NVIDIA shares moved 16.9% over the last 52 weeks, with a high of $280.0 and a low of $108.13. During this time, the stock outperformed the S&P 500 index by 25.0%. As of April 2023, the company's 50-day average price is $236.9. NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally. The large-cap Technology company has 26,196 full time employees and is based in Santa Clara, CA. NVIDIA has returned a 0.1% dividend yield over the last 12 months.
An Exceptionally Strong Balance Sheet:
| 2020-01-31 | 2021-01-31 | 2022-01-31 | 2023-01-31 | |
|---|---|---|---|---|
| Revenue | $10,918,000 | $16,675,000 | $26,914,000 | $26,974,000 |
| Gross Margins | 62.0% | 62.3% | 64.9% | 56.9% |
| Operating Margins | 26.1% | 27.2% | 37.3% | 20.7% |
| Net Income | $2,796,000 | $4,332,000 | $9,752,000 | $4,368,000 |
| Net Margins | 25.61% | 25.98% | 36.23% | 16.19% |
| Earnings Per Share | $1.13 | $1.72 | $3.85 | $2.35 |
| Free Cash Flow | $4,272,000 | $4,694,000 | $8,132,000 | $3,808,000 |
| Capital Expenditures | -$489,000 | -$1,128,000 | -$976,000 | -$1,833,000 |
| Net Current Assets | $8,579,000 | $4,157,000 | $11,254,000 | $3,992,000 |
| Current Ratio | 7.67 | 4.09 | 6.65 | 3.52 |
| Long Term Debt | $1,991,000 | $5,964,000 | $10,946,000 | $9,703,000 |
| Net Debt / EBITDA | 0.59 | 1.07 | 0.79 | 1.03 |
NVIDIA's P/B and P/E Ratios Are Higher Than Average:
Compared to the Technology sector's average of 27.16, NVIDIA has a trailing twelve month P/E ratio of 100.8 and, according to its EPS guidance of 6.01, an expected P/E ratio of 39.4. NVIDIA's PEG ratio is 1.94 when based on its 51.9% compound average growth rate of historical and projected earnings per share. We also consider the weighted average of the company's EPS growth rate and the projected growth rate for the broader market, which in NVIDIA's case is 28.1%. This normalized growth rate gives us a PEG ratio of 3.59, which suggests that the company's shares are actually overvalued. Furthermore, NVIDIA is likely overvalued in terms of its book value, since its P/B ratio is 30.2 compared to its sector average of 6.23. As of the date of publication, the company's shares are trading 1166.5% above their Graham number of $21.35.
There's an Analyst Consensus of Some Upside Potential for NVIDIA:
39 analysts are following NVIDIA and have set target prices ranging from $175.0 to $320.0 per share. On average, they have given the company a rating of buy. At the current price of $270.37, NVDA is trading -1.39% away from its average analyst target price of $274.19 per share, implying an analyst consensus of some upside potential for the stock. The company has a very low short interest since 1.6% of the company's shares are tied to short positions. Institutions own 68.0% of NVIDIA's shares, while the insider ownership rate stands at 4.21%. which is a large amount of insider shareholders. The company's biggest shareholder is the Vanguard Group, Inc. with a 8% stake in the company worth $55,317,733,175.
