NVIDIA Corp (NVDA, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. With a current share price of $125.23 and a daily gain of 0.52%, NVIDIA Corp has shown a significant three-month growth of 35%. A detailed analysis using the GF Score indicates that NVIDIA Corp is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently and have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. NVIDIA Corp has been assigned a GF Score of 93 out of 100, indicating a high potential for 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 $3.08 billion and annual sales of $79.77 million, is a leading developer of graphics processing units (GPUs). Originally designed to enhance PC gaming experiences, GPUs have become crucial in artificial intelligence applications. NVIDIA 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 to support complex workloads.
Financial Strength Breakdown
NVIDIA Corp's financial strength is evident in its robust balance sheet and strategic management of capital. The company boasts an impressive Interest Coverage ratio of 187.22, significantly above the benchmark set by Benjamin Graham. Its Altman Z-Score of 70.24 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.14 further solidifies its financial health.
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 risen, demonstrating its efficiency in converting revenue into profit. Furthermore, NVIDIA's Growth Rank is exemplary, with a 3-Year Revenue Growth Rate of 54.4%, outperforming 94.67% 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.
