NVIDIA Corp(NVDA)

NVIDIA Corp operates in the undefined industry with a strong gross margin of 70.3%.

• The company has a stable revenue stream.
• Gross margins of 70.3% are above industry average.
• The business is capital intensive with capex at 10.0% of revenue.

Management led by undefined has demonstrated strong capital allocation skills.

• Return on Invested Capital (ROIC) of 15.0% is adequate.
• Insiders have mixed buying/selling activity in the past year.
• Management has improved return on equity over the past 5 years.

NVIDIA Corp demonstrates strong competitive advantages in its industry.

• Operating margins of 58.8% are significantly above industry peers.
• The company has expanded its operating margins over the past 5 years.
• NVIDIA Corp exhibits pricing power based on its gross margin profile.

The undefined industry is growing at approximately 8.0% annually.

• Industry growth rate of 8.0% is above average.
• The competitive landscape includes 11 major peers, indicating significant competition.
• Barriers to entry appear high based on industry operating margins.

NVIDIA Corp faces limited risks in its business operations.

• Debt-to-equity ratio of 0.50 is moderate.
• The company has diversified revenue streams.
• Earnings stability is strong with limited volatility in the past 5 years.

NVIDIA Corp maintains a adequate balance sheet with moderate leverage.

• Current ratio of 4.47 indicates strong liquidity.
• Debt-to-equity ratio of 0.50 is moderate.
• The company has 1 billion in cash and equivalents.

NVIDIA Corp is a capital-intensive business requiring 10.0% of revenue for capital expenditures.

• Capital expenditures represent 10.0% of revenue.
• Maintenance capex is low relative to free cash flow.
• The company efficiently utilizes its asset base.

Management allocates capital with strong efficiency, generating a 15.0% return on invested capital.

• Return on Invested Capital (ROIC) of 15.0% is adequate.
• The company has reduced shares outstanding by 2.0% in the past year.
• Dividend has grown at 5.0% annually, with a current yield of 0.02%.

NVIDIA Corp generates moderate profitability with net margins of 15.0%.

• Net profit margin of 15.0% is adequate.
• Free cash flow conversion is moderate at 80% of net income.
• Gross margins have been consistently above 64.7% over the past 5 years.

NVIDIA Corp has grown revenue at 11.1% and earnings at 11.1% in its strongest year.

• Revenue growth has ranged from 5.9% to 11.1% over the past 4 years.
• EPS growth has ranged from 5.9% to 11.1% over the past 4 years.
• Growth has been consistent during this period.

Stock-based compensation represents 5.0% of revenue and is decreasing over time.

• Stock-based compensation is high at 5.0% of revenue.
• Share dilution is minimal at 2.0% per year.
• The trend in stock-based compensation is decreasing over the past 5 years.

The outlook for NVIDIA Corp is positive based on analyst ratings and industry trends.

• Analysts are generally positive with 39 buys, 7 holds, and 1 sells.
• The industry is expected to grow at 8.0% annually.
• The average analyst price target of $150.00 is below the current price.

NVIDIA Corp trades at a P/E of 46.3x and EV/EBITDA of 0.0x.

• P/E ratio of 46.3x is elevated relative to the market.
• EV/EBITDA of 0.0x is attractive compared to peers.
• The stock is trading above the average analyst price target of $150.00.

Owner's earnings (EPS growth + dividend yield) is approximately 11.1%.

• Free cash flow is positive at $1.20 billion.
• Dividend yield is 0.02%, which is modest.
• EPS has grown at 11.1% in the most recent year.

NVIDIA Corp has created shareholder value through moderate returns on capital and solid growth.

• Return on Invested Capital (ROIC) of 15.0% is adequate.
• Revenue growth of 11.1% indicates strong business expansion.
• Capital allocation appears effective with reinvestment at appropriate levels.