NVDANVIDIA Corporation
Is the business good?
A genuinely good business: margins widening and elite returns on assets.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is mostly backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 81% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NVDA?
NVIDIA Corporation earns 65% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 56 points above what the capital costs: growth creates value
- Operating margin
- 65%
Operating margin · Semiconductors median 7.5% · 12 months to Q2 2027
- Cash conversion
- 0.81×
Cash conversion · 0.93× a year ago · most of the operating profit arrived as cash, working capital took the rest
- Share count, year on year
- −1.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | 27% |
| FY2022 | 37% |
| FY2023 | 16% |
| FY2024 | 54% |
| FY2025 | 62% |
| FY2026 | 60% |
Details›
- Gross margin12 months to Q2 2027
- 75%
- Operating margin12 months to Q2 2027
- 65%
- Net margin12 months to Q2 2027
- 64%
- Free cash flow margin
- 42%
- R&D as % of revenue
- 7.8%
- Revenue, trailing twelve months
- $303.0B
- Free cash flow, trailing twelve months
- $127.0B
- Net income, trailing twelve months
- $192.9B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 65%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.