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 stock price currently at $952.63 and experiencing a daily increase of 0.67%, alongside a significant three-month growth of 31.36%, NVIDIA Corp stands out in the technology sector. A detailed analysis using the GF Score indicates that NVIDIA Corp is poised for substantial 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 better returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. NVIDIA Corp has achieved a GF Score of 93, indicating a high potential for market outperformance.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 6/10
Understanding NVIDIA Corp's Business
NVIDIA Corp, with a market cap of $2.34 trillion and annual sales of $60.92 billion, is a leader in the development of graphics processing units (GPUs). Originally designed to enhance PC gaming experiences, GPUs have become crucial in artificial intelligence applications. NVIDIA not only produces AI GPUs but also offers Cuda, a software platform for AI model development and training. Additionally, NVIDIA is expanding into data center networking solutions, enhancing its capability to manage complex workloads.
Financial Strength Breakdown
NVIDIA Corp's financial robustness is reflected in its impressive Interest Coverage ratio of 128.29, significantly surpassing the benchmark of 5 set by investment guru Benjamin Graham. The company's Altman Z-Score of 65.28 further underscores its financial stability, indicating a strong defense against financial distress. Additionally, its strategic Debt-to-Revenue ratio of 0.18 showcases prudent debt management.
Profitability and Growth Metrics
NVIDIA Corp's profitability is highlighted by its increasing Operating Margin, which has grown significantly over the past five years, reaching 54.12% in 2024. The company's Gross Margin also reflects a rising trend, indicating enhanced efficiency in converting revenue into profit. The Piotroski F-Score and a Predictability Rank of 4.5 stars further validate NVIDIA's solid financial health and operational consistency.
Conclusion
Considering NVIDIA Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score effectively highlights the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore other high-performing companies using the GF Score Screen available to GuruFocus Premium members.
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.
