Market Cap
US$353.8m
Last Updated
2020/02/16 23:40 UTC
Data Sources
Company Financials
Executive Summary
NVE Corporation develops and sells devices that use spintronics, a nanotechnology that utilizes electron spin to acquire, store, and transmit information.
Snowflake Analysis
Flawless balance sheet with acceptable track record.
Similar Companies
Share Price & News
How has NVE's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NVEC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
5.0%
NVEC
4.8%
US Semiconductor
1.5%
US Market
1 Year Return
-25.6%
NVEC
41.1%
US Semiconductor
20.1%
US Market
Return vs Industry: NVEC underperformed the US Semiconductor industry which returned 41.1% over the past year.
Return vs Market: NVEC underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| NVEC | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.0% | 4.8% | 1.5% |
| 30 Day | 1.3% | 4.3% | 1.4% |
| 90 Day | 15.0% | 13.6% | 8.7% |
| 1 Year | -21.3%-25.6% | 43.8%41.1% | 22.7%20.1% |
| 3 Year | 12.9%-2.6% | 95.7%85.1% | 50.1%40.5% |
| 5 Year | 52.4%15.2% | 158.6%133.8% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is NVE's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Should You Buy NVE Corporation (NASDAQ:NVEC) For Its 5.8% Dividend?3 weeks ago | Simply Wall St
Dividend Investors: Don't Be Too Quick To Buy NVE Corporation (NASDAQ:NVEC) For Its Upcoming Dividend4 weeks ago | Simply Wall St
Should We Be Delighted With NVE Corporation's (NASDAQ:NVEC) ROE Of 17%?Valuation
Is NVE undervalued compared to its fair value and its price relative to the market?
25.24x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NVEC ($73.01) is trading above our estimate of fair value ($42.56)
Significantly Below Fair Value: NVEC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NVEC is good value based on its PE Ratio (25.2x) compared to the Semiconductor industry average (36.4x).
PE vs Market: NVEC is poor value based on its PE Ratio (25.2x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NVEC's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NVEC is overvalued based on its PB Ratio (4.4x) compared to the US Semiconductor industry average (3.2x).
Next Steps
Future Growth
How is NVE forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
20.9%
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.
Next Steps
- Examine NVE's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Explore growth companies in the Semiconductors industry.
Past Performance
How has NVE performed over the past 5 years?
2.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NVEC has high quality earnings.
Growing Profit Margin: NVEC's current net profit margins (56.4%) are higher than last year (54%).
Past Earnings Growth Analysis
Earnings Trend: NVEC's earnings have grown by 2.2% per year over the past 5 years.
Accelerating Growth: NVEC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NVEC had negative earnings growth (-9.7%) over the past year, making it difficult to compare to the Semiconductor industry average (-27.7%).
Return on Equity
High ROE: NVEC's Return on Equity (17.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is NVE's financial position?
Financial Position Analysis
Short Term Liabilities: NVEC's short term assets ($29.3M) exceed its short term liabilities ($887.1K).
Long Term Liabilities: NVEC has no long term liabilities.
Debt to Equity History and Analysis
Debt Level: NVEC is debt free.
Reducing Debt: NVEC has not had any debt for past 5 years.
Debt Coverage: NVEC has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: NVEC has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: NVEC has a low level of unsold assets or inventory.
Debt Coverage by Assets: NVEC's debt is not covered by short term assets (assets are -685.6x debt).
Next Steps
Dividend
What is NVE's current dividend yield, its reliability and sustainability?
5.48%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: NVEC's dividend (5.48%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: NVEC's dividend (5.48%) is in the top 25% of dividend payers in the US market (3.69%)
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 5 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (138.3%), NVEC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
19.1yrs
Average management tenure
CEO
Daniel Baker (61yo)
19.1yrs
Tenure
US$397,891
Compensation
Dr. Daniel A. Baker, Ph.D. has been the President and Chief Executive Officer at NVE Corp. since January 2001. From 1993 until joining NVE Corp., Dr. Baker served as President and Chief Executive Officer o ...
CEO Compensation Analysis
Compensation vs Market: Daniel's total compensation ($USD397.89K) is below average for companies of similar size in the US market ($USD1.68M).
Compensation vs Earnings: Daniel's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 19.1yrs | US$397.89k | 1.68% $5.9m | |
| CFO, Treasurer & Secretary | 14.1yrs | US$221.99k | 0.089% $313.9k | |
| Vice President of Advanced Technology | 3.1yrs | US$172.00k | no data | |
| Vice President of New Business Development | 23.1yrs | US$135.63k | no data | |
| Vice President | 20.1yrs | US$139.21k | no data |
19.1yrs
Average Tenure
60yo
Average Age
Experienced Management: NVEC's management team is seasoned and experienced (19.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 19.1yrs | US$397.89k | 1.68% $5.9m | |
| Independent Director | 15.5yrs | US$32.34k | 0.021% $75.9k | |
| Independent Chairman | 19.1yrs | US$32.84k | 0.025% $87.6k | |
| Independent Director | 5.5yrs | US$31.84k | no data | |
| Independent Director | 5.5yrs | US$31.84k | no data |
15.5yrs
Average Tenure
61yo
Average Age
Experienced Board: NVEC's board of directors are seasoned and experienced ( 15.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NVEC insiders have only sold shares 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: NVE Corporation
- Ticker: NVEC
- Exchange: NasdaqCM
- Founded: 1989
- Industry: Semiconductors
- Sector: Semiconductors
- Market Cap: US$353.807m
- Shares outstanding: 4.85m
- Website: https://www.nve.com
Number of Employees
Location
- NVE Corporation
- 11409 Valley View Road
- Eden Prairie
- Minnesota
- 55344
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NVEC | NasdaqCM (Nasdaq Capital Market) | Yes | Common Stock | US | USD | Nov 2000 |
| NVK | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Nov 2000 |
Biography
NVE Corporation develops and sells devices that use spintronics, a nanotechnology that utilizes electron spin to acquire, store, and transmit information. 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. The company also offers spintronic couplers, such as IL500-series couplers, IL600-series passive-input couplers, IL700/IL200-series high-speed couplers, IL4/IL3-series isolated network couplers, and IL800-series top-of-the-line couplers. In addition, it licenses the spintronic magnetoresistive random access memory technology, as well as conducts contract research and development activities. The company sells its products through distributors. NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:40 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.