NVIDIA Story

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NVDA -- USA Stock  

USD 514.95  21.03  4.26%

NVIDIA is scheduled to announce its earnings today. The next earnings report is expected on the 12th of November 2020. The stock is undergoing above-average trading activities. The current year Interest Coverage is expected to grow to 131.10. As many millenniums are trying to avoid technology space, it makes sense to go over NVIDIA a little further and try to understand its current market patterns.
Published over a month ago
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Will NVIDIA (NASDAQ:NVDA) institutional investors stop to quit in September?
The company currently holds 7.58 B in liabilities with Debt to Equity (D/E) ratio of 0.58, which is about average as compared to similar companies. NVIDIA has a current ratio of 10.08, suggesting that it is liquid enough and is able to pay its financial obligations when due. About 69.0% of the company shares are owned by institutional investors. NVIDIA recorded earning per share (EPS) of 5.35. The entity last dividend was issued on the 4th of June 2020. The firm had 3:2 split on the 11th of September 2007.
NVIDIA financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of NVIDIA, including all of NVIDIA's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of NVIDIA assets, the company is considered highly leveraged. Understanding the composition and structure of overall NVIDIA debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding NVIDIA Total Debt

NVIDIA liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. NVIDIA has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on NVIDIA balance sheet include debt obligations and money owed to different NVIDIA vendors, workers, and loan providers. Below is the chart of NVIDIA main long-term debt accounts currently reported on its balance sheet.
You can use NVIDIA financial leverage analysis tool to get a better grip on understanding its financial position

How important is NVIDIA's Liquidity

NVIDIA financial leverage refers to using borrowed capital as a funding source to finance NVIDIA ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. NVIDIA financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between NVIDIA's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for NVIDIA, but it might be worth checking our own buy vs. sell analysis

NVIDIA exotic insider transaction detected

Legal trades by NVIDIA insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
NVIDIA insider trading alert for general transaction of common by Neal Stephen C, the corporate stakeholder, on 23rd of September 2020. This event was filed by Nvidia Corp with SEC on 2020-09-23. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for NVIDIA

The entity reported the previous year's revenue of 11.78 B. Net Income was 3.32 B with profit before overhead, payroll, taxes, and interest of 6.77 B.

Liabilities Breakdown

2.2 B
Current Liabilities
B
Long-Term Liabilities
Total Liabilities4.17 Billion
Current Liabilities2.18 Billion
Long-Term Liabilities1.99 Billion

NVIDIA has 97 percent likelihood to slip below $476 in September

The downside deviation is down to 2.29 as of today. As of the 19th of August, NVIDIA secures the risk adjusted performance of 0.3701, and Mean Deviation of 1.85. In respect to fundamental indicators, the technical analysis model lets you check practical technical drivers of NVIDIA, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for NVIDIA, which can be compared to its peers in the industry. Please verify NVIDIA treynor ratio, and the relationship between the variance and potential upside to decide if NVIDIA is priced more or less accurately, providing market reflects its recent price of 485.54 per share. Given that NVIDIA has jensen alpha of 0.4802, we recommend you to check NVIDIA's last-minute market performance to make sure the company can sustain itself at some point in the future.

Our Final Take On NVIDIA

Whereas some other firms within the semiconductors industry are still a little expensive, even after the recent corrections, NVIDIA may offer a potential longer-term growth to investors. The inconsistency in the assessment between current NVIDIA valuation and our trade advice on NVIDIA is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to NVIDIA.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of NVIDIA. Please refer to our Terms of Use for any information regarding our disclosure principles.

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