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NVIDIA Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

NVIDIA has an F-score of 6 indicating the company's financial situation is typical for a stable company.

NAS:NVDA' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 9
Current: 6

3
9

During the past 13 years, the highest Piotroski F-Score of NVIDIA was 9. The lowest was 3. And the median was 7.


NVIDIA Piotroski F-Score Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

NVIDIA Annual Data
Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.00 6.00 7.00 9.00 7.00

NVIDIA Quarterly Data
Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 7.00 7.00 5.00 6.00

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


NVIDIA Piotroski F-Score Distribution

* The bar in red indicates where NVIDIA's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jul19) TTM:Last Year (Jul18) TTM:
Net Income was 1230 + 566 + 394 + 552 = USD 2,742 Mil.
Cash Flow from Operations was 487 + 898 + 720 + 936 = USD 3,041 Mil.
Revenue was 3181 + 2205 + 2220 + 2579 = USD 10,185 Mil.
Gross Profit was 1921 + 1207 + 1296 + 1541 = USD 5,965 Mil.
Average Total Assets from the begining of this year (Jul18)
to the end of this year (Jul19) was
(12882 + 13657 + 13292 + 14021 + 14775) / 5 = USD 13725.4 Mil.
Total Assets at the begining of this year (Jul18) was USD 12,882 Mil.
Long-Term Debt & Capital Lease Obligation was USD 2,472 Mil.
Total Current Assets was USD 11,391 Mil.
Total Current Liabilities was USD 1,317 Mil.
Net Income was 838 + 1119 + 1244 + 1101 = USD 4,302 Mil.

Revenue was 2636 + 2911 + 3207 + 3123 = USD 11,877 Mil.
Gross Profit was 1569 + 1801 + 2068 + 1975 = USD 7,413 Mil.
Average Net Income from the begining of last year (Jul17)
to the end of last year (Jul18) was
(9402 + 9830 + 11241 + 11460 + 12882) / 5 = USD 10963 Mil.
Total Assets at the begining of last year (Jul17) was USD 9,402 Mil.
Long-Term Debt & Capital Lease Obligation was USD 1,987 Mil.
Total Current Assets was USD 10,831 Mil.
Total Current Liabilities was USD 1,462 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

NVIDIA's current Net Income (TTM) was 2,742. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

NVIDIA's current Cash Flow from Operations (TTM) was 3,041. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets(Jul18)
=2742/12882
=0.21285515

ROA (Last Year)=Net Income/Total Assets(Jul17)
=4302/9402
=0.45756222

NVIDIA's return on assets of this year was 0.21285515. NVIDIA's return on assets of last year was 0.45756222. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

NVIDIA's current Net Income (TTM) was 2,742. NVIDIA's current Cash Flow from Operations (TTM) was 3,041. ==> 3,041 > 2,742 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jul19)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Jul18 to Jul19
=2472/13725.4
=0.18010404

Gearing (Last Year: Jul18)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Jul17 to Jul18
=1987/10963
=0.18124601

NVIDIA's gearing of this year was 0.18010404. NVIDIA's gearing of last year was 0.18124601. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jul19)=Total Current Assets/Total Current Liabilities
=11391/1317
=8.64920273

Current Ratio (Last Year: Jul18)=Total Current Assets/Total Current Liabilities
=10831/1462
=7.40834473

NVIDIA's current ratio of this year was 8.64920273. NVIDIA's current ratio of last year was 7.40834473. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

NVIDIA's number of shares in issue this year was 616. NVIDIA's number of shares in issue last year was 626. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=5965/10185
=0.58566519

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=7413/11877
=0.62414751

NVIDIA's gross margin of this year was 0.58566519. NVIDIA's gross margin of last year was 0.62414751. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jul18)
=10185/12882
=0.7906381

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jul17)
=11877/9402
=1.26324186

NVIDIA's asset turnover of this year was 0.7906381. NVIDIA's asset turnover of last year was 1.26324186. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+1+0+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

NVIDIA has an F-score of 6 indicating the company's financial situation is typical for a stable company.

NVIDIA  (NAS:NVDA) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


NVIDIA Piotroski F-Score Related Terms

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