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NVE Corp (NVEC)
NASDAQ:NVEC
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NVE
(NASDAQ:NVEC)
67Neutral
NVE (NVEC) vs. S&P 500 (SPY)
Market Cap
$307.40M
Dividend Yield6.29%
Average Volume (3M)20.85K
Price to Earnings (P/E)20.5
Beta (1Y)1.18
Revenue Growth-27.68%
EPS Growth-30.47%
CountryUS
Employees46
SectorTechnology
Sector Strength42
IndustrySemiconductors
Share Statistics
EPS (TTM)3.10
Shares Outstanding4,837,166
10 Day Avg. Volume20,481
30 Day Avg. Volume20,847
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)12.43
Price to Cash Flow (P/CF)20.80
P/FCF Ratio21.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
NVE Business Overview & Revenue Model
Company DescriptionNVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store, and transmit information in the United States and internationally. The company manufactures spintronic products, including sensors and couplers for use in acquiring and transmitting data. Its products comprise standard sensors to detect the presence of a magnetic or metallic material to determine position or speed primarily for the factory automation market; and custom and medical sensors for medical devices to replace electromechanical magnetic switches. The company also offers spintronic couplers for industrial Internet of Things market. In addition, it undertakes contracts for research and development, and licensing of spintronic magnetoresistive random access memory technology. NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota.
How the Company Makes MoneyNVE Corporation generates revenue through the sale of its spintronic-based products, including sensors and couplers, to various industries. The company's revenue model primarily involves direct sales to manufacturers and distributors who integrate these components into their products and systems. NVE's key revenue streams include sales from its standard product lines as well as custom-designed solutions tailored to specific customer needs. Additionally, the company benefits from licensing its spintronic technology, which provides an additional source of income. Strategic partnerships and collaborations with industry leaders also play a significant role in expanding NVE's market reach and enhancing its product offerings, contributing to the company's financial performance.
NVE Financial Statement Overview
Summary
NVE shows strong profitability with high margins and low leverage, but exhibits variability in revenue and free cash flow growth.Income Statement
NVE shows strong profitability with a consistently high gross profit margin and net profit margin. However, the revenue growth has been volatile, with periods of contraction. The EBIT and EBITDA margins are robust, indicating efficient operations.78
Positive
Balance Sheet
The balance sheet is solid, with a very low debt-to-equity ratio indicating low leverage. The return on equity remains strong, reflecting efficient use of equity capital. The equity ratio is high, suggesting a stable financial position with a strong asset base.82
Very Positive
Cash Flow
The cash flow statement reveals positive free cash flow and strong operating cash flow compared to net income, indicating good cash generation. However, free cash flow growth is inconsistent, which may pose risks to financial flexibility.74
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 25.69M | 29.80M | 38.25M | 26.99M | 21.37M | 25.41M | Gross Profit |
| 21.23M | 23.03M | 30.19M | 20.72M | 17.24M | 20.52M | EBIT |
| 15.81M | 18.52M | 25.64M | 16.33M | 12.74M | 15.51M | EBITDA |
| 16.03M | 18.83M | 25.64M | 16.75M | 13.29M | 16.06M | Net Income Common Stockholders |
| 14.99M | 17.12M | 22.69M | 14.51M | 11.69M | 14.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.96M | 22.20M | 17.18M | 31.29M | 18.11M | 27.15M | Total Assets |
| 57.46M | 66.78M | 69.26M | 67.47M | 72.50M | 79.50M | Total Debt |
| 0.00 | 355.15K | 518.71K | 602.14K | 731.73K | 833.73K | Net Debt |
| -1.39M | -9.93M | -1.15M | -9.85M | -9.70M | -7.23M | Total Liabilities |
| 1.51M | 1.21M | 2.18M | 2.90M | 1.61M | 1.50M | Stockholders Equity |
| 55.95M | 65.57M | 67.08M | 64.57M | 70.89M | 78.00M |
| Cash Flow | Free Cash Flow | ||||
| 13.80M | 18.23M | 18.16M | 12.02M | 13.30M | 15.84M | Operating Cash Flow |
| 14.96M | 18.25M | 19.09M | 12.50M | 13.36M | 15.90M | Investing Cash Flow |
| 5.06M | 9.58M | -8.53M | 7.02M | 8.42M | 5.25M | Financing Cash Flow |
| -19.22M | -19.21M | -19.34M | -19.50M | -19.43M | -19.96M |
NVE Technical Analysis
Negative
63.63
Price Trends
68.96
Negative
73.69
Negative
74.84
Negative
Market Momentum
-1.32
Negative
35.16
Neutral
17.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVEC, the sentiment is Negative. The current price of 63.63 is below the 20-day moving average (MA) of 65.70, below the 50-day MA of 68.96, and below the 200-day MA of 74.84, indicating a bearish trend. The MACD of -1.32 indicates Negative momentum. The RSI at 35.16 is Neutral, neither overbought nor oversold. The STOCH value of 17.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVEC.
NVE Risk Analysis
NVE disclosed 13 risk factors in its most recent earnings report. NVE reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NVE Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $90.69B | 28.70 | 96.81% | 0.92% | 12.19% | 20.80% | |
70 Outperform | $6.06B | 30.89 | 11.01% | ― | 21.01% | 65.27% | |
67 Neutral | $307.40M | 20.52 | 23.13% | 6.29% | -27.68% | -30.47% | |
65 Neutral | $4.47B | 12.68 | 8.73% | 1.78% | -2.85% | -1.90% | |
59 Neutral | $112.92M | 154.57 | 1.34% | ― | -20.96% | -92.24% | |
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% | |
54 Neutral | $2.48B | 15.07 | 13.01% | ― | -1.85% | ― |
* Technology Sector Average
Performance Comparison
NVEC
NVE
63.63
-18.00
-22.05%
AMKR
Amkor
18.63
-11.22
-37.59%
KLAC
KLA
686.19
19.39
2.91%
ONTO
Onto Innovation
109.83
-74.80
-40.51%
SYNA
Synaptics
63.67
-28.89
-31.21%
MRAM
Everspin Technologies
5.07
-2.70
-34.75%
NVE Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -21.29% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong gross margins, significant investment in R&D, and proactive expansion plans, which reflect positively on future potential. However, declines in revenue and net income, along with increased expenses and inventory challenges, present significant concerns. While the company is optimistic about future industry conditions, current negative financial metrics weigh heavily.Highlights
Increased Gross Margin
Gross margin for the quarter was 84%, up from 80% in the prior year quarter, due to a more profitable product mix and a larger portion of direct sales.
Investment in R&D
R&D spending increased by 61% to 17% of revenue, focusing on new product development activities. New wafer-level chip scale products were introduced, touted as the world's smallest devices of their type.
CapEx and Facility Expansion
Capital expenditure plans of $4 million to $5 million over the next two fiscal years, with $1.16 million already spent. An agreement to extend the building lease for 62 months includes a $100,000 improvement allowance.
Positive Market Outlook
Direct sales held up well with high margins. Industry conditions are seen as improving, with optimism about future prospects and strong business fundamentals.
Lowlights
Revenue and Income Decline
Total revenue for the quarter decreased by 25% due to a 22% decrease in product sales and a 74% decrease in contract R&D revenue. Net income decreased by 27%.
Increased Expenses
Total expenses increased by 40% for the quarter, with SG&A increasing by 12% primarily due to increased sales and marketing activities and additional sales staff.
Interest Income Decline
Interest income for the third quarter decreased by 4% due to a decrease in marketable securities.
Inventory Challenges
Continued inventory lots, particularly in distributor channels, driven by weak chip demand and a slow recovery in industry sectors.
Company Guidance
During the Q3 2025 earnings call for NVE Corporation, the guidance provided highlighted several key metrics. Total revenue for the quarter ended December 31, 2024, decreased by 25% year-over-year, with a 22% drop in product sales and a significant 74% decline in contract R&D revenue. Despite these challenges, the gross margin increased to 84% from 80% in the previous year, primarily due to a more profitable product mix and a shift towards direct sales. Total expenses rose by 40%, driven by a 61% increase in R&D and a 12% rise in SG&A expenses. The company also reported a decrease in net income by 27% compared to the prior year. For the first nine months of fiscal 2025, total revenue fell by 18%, with net income amounting to $11.2 million or $2.31 per diluted share. The fiscal year-to-date gross margin was recorded at 85%, with an operating margin of 63% and a net margin of 60%. In addition, the company has embarked on capital investments of $4 million to $5 million over the next two fiscal years, with $1.16 million already spent, indicating an ongoing commitment to expanding capacity and capabilities.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.