NVIDIA Corporation [NASDAQ:NVDA]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding NVIDIA Corporation [NVDA], the latest average analyst recommendation we can see is from the quarter closing in January. On average, stock market experts give NVDA an Outperform rating. Its stock price has been found in the range of 124.46 to 292.76. This is compared to its latest closing price of $160.19.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for NVIDIA Corporation [NVDA] is sitting at 2.19. This is compared to 1 month ago, when its average rating was 2.18.
For the quarter ending in Apr-19 NVIDIA Corporation [NVDA] generated $2.22 billion in sales. That’s 1.16% higher than the average estimate of $2.19 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Yesterday After Market Close (Confirmed).
Fundamental Analysis of NVIDIA Corporation [NVDA]
Now let’s turn to look at profitability: with a current Operating Margin for NVIDIA Corporation [NVDA] sitting at +32.86 and its Gross Margin at +61.58, this company’s Net Margin is now 35.30%. These measurements indicate that NVIDIA Corporation [NVDA] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 37.01, and its Return on Invested Capital has reached 32.50%. Its Return on Equity is 49.26, and its Return on Assets is 33.76. These metrics all suggest that NVIDIA Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, NVIDIA Corporation [NVDA] has generated a Total Debt to Total Equity ratio of 21.28. Similarly, its Total Debt to Total Capital is 17.55, while its Total Debt to Total Assets stands at 14.96. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 21.28, and its Long-Term Debt to Total Capital is 17.55. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 23.66 and its Total Debt to EBITDA Value is 0.48. The Enterprise Value to Sales for this firm is now 8.30, and its Total Debt to Enterprise Value stands at 0.02. NVIDIA Corporation [NVDA] has a Price to Book Ratio of 10.39, a Price to Cash Flow Ratio of 26.74 and P/E Ratio of 30.78. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, NVIDIA Corporation [NVDA] earns $882,428 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 8.71 and its Total Asset Turnover is 0.96. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 6.76 and its Current Ratio is 7.94. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
NVIDIA Corporation [NVDA] has 613.43M shares outstanding, amounting to a total market cap of $98.27B. Its stock price has been found in the range of 124.46 to 292.76. At its current price, it has moved by -44.14% from its 52-week high, and it has moved 31.40% from its 52-week low.
This stock’s Beta value is currently 1.87, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 37.19. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is NVIDIA Corporation [NVDA] a Reliable Buy?
Shares of NVIDIA Corporation [NVDA], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.