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 $108.17, NVIDIA Corp has experienced a slight daily increase of 0.06%, despite a three-month decline of -9.35%. 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 stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which 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 97, suggesting it has significant growth potential.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 7/10
- Momentum rank: 6/10
Understanding NVIDIA Corp's Business
NVIDIA Corp, with a market cap of $2.65 trillion and annual sales of $96.31 billion, 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 its data center networking solutions to manage complex workloads more effectively.
Financial Strength Breakdown
NVIDIA Corp's financial robustness is evident in its impressive Interest Coverage ratio of 237.38, indicating a strong ability to meet interest obligations. The company's Altman Z-Score of 63.68 further underscores its financial stability, suggesting a low risk of financial distress. Additionally, a Debt-to-Revenue ratio of 0.1 reflects prudent debt management, enhancing its financial health.
Profitability Rank Breakdown
NVIDIA Corp's profitability is impressive, with an Operating Margin that has significantly increased over the past five years, reaching 54.12% in 2024. The company's Gross Margin also shows a consistent upward trend, peaking at 72.72% in 2024. These metrics highlight NVIDIA's efficiency in converting revenue into profit, supported by a strong Predictability Rank of 4.5 stars.
Growth Rank Breakdown
NVIDIA Corp is highly ranked for growth, with a 3-Year Revenue Growth Rate of 54.4%, outperforming 94.7% of its industry peers. The company's EBITDA has also seen substantial growth, emphasizing its ongoing expansion and capability to scale operations effectively.
Conclusion
Considering NVIDIA Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors seeking similar opportunities can explore more companies with strong GF Scores through 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.
