NVIDIA CORP (NVDA) Stock Analysis
NVIDIA CORP (NVDA) Stock Analysis
Analysis from 10-Q filed 2025-11-19. Data as of Q1 2026.
Overall Grade: F (Concerning)
NVIDIA CORP faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 97.3% | Above industry average |
| FCF Margin | 44.8% | Strong cash generation |
| Debt/Equity | 0.1x | Conservative leverage |
Investment Thesis: Strong return on invested capital of 97.3% suggests durable competitive advantages and efficient capital allocation.
Explore NVIDIA CORP: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: NVIDIA CORP earns 97.3% ROIC, Top 5% in Technology
NVIDIA CORP's trailing-twelve-month ROIC of 97.3% ranks Top 5% in Technology companies (sector median: 5.0%), driven by NOPAT margin of 51.2% combined with asset turnover of 1.5x. Source: 10-Q filed 2025-11-19. Gross margin of 71.1% with operating margin at 60.4% reflects strong pricing power.
| Metric | NVDA | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 97.3% | Excellent | Above sector median of 5.0% |
| Return on Equity (ROE) | 114.0% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 71.1% | Excellent | Strong pricing power |
| Operating Margin | 60.4% | Excellent | Efficient operations |
Cash Flow: NVIDIA CORP generates $96.7B FCF at 44.8% margin, positive NaN/8 quarters
NVIDIA CORP generated $96.7B in free cash flow (TTM), a 44.8% FCF margin, a margin that ranks Top 5% in Technology. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-19.
| Metric | NVDA | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 44.8% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $96.7B | Good | Positive cash generation |
| OCF/Net Income | 0.9x | Good | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: NVIDIA CORP at 0.1x leverage
NVIDIA CORP's debt-to-equity ratio of 0.1x reflects conservative leverage. Net cash position of $2.1B provides financial flexibility. Source: 10-Q filed 2025-11-19.
| Metric | NVDA | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.1x | Excellent | Conservative capital structure |
| Net Cash Position | $2.1B | Excellent | Net cash positive |
Valuation: NVIDIA CORP trades at 38.1x earnings
NVIDIA CORP trades at a P/E of 38.1x. Free cash flow yield of 2.1% reflects market expectations for growth.
| Metric | NVDA | Rating | Context |
|---|---|---|---|
| P/E Ratio | 38.1x | Adequate | Premium valuation |
| EV/Sales | 21.0x | Warning | Growth premium priced in |
| FCF Yield | 2.1% | Adequate | Lower cash yield |
| Dividend Yield | 0.0% | Adequate | Growth focus over income |
Capital Allocation: NVIDIA CORP returns 0.9% shareholder yield
NVIDIA CORP's total shareholder yield is 0.9% (dividends 0.0% + buybacks 0.9%). Source: 10-Q filed 2025-11-19.
| Metric | NVDA | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.9% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 0.9% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $41.1B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 97.3% | Top 5% | 19.4x above |
| Free Cash Flow Margin | 44.8% | Top 5% | 5.2x above |
| Gross Margin | 71.1% | Top 50% | 1.4x above |
| Operating Margin | 60.4% | Top 5% | 12.7x above |
| Return on Equity (ROE) | 114.0% | Top 5% | 22.2x above |
| P/E Ratio | 38.1x | N/A | - |
Financial Scorecard
| Metric | NVDA | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 97.3% | Excellent | Top 5% of sector (median: 5.0%) |
| Free Cash Flow Margin | 44.8% | Excellent | Top 5% of sector (median: 8.5%) |
| Gross Margin | 71.1% | Excellent | Top 50% of sector (median: 51.1%) |
| Debt to Equity Ratio | 5.4% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 38.1x | Adequate | High expectations priced in |
| Free Cash Flow Yield | 2.1% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is NVIDIA CORP's Return on Invested Capital (ROIC)?
NVIDIA CORP (NVDA) has a trailing twelve-month Return on Invested Capital (ROIC) of 97.3%. This compares above the sector median of 5.0%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is NVIDIA CORP's Free Cash Flow Margin?
NVIDIA CORP (NVDA) has a free cash flow margin of 44.8%, generating $96.7 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is NVIDIA CORP stock overvalued or undervalued?
NVIDIA CORP (NVDA) trades at a P/E ratio of 38.1x, which is above the sector median of N/A. The EV/Sales multiple is 21.0x. Free cash flow yield is 2.1%, reflecting growth expectations priced into the stock.
Q: Does NVIDIA CORP pay a dividend?
NVIDIA CORP (NVDA) currently pays a dividend yield of 0.0%. Including share buybacks, the total shareholder yield is 0.9%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is NVIDIA CORP's revenue and earnings growth?
NVIDIA CORP (NVDA) grew revenue by 65.5% year-over-year. Earnings per share increased by 66.1% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: Is NVIDIA CORP buying back stock?
NVIDIA CORP (NVDA) repurchased $40.1 billion of stock over the trailing twelve months. This represents a buyback yield of 0.9%.
Q: How does NVIDIA CORP compare to competitors in Technology?
Compared to other companies in Technology, NVIDIA CORP (NVDA) shows: ROIC of 97.3% is above the sector median of 5.0% (Top 0%). FCF margin of 44.8% exceeds the sector median of 8.5% (Top 0% of sector). Gross margin at 71.1% is 19.9 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with NVIDIA CORP?
Investors in NVIDIA CORP (NVDA) should monitor these potential warning signs: 1) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-19. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.