Profile and Estimates
Nvidia has a market cap of $8.44 billion and currently trades for $13.65 per share. Shares are up 11.98% YTD and trade 23.95% above their 52-week low of $11.01. Analysts have a mean target price of $14.27 and a median price target of $14.00 on the shares. Twenty nine analysts have an average first quarter earnings per share estimate of $0.10 on estimated revenues of $940.54 million. Nvidia has beat earnings estimates in three of the last four quarters.
Fundamentals and Highlights (Sources cited below article)
- P/E of 15.2 is below the industry averages 41.5.
- P/B of 1.7 and P/S of 2.0 are both below the industry averages 2.8 and 2.6 respectively.
- Leader in graphic processor market with room to grow in other markets.
- Very strong financial position, with over $3.5 billion in cash Nvidia only has $1.5 billion in debt.
- Operating margins of 15.2% and net margin of 13.1% are both below the industry averages 22.7% and 17.1%, respectively.
- ROA of 9.4 and ROE of 12.5 are both below the industry averages 12.8 and 20.2, respectively.
- Weaker PC demand.
- Enhanced on-chip graphics are pressuring NVDA's stand-alone GPU.
The stock market seems to have no love for this healthy tech company. Investors want to see growth and the declining PC industry is weighing in heavily on NVDA's shares. This may be a laggard for sometime but long-term investors should feel comfortable with cash on hand and positive earnings. Thank you for reading and keep an eye out for earnings on Thursday.
In addition to the links above, ratios and financial data was sourced from Morningstar.com, which you can find here.
Other company data was sourced from the annual report that can be accessed here.