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NVE
(NASDAQ:NVEC)
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Rating:84Outperform
Price Target:
$138.00
▲(17.40% Upside)
Action:Reiterated
Date:07/25/26
NVEC scores highly due to exceptional profitability, strong cash generation, and a very low-debt balance sheet, supported by a clearly bullish price trend. The score is tempered by a higher P/E valuation and some execution/visibility risks noted on the earnings call (SG&A spike, receivables timing, and lack of numeric guidance).
Positive Factors
Elite Profitability
Sustained, very high gross and net margins indicate durable pricing power and a high-value product mix. Such margins support internal R&D, dividend capacity and buffer profitability through end-market cycles, reducing reliance on scale to generate strong returns over time.
Negative Factors
Revenue Volatility
Irregular top-line performance reflects cyclicality and execution sensitivity. Inconsistent revenue trends complicate capacity planning and make long-term forecasting of earnings and cash flow less reliable, increasing execution risk as the company scales new products and markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Elite Profitability
Sustained, very high gross and net margins indicate durable pricing power and a high-value product mix. Such margins support internal R&D, dividend capacity and buffer profitability through end-market cycles, reducing reliance on scale to generate strong returns over time.
Read all positive factors
NVE Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue across different business segments, highlighting which areas are driving growth and profitability, and where the company might need to adjust its strategy.
Analyzes revenue across different business segments, highlighting which areas are driving growth and profitability, and where the company might need to adjust its strategy.
Data provided by:
The Fly
The FlyNVE (NVEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$555.40M
Dividend Yield3.44%
Average Volume (3M)274.56K
Price to Earnings (P/E)31.3
Beta (1Y)1.08
Revenue Growth24.07%
EPS Growth23.86%
CountryUS
Employees42
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)3.72
Shares Outstanding4,837,166
10 Day Avg. Volume340,521
30 Day Avg. Volume274,555
Financial Highlights & Ratios
PEG Ratio32.54
Price to Book (P/B)5.44
Price to Sales (P/S)12.03
P/FCF Ratio21.90
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NVE Business Overview & Revenue Model
Company Description
NVE Corporation (NVEC) is a U.S.-based nanotechnology company that develops and commercializes spintronics-based devices and related intellectual property. Its offerings focus on magnetic sensors, magnetoresistive couplers/isolation components, an...
How the Company Makes Money
NVE makes money primarily through two sources: (1) product revenue and (2) licensing and royalties from its intellectual property. Product revenue comes from selling spintronics-enabled components—most notably magnetic sensors and magnetoresistive...
NVE Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive quarter with exceptional revenue (+81%) and net income (+79%) growth, dramatic margin expansion, successful new product launches (MRI-safe wafer-level sensors), completion of a capacity expansion, and robust cash position. Offsetting items include a sizable increase in SG&A (up 81%), a rise in accounts receivable due to quarter-end timing, a 10% drop in interest income, and the absence of forward guidance which introduces some uncertainty about sustainability. Overall, management presented confidence in market demand and product momentum but acknowledged near-term operational and macro risks.Positive Updates
Strong Revenue Growth
Total revenue increased 81% year-over-year to $11.0 million from $6.1 million, driven by an 82% increase in product sales and a 53% increase in contract R&D revenue.
Negative Updates
Rising Operating Expenses — SG&A Spike
Total expenses increased 49% year-over-year. Research & development expense rose 31% and selling, general & administrative expense rose 81%, driven primarily by increased staffing, new product development and performance-based compensation.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong Revenue Growth
Total revenue increased 81% year-over-year to $11.0 million from $6.1 million, driven by an 82% increase in product sales and a 53% increase in contract R&D revenue.
Read all positive updates
Company Guidance
Management offered no specific numeric forward guidance but was broadly optimistic, highlighting strong Q1 operating and balance-sheet metrics that underpin their outlook: total revenue jumped 81% to $11.0M (product sales +82%, contract R&D +53%), gross margin expanded to 81.3% (from 8.6% a year ago), total expenses rose 49% (R&D +31%, SG&A +81%) yet fell to 15% of revenue from 19%, interest income declined 10%, and net income increased 79% to $6.39M or $1.32 per diluted share (vs $3.8M / $0.74 prior); operating margin was 66%, pretax margin 78% and net margin 58%; inventories fell 6%; cash plus marketable securities rose $391k to $43.9M; fixed asset purchases were $57k for the quarter and are expected to be significantly lower this fiscal year. Executives said they are bullish on sustained double‑digit revenue growth over the coming years (especially in robotics/AIoT), expect the recently completed capacity expansion to support future production as new products ramp, and reiterated that earnings more than cover the dividend, while declining to provide precise forward-period targets.NVE Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.26M | 26.33M | 25.87M | 29.80M | 38.25M | 26.99M |
| Gross Profit | 24.78M | 20.73M | 21.64M | 23.03M | 30.19M | 20.72M |
| EBITDA | 21.17M | 18.28M | 18.36M | 20.78M | 27.29M | 17.92M |
| Net Income | 18.02M | 15.20M | 15.06M | 17.12M | 22.69M | 14.51M |
Balance Sheet | ||||||
| Total Assets | 62.12M | 60.87M | 64.28M | 66.78M | 69.26M | 67.47M |
| Cash, Cash Equivalents and Short-Term Investments | 21.77M | 19.84M | 21.73M | 22.20M | 17.18M | 31.29M |
| Total Debt | 905.83K | 905.54K | 921.23K | 355.15K | 518.71K | 602.14K |
| Total Liabilities | 2.34M | 2.62M | 2.01M | 1.21M | 2.18M | 2.90M |
| Stockholders Equity | 59.78M | 58.25M | 62.27M | 65.57M | 67.08M | 64.57M |
Cash Flow | ||||||
| Free Cash Flow | 15.59M | 14.47M | 13.05M | 18.23M | 18.16M | 12.02M |
| Operating Cash Flow | 16.77M | 16.66M | 14.31M | 18.25M | 19.09M | 12.50M |
| Investing Cash Flow | 2.25M | -3.63M | 2.67M | 9.58M | -8.53M | 7.02M |
| Financing Cash Flow | -19.35M | -19.35M | -19.23M | -19.21M | -19.34M | -19.50M |
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 3 New Risks
1.
We face the risk of credit losses Q1, 2024
2.
We could incur losses on our marketable securities. Q1, 2024
3.
Our business could be negatively impacted by cybersecurity events or information technology disruptions. Q1, 2024
NVE Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $555.40M | 31.26 | 30.53% | 3.40% | 24.07% | 23.86% | |
67 Neutral | $364.45M | -7.79 | -11.02% | ― | -8.30% | -139.29% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $339.05M | 1,210.83 | 0.42% | ― | 15.94% | ― | |
49 Neutral | $3.07B | 1,741.50 | -6.21% | ― | 45.81% | ― | |
48 Neutral | $280.62M | -46.73 | -17.19% | ― | 43.23% | -34.14% | |
42 Neutral | $1.24B | -0.78 | -5208.55% | ― | -6.41% | -106.57% |
* Technology Sector Average
NVEC
NVE
116.27
58.87
102.55%
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NVE Corporate Events
DividendsFinancial Disclosures
NVE Posts Strong Quarterly Growth and Declares Dividend
Positive
Jul 22, 2026
On July 22, 2026, NVE Corporation reported that revenue for the quarter ended June 30, 2026 rose 81% year over year to $11.0 million, driven by an 82% surge in product sales and a 53% gain in contract research and development revenue. Net income c...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
NVE Announces CEO Succession and Board Expansion Plans
Positive
Jun 22, 2026
On June 22, 2026, NVE Corporation announced that longtime President and CEO Daniel A. Baker, 68, will retire from those roles at the August 6, 2026 annual shareholders’ meeting, while remaining on the board as chairman subject to shareholder...
Dividends
NVE Declares Quarterly Cash Dividend for Shareholders
Positive
May 6, 2026
NVE Corporation’s board of directors has approved a quarterly cash dividend of $1.00 per share of common stock, scheduled to be paid on May 29, 2026. The dividend will be distributed to shareholders of record as of May 18, 2026, underscoring...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.