NVE (NVEC) AI Stock Analysis

• Market Cap: $304.50M
• Dividend Yield: 6.28%
• Average Volume (3M): 43.58K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.18
• 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: 44,721
• 30 Day Avg. Volume: 43,582
• 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: 0.98
• 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: 68 Neutral
• 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 Business Overview & Revenue Model

Company Description

NVE 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 Money

NVE 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 Financial Statement Overview

Summary

NVE shows strong profitability with high margins and a solid balance sheet with low leverage. However, negative revenue growth is a concern, and cash efficiency could be improved.

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: Positive
• Last Price: 62.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 62.67 is above the 20-day moving average (MA) of 62.65, below the 50-day MA of 66.15, and below the 200-day MA of 65.25, indicating a bullish trend. The MACD of -0.87 indicates Negative momentum. The RSI at 57.11 is Neutral, neither overbought nor oversold. The STOCH value of 88.50 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	68 Neutral	$304.50M	22.03	22.20%	6.28%	-9.48%	-14.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AXTI	61 Neutral	$548.29M	―	-12.00%	―	-4.54%	-119.39%
MRAM	54 Neutral	$205.82M	―	-0.91%	―	-0.41%	-134.49%
XPER	49 Neutral	$266.43M	38.16	1.74%	―	-10.74%	―
ALMU	42 Neutral	$235.55M	―	-17.77%	―	307.44%	14.77%
WOLF	41 Neutral	$553.06M	―	―	―	―	―

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.