenue ratio of 0.14.
Profitability and Growth Metrics
NVIDIA Corp's profitability is highlighted by its increasing Operating Margin, which has grown significantly over the past five years. The company's Gross Margin has also consistently improved, reflecting its efficiency in converting revenue into profit. Furthermore, NVIDIA's growth is demonstrated by a 54.4% 3-Year Revenue Growth Rate, outperforming 94.58% of its industry peers.
Conclusion
Considering NVIDIA Corp's robust financial strength, impressive profitability, and strong growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores 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.
