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 $149.63 and experiencing a daily gain of 0.5%, NVIDIA Corp has seen a significant three-month change of 50.53%. A detailed analysis, supported by 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 to calculate a total score, which ranges from 0 to 100, with 100 indicating the highest potential for outperformance. By backtesting from 2006 to 2021, stocks with higher GF Scores have generally yielded higher returns. For NVIDIA Corp, the GF Score stands impressively at 96 out of 100, signaling strong potential for market outperformance.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 6/10
Understanding NVIDIA Corp's Business
NVIDIA Corp, with a market cap of $3.67 billion and annual sales of $96.31 million, is a leading developer of graphics processing units (GPUs). Originally designed to enhance computing platforms, particularly in PC gaming, GPUs have evolved into crucial semiconductors for artificial intelligence applications. NVIDIA not only produces AI GPUs but also offers Cuda, a software platform for AI model development and training. Additionally, the company is expanding its data center networking solutions to support complex workloads.
Financial Strength Breakdown
NVIDIA Corp's robust balance sheet demonstrates resilience against financial volatility, reflecting prudent capital management. The company's Interest Coverage ratio is an impressive 237.38, indicating strong capability to cover interest obligations. Additionally, with an Altman Z-Score of 85.85, NVIDIA Corp shows a strong defense against financial distress. The Debt-to-Revenue ratio stands at 0.1, further solidifying its financial health.
Profitability and Growth Metrics
NVIDIA Corp's Operating Margin has seen significant growth over the past five years, indicating increasing efficiency in transforming revenue into profit. The company's 3-Year Revenue Growth Rate of 54.4% outperforms 94.29% of its industry peers, highlighting its competitive edge in the semiconductors industry.
Conclusion
Considering NVIDIA Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score underscores the company's strong 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.
