NVE CORP(NASDAQ:NVEC) stock Fundamental Analysis

Fundamental Rating

NVEC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. NVEC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NVEC is valued correctly, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

In the past year NVEC was profitable.

In the past year NVEC had a positive cash flow from operations.

NVEC had positive earnings in each of the past 5 years.

NVEC had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 23.20%, NVEC belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.

NVEC has a better Return On Equity (23.80%) than 87.96% of its industry peers.

NVEC's Return On Invested Capital of 20.73% is amongst the best of the industry. NVEC outperforms 93.52% of its industry peers.

Measured over the past 3 years, the Average Return On Invested Capital for NVEC is significantly above the industry average of 11.67%.

The 3 year average ROIC (25.47%) for NVEC is well above the current ROIC(20.73%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	23.2%
ROE	23.8%
ROIC	20.73%

ROA(3y)26.63%

ROA(5y)22.86%

ROE(3y)27.46%

ROE(5y)23.5%

ROIC(3y)25.47%

ROIC(5y)21.56%

1.3 Margins

NVEC has a better Profit Margin (58.33%) than 99.07% of its industry peers.

NVEC's Profit Margin has been stable in the last couple of years.

The Operating Margin of NVEC (61.53%) is better than 99.07% of its industry peers.

NVEC's Operating Margin has been stable in the last couple of years.

NVEC has a better Gross Margin (82.64%) than 98.15% of its industry peers.

In the last couple of years the Gross Margin of NVEC has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	61.53%
PM (TTM)	58.33%
GM	82.64%

OM growth 3Y1.39%

OM growth 5Y0.65%

PM growth 3Y1.65%

PM growth 5Y0.95%

GM growth 3Y-1.42%

GM growth 5Y-0.77%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NVEC is creating value.

The number of shares outstanding for NVEC has been increased compared to 1 year ago.

NVEC has more shares outstanding than it did 5 years ago.

NVEC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

NVEC has an Altman-Z score of 135.34. This indicates that NVEC is financially healthy and has little risk of bankruptcy at the moment.

The Altman-Z score of NVEC (135.34) is better than 100.00% of its industry peers.

NVEC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	135.34

ROIC/WACC1.75

WACC11.82%

2.3 Liquidity

A Current Ratio of 40.30 indicates that NVEC has no problem at all paying its short term obligations.

With an excellent Current ratio value of 40.30, NVEC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.

NVEC has a Quick Ratio of 29.94. This indicates that NVEC is financially healthy and has no problem in meeting its short term obligations.

NVEC's Quick ratio of 29.94 is amongst the best of the industry. NVEC outperforms 100.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	40.3
Quick Ratio	29.94

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

NVEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.49%.

Measured over the past 5 years, NVEC shows a small growth in Earnings Per Share. The EPS has been growing by 3.43% on average per year.

Looking at the last year, NVEC shows a very negative growth in Revenue. The Revenue has decreased by -27.67% in the last year.

NVEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.40% yearly.

EPS 1Y (TTM)-30.49%

EPS 3Y13.5%

EPS 5Y3.43%

EPS Q2Q%-27.59%

Revenue 1Y (TTM)-27.67%

Revenue growth 3Y11.73%

Revenue growth 5Y2.4%

Sales Q2Q%-25.15%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.

No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.

No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 20.79, which indicates a rather expensive current valuation of NVEC.

Based on the Price/Earnings ratio, NVEC is valued a bit cheaper than the industry average as 78.70% of the companies are valued more expensively.

NVEC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.62.

		Industry Rank	Sector Rank
PE	20.79
Fwd PE	N/A

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NVEC indicates a somewhat cheap valuation: NVEC is cheaper than 72.22% of the companies listed in the same industry.

Based on the Price/Free Cash Flow ratio, NVEC is valued cheaper than 84.26% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	25.89
EV/EBITDA	19.88

4.3 Compensation for Growth

NVEC has an outstanding profitability rating, which may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)6.07

EPS Next 2YN/A

EPS Next 3YN/A

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.24%, NVEC is a good candidate for dividend investing.

Compared to an average industry Dividend Yield of 2.21, NVEC pays a better dividend. On top of this NVEC pays more dividend than 97.22% of the companies listed in the same industry.

NVEC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.

		Industry Rank	Sector Rank
Dividend Yield	5.24%

5.2 History

The dividend of NVEC decreases each year by -0.11%.

NVEC has paid a dividend for at least 10 years, which is a reliable track record.

NVEC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.

Dividend Growth(5Y)-0.11%

Div Incr Years0

Div Non Decr Years8

5.3 Sustainability

129.04% of the earnings are spent on dividend by NVEC. This is not a sustainable payout ratio.

DP129.04%

EPS Next 2YN/A

EPS Next 3YN/A

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NVE CORP

NASDAQ:NVEC (2/21/2025, 8:00:01 PM)

After market: 73.82 0 (0%)

73.82

-2.46 (-3.22%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSemiconductors & Semiconductor Equipment

GICS IndustrySemiconductors & Semiconductor Equipment

Earnings (Last)01-22 2025-01-22/amc

Earnings (Next)04-29 2025-04-29

Inst Owners71.43%

Inst Owner Change-91.48%

Ins Owners0.04%

Ins Owner Change-0.72%

Market Cap357.29M

Analysts43.33

Price TargetN/A

Short Float %2.44%

Short Ratio4.6

Dividend

		Industry Rank	Sector Rank
Dividend Yield	5.24%

Yearly Dividend4.01

Dividend Growth(5Y)-0.11%

DP129.04%

Div Incr Years0

Div Non Decr Years8

Ex-Date02-03 2025-02-03 (1)

Surprises & Revisions

EPS beat(2)N/A

Avg EPS beat(2)N/A

Min EPS beat(2)N/A

Max EPS beat(2)N/A

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)N/A

Avg Revenue beat(2)N/A

Min Revenue beat(2)N/A

Max Revenue beat(2)N/A

Revenue beat(4)N/A

Avg Revenue beat(4)N/A

Min Revenue beat(4)N/A

Max Revenue beat(4)N/A

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)N/A

PT rev (3m)N/A

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)N/A

EPS NY rev (3m)N/A

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)N/A

Revenue NY rev (3m)N/A

Valuation

		Industry Rank	Sector Rank
PE	20.79
Fwd PE	N/A
P/S	13.91
P/FCF	25.89
P/OCF	23.88
P/B	5.67
P/tB	5.67
EV/EBITDA	19.88

EPS(TTM)3.55

EY4.81%

EPS(NY)N/A

Fwd EYN/A

FCF(TTM)2.85

FCFY3.86%

OCF(TTM)3.09

OCFY4.19%

SpS5.31

BVpS13.01

TBVpS13.01

PEG (NY)N/A

PEG (5Y)6.07

Profitability

		Industry Rank	Sector Rank
ROA	23.2%
ROE	23.8%
ROCE	24.76%
ROIC	20.73%
ROICexc	30.46%
ROICexgc	30.46%
OM	61.53%
PM (TTM)	58.33%
GM	82.64%
FCFM	53.71%

ROA(3y)26.63%

ROA(5y)22.86%

ROE(3y)27.46%

ROE(5y)23.5%

ROIC(3y)25.47%

ROIC(5y)21.56%

ROICexc(3y)39.57%

ROICexc(5y)32.78%

ROICexgc(3y)39.57%

ROICexgc(5y)32.78%

ROCE(3y)30.43%

ROCE(5y)25.76%

ROICexcg growth 3Y21.25%

ROICexcg growth 5Y11.11%

ROICexc growth 3Y21.25%

ROICexc growth 5Y11.11%

OM growth 3Y1.39%

OM growth 5Y0.65%

PM growth 3Y1.65%

PM growth 5Y0.95%

GM growth 3Y-1.42%

GM growth 5Y-0.77%

F-Score5

Asset Turnover0.4

Health

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Debt/EBITDA	0
Cap/Depr	295.2%
Cap/Sales	4.53%
Interest Coverage	250
Cash Conversion	92.35%
Profit Quality	92.08%
Current Ratio	40.3
Quick Ratio	29.94
Altman-Z	135.34

F-Score5

WACC11.82%

ROIC/WACC1.75

Cap/Depr(3y)160.42%

Cap/Depr(5y)100.29%

Cap/Sales(3y)1.43%

Cap/Sales(5y)0.95%

Profit Quality(3y)89.76%

Profit Quality(5y)98.43%

High Growth Momentum

Growth

EPS 1Y (TTM)-30.49%

EPS 3Y13.5%

EPS 5Y3.43%

EPS Q2Q%-27.59%

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)-27.67%

Revenue growth 3Y11.73%

Revenue growth 5Y2.4%

Sales Q2Q%-25.15%

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y-32.34%

EBIT growth 3Y13.28%

EBIT growth 5Y3.07%

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y-17.97%

FCF growth 3Y11.08%

FCF growth 5Y5.2%

OCF growth 1Y-17.57%

OCF growth 3Y10.95%

OCF growth 5Y5.11%

NVE CORP (NVEC) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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