posted by mark
on Thu, 02/17/2022 - 12:00
NVDA is getting hit today. It doesn't look like anyone is looking at the numbers NVDA put up yesterday. Are the analyst's asleep at the wheel?
Sure the P/E is in the high 60's, but when the P/E was in the 90's the herd was chasing it like the prettiest girl at the dance and the numbers weren't near as good. Where are the growth investors now?
Do I believe in the Efficient Market Hypothesis? Oh no!
Attached below are the graphs of the major metrics (From 10K's and 10Q's) and here is what t see.
- Total sales for fiscal 2022 blew it out
- 4th quarter sales comparison – It looks like that kicked it up a notch
- Gross Margin Dollars – They have been on a steady rise
- Gross Margin % - NVDA is steadily moving up
- Operating Margin Dollars – Just 2 quarters of 2022 beat all 4 quarters of last year
- Operating Margin % - On the rise with periods of some falls, but recently steadily climbing
- Net Income dollars – 2022 more than doubled 2021 and on a steady climb
- Net Income dollars – quarter by quarter (different view). 4th quarter of 2022 beat 3rd quarter of 2022 by more than 20%
- Return on Sales – Net margin is approaching 40%
- Per Share Earnings – quarter by quarter. Up significantly > 20%
- Per Share Earnings – Year by year Huge gain in 2022 from 2021
- Percentage of LT debt – clearly modest
- Cash versus LT Debt – All debt easily covered by cash
- ROE – 2022 reached 45% with ROE being over 20% for 6 years
So, is someone asleep at the wheel (Wall Street)? It sure looks like it.
I love when the raging herd takes the crowd off the cliff! Run Forest, Run.
Be smart, be well-read, be aware and be successful.
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