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NVEC

NVE NasdaqCM:NVEC Stock Report

Last Price

US$52.21

Market Cap

US$252.2m

7D

-0.7%

1Y

-22.6%

Updated

19 Aug, 2022

Data

Company Financials
NVEC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends2/6

NVEC Stock Overview

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.

NVE Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NVE
Historical stock prices
Current Share PriceUS$52.21
52 Week HighUS$75.50
52 Week LowUS$43.35
Beta1.15
1 Month Change7.14%
3 Month Change6.31%
1 Year Change-22.57%
3 Year Change-20.05%
5 Year Change-28.38%
Change since IPO377.35%

Recent News & Updates

Jul 24
NVE's (NASDAQ:NVEC) Dividend Will Be $1.00

NVE's (NASDAQ:NVEC) Dividend Will Be $1.00

The board of NVE Corporation ( NASDAQ:NVEC ) has announced that it will pay a dividend of $1.00 per share on the 31st...

Jul 20

NVE declares $1.00 dividend

NVE (NASDAQ:NVEC) declares $1.00/share quarterly dividend, in line with previous. Forward yield 8.23% Payable Aug. 31; for shareholders of record Aug. 1; ex-div July 29. See NVEC Dividend Scorecard, Yield Chart, & Dividend Growth.

Jun 27

Rare 8% Dividend Yield From Growing, Made-In-America Semiconductor Leader: NVE Corp.

NVE Corp. may be throwing off one of the smartest/safest dividend yields (above 8%) available to income investors in June 2022. The kicker is business prospects are strong, with the company seeing higher demand for its domestic production during the pandemic semiconductor shortages of 2021-22. Perhaps the lowest valuation of the stock in at least 15 years is now open to investors willing to step up to the plate.

Shareholder Returns

NVECUS SemiconductorUS Market
7D-0.7%2.4%1.4%
1Y-22.6%-3.2%-8.4%

Return vs Industry: NVEC underperformed the US Semiconductor industry which returned -3.2% over the past year.

Return vs Market: NVEC underperformed the US Market which returned -8.4% over the past year.

Price Volatility

Is NVEC's price volatile compared to industry and market?
NVEC volatility
NVEC Average Weekly Movement5.6%
Semiconductor Industry Average Movement8.6%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: NVEC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NVEC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198948Daniel Bakerhttps://www.nve.com

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.

NVE Fundamentals Summary

How do NVE's earnings and revenue compare to its market cap?
NVEC fundamental statistics
Market CapUS$252.22m
Earnings (TTM)US$15.07m
Revenue (TTM)US$27.17m

16.7x

P/E Ratio

9.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NVEC income statement (TTM)
RevenueUS$27.17m
Cost of RevenueUS$6.15m
Gross ProfitUS$21.02m
Other ExpensesUS$5.96m
EarningsUS$15.07m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.12
Gross Margin77.38%
Net Profit Margin55.46%
Debt/Equity Ratio0%

How did NVEC perform over the long term?

See historical performance and comparison

Dividends

7.7%

Current Dividend Yield

128%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NVEC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NVEC?

Other financial metrics that can be useful for relative valuation.

NVEC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.3x
Enterprise Value/EBITDA11.5x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does NVEC's PE Ratio compare to its peers?

NVEC PE Ratio vs Peers
The above table shows the PE ratio for NVEC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average27.6x
MRAM Everspin Technologies
18.4x-19.8%US$150.2m
MX Magnachip Semiconductor
7.9x-12.9%US$560.8m
EMAN eMagin
71.2xn/aUS$62.1m
OIIM O2Micro International
12.9x-56.4%US$102.0m
NVEC NVE
16.7xn/aUS$252.2m

Price-To-Earnings vs Peers: NVEC is good value based on its Price-To-Earnings Ratio (16.7x) compared to the peer average (27.6x).


Price to Earnings Ratio vs Industry

How does NVEC's PE Ratio compare vs other companies in the US Semiconductor Industry?

Price-To-Earnings vs Industry: NVEC is good value based on its Price-To-Earnings Ratio (16.7x) compared to the US Semiconductor industry average (19.7x)


Price to Earnings Ratio vs Fair Ratio

What is NVEC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NVEC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NVEC's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of NVEC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NVEC ($52.21) is trading above our estimate of fair value ($42.59)

Significantly Below Fair Value: NVEC is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is NVE forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


13.6%

Forecasted Semiconductors industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as NVE has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Check out NVE's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has NVE performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-0.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NVEC has high quality earnings.

Growing Profit Margin: NVEC's current net profit margins (55.5%) are higher than last year (53.7%).


Past Earnings Growth Analysis

Earnings Trend: NVEC's earnings have declined by 0.4% per year over the past 5 years.

Accelerating Growth: NVEC's earnings growth over the past year (17.2%) exceeds its 5-year average (-0.4% per year).

Earnings vs Industry: NVEC earnings growth over the past year (17.2%) underperformed the Semiconductor industry 59.7%.


Return on Equity

High ROE: NVEC's Return on Equity (23.7%) is considered high.


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Financial Health

How is NVE's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NVEC's short term assets ($38.0M) exceed its short term liabilities ($1.1M).

Long Term Liabilities: NVEC's short term assets ($38.0M) exceed its long term liabilities ($411.4K).


Debt to Equity History and Analysis

Debt Level: NVEC has more cash than its total debt.

Reducing Debt: Insufficient data to determine if NVEC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NVEC's debt is well covered by operating cash flow (125344280%).

Interest Coverage: NVEC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is NVE current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


7.66%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NVEC's dividend (7.66%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: NVEC's dividend (7.66%) is in the top 25% of dividend payers in the US market (3.97%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NVEC has been paying a dividend for less than 10 years.

Growing Dividend: NVEC has only been paying a dividend for 7 years, and since then payments have not increased.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (128.3%), NVEC's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (160.3%), NVEC's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

21.6yrs

Average management tenure


CEO

Daniel Baker (64 yo)

21.58yrs

Tenure

US$697,587

Compensation

Dr. Daniel A. Baker, Ph.D. has been the President and Chief Executive Officer at NVE Corp. since January 2001. Dr. Baker was Interim Principal Financial Officer of NVE Corporation since January 3, 2022 unt...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD697.59K) is below average for companies of similar size in the US market ($USD1.66M).

Compensation vs Earnings: Daniel's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NVEC's management team is seasoned and experienced (21.6 years average tenure).


Board Members

Experienced Board: NVEC's board of directors are seasoned and experienced ( 18 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NVE Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: NVE Corporation
  • Ticker: NVEC
  • Exchange: NasdaqCM
  • Founded: 1989
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: US$252.217m
  • Shares outstanding: 4.83m
  • Website: https://www.nve.com

Number of Employees


Location

  • NVE Corporation
  • 11409 Valley View Road
  • Eden Prairie
  • Minnesota
  • 55344
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/19 00:00
End of Day Share Price2022/08/19 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.