NVIDIA Corp (NVDA, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With its shares currently priced at $109.83, NVIDIA Corp has enjoyed a daily gain of 4.85%, and an impressive three-month growth of 23.07%. A detailed analysis, supported by the GF Score, indicates that NVIDIA Corp is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks across five key valuation aspects. This system has 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 boasts a GF Score of 97, indicating a top-tier potential for market outperformance.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 6/10
Understanding NVIDIA Corp's Business
NVIDIA Corp, with a market cap of $2.7 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 become crucial in artificial intelligence (AI). NVIDIA not only produces AI GPUs but also offers Cuda, a software platform for AI model development and training. Additionally, NVIDIA is expanding its data center networking solutions, which are essential for managing complex workloads.
Financial Strength Breakdown
NVIDIA Corp's financial strength is evident in its robust balance sheet and strategic debt management, with an Debt-to-Revenue ratio of 0.14. The company's Interest Coverage ratio stands at an impressive 187.22, significantly above the benchmark set by investment guru Benjamin Graham. Furthermore, an Altman Z-Score of 59.76 indicates a strong defense against financial distress, underscoring NVIDIA's financial stability.
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 also reflects a consistent upward trend, demonstrating its efficiency in converting revenue into profit. Additionally, NVIDIA's Growth Rank is exemplary, with a 3-Year Revenue Growth Rate of 54.4%, outperforming 94.57% of its peers in the Semiconductors industry.
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.
