NVE (NVEC) AI Stock Analysis

• Market Cap: $314.27M
• Dividend Yield: 6.11%
• Average Volume (3M): 39.76K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.15
• Revenue Growth: -9.48%
• EPS Growth: -14.28%
• Country: US
• Employees: 41
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.68
• Shares Outstanding: 4,837,166
• 10 Day Avg. Volume: 38,231
• 30 Day Avg. Volume: 39,756
• PEG Ratio: -1.72
• Price to Book (P/B): 4.95
• Price to Sales (P/S): 11.91
• P/FCF Ratio: 23.61
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 12.07
• Enterprise Value/Gross Profit: 15.02
• Enterprise Value/Ebitda: 19.32
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $75.00 ▲(1.97% Upside)

NVE's strong financial performance and attractive dividend yield are offset by negative revenue growth and mixed earnings call results. Technical indicators suggest a neutral market sentiment.

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 generates revenue primarily through the sale of its spintronic products, which are utilized in a wide range of applications across multiple sectors, including data storage, telecommunications, and industrial automation. The company's revenue model is based on direct sales to original equipment manufacturers (OEMs) and distributors, as well as licensing agreements for its patented technologies. Key revenue streams include the sale of sensors, isolators, and other devices, while ongoing partnerships with technology firms and collaborations in research and development help bolster its market position and drive further innovation. Additionally, NVE's focus on high-performance and energy-efficient solutions positions it well in growing markets, contributing to its overall earnings.

NVE Financial Statement Overview

Summary

NVE demonstrates strong profitability with high margins and a solid financial position with low leverage. However, negative revenue growth presents a challenge.

Income Statement

NVE's income statement shows strong profitability with a high gross profit margin of 80.3% and a net profit margin of 55.8% in the TTM. However, the revenue growth rate has been negative recently, indicating a potential challenge in maintaining growth. The EBIT and EBITDA margins remain robust, reflecting efficient operations.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.016, indicating minimal leverage and financial risk. The return on equity is strong at 22.5%, showcasing effective use of equity to generate profits. The equity ratio is healthy, suggesting a stable financial structure.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 6.5% in the TTM, indicating good cash generation. The operating cash flow to net income ratio is high, reflecting strong cash conversion. However, the free cash flow to net income ratio slightly below 1 suggests room for improvement in cash efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.78M	25.87M	29.80M	38.25M	26.99M	21.37M
Gross Profit	19.91M	21.64M	23.03M	30.19M	20.72M	17.24M
EBITDA	15.48M	16.32M	18.83M	25.84M	16.75M	13.29M
Net Income	13.83M	15.06M	17.12M	22.69M	14.51M	11.69M
Balance Sheet
Total Assets	61.49M	64.28M	66.78M	69.26M	67.47M	72.50M
Cash, Cash Equivalents and Short-Term Investments	17.75M	21.73M	22.20M	17.18M	31.29M	18.11M
Total Debt	962.34K	921.23K	355.15K	518.71K	602.14K	731.73K
Total Liabilities	1.78M	2.01M	1.21M	2.18M	2.90M	1.61M
Stockholders Equity	59.71M	62.27M	65.57M	67.08M	64.57M	70.89M
Cash Flow
Free Cash Flow	13.05M	13.05M	18.23M	18.16M	12.02M	13.30M
Operating Cash Flow	14.31M	14.31M	18.25M	19.09M	12.50M	13.36M
Investing Cash Flow	6.94M	2.67M	9.58M	-8.53M	7.02M	8.42M
Financing Cash Flow	-19.23M	-19.23M	-19.21M	-19.34M	-19.50M	-19.43M

NVE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 73.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 73.55 is above the 20-day moving average (MA) of 69.57, above the 50-day MA of 67.26, and above the 200-day MA of 65.76, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 42.20 is Neutral, neither overbought nor oversold. The STOCH value of 13.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVEC.

NVE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEC	71 Outperform	$314.27M	22.74	22.20%	6.11%	-9.48%	-14.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AXTI	58 Neutral	$436.34M	―	-12.00%	―	-4.54%	-118.93%
MRAM	57 Neutral	$205.82M	―	-0.91%	―	-0.41%	-134.49%
XPER	54 Neutral	$294.68M	-74.77	1.74%	―	-10.74%	―
ALMU	53 Neutral	$258.79M	―	-29.96%	―	407.86%	36.73%
WOLF	41 Neutral	$189.34M	-1.66	-739.86%	―	―	―

NVE Corporate Events

NVE Corporation’s Earnings Call: A Mixed Outlook

The recent earnings call of NVE Corporation painted a mixed picture for investors. While there were positive developments such as sequential revenue growth, increased nondefense sales, and the launch of new products, these were tempered by declines in year-over-year revenue, gross margins, and defense sales. Overall, the sentiment conveyed was neutral, reflecting both optimism and challenges.

NVE Corporation Reports Decline in Quarterly Revenue

NVE Corporation is a Minnesota-based company specializing in spintronics, a nanotechnology that uses electron spin to acquire, store, and transmit information, primarily serving the electronics industry with high-performance sensors and couplers. In its latest earnings report for the quarter ended September 30, 2025, NVE Corporation reported a decline in total revenue by 6% compared to the same quarter in the previous year, primarily due to a significant drop in contract research and development revenue. Despite a slight increase in product sales, the company’s net income also decreased by 18% year-over-year, reflecting lower gross margins and increased tax rates. Key financial metrics showed a gross profit margin of 78% and a net income of $3.31 million for the quarter. The company experienced a decrease in operating expenses by 7%, with research and development expenses rising slightly and selling, general, and administrative expenses falling significantly. Looking ahead, NVE Corporation remains focused on managing its financial resources effectively, with expectations of continued investment in production expansion and maintaining dividend payments, while navigating the challenges posed by fluctuating defense industry sales and evolving tax legislation.

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 November 28, 2025, to shareholders who are recorded as of November 3, 2025.

The most recent analyst rating on (NVEC) stock is a Buy with a $76.00 price target. To see the full list of analyst forecasts on NVE stock, see the NVEC Stock Forecast page.

NVE Concludes Successful 2025 Annual Shareholders Meeting

NVE held its 2025 Annual Meeting of Shareholders on August 7, 2025, to elect five directors, approve executive compensation, and ratify Boulay PLLP as the independent accounting firm for the fiscal year ending March 31, 2026. All director nominees were elected, executive compensation was approved, and the accounting firm selection was ratified, with no opposition to the proposals.