NVE (NVEC) AI Stock Analysis

• Market Cap: $322.06M
• Dividend Yield: 6.01%
• Average Volume (3M): 42.02K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.12
• Revenue Growth: -9.22%
• EPS Growth: -13.57%
• Country: US
• Employees: 41
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.74
• Shares Outstanding: 4,837,166
• 10 Day Avg. Volume: 45,479
• 30 Day Avg. Volume: 42,019
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 13.54
• Enterprise Value/Gross Profit: 16.44
• Enterprise Value/Ebitda: 21.15
• 1Y Price Target: $74.00
• Price Target Upside: 11.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $74.00 ▲(11.14% Upside)

NVE Corporation's overall stock score reflects strong financial performance with high profitability and a robust balance sheet. However, declining revenue growth and mixed earnings call sentiment present challenges. Technical analysis and valuation provide a balanced view, with moderate valuation and attractive dividend yield. The most significant factors are the company's financial strength and the need to address revenue growth challenges.

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 Corporation demonstrates strong profitability with high margins and effective cash flow management. The balance sheet is robust, with low leverage and substantial equity. However, declining revenue growth presents a potential risk that requires strategic attention.

Income Statement

The income statement shows resilient gross and net profit margins, with TTM gross profit margin at 82.35% and net profit margin at 57.72%. However, revenue growth has been declining, with a significant drop of 15.77% from 2023 to 2024 and a further decline in the trailing twelve months. Despite the contraction in revenue, the company maintains strong profitability metrics with an EBIT margin of 61.07% and EBITDA margin of 61.37% in TTM.

Balance Sheet

The balance sheet reflects a robust financial position with a low debt-to-equity ratio of 0.01 in TTM, indicating very low leverage. The equity ratio remains strong at 96.11%, showcasing financial stability. Return on equity (ROE) in TTM is impressive at 23.80%, reflecting efficient utilization of equity to generate profits.

Cash Flow

Cash flow analysis reveals a healthy free cash flow to net income ratio of 0.84 in TTM, indicating strong cash generation relative to net income. Operating cash flow to net income ratio stands at 0.94, demonstrating efficient conversion of income to cash. However, free cash flow growth has been inconsistent, showing a decrease from 2023 to 2024.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.20M	25.87M	29.80M	38.25M	26.99M	21.37M
Gross Profit	20.75M	21.64M	23.03M	30.19M	20.72M	17.24M
EBITDA	16.14M	16.32M	18.83M	25.84M	16.75M	13.29M
Net Income	14.54M	15.06M	17.12M	22.69M	14.51M	11.69M
Balance Sheet
Total Assets	63.55M	64.28M	66.78M	69.26M	67.47M	72.50M
Cash, Cash Equivalents and Short-Term Investments	15.83M	21.73M	22.20M	17.18M	31.29M	18.11M
Total Debt	892.30K	921.23K	355.15K	518.71K	602.14K	731.73K
Total Liabilities	2.46M	2.01M	1.21M	2.18M	2.90M	1.61M
Stockholders Equity	61.09M	62.27M	65.57M	67.08M	64.57M	70.89M
Cash Flow
Free Cash Flow	12.25M	13.05M	18.23M	18.16M	12.02M	13.30M
Operating Cash Flow	13.65M	14.31M	18.25M	19.09M	12.50M	13.36M
Investing Cash Flow	2.80M	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: Positive
• Last Price: 66.58
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 66.58 is above the 20-day moving average (MA) of 66.08, above the 50-day MA of 66.25, and below the 200-day MA of 67.92, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 49.13 is Neutral, 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	75 Outperform	$322.06M	22.15	23.09%	6.01%	-9.22%	-13.57%
MRAM	68 Neutral	185.98M	106.97	2.59%	―	-11.27%	-9.20%
NVTS	50 Neutral	1.46B	-10.01	-24.31%	―	-25.65%	-130.95%
VLN	49 Neutral	196.64M	-5.91	-28.47%	―	8.70%	-13.95%
BZAI	48 Neutral	407.40M	-1.84	3171.89%	―	―	-3299.52%
XPER	48 Neutral	299.30M	-75.82	6.30%	―	-6.09%	97.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

NVE Corporate Events

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.

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 August 29, 2025, to shareholders who are recorded as of August 4, 2025.