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 $126.82, NVIDIA Corp has experienced a daily gain of 1.52%, alongside a three-month change of 1%. 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 based on five key valuation aspects. These aspects 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 representing the highest potential for outperformance. NVIDIA Corp boasts a GF Score of 98, 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: 9/10
Understanding NVIDIA Corp's Business
NVIDIA Corp, with a market cap of $3.11 billion and sales of $96.31 million, is a leading developer of graphics processing units (GPUs). Initially focused on enhancing PC gaming experiences, NVIDIA's GPUs now play crucial roles in artificial intelligence applications. The company offers both AI GPUs and a software platform, Cuda, for AI model development and training. Additionally, NVIDIA is expanding into 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, significantly surpassing the benchmark set by Benjamin Graham. The company's Altman Z-Score of 72.82 further underscores its financial stability, while a Debt-to-Revenue ratio of 0.1 highlights prudent debt management.
Profitability Rank Breakdown
NVIDIA Corp's profitability is impressive, with an Operating Margin that has consistently increased over the past five years, reaching 54.12% in 2024. The company's Gross Margin also reflects a rising trend, peaking at 72.72% in 2024. These metrics demonstrate NVIDIA's growing efficiency in converting revenue into profit.
Growth Rank Breakdown
NVIDIA Corp is distinguished by its strong growth metrics. The company's 3-Year Revenue Growth Rate of 54.4% outperforms 94.61% of its industry peers. Additionally, its EBITDA has seen significant growth, with a three-year growth rate of 84.6, highlighting its expanding operational capabilities.
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.
