Is the business good?
How good a business is NVDA?
NVIDIA Corporation earns 67% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
67%
Return on invested capital · cost of capital 9.0% · 58 points above what the capital costs: growth creates value
- Operating margin
- 64%
Operating margin · Semiconductors median 8.5% · 12 months to Q1 2027
- Cash conversion
- 0.75×
Cash conversion · 0.94× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −0.89%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2021 | 27% |
| FY2022 | 37% |
| FY2023 | 16% |
| FY2024 | 54% |
| FY2025 | 62% |
| FY2026 | 60% |
Details›
- Gross margin12 months to Q1 2027
- 74%
- Operating margin12 months to Q1 2027
- 64%
- Net margin12 months to Q1 2027
- 63%
- Free cash flow margin
- 47%
- R&D as % of revenue
- 8.2%
- Revenue, trailing twelve months
- $253.5B
- Free cash flow, trailing twelve months
- $119.1B
- Net income, trailing twelve months
- $159.6B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 67%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Semiconductors
Ranks #5 of 48 by Smart Score