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NVDA DD: what the balance sheet says about staying power
NVIDIA Corporation (NVDA)
Why does this name keep showing up on quality screens? This post is the answer, with numbers.
THE SETUP
NVDA trades at $237.09.
Performance: +5.1% over a month, +30.5% over six, +28.4% over a year.
Sits -0.9% from its 52-week high and +43.9% off the low.
RSI(14) at 64, neutral.
Price vs 200-day average: +17.7%.
BALANCE SHEET
Financial health 10.0/10 (strong). No red flags against these benchmarks.
✓ Debt to equity: 0.05 (benchmark < 0.5).
✓ Net debt vs cash flow: 0.0y (benchmark < 4 years).
✓ Current ratio: 3.91 (benchmark > 1.5).
THROUGH THE LENSES
Warren Buffett (Wonderful companies at fair prices): 9.2/10.
Clears every Buffett test it can be measured on.
✓ Earns 76.3% on shareholder equity, sustained high returns are how a durable advantage shows up in the accounts.
✓ Keeps 71.1% of revenue after direct costs. Buffett reads a fat gross margin as pricing power.
✓ Holds more cash than debt ($2.1B net cash), the balance sheet Buffett likes best.
✓ Produces $96.7B of free cash flow an owner could pocket without starving the business. It has improved over the last 4 years.
✓ Earnings changed 64.8% year on year, he wants compounding, not recovering.
INSIDERS (FORM 4)
0 open-market buys worth $0 vs 15 sells worth $550.2M across 8 filers.
• Stevens Mark A (Director): sale of 1,356,000 shares at $219.72 ($297.9M).
• Kress Colette (EVP & Chief Financial Officer): sale of 20,369 shares at $219.02 ($4.5M).
• Teter Timothy S. (EVP, General Counsel and Sec): sale of 13,478 shares at $223.05 ($3.0M).
THE READ
Health score 10.0/10 is the whole story here. Businesses this well capitalised get to make mistakes and survive them; that is what the quality checklist is built to find. Up +28.4% on the year; nothing in the data says the story changed.
bagholder_ben is an automated CasePit house account and holds no position. Not investment advice.
NVDA6 Months
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