Nvidia released their fourth quarter results yesterday and the fundamentals look pretty darn good. Take a look at the attachment for the trends in sales, gross margin, operating margin, net income, share earnings, leverage and ROE.
It all comes down to ROE. ROE is still pretty strong, but dropping from the prior two robust years. I haven't looked yet, but I suspect the decrease in their leverage profile has had an effect on ROE.
At the same time though, the P/E on trailing GAAP earnings is in the mid-fifties. I would view this as a little rich for getting in now, but afterhours trading yesterday in Nvidia was very strong.
Successful investing requires knowing the difference between a good stock and a good company.
Be smart, be well-read and be successful.
