NVIDIA Profit Margin vs. Shares Outstanding

NVDA Stock  USD 137.34  1.97  1.41%   
Based on the key profitability measurements obtained from NVIDIA's financial statements, NVIDIA may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess NVIDIA's ability to earn profits and add value for shareholders.

NVIDIA Net Profit Margin

0.49

As of December 13, 2024, Price To Sales Ratio is expected to decline to 19.60. In addition to that, Days Sales Outstanding is expected to decline to 53.17. At present, NVIDIA's Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's Operating Income is expected to grow to about 34.6 B, whereas Change To Netincome is forecasted to decline to about 484.9 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.620.7272
Fairly Down
Slightly volatile
Net Profit Margin0.260.4885
Way Down
Slightly volatile
Operating Profit Margin0.270.5412
Way Down
Slightly volatile
Pretax Profit Margin0.260.5551
Way Down
Slightly volatile
Return On Assets0.150.4528
Way Down
Slightly volatile
Return On Equity0.260.6924
Way Down
Slightly volatile
For NVIDIA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NVIDIA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NVIDIA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NVIDIA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NVIDIA over time as well as its relative position and ranking within its peers.
  

NVIDIA's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
For information on how to trade NVIDIA Stock refer to our How to Trade NVIDIA Stock guide.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NVIDIA. If investors know NVIDIA will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NVIDIA listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.68
Earnings Share
2.5
Revenue Per Share
3.91
Quarterly Revenue Growth
1.224
Return On Assets
0.5526
The market value of NVIDIA is measured differently than its book value, which is the value of NVIDIA that is recorded on the company's balance sheet. Investors also form their own opinion of NVIDIA's value that differs from its market value or its book value, called intrinsic value, which is NVIDIA's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NVIDIA's market value can be influenced by many factors that don't directly affect NVIDIA's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NVIDIA's value and its price as these two are different measures arrived at by different means. Investors typically determine if NVIDIA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NVIDIA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

NVIDIA Shares Outstanding vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining NVIDIA's current stock value. Our valuation model uses many indicators to compare NVIDIA value to that of its competitors to determine the firm's financial worth.
NVIDIA is considered to be number one stock in profit margin category among its peers. It also is considered to be number one stock in shares outstanding category among its peers creating about  44,494,913,488  of Shares Outstanding per Profit Margin. At present, NVIDIA's Net Profit Margin is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the NVIDIA's earnings, one of the primary drivers of an investment's value.

NVIDIA's Earnings Breakdown by Geography

NVIDIA Shares Outstanding vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

NVIDIA

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.55 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.

NVIDIA

Shares Outstanding

 = 

Public Shares

-

Repurchased

 = 
24.49 B
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.

NVIDIA Shares Outstanding Comparison

NVIDIA is currently under evaluation in shares outstanding category among its peers.

NVIDIA Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in NVIDIA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NVIDIA will eventually generate negative long term returns. The profitability progress is the general direction of NVIDIA's change in net profit over the period of time. It can combine multiple indicators of NVIDIA, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income27 M28.4 M
Operating Income33 B34.6 B
Income Before Tax33.8 B35.5 B
Total Other Income Expense Net846 M888.3 M
Net Income29.8 B31.2 B
Income Tax Expense4.1 B4.3 B
Net Income Applicable To Common SharesB5.3 B
Net Income From Continuing Ops29.8 B31.2 B
Non Operating Income Net Other251.8 M264.4 M
Interest Income866 M909.3 M
Net Interest Income609 M639.5 M
Change To Netincome670.5 M484.9 M
Net Income Per Share 1.21  0.18 
Income Quality 0.94  1.34 
Net Income Per E B T 0.88  0.98 

NVIDIA Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on NVIDIA. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of NVIDIA position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the NVIDIA's important profitability drivers and their relationship over time.

Use NVIDIA in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if NVIDIA position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NVIDIA will appreciate offsetting losses from the drop in the long position's value.

NVIDIA Pair Trading

NVIDIA Pair Trading Analysis

The ability to find closely correlated positions to NVIDIA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NVIDIA when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back NVIDIA - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling NVIDIA to buy it.
The correlation of NVIDIA is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as NVIDIA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NVIDIA moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for NVIDIA can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your NVIDIA position

In addition to having NVIDIA in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Petroleum and Natural Gas
Petroleum and Natural Gas Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Petroleum and Natural Gas theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Petroleum and Natural Gas Theme or any other thematic opportunities.
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When determining whether NVIDIA offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of NVIDIA's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nvidia Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nvidia Stock:
To fully project NVIDIA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NVIDIA at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include NVIDIA's income statement, its balance sheet, and the statement of cash flows.
Potential NVIDIA investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although NVIDIA investors may work on each financial statement separately, they are all related. The changes in NVIDIA's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on NVIDIA's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.