🖥️ NVIDIA CORPORATION: ANALYSIS 🖥️
Nvidia [NVDA] is one of the best semiconductor stocks. The company's products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, independent software vendors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants.
On an annual average, its margins of April, 2023 are:
- Gross margin: ± 58%
- Operative margin: ± 24%
- EBITDA margin: ± 29%
- Net profit margin: ± 20%
If the last EPS was ± $1.94 USD, the average ROIC is ± 16.74%, and it is taken a PER 90 as a baseline, the potential spread in their price could be at:
- Optimistic: ± $203 USD
- Neutral: ± $175 USD
- Pessimistic: ± $145 USD
On other hand, if it is considered an EBITDA increases of ± 20%, a Net Debt increases of ± 0% and a shares outstanding increase of ± 0%, based on an EV/EBITDA 90, the potential price target could be ± $266 USD.
The pros: NVDA has good margins, an important rol in advanced semiconductors, a zero net debt, not increases in shares outstanding, an increase in Data Center and Automotive, and enjoys the hype of Artificial Intelligence. The cons: NVDA has had a decrease in gaming, its CAPEX is down, an increase in OPEX and is a cyclical company which could be overvalued in medium and long term (see the JJPL probabilities: https://www.linkedin.com/posts/joelpadilla_joelpadilla-finance-economy-activity-7059908935662673920-zp0x?utm_source=share&utm_medium=member_desktop )
The best analysis is yours!
J. Joel Padilla
https://jjoelpadilla.wixsite.com/jjpl-index
On an annual average, its margins of April, 2023 are:
- Gross margin: ± 58%
- Operative margin: ± 24%
- EBITDA margin: ± 29%
- Net profit margin: ± 20%
If the last EPS was ± $1.94 USD, the average ROIC is ± 16.74%, and it is taken a PER 90 as a baseline, the potential spread in their price could be at:
- Optimistic: ± $203 USD
- Neutral: ± $175 USD
- Pessimistic: ± $145 USD
On other hand, if it is considered an EBITDA increases of ± 20%, a Net Debt increases of ± 0% and a shares outstanding increase of ± 0%, based on an EV/EBITDA 90, the potential price target could be ± $266 USD.
The pros: NVDA has good margins, an important rol in advanced semiconductors, a zero net debt, not increases in shares outstanding, an increase in Data Center and Automotive, and enjoys the hype of Artificial Intelligence. The cons: NVDA has had a decrease in gaming, its CAPEX is down, an increase in OPEX and is a cyclical company which could be overvalued in medium and long term (see the JJPL probabilities: https://www.linkedin.com/posts/joelpadilla_joelpadilla-finance-economy-activity-7059908935662673920-zp0x?utm_source=share&utm_medium=member_desktop )
The best analysis is yours!
J. Joel Padilla
https://jjoelpadilla.wixsite.com/jjpl-index
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