The underlying tendency is to the upside for shares in NVIDIA Corporation and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● The prospective high growth for the next fiscal years is among the main assets of the company
● The company's earnings per share (EPS) are expected to grow significantly over the next few years according to the consensus of analysts covering the stock.
● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● Consensus analysts have strongly revised their opinion of the company over the past 12 months.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● With an expected P/E ratio at 81.34 and 68.74 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● Based on current prices, the company has particularly high valuation levels.
● The company appears highly valued given the size of its balance sheet.
● The company is highly valued given the cash flows generated by its activity.
● The company is not the most generous with respect to shareholders' compensation.
● The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.
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Surperformance is Buy on NVIDIA CORPORATION since 2023-08-30
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NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows:
- computing and networking solutions (55.9%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.;
- graphics processors (44.1%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms.
Net sales break down by industry between data storage (55.6%), gaming (33.6%), professional visualization (5.7%), automotive (3.4%) and other (1.7%).
Net sales are distributed geographically as follows: the United States (30.7%), Taiwan (25.9%), China (21.5%) and other (21.9%).