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 a current share price of $121.78, NVIDIA Corp has experienced a daily decrease of 1.42%, yet it boasts a significant three-month gain of 34.89%. A detailed analysis, supported by the GF Score, positions NVIDIA Corp as a prime candidate 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. This system, which has been rigorously backtested from 2006 to 2021, suggests that stocks with higher GF Scores typically yield superior long-term returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. NVIDIA Corp impressively scores 93 out of 100, indicating strong potential for market-leading performance.
- 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 $2.996 trillion and annual sales of $79.774 billion, is a pioneer in the development of graphics processing units (GPUs). Originally designed to enhance PC gaming experiences, GPUs have evolved into crucial components for artificial intelligence applications. NVIDIA not only produces AI-driven GPUs but also offers Cuda, a comprehensive software platform for AI model development and training. Additionally, NVIDIA is expanding its presence in data center networking solutions, facilitating complex workload management through enhanced GPU integration.
Financial Strength Breakdown
NVIDIA Corp's financial robustness is evident through its impressive Interest Coverage ratio of 187.22, significantly surpassing the benchmark set by investment guru Benjamin Graham. Furthermore, its Altman Z-Score of 69.69 and a Debt-to-Revenue ratio of 0.14 both underscore NVIDIA's financial stability and prudent debt management.
Profitability Rank Breakdown
NVIDIA Corp's profitability is highlighted by its increasing Operating Margin, which has grown significantly over the past five years, reaching 54.12% in 2024. This trend is supported by a consistent rise in Gross Margin, which stood at 72.72% in 2024, demonstrating NVIDIA's efficiency in converting revenue into profit. The company's strong financial health is further validated by its Piotroski F-Score and a Predictability Rank of 4.5 stars.
Growth Rank Breakdown
NVIDIA Corp's commitment to growth is evident from its Growth Rank of 10/10. The company's 3-Year Revenue Growth Rate of 54.4% significantly outperforms the majority of its industry peers. Additionally, its EBITDA has seen robust growth, further emphasizing NVIDIA's ongoing expansion and operational efficiency.
Conclusion
Considering NVIDIA Corp's exceptional financial strength, profitability, and growth metrics, the GF Score highlights the company's unparalleled position for potential market outperformance. Investors seeking 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.
