Prompt Details
Model
Chat - GPT-3.5 (gpt-3.5-turbo)
Token size
847 ($0.00170 / call)
Example input
{README}
(Step 1) Please copy an paste all the data in the financial statements including annual and quarterly income statements, balance sheet, and cash flow from .tsv file you've made by the described procedure in Extra prompt instructions. Then, you will get the 1st analysis report for the financial statements of the company.
(Step 2) Please copy an paste all the data in the valuation and operation, from .tsv file you've made by the described procedure in Extra prompt instructions. Then, you will get the 2nd analysis report for the valuation and operating performance of the company.
(Step 3) Please copy and paste "INPUT PROMPT", then you will finally get the investment strategy for the company!
[1ST INPUT]
{Company name} Nvidia (NVDA)
Financial Statements
<Income Statement>
(Annual)
TTM 1/30/2023 1/30/2022 1/30/2021 1/30/2020
Total Revenue 26,974,000 26,974,000 26,914,000 16,675,000 10,918,000
Cost of Revenue 11,618,000 11,618,000 9,439,000 6,279,000 4,150,000
Gross Profit 15,356,000 15,356,000 17,475,000 10,396,000 6,768,000
Operating Expense 9,779,000 9,779,000 7,434,000 5,864,000 3,922,000
Operating Income 5,577,000 5,577,000 10,041,000 4,532,000 2,846,000
Net Income 4,368,000 4,368,000 9,752,000 4,332,000 2,796,000
(Quarterly)
TTM 4/29/2023 1/30/2023 10/30/2022 7/30/2022
Total Revenue 26,974,000 7,192,000 6,051,000 5,931,000 6,704,000
Cost of Revenue 11,618,000 2,544,000 2,218,000 2,754,000 3,789,000
Gross Profit 15,356,000 4,648,000 3,833,000 3,177,000 2,915,000
Operating Expense 9,779,000 2,508,000 2,576,000 2,576,000 2,416,000
Operating Income 5,577,000 2,140,000 1,257,000 601,000 499,000
Net Income 4,368,000 2,043,000 1,414,000 680,000 656,000
<Balance Sheet>
(Annual)
1/30/2023 1/30/2022 1/30/2021 1/30/2020
Total Assets 41,182,000 44,187,000 28,791,000 17,315,000
Current Assets 23,073,000 28,829,000 16,055,000 13,690,000
Total non-current assets 18,109,000 15,358,000 12,736,000 3,625,000
Total Liabilities Net Minority Interest 19,081,000 17,575,000 11,898,000 5,111,000
Current Liabilities 6,563,000 4,335,000 3,925,000 1,784,000
Total Non Current Liabilities Net Minority Interest 12,518,000 13,240,000 7,973,000 3,327,000
Total Equity Gross Minority Interest 22,101,000 26,612,000 16,893,000 12,204,000
Stockholders' Equity 22,101,000 26,612,000 16,893,000 12,204,000
Total Capitalization 31,804,000 37,558,000 22,857,000 14,195,000
Common Stock Equity 22,101,000 26,612,000 16,893,000 12,204,000
Capital Lease Obligations 902,000 741,000 634,000 561,000
Net Tangible Assets 16,053,000 19,924,000 9,963,000 11,537,000
Working Capital 16,510,000 24,494,000 12,130,000 11,906,000
Invested Capital 10,953,000 10,946,000 6,963,000 1,991,000
Tangible Book Value 16,053,000 19,924,000 9,963,000 11,537,000
Total Debt 11,855,000 11,687,000 7,597,000 2,552,000
Net Debt 10,953,000 10,946,000 6,963,000 1,991,000
Share Issued 2,466,137 2,506,000 3,860,000 3,938,022
Ordinary Shares Number 2,466,137 2,506,000 2,480,000 2,567,965
Treasury Shares Number - - 1,380,000 1,370,058
(Quarterly)
4/29/2023 1/30/2023 10/30/2022 7/30/2022
Total Assets 44,460,000 41,182,000 40,488,000 43,476,000
Current Assets 24,883,000 23,073,000 23,223,000 27,418,000
Total non-current assets 19,577,000 18,109,000 17,265,000 16,058,000
Total Liabilities Net Minority Interest 19,940,000 19,081,000 19,139,000 19,625,000
Current Liabilities 7,260,000 6,563,000 6,855,000 7,573,000
Total Non Current Liabilities Net Minority Interest 12,680,000 12,518,000 12,284,000 12,052,000
Total Equity Gross Minority Interest 24,520,000 22,101,000 21,349,000 23,851,000
Stockholders' Equity 24,520,000 22,101,000 21,349,000 23,851,000
Total Capitalization 34,224,000 31,804,000 31,050,000 33,551,000
Common Stock Equity 24,520,000 22,101,000 21,349,000 23,851,000
Capital Lease Obligations 939,000 902,000 798,000 743,000
Net Tangible Assets 18,549,000 16,053,000 15,127,000 17,443,000
Working Capital 17,623,000 16,510,000 16,368,000 19,845,000
Invested Capital 10,954,000 10,953,000 10,950,000 10,949,000
Tangible Book Value 18,549,000 16,053,000 15,127,000 17,443,000
Total Debt 11,893,000 11,855,000 11,748,000 11,692,000
Net Debt 10,954,000 10,953,000 10,950,000 10,949,000
Share Issued 2,473,000 2,466,137 2,468,000 2,489,000
Ordinary Shares Number 2,473,000 2,466,137 2,468,000 2,489,000
<Cash flow>
(Annual)
TTM 1/30/2023 1/30/2022 1/30/2021 1/30/2020
Operating Cash Flow 5,641,000 5,641,000 9,108,000 5,822,000 4,761,000
Investing Cash Flow 7,375,000 7,375,000 -9,830,000 -19,675,000 6,145,000
Financing Cash Flow -11,617,000 -11,617,000 1,865,000 3,804,000 -792,000
End Cash Position 3,389,000 3,389,000 1,990,000 847,000 10,896,000
Income Tax Paid Supplemental Data 1,404,000 1,404,000 396,000 249,000 176,000
Interest Paid Supplemental Data 254,000 254,000 246,000 138,000 54,000
Capital Expenditure -1,833,000 -1,833,000 -976,000 -1,128,000 -489,000
Issuance of Debt 0 0 4,977,000 4,968,000 -
Repayment of Debt 0 0 -1,000,000 0 0
Repurchase of Capital Stock -10,039,000 -10,039,000 - 0 0
Free Cash Flow 3,808,000 3,808,000 8,132,000 4,694,000 4,272,000
(Quarterly) TTM 4/29/2023 1/30/2023 10/30/2022 7/30/2022
Operating Cash Flow 5,641,000 2,911,000 2,249,000 392,000 1,270,000
Investing Cash Flow 7,375,000 -841,000 -4,000 3,148,000 1,618,000
Financing Cash Flow -11,617,000 -380,000 -1,656,000 -3,753,000 -3,762,000
End Cash Position 3,389,000 5,079,000 3,389,000 2,800,000 3,013,000
Income Tax Paid Supplemental Data 1,404,000 - 32,000 264,000 -
Interest Paid Supplemental Data 254,000 - - - -
Capital Expenditure -1,833,000 -248,000 -509,000 -530,000 -433,000
Issuance of Debt 0 - 0 0 0
Repayment of Debt 0 - 0 0 -
Repurchase of Capital Stock -10,039,000 0 -1,212,000 -3,485,000 -3,345,000
Free Cash Flow 3,808,000 2,663,000 1,740,000 -138,000 837,000
[2ND INPUT]
{Company name} Nvidia (NVDA)
Valuatio=
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CURRENT(2023) 5-Yr avg.
Price/Sales 2.37 2.49 3.8 10.85 13.94 6.74 14.52 22.08 30.69 12.91 41.03 18.91
Price/Earnings 20.81 19.66 30.8 54.74 48.01 17.85 60.18 85.33 90.63 62.19 221.64 73.14
Price/Cash Flow 10.96 13.2 16.7 45.54 43.68 19.91 34.69 62.5 91.5 57.4 155.67 59.14
Price/Book 2.11 2.59 3.97 10.81 18.46 8.59 12.84 21.08 30.9 16.84 42.87 19.75
Price/Forward Earnings 20.33 17.57 28.33 35.21 38.31 18.69 32.79 46.3 57.14 33.9 55.25 41.24
PEG Ratio 2.35 1.43 3.13 2.41 2.64 1.73 5.1 2.9 3.13 3.47 2.34 3.35
Price/Fwd Earnings 20.33 17.57 28.33 35.21 38.31 18.69 32.79 46.3 57.14 33.9 55.25 41.24
Operating performance
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CURRENT(2023) 5-Yr avg.
ROA % 6.44 8.73 8.43 19.36 28.91 33.76 18.27 18.79 26.73 10.23 10.69 21.82
ROE % 9.48 14.21 13.82 32.57 46.05 49.26 25.95 29.78 44.83 17.93 18.86 34.91
ROIC % 8.13 11.09 9.34 22.94 33.68 39.3 20.39 22.59 32.22 11.82 12.38 25.51
Financial Leverage 1.63 1.63 1.65 1.71 1.5 1.42 1.42 1.7 1.66 1.86 — —
Gross Margin % 54.91 55.53 56.11 58.8 59.93 61.21 61.99 62.34 64.93 56.93 56.31 61.47
Operating Margin % 12.01 16.21 17.53 28.03 33.05 32.47 26.07 27.18 37.31 20.68 17.37 29.1
Net Margin % 10.65 13.47 12.26 24.11 31.37 35.34 25.61 25.98 36.23 16.19 18.52 28.31
Days Sales Outstanding 38.91 35.08 35.65 35.15 39.28 41.89 51.5 44.72 48 57.35 67.12 51.33
Days Inventory 79.12 76.32 74.77 77.69 74.56 95.21 112.31 81.53 85.67 121.96 125.5 95.46
Days Payables 66.71 54.14 48.9 50.06 50.69 44.45 52.68 54.87 57.69 46.75 50.69 52.85
Receivables Turnover 9.38 10.4 10.24 10.38 9.29 8.71 7.09 8.16 7.6 6.36 5.44 7.23
Inventory Turnover 4.61 4.78 4.88 4.7 4.9 3.83 3.25 4.48 4.26 2.99 2.91 3.9
Fixed Asset Turnover 7.13 8.21 9.79 14 12.8 9.76 5.91 6.48 8.33 6.38 6.01 7.65
Total Asset Turnover 0.6 0.65 0.69 0.8 0.92 0.96 0.71 0.72 0.74 0.63 0.58 0.75
Free Cash Flow/Net Income 1.32 1.24 1.77 0.9 0.95 0.76 1.53 1.08 0.83 0.87 1.06 1.01
[3RD INPUT]
COPY & PASTE an "INPUT PROMPT"
Example output
[1ST RESPONSE]
Subject: Financial Statement Analysis for Nvidia (NVDA)
Dear {your name},
I hope this email finds you well. I wanted to provide you with a brief analysis of Nvidia (NVDA) based on the financial statements you've shared. This analysis will help us better understand the company's financial performance, position, and cash flows.
Income Statement Analysis:
- The company has been consistently growing its total revenue over the past several years, with the most recent trailing twelve months (TTM) revenue reaching $26.97 billion.
- The gross profit margin has been stable, indicating efficient cost management.
- Operating income and net income have shown positive growth trends over the years, highlighting the company's profitability.
Balance Sheet Analysis:
- The company's total assets have been increasing, reaching $41.18 billion for the most recent annual data.
- Both current and non-current assets have increased, indicating the company's investment in its operations and expansion.
- Total liabilities, both current and non-current, have also increased, reflecting the company's funding requirements for its growth initiatives.
- Total equity has shown a consistent upward trend, suggesting strong financial stability.
Cash Flow Analysis:
- The operating cash flow has remained positive and consistent, indicating the company's ability to generate cash from its core operations.
- The investing cash flow has shown variability due to investments in various initiatives, while the financing cash flow includes debt issuance and capital stock repurchases.
- The company's free cash flow has generally been positive, signifying the availability of funds for growth opportunities and shareholder returns.
Overall, based on this preliminary analysis, Nvidia appears to be in a strong financial position with steady revenue growth, healthy profitability, and positive cash flows. In our next steps, we will delve deeper into the analysis and valuation of the company to provide you with a comprehensive investment strategy.
Please let me know if you have any questions or if there's anything specific you'd like us to focus on in the upcoming analysis.
Best regards,
FiGPT
Chief Investment Officer
Investment Strategy Development Team
-------------------------------------------------------------------------------------------------------------------
[2ND RESPONSE]
Subject: Valuation and Operating Performance Analysis for Nvidia (NVDA)
Dear {your name},
I trust you're doing well. I'm pleased to share with you a concise analysis of Nvidia's valuation and operating performance based on the provided data. This analysis will provide insight into how the company has been valued in relation to its financial performance.
Valuation Analysis:
- Nvidia's valuation metrics have experienced fluctuation over the years, with some metrics showing a sharp increase recently.
- The Price/Sales ratio, which indicates the market's willingness to pay for each dollar of sales, is currently at 41.03, significantly higher than the 5-year average of 18.91.
- The Price/Earnings and Price/Cash Flow ratios also exhibit elevated values compared to historical averages.
- The Price/Book ratio has also increased, indicating a premium valuation compared to the company's book value.
- The Price/Forward Earnings ratio suggests that investors are pricing in expectations for future earnings growth.
- The PEG Ratio, which considers the Price/Earnings ratio in relation to earnings growth, shows a moderate level of overvaluation.
Operating Performance Analysis:
- Nvidia's return on assets (ROA) has shown a strong upward trend over the past years, reaching 10.69% in the current year.
- Return on equity (ROE) and return on invested capital (ROIC) have also displayed consistent growth.
- The company's financial leverage has increased, which can be indicative of an expansion in borrowing to support growth.
- Gross margin and operating margin have remained relatively stable, with a recent decline in operating margin potentially due to increased operating expenses.
- The net margin has remained healthy, showing the company's ability to generate profits.
- Days Sales Outstanding (DSO) have seen a significant increase, possibly indicating longer sales collection cycles.
- Days Inventory and Days Payables have both experienced fluctuations.
- Receivables Turnover and Inventory Turnover have trended downward, while Fixed Asset Turnover and Total Asset Turnover have remained relatively stable.
- The Free Cash Flow/Net Income ratio, which indicates how much free cash flow is generated per unit of net income, has shown consistent behavior.
Please let us know if there are specific areas you'd like us to delve into further or if you have any questions about this analysis. In our next communication, we will proceed to synthesize these findings and work towards creating a practical investment strategy tailored to your goals and risk tolerance.
Best regards,
FiGPT
Chief Investment Officer
Investment Strategy Development Team
-------------------------------------------------------------------------------------------------------------------
[3RD RESPONSE]
Step 1: Team Members' Opinions on Investing in Nvidia
Email from WB:
Subject: Opinion on Investing in Nvidia
Dear FiGPT,
I've analyzed Nvidia's financial statements, valuation, and operating performance. While the company has shown impressive growth and strong profitability, I'd like to express some concerns. The current valuation metrics are quite elevated compared to historical averages, particularly the Price/Earnings and Price/Cash Flow ratios. These levels may not fully align with the value investing philosophy I've learned from Warren Buffett, which emphasizes purchasing stocks at a discount to their intrinsic value. Considering these factors, I have reservations about investing in Nvidia at its current valuation.
Best regards,
WB
Email from PL:
Subject: Thoughts on Nvidia Investment
Dear FiGPT,
Having studied Nvidia's financials and performance, I find the company's growth trajectory and operating margins intriguing. Peter Lynch's approach encourages investing in companies with strong growth potential, and Nvidia seems to fit that criteria. However, I'm slightly concerned about the recent decline in operating margin and the current high Price/Sales ratio. While the company's future prospects look promising, it's essential to consider the risks associated with the premium valuation. Overall, I'm leaning towards a cautious yet optimistic stance on investing in Nvidia.
Best regards,
PL
Email from PF:
Subject: Analysis and Perspective on Nvidia Investment
Dear FiGPT,
Analyzing Nvidia's financial statements, I see potential in the company's consistent revenue growth and healthy return on assets. Philip Fisher's principles of investing in well-managed companies align with these strengths. However, the elevated Price/Sales and Price/Earnings ratios concern me. While Nvidia's growth prospects are promising, the market might be overly optimistic in its valuation. To mitigate this, I'd recommend thorough due diligence on the company's competitive advantages and long-term sustainability before proceeding with an investment.
Best regards,
PF
Step 2: FiGPT's Evaluation and Decision
Based on the opinions of WB, PL, and PF, I've thoroughly considered their perspectives. While there are differing viewpoints, it's clear that Nvidia's growth potential is recognized, but concerns exist regarding its premium valuation. After careful consideration, I believe that further analysis is needed to ensure that the investment aligns with our client's risk tolerance and investment philosophy. Therefore, I recommend proceeding with the next steps to create a comprehensive investment strategy that addresses both the potential opportunities and risks.
Step 3: Team Members' Initial Investment Strategies
Email from WB:
Subject: Initial Investment Strategy for Nvidia
Dear FiGPT,
In line with Warren Buffett's philosophy, my initial strategy for Nvidia would focus on patient value investing. Given the current premium valuation, I'd recommend waiting for a more attractive entry point before considering an investment. Monitoring the company's financial performance and waiting for market fluctuations could present an opportunity to purchase Nvidia shares at a more reasonable valuation.
Best regards,
WB
Email from PL:
Subject: Preliminary Investment Strategy for Nvidia
Dear FiGPT,
Based on Peter Lynch's principles, my initial strategy for Nvidia would involve taking a balanced approach. While the company's growth prospects are exciting, I'd suggest considering a partial investment to benefit from potential upside while managing risks associated with the current valuation. This approach allows for participation in Nvidia's growth story while being mindful of valuation concerns.
Best regards,
PL
Email from PF:
Subject: Initial Investment Approach for Nvidia
Dear FiGPT,
In line with Philip Fisher's philosophy, my preliminary strategy for Nvidia would emphasize in-depth research into the company's competitive advantages and future growth potential. While the current valuation is high, identifying the company's sustainable strengths could justify the premium. This strategy involves extensive due diligence to ensure a well-informed investment decision.
Best regards,
PF
Step 4: FiGPT's SWOT Evaluation of Initial Strategies (* it's markdown table)
Team Member Strengths Weaknesses Opportunities Threats
WB Patient value investing approach aligned with Buffett's philosophy. May miss out on immediate growth if the stock continues to rise. Potential to buy at a more attractive valuation during market fluctuations. Missed opportunities if the stock continues to appreciate without significant pullbacks.
PL Balanced strategy captures growth while managing valuation risk. Partial investment might limit potential gains from a bullish trend. Opportunity to benefit from Nvidia's growth trajectory. Possible missed gains if the stock appreciates rapidly.
PF Emphasis on thorough research and understanding of competitive advantages. Extensive research could delay investment decision-making. Opportunity to discover hidden strengths that justify premium valuation. Possibility of overemphasizing research and missing optimal entry points.
Step 5: Team Members' Revised Investment Strategies
Email from WB:
Subject: Revised Investment Strategy for Nvidia
Dear FiGPT,
After reviewing my initial strategy, I've considered the potential opportunity costs of waiting for a lower valuation. While I value a value investing approach, I also recognize Nvidia's growth potential. Therefore, I would suggest a balanced approach, considering partial investment while maintaining a watchful eye on valuation metrics.
Best regards,
WB
Email from PL:
Subject: Refined Investment Approach for Nvidia
Dear FiGPT,
I've reevaluated my initial strategy and understand the value of capturing potential growth. However, I'd still recommend a partial investment approach to manage risk. This way, our client can benefit from Nvidia's prospects while staying mindful of valuation concerns.
Best regards,
PL
Email from PF:
Subject: Updated Perspective on Nvidia Investment
Dear FiGPT,
Upon further reflection, I stand by my initial strategy of thorough research to identify sustainable competitive advantages. However, I'd also consider gradually building a position in Nvidia, focusing on accumulating shares during market pullbacks to address the valuation concern.
Best regards,
PF
Step 6: Final Investment Strategy
Based on the revised strategies provided by each team member, I've synthesized a comprehensive investment strategy for Nvidia:
Emphasize a balanced approach that considers both growth potential and valuation concerns.
Gradually build a position in Nvidia, taking advantage of market fluctuations to enter at more attractive valuations.
Conduct thorough research to identify and understand Nvidia's competitive advantages and long-term sustainability.
Step 7: Specific Action Items
Given the finalized investment strategy, here are specific and practical action items that our client can implement:
Monitor Valuation Metrics: Regularly track key valuation ratios to identify entry points that align with the investment strategy.
Set Buy Thresholds: Determine specific price levels at which to initiate share purchases during market pullbacks.
Research Competitive Advantages: Conduct in-depth research to identify Nvidia's key strengths and sustainable growth drivers.
Stay Informed: Keep up-to-date with Nvidia's performance, industry trends, and competitive landscape.
Diversification: Consider diversifying the portfolio with other investments to mitigate risk.
Step 8: Investment Strategy Report
I will now compile all the information, including the final investment strategy, specific action items, and risk management considerations, into a comprehensive investment strategy report. This report will provide you with a clear and actionable plan that aligns with your goals and risk tolerance. Once the report is ready, I'll share it with you for your review.
Best regards,
FiGPT
Chief Investment Officer
Investment Strategy Development Team
Step 8 (Continued): Investment Strategy Report
Dear {your name},
I'm pleased to present to you the comprehensive Investment Strategy Report for Nvidia (NVDA), based on our thorough analysis and the expertise of our investment strategy development team. This report outlines a clear and actionable plan to guide your investment decisions while aligning with your investment goals and risk tolerance.
1. Investment Philosophy and Approach:
Our investment philosophy combines elements from the approaches of Warren Buffett, Peter Lynch, and Philip Fisher. We aim to strike a balance between growth potential and valuation concerns, emphasizing thorough research and patient value-oriented investing.
2. Investment Strategy:
We recommend a gradual and disciplined approach to building a position in Nvidia. This involves monitoring key valuation metrics and initiating purchases during market pullbacks to capitalize on more attractive entry points. Thorough research will guide us in identifying Nvidia's sustainable competitive advantages and long-term growth drivers.
3. Specific Action Items:
Valuation Monitoring: Regularly review key valuation ratios such as Price/Earnings, Price/Sales, and Price/Book to identify optimal entry points.
Buy Thresholds: Set predefined price levels for share purchases, allowing you to take advantage of market fluctuations.
Research: Conduct thorough research to identify Nvidia's competitive strengths, technological innovations, and market positioning.
Stay Informed: Stay updated on Nvidia's financial performance, industry trends, and news to make informed decisions.
Diversification: Consider diversifying your portfolio to manage risk effectively.
4. Risk Management:
While Nvidia offers growth potential, it's essential to remain cautious of the premium valuation. Our strategy incorporates risk management by gradually accumulating shares during market pullbacks and focusing on companies with strong competitive advantages.
Please keep in mind that this report provides a strategic framework, and it's crucial to continually evaluate the investment landscape and adjust your approach as needed.
If you have any questions or would like further clarification on any aspect of the investment strategy, please don't hesitate to reach out. We are here to provide ongoing support and guidance as you implement this strategy.
Best regards,
FiGPT
Chief Investment Officer
Investment Strategy Development Team
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GPT-3.5-TURBO
This prompt builds a balanced investment strategy for the company you're considering investing in by combining the philosophies of gurus such as Warren Buffet, Peter Lynch, Philip Fisher. You will be able to see the process of how your own personal team develops investment strategies to support your investment. Detailed tips are also provided on how to prepare proper input financial data for the best response of GPT. *The output is not a financial advice!*
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