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NVE Corporation (NVEC)
:NVEC
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NVE
(NASDAQ:NVEC)
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Rating:68Neutral
Price Target:
$70.00
▲(11.70% Upside)
NVE's overall stock score reflects strong financial health and profitability, tempered by negative revenue growth and mixed technical indicators. The earnings call provided a balanced view with both positive developments and challenges, leading to a neutral sentiment.
Positive Factors
Strong Profitability Metrics
High profitability metrics indicate efficient operations and strong financial health, supporting long-term business sustainability and shareholder value.
New Product Launches
The launch of new products in high-growth markets like medical devices and EVs positions NVE for future revenue growth and market expansion.
Cash Flow Generation
Strong cash flow from operations indicates effective cash management and provides financial flexibility for future investments and growth initiatives.
Negative Factors
Year-over-Year Revenue Decline
A decline in revenue, particularly in contract R&D, suggests challenges in maintaining growth, potentially affecting long-term revenue stability.
Gross Margin Decline
A decline in gross margin due to a less profitable product mix may pressure future profitability, impacting overall financial performance.
Decrease in Defense Sales
Significant volatility in defense sales highlights the risk of reliance on cyclical sectors, potentially affecting revenue consistency.
NVE (NVEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$350.60M
Dividend Yield5.66%
Average Volume (3M)46.16K
Price to Earnings (P/E)25.4
Beta (1Y)1.18
Revenue Growth-9.48%
EPS Growth-14.28%
CountryUS
Employees41
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.68
Shares Outstanding4,837,166
10 Day Avg. Volume50,548
30 Day Avg. Volume46,158
Financial Highlights & Ratios
PEG Ratio-1.72
Price to Book (P/B)4.95
Price to Sales (P/S)11.91
P/FCF Ratio23.61
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue12.07
Enterprise Value/Gross Profit15.02
Enterprise Value/Ebitda19.32
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 DescriptionNVE Corporation (NVEC) is a leading provider of high-performance sensor and data acquisition technologies, primarily focused on the development and production of spintronic devices. These devices utilize the unique properties of spintronics to enable faster and more efficient data processing. NVE operates primarily in the electronics sector, offering products that cater to various applications, including industrial automation, healthcare, and telecommunications.
How the Company Makes MoneyNVE generates revenue primarily through the sale of its spintronic products, which include sensors, isolators, and other related components. The company benefits from a diverse revenue model, which includes direct sales to original equipment manufacturers (OEMs), as well as partnerships with key players in various industries that utilize their technology in applications ranging from automotive systems to medical devices. NVE's focus on research and development allows it to maintain a competitive edge in the market, leading to ongoing demand for its innovative products. The company also engages in licensing agreements, which provide an additional revenue stream by allowing third parties to use its patented technologies. Overall, NVE's combination of product sales, partnerships, and licensing contributes significantly to its earnings.
NVE Key Performance Indicators (KPIs)
NVE Earnings Call Summary
Earnings Call Date:Oct 22, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with positive aspects such as sequential revenue growth, nondefense sales increase, and new product launches. However, these highlights were counterbalanced by year-over-year revenue decline, gross margin decrease, and a significant drop in defense sales, leading to an overall neutral sentiment.Q2-2026 Updates
Positive Updates
Sequential Revenue Growth
There was a 4% sequential increase in revenue driven by strong increases in distributor and nondefense sales.
Nondefense Sales Increase
Nondefense sales increased by 21% year-over-year, offsetting a significant decline in defense sales.
New Product Launches
Three new products were launched, targeting high-value markets such as medical devices, electric vehicles, and robotics.
Advanced Manufacturing Investment Tax Credits
The company expects advanced manufacturing investment tax credits of between $700,000 and $1 million to offset tax law changes.
Strong Profitability Metrics
Operating margin was 58%, pretax margin was 65%, and net margin was 52%.
Increased Distributor Sales
Distributor sales increased nicely both sequentially and year-over-year.
Negative Updates
Year-over-Year Revenue Decline
Revenue decreased 6% year-over-year due to a 68% decrease in contract R&D revenue.
Gross Margin Decline
Gross margin decreased to 78% from 86% in the prior year quarter due to a less profitable product mix and strong distributor sales.
Decrease in Defense Sales
Defense sales decreased by 64% year-over-year, highlighting the volatility of defense procurement cycles.
Higher Tax Rate
Tax rate increased to 20% for the second quarter of fiscal 2026 compared to 17% for the second quarter of fiscal 2025.
Decrease in Net Income
Net income for the second quarter of fiscal 2026 was $3.31 million, a decline from $4.03 million in the prior year quarter.
Company Guidance
During the NVE Corporation conference call for the quarter ended September 30, 2025, the company provided guidance reflecting a 4% sequential increase in revenue, driven by robust distributor and non-defense sales, despite a 64% decrease in defense sales, which accounted for 8% of revenue. Year-over-year, revenue declined by 6% due to a 68% decrease in contract R&D revenue, although product sales increased by 1%, bolstered by a 21% rise in non-defense sales. The gross margin fell to 78% from 86% the previous year due to a shift in product mix and strong distributor sales, which typically yield lower margins. Operating expenses decreased by 7%, with a 3% increase in R&D expenses and a 23% reduction in SG&A costs. The tax rate increased to 20% this quarter compared to 17% last year, with an expected full-year tax rate of 16% to 17%. Net income for the quarter was $3.31 million or $0.68 per diluted share, down from $4.03 million or $0.83 per share the previous year. Despite the revenue decline, profitability metrics such as operating margin at 58%, pretax margin at 65%, and net margin at 52% remained strong. Total revenue for the first six months of fiscal 2026 was $12.5 million with a net income of $6.89 million, translating to $1.42 per diluted share. The company's comprehensive income for the first half included a $159,000 unrealized gain on marketable securities, totaling $7.05 million. Cash flow from operations reached $7.98 million in the first half, and fixed asset purchases amounted to $1.13 million, primarily for new production equipment, with an additional $1 million to $1.5 million expected for further expansion.NVE Financial Statement Overview
Summary
NVE's financial performance is strong with high profitability and a solid balance sheet. However, negative revenue growth and room for improvement in cash efficiency slightly temper the overall score.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.75
Positive
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.80
Positive
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.70
Positive
| 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
Positive
62.67
Price Trends
66.90
Positive
65.21
Positive
65.28
Positive
Market Momentum
1.70
Negative
61.89
Neutral
88.22
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 62.67 is below the 20-day moving average (MA) of 64.37, below the 50-day MA of 66.90, and below the 200-day MA of 65.28, indicating a bullish trend. The MACD of 1.70 indicates Negative momentum. The RSI at 61.89 is Neutral, neither overbought nor oversold. The STOCH value of 88.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $350.60M | 25.37 | 22.20% | 5.66% | -9.48% | -14.28% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $763.69M | ― | -12.00% | ― | -4.54% | -119.39% | |
55 Neutral | $313.94M | ― | -17.77% | ― | 307.44% | 14.77% | |
54 Neutral | $205.82M | ― | -0.91% | ― | -0.41% | -134.49% | |
49 Neutral | $266.43M | 38.16 | 1.74% | ― | -10.74% | ― | |
41 Neutral | $547.11M | ― | ― | ― | ― | ― |
* Technology Sector Average
NVEC
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NVE Corporate Events
Dividends
NVE Corporation Declares Quarterly Cash Dividend
Neutral
Oct 22, 2025
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.
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.