NVE CORP (NVEC) Stock Fundamental Analysis
NASDAQ:NVEC - Nasdaq - US6294452064 - Common Stock
We assign a fundamental rating of 6 out of 10 to NVEC. NVEC was compared to 109 industry peers in the Semiconductors & Semiconductor Equipment industry. NVEC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NVEC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
NVEC had positive earnings in the past year.
NVEC had a positive operating cash flow in the past year.
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
The Return On Assets of NVEC (24.47%) is better than 98.15% of its industry peers.
NVEC has a Return On Equity of 24.86%. This is amongst the best in the industry. NVEC outperforms 87.96% of its industry peers.
NVEC has a Return On Invested Capital of 22.32%. This is amongst the best in the industry. NVEC outperforms 93.52% of its industry peers.
NVEC had an Average Return On Invested Capital over the past 3 years of 25.47%. This is significantly above the industry average of 11.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.47% | ||
| ROE | 24.86% | ||
| ROIC | 22.32% |
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 Profit Margin of 58.88%. This is amongst the best in the industry. NVEC outperforms 99.07% of its industry peers.
NVEC's Profit Margin has been stable in the last couple of years.
NVEC has a Operating Margin of 63.24%. This is amongst the best in the industry. NVEC outperforms 100.00% of its industry peers.
NVEC's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 81.68%, NVEC belongs to the best of the industry, outperforming 98.15% of the companies in the same industry.
NVEC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 63.24% | ||
| PM (TTM) | 58.88% | ||
| GM | 81.68% |
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%
2. Health
2.1 Basic Checks
NVEC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NVEC has more shares outstanding
The number of shares outstanding for NVEC has been increased compared to 5 years ago.
There is no outstanding debt for NVEC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 236.24 indicates that NVEC is not in any danger for bankruptcy at the moment.
The Altman-Z score of NVEC (236.24) 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 | 236.24 |
ROIC/WACC1.51
WACC14.74%
2.3 Liquidity
A Current Ratio of 36.32 indicates that NVEC has no problem at all paying its short term obligations.
NVEC has a better Current ratio (36.32) than 100.00% of its industry peers.
NVEC has a Quick Ratio of 28.36. This indicates that NVEC is financially healthy and has no problem in meeting its short term obligations.
NVEC has a Quick ratio of 28.36. This is amongst the best in the industry. NVEC outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 36.32 | ||
| Quick Ratio | 28.36 |
3. Growth
3.1 Past
NVEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.47%.
NVEC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.43% yearly.
Looking at the last year, NVEC shows a very negative growth in Revenue. The Revenue has decreased by -24.28% in the last year.
Measured over the past years, NVEC shows a small growth in Revenue. The Revenue has been growing by 2.40% on average per year.
EPS 1Y (TTM)-25.47%
EPS 3Y13.5%
EPS 5Y3.43%
EPS Q2Q%-15.11%
Revenue 1Y (TTM)-24.28%
Revenue growth 3Y11.73%
Revenue growth 5Y2.4%
Sales Q2Q%-5.21%
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.
4. Valuation
4.1 Price/Earnings Ratio
NVEC is valuated rather expensively with a Price/Earnings ratio of 23.17.
Compared to the rest of the industry, the Price/Earnings ratio of NVEC indicates a somewhat cheap valuation: NVEC is cheaper than 76.85% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. NVEC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.17 | ||
| Fwd PE | N/A |
4.2 Price Multiples
71.30% of the companies in the same industry are more expensive than NVEC, based on the Enterprise Value to EBITDA ratio.
79.63% of the companies in the same industry are more expensive than NVEC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.97 | ||
| EV/EBITDA | 20.04 |
4.3 Compensation for Growth
NVEC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.76
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.02%, NVEC is a good candidate for dividend investing.
NVEC's Dividend Yield is rather good when compared to the industry average which is at 2.28. NVEC pays more dividend than 97.22% of the companies in the same industry.
NVEC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
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.
As NVEC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-0.11%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
119.96% of the earnings are spent on dividend by NVEC. This is not a sustainable payout ratio.
DP119.96%
EPS Next 2YN/A
EPS Next 3YN/A
NVE CORP
NASDAQ:NVEC (1/22/2025, 2:05:02 PM)
82.25
+0.09 (+0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners70.35%
Inst Owner Change0.02%
Ins Owners0.05%
Ins Owner Change-0.72%
Market Cap397.27M
Analysts43.33
Price TargetN/A
Short Float %2.2%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
Yearly Dividend4.01
Dividend Growth(5Y)-0.11%
DP119.96%
Div Incr Years0
Div Non Decr Years8
Ex-DateN/A
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 | 23.17 | ||
| Fwd PE | N/A | ||
| P/S | 14.51 | ||
| P/FCF | 26.97 | ||
| P/OCF | 25.06 | ||
| P/B | 6.13 | ||
| P/tB | 6.13 | ||
| EV/EBITDA | 20.04 |
EPS(TTM)3.55
EY4.32%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)3.05
FCFY3.71%
OCF(TTM)3.28
OCFY3.99%
SpS5.67
BVpS13.43
TBVpS13.43
PEG (NY)N/A
PEG (5Y)6.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.47% | ||
| ROE | 24.86% | ||
| ROCE | 26.66% | ||
| ROIC | 22.32% | ||
| ROICexc | 34.5% | ||
| ROICexgc | 34.5% | ||
| OM | 63.24% | ||
| PM (TTM) | 58.88% | ||
| GM | 81.68% | ||
| FCFM | 53.8% |
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-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 315.44% | ||
| Cap/Sales | 4.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.71% | ||
| Profit Quality | 91.38% | ||
| Current Ratio | 36.32 | ||
| Quick Ratio | 28.36 | ||
| Altman-Z | 236.24 |
F-Score6
WACC14.74%
ROIC/WACC1.51
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)-25.47%
EPS 3Y13.5%
EPS 5Y3.43%
EPS Q2Q%-15.11%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-24.28%
Revenue growth 3Y11.73%
Revenue growth 5Y2.4%
Sales Q2Q%-5.21%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-26.97%
EBIT growth 3Y13.28%
EBIT growth 5Y3.07%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1.53%
FCF growth 3Y11.08%
FCF growth 5Y5.2%
OCF growth 1Y3.01%
OCF growth 3Y10.95%
OCF growth 5Y5.11%