NVIDIA Corporation (NVDA)

Business overview

The company displays exceptional profitability, supported by a gross margin of 71.1% and an operating margin of 60.4%. Its free cash flow margin of 44.8% highlights its capacity to convert revenue into cash efficiently. These robust margins support a Financial Quality score of 98, though maintaining such profitability over the long term remains uncertain as market conditions evolve.

Financial health

NVIDIA achieved a Balance Sheet pillar score of 89 and a Risk score of 100, reflecting strong underlying financial stability. The company's free cash flow margin of 44.8% provides ample liquidity to support operational needs and strategic initiatives. Specific balance sheet details such as total debt and cash levels are unavailable in the dataset.

Gross Margin

71.1%

Operating Margin

60.4%

Current Ratio

3.9x

Debt / Equity

0.05

Free Cash Flow (TTM)

$96.7B

Interest Coverage

Data unavailable

Valuation

The company trades at a P/E ratio of 27.43, an EV/EBITDA of 25.27, and a P/S ratio of 15.01, resulting in a Valuation pillar score of 64. Its free cash flow yield stands at 3.2%. While these multiples reflect premium pricing relative to lower-growth peers, they are backed by high current growth rates.

P/E (TTM)

27.4x

Forward P/E

Data unavailable

Price / Sales

15.0x

EV / EBITDA

25.3x

FCF Yield

3.2%

Key risks

• Technical overbought signals indicated by an RSI reading of 75.44.
• Uncertainty around sustaining elevated year-over-year revenue growth of 65.5%.
• Valuation compression risk given a P/S ratio of 15.01 if growth moderates.