NVE Corporation (NVEC)
NASDAQ:NVEC
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NVE
(NASDAQ:NVEC)
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Rating:81Outperform
Price Target:
$101.00
▲(61.16% Upside)
Action:ReiteratedDate:01/23/26
The score is driven primarily by strong financial quality (high profitability, low leverage, solid cash conversion). The latest earnings call was supportive with strong quarterly performance and constructive operational developments, partially offset by margin compression and uneven year-to-date trends. Technicals are bullish but overextended, which tempers the overall score, while valuation is supported by a high dividend but only moderate on P/E.
Positive Factors
Exceptional profitability & margins
Sustained very high margins indicate durable pricing power and cost discipline across product lines. High operating and net margins support strong internal cash generation, fund R&D and dividends, and make the business more resilient to cyclical semiconductor demand over a multi‑quarter horizon.
Negative Factors
Gross margin compression from channel mix
A structural shift toward higher distributor sales and a different product mix can sustain lower gross margins versus prior periods. Persistently lower margins would reduce free cash flow buffers and could constrain reinvestment, R&D cadence, or dividend support over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional profitability & margins
Sustained very high margins indicate durable pricing power and cost discipline across product lines. High operating and net margins support strong internal cash generation, fund R&D and dividends, and make the business more resilient to cyclical semiconductor demand over a multi‑quarter horizon.
Read all positive factors
NVE (NVEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$405.98M
Dividend Yield6.28%
Average Volume (3M)43.44K
Price to Earnings (P/E)21.2
Beta (1Y)1.05
Revenue Growth1.00%
EPS Growth-5.54%
CountryUS
Employees41
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)2.92
Shares Outstanding4,837,166
10 Day Avg. Volume58,731
30 Day Avg. Volume43,441
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 Cap1.03
Enterprise Value/Revenue16.05
Enterprise Value/Gross Profit20.27
Enterprise Value/Ebitda26.38
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 that relies on electron spin to acquire, store, and transmit information in the United States and internationally. The company manufactures spintronic products, incl...
How the Company Makes Money
NVE primarily makes money through two main revenue streams: (1) product sales and (2) intellectual property licensing/royalties. Product revenue is generated by selling spintronic-based devices—such as magnetoresistive sensors and related componen...
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 Earnings Call Summary
Earnings Call Date:Jan 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial picture: strong quarter-over-quarter revenue (+23%) and net income (+11%), meaningful cash generation, successful completion of a multi-year capacity expansion (equipment installed and to be placed into service), new product announcements, and an important two-year contractual extension with Abbott. Offsetting headwinds include gross margin compression (79% vs 84% prior year) driven by product mix and higher distributor sales, a higher effective tax rate in the quarter, reduced other income, and uneven year-to-date R&D revenue trends (9-month contract R&D down 8% and 9-month net income down 8%). Overall, the positive drivers (robust revenue growth, strong margins even after compression, cash flow, new capacity and product momentum, and customer wins) materially outweigh the identified challenges.Positive Updates
Quarterly Revenue and Earnings Growth
Revenue for Q3 FY2026 increased 23% year-over-year. Net income rose 11% to $3.38 million ($0.70 per diluted share) from $3.05 million ($0.63). Product sales increased 16% and contract R&D revenue surged 335% in the quarter. Key profitability metrics remained strong: operating margin 60%, pretax margin 68%, and net margin 54%.
Negative Updates
Gross Margin Compression
Gross margin decreased to 79% of revenue in Q3 FY2026 from 84% in the prior year quarter (a 5 percentage-point decline). Management attributed the reduction to a less profitable product mix and increased distributor sales, which typically carry lower margins.
Read all updates
Q3-2026 Updates
Positive
Negative
Quarterly Revenue and Earnings Growth
Revenue for Q3 FY2026 increased 23% year-over-year. Net income rose 11% to $3.38 million ($0.70 per diluted share) from $3.05 million ($0.63). Product sales increased 16% and contract R&D revenue surged 335% in the quarter. Key profitability metrics remained strong: operating margin 60%, pretax margin 68%, and net margin 54%.
Read all positive updates
Company Guidance
The company guided that it expects to place its new wafer‑level chip‑scale equipment into service by March 31 (after $2.18M of fixed‑asset purchases in the first nine months, including $1.05M in the December quarter) and indicated operational tailwinds—distributor sales are picking up and defense revenues should return to a more normal flow; it also expects a full‑year fiscal‑2026 effective tax rate of about 16–17%, reflecting anticipated advanced manufacturing investment tax credits of $700k–$1.0M and accelerated R&D deductions that should reduce cash taxes by roughly $1.1M. For context the company reported Q3 revenue up 23% y/y (product sales +16%, contract R&D +335%), gross margin 79% (vs. 84% a year earlier), operating expenses down 12% (R&D −9%, SG&A −19%), net income up 11% to $3.38M ($0.70 diluted EPS) with operating/pretax/net margins of 60%/68%/54%, nine‑month revenue of $18.7M (+0.4%) and nine‑month net income of $10.3M (−8%, $2.12/sh), plus $12.2M cash flow from operations YTD, AR down $1.1M, inventories down $177k, prepaid/other up $323k and accrued liabilities down $366k.NVE Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.95M | 25.87M | 29.80M | 38.25M | 26.99M | 21.37M |
| Gross Profit | 20.54M | 21.64M | 23.03M | 30.19M | 20.72M | 17.24M |
| EBITDA | 15.79M | 16.32M | 18.83M | 25.84M | 16.75M | 13.29M |
| Net Income | 14.16M | 15.06M | 17.12M | 22.69M | 14.51M | 11.69M |
Balance Sheet | ||||||
| Total Assets | 59.96M | 64.28M | 66.78M | 69.26M | 67.47M | 72.50M |
| Cash, Cash Equivalents and Short-Term Investments | 20.57M | 21.73M | 22.20M | 17.18M | 31.29M | 18.11M |
| Total Debt | 1.71M | 921.23K | 355.15K | 518.71K | 602.14K | 731.73K |
| Total Liabilities | 1.67M | 2.01M | 1.21M | 2.18M | 2.90M | 1.61M |
| Stockholders Equity | 58.30M | 62.27M | 65.57M | 67.08M | 64.57M | 70.89M |
Cash Flow | ||||||
| Free Cash Flow | 12.38M | 13.05M | 18.23M | 18.16M | 12.02M | 13.30M |
| Operating Cash Flow | 14.65M | 14.31M | 18.25M | 19.09M | 12.50M | 13.36M |
| Investing Cash Flow | 2.62M | 2.67M | 9.58M | -8.53M | 7.02M | 8.42M |
| Financing Cash Flow | -19.35M | -19.23M | -19.21M | -19.34M | -19.50M | -19.43M |
NVE Technical Analysis
Positive
62.67
Price Trends
69.08
Positive
67.36
Positive
66.48
Positive
Market Momentum
3.30
Negative
81.12
Negative
98.60
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 71.52, below the 50-day MA of 69.08, and below the 200-day MA of 66.48, indicating a bullish trend. The MACD of 3.30 indicates Negative momentum. The RSI at 81.12 is Negative, neither overbought nor oversold. The STOCH value of 98.60 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $405.98M | 21.20 | 23.47% | 6.28% | 1.00% | -5.54% | |
67 Neutral | $327.38M | 6.73 | -13.00% | ― | -9.23% | -314.96% | |
65 Neutral | $5.89B | -468.85 | -6.21% | ― | -0.14% | 25.79% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $439.64M | -171.77 | 0.42% | ― | 15.94% | ― | |
52 Neutral | $1.62B | -1.50 | -5208.55% | ― | -3.72% | -109.06% | |
52 Neutral | $413.35M | -41.41 | -9.33% | ― | 92.49% | 70.84% |
* Technology Sector Average
NVEC
NVE
83.93
26.81
46.93%
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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.