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NVE
(NASDAQ:NVEC)
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Rating:81Outperform
Price Target:
$128.00
▲(104.24% Upside)
Action:Reiterated
Date:06/23/26
NVEC scores well primarily on financial strength—exceptional margins, minimal leverage, and strong cash conversion—supported by bullish technicals. The score is tempered by a high P/E and business volatility (notably defense/contract R&D swings and fading tax-credit tailwinds) that could pressure consistency versus the valuation.
Positive Factors
Exceptional Profitability
Sustained very high gross and net margins indicate durable pricing power and tight cost control in NVE’s niche spintronics products. High unit economics support long-term cash generation, fund R&D and capacity, and provide a margin buffer during demand cycles.
Negative Factors
Revenue Volatility
Top-line swings reduce predictability of earnings and cash flow, complicate capacity planning and inventory management, and increase the risk that fixed costs and dividend policy could be strained if a downturn persists or new-product ramps delay.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional Profitability
Sustained very high gross and net margins indicate durable pricing power and tight cost control in NVE’s niche spintronics products. High unit economics support long-term cash generation, fund R&D and capacity, and provide a margin buffer during demand cycles.
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
$475.11M
Dividend Yield6.28%
Average Volume (3M)220.27K
Price to Earnings (P/E)31.3
Beta (1Y)1.10
Revenue Growth1.76%
EPS Growth0.85%
CountryUS
Employees42
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)3.14
Shares Outstanding4,837,166
10 Day Avg. Volume311,739
30 Day Avg. Volume220,272
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 Cap1.03
Enterprise Value/Revenue18.66
Enterprise Value/Gross Profit23.71
Enterprise Value/Ebitda26.89
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 develops and sells devices that use spintronics, a nanotechnology relying on electron spin to acquire, store, and transmit information, both in the United States and internationally. The company manufactures spintronic products, in...
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:May 06, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial picture: strong quarterly revenue growth, a 27% jump in net income, robust margins, improved operating cash flow, completion of a strategic manufacturing expansion, and meaningful new-product and distribution activity. Offsetting these positives were significant declines and volatility in defense-related sales and contract R&D, a slight compression in gross margin and other income, and an expected reduction in tax-credit benefits and capital spending next year. On balance, the strengths (profitability, cash flow, capacity expansion, and product momentum) materially outweighed the near-term headwinds tied primarily to defense revenue volatility and transient tax/capex benefits.Positive Updates
Quarterly Revenue Growth
Total revenue for Q4 was $7.65 million, a 5% increase year-over-year and a 23% increase sequentially, driven by stronger product sales and favorable semiconductor industry conditions.
Negative Updates
Sharp Decline in Defense Sales
Defense-related product sales were highly volatile and materially down: the quarter experienced a significant year-over-year decline in defense sales (reported as a 79% decrease in the quarter and a 67% decrease for the full fiscal year), which materially offset some product sales gains. Management characterized defense and contract R&D revenue as uneven due to procurement cycles.
Read all updates
Q4-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Total revenue for Q4 was $7.65 million, a 5% increase year-over-year and a 23% increase sequentially, driven by stronger product sales and favorable semiconductor industry conditions.
Read all positive updates
Company Guidance
Management offered directional (not numeric) guidance: they expect defense sales—which fell 79% YoY in the quarter and 67% for fiscal 2026—to increase significantly in fiscal 2027, and they expect contract R&D (down 19% in the quarter) to increase this coming year; product sales are expected to remain strong given favorable semiconductor conditions and ample inventories after quarterly revenue of $7.65 million (+5% YoY, +23% sequential) driven by a 34% rise in nondefense product sales and resulting in quarterly net income of $4.9 million ($1.02 diluted) with margins of 78% gross, 62% operating, 68% pretax and 64% net. Management said they will not provide specific revenue or EPS targets, but noted fixed‑asset purchases (which were $2.19 million in FY26) should fall significantly in FY27 and that advanced manufacturing investment tax credits (which contributed $1.07 million to FY26 and helped lower the quarter tax rate to 5%) should decline materially next year; cash flow from operations was $16.7 million (+16% YoY) and inventories were down 5%.NVE Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
85
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 26.33M | 25.87M | 29.80M | 38.25M | 26.99M |
| Gross Profit | 20.73M | 21.64M | 23.03M | 30.19M | 20.72M |
| EBITDA | 18.28M | 18.36M | 20.78M | 27.29M | 17.92M |
| Net Income | 15.20M | 15.06M | 17.12M | 22.69M | 14.51M |
Balance Sheet | |||||
| Total Assets | 60.87M | 64.28M | 66.78M | 69.26M | 67.47M |
| Cash, Cash Equivalents and Short-Term Investments | 19.84M | 21.73M | 22.20M | 17.18M | 31.29M |
| Total Debt | 905.54K | 921.23K | 355.15K | 518.71K | 602.14K |
| Total Liabilities | 2.62M | 2.01M | 1.21M | 2.18M | 2.90M |
| Stockholders Equity | 58.25M | 62.27M | 65.57M | 67.08M | 64.57M |
Cash Flow | |||||
| Free Cash Flow | 14.47M | 13.05M | 18.23M | 18.16M | 12.02M |
| Operating Cash Flow | 16.66M | 14.31M | 18.25M | 19.09M | 12.50M |
| Investing Cash Flow | -3.63M | 2.67M | 9.58M | -8.53M | 7.02M |
| Financing Cash Flow | -19.35M | -19.23M | -19.21M | -19.34M | -19.50M |
NVE Technical Analysis
Positive
62.67
Price Trends
95.32
Positive
82.17
Positive
73.53
Positive
Market Momentum
0.94
Positive
48.09
Neutral
55.65
Neutral
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 104.47, below the 50-day MA of 95.32, and below the 200-day MA of 73.53, indicating a neutral trend. The MACD of 0.94 indicates Positive momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 55.65 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $475.11M | 31.28 | 25.61% | 6.28% | 1.76% | 0.85% | |
67 Neutral | $395.83M | -8.28 | -10.29% | ― | -8.30% | -139.29% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $448.79M | 1,595.00 | 0.42% | ― | 15.94% | ― | |
53 Neutral | $3.70B | -179.58 | -6.21% | ― | -0.14% | 25.60% | |
51 Neutral | $345.06M | -54.37 | -17.19% | ― | 43.23% | -34.14% | |
44 Neutral | $2.08B | -1.31 | -5208.55% | ― | -6.41% | -106.57% |
* Technology Sector Average
NVEC
NVE
98.22
25.98
35.97%
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XPER
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ALMU
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NVE Corporate Events
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.