NVE (NVEC) AI Stock Analysis

• Market Cap: $358.10M
• Dividend Yield: 5.4%
• Average Volume (3M): 73.38K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.17
• Revenue Growth: -13.18%
• EPS Growth: -12.06%
• Country: US
• Employees: 41
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): 0.80
• Shares Outstanding: 4,837,166
• 10 Day Avg. Volume: 82,933
• 30 Day Avg. Volume: 73,381
• PEG Ratio: 7.28
• Price to Book (P/B): 5.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.79
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 3.61
• Enterprise Value/Gross Profit: 18.83
• Enterprise Value/Ebitda: 5.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $79.00 ▲(7.32%Upside)

NVE's stock score is driven by its strong financial health and positive earnings call outlook, despite technical analysis suggesting a neutral momentum and some valuation concerns. The company's strategic investments and dividend policy further support its potential for future growth.

NVE Business Overview & Revenue Model

Company Description

NVE 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 Money

NVE Corporation generates revenue primarily through the sale of its spintronics-based products, including sensors and couplers, to various industries requiring high-performance and reliable component solutions. The company's key revenue streams include product sales to industrial, healthcare, and consumer electronics markets, where its products are used in applications such as machine health monitoring, biomedical devices, and data communication systems. Additionally, NVE benefits from licensing its proprietary technology and intellectual property to other companies, which provides an additional source of income. Strategic partnerships with industry leaders also contribute to its earnings by enhancing market reach and product development capabilities.

NVE Financial Statement Overview

Summary

NVE exhibits robust financial health with high profitability and stable cash flows. The company's low leverage and strong margins provide a solid foundation, although recent revenue declines and modest return on equity suggest areas for improvement.

Income Statement

NVE has demonstrated strong profitability with a consistent gross profit margin around 84% and a net profit margin of approximately 58% in the latest year. However, the company experienced a decline in revenue growth, with a drop of 13.17% from the previous year, indicating potential challenges in maintaining its revenue base.

Balance Sheet

The company's financial stability is underscored by a low debt-to-equity ratio of 0.01, indicating minimal leverage risk. However, the equity ratio has slightly decreased to 97%, and the return on equity has slightly dropped to 24.18%, reflecting a slight decrease in financial efficiency.

Cash Flow

NVE maintains strong cash flow management, with a high operating cash flow to net income ratio of 0.95 and a free cash flow to net income ratio of 0.87. Despite a significant reduction in free cash flow growth in the latest year, the company remains highly efficient in converting income into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	25.69M	25.87M	29.80M	38.25M	26.99M	21.37M
Gross Profit	21.23M	21.64M	23.03M	30.19M	20.72M	17.24M
EBITDA	16.03M	15.99M	18.83M	25.64M	16.75M	13.29M
Net Income	14.99M	15.06M	17.12M	22.69M	14.51M	11.69M
Balance Sheet
Total Assets	64.59M	64.28M	66.78M	69.26M	67.47M	72.50M
Cash, Cash Equivalents and Short-Term Investments	20.39M	21.73M	22.20M	17.18M	31.29M	18.11M
Total Debt	949.80K	838.22K	355.15K	518.71K	602.14K	731.73K
Total Liabilities	1.62M	2.01M	1.21M	2.18M	2.90M	1.61M
Stockholders Equity	62.97M	62.27M	65.57M	67.08M	64.57M	70.89M
Cash Flow
Free Cash Flow	13.80M	13.05M	18.23M	18.16M	12.02M	13.30M
Operating Cash Flow	14.96M	14.31M	18.25M	19.09M	12.50M	13.36M
Investing Cash Flow	5.06M	2.67M	9.58M	-8.53M	7.02M	8.42M
Financing Cash Flow	-19.22M	-19.23M	-19.21M	-19.34M	-19.50M	-19.43M

NVE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVEC, the sentiment is Positive. The current price of 73.61 is above the 20-day moving average (MA) of 71.73, above the 50-day MA of 67.25, and above the 200-day MA of 71.04, indicating a bullish trend. The MACD of 1.16 indicates Positive momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 98.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVEC.

NVE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEC	74 Outperform	$358.10M	23.78	23.57%	5.40%	-13.18%	-12.06%
MRAM	65 Neutral	$140.20M	176.22	-0.31%	―	-22.48%	-102.37%
XPER	64 Neutral	$360.01M	―	-4.71%	―	-4.77%	84.82%
Sector *	63 Neutral	€10.00B	18.73	6.74%	1.79%	2.60%	-31.99%
NVTS	58 Neutral	$1.28B	―	-26.43%	―	-16.95%	-2.47%
VLN	57 Neutral	$269.58M	―	-24.31%	―	-12.13%	-39.21%
BZAI	43 Neutral	$238.96M	―	-375.37%	―	―	-10774.57%

NVE Corporate Events

NVE Corporation Declares Quarterly Cash Dividend

NVE Corporation announced that its Board of Directors has approved a quarterly cash dividend of $1.00 per share of common stock. This dividend is payable on May 30, 2025, to shareholders who are recorded as of May 19, 2025, indicating a continued commitment to returning value to its shareholders.