NasdaqCM:NVEC

Stock Analysis Report

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

-4.6%

NVEC

-6.6%

US Semiconductor

-4.2%

US Market


1 Year Return

-32.9%

NVEC

28.8%

US Semiconductor

14.0%

US Market

Return vs Industry: NVEC underperformed the US Semiconductor industry which returned 28.8% over the past year.

Return vs Market: NVEC underperformed the US Market which returned 14% over the past year.


Shareholder returns

NVECIndustryMarket
7 Day-4.6%-6.6%-4.2%
30 Day-7.8%-5.6%-1.8%
90 Day6.3%5.4%2.6%
1 Year-29.0%-32.9%31.2%28.8%16.3%14.0%
3 Year1.7%-12.2%81.6%71.8%43.2%34.0%
5 Year41.8%7.2%133.8%111.8%65.9%47.6%

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

Valuation

Is NVE undervalued compared to its fair value and its price relative to the market?

23.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NVEC ($68.8) 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 (23.8x) compared to the Semiconductor industry average (35.8x).

PE vs Market: NVEC is poor value based on its PE Ratio (23.8x) compared to the US market (17.7x).


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 (4.2x) compared to the US Semiconductor industry average (2.9x).


Next Steps

Future Growth

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

21.2%

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

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 (-28.7%).


Return on Equity

High ROE: NVEC's Return on Equity (17.5%) is considered low.


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?

5.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NVEC's dividend (5.81%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: NVEC's dividend (5.81%) is in the top 25% of dividend payers in the US market (3.77%)


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 ($USD397.89K) is below average for companies of similar size in the US market ($USD1.72M).

Compensation vs Earnings: Daniel's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Baker
CEO, President & Director19.1yrsUS$397.89k1.68% $5.6m
Curt Reynders
CFO, Treasurer & Secretary14.1yrsUS$221.99k0.059% $197.5k
Peter Eames
Vice President of Advanced Technology3.1yrsUS$172.00kno data
John Myers
Vice President of New Business Development23.1yrsUS$135.63kno data
Jay Brown
Vice President20.1yrsUS$139.21kno 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

NamePositionTenureCompensationOwnership
Daniel Baker
CEO, President & Director19.1yrsUS$397.89k1.68% $5.6m
Patricia Hollister
Independent Director15.5yrsUS$32.34k0.021% $71.5k
Terrence Glarner
Independent Chairman19.1yrsUS$32.84k0.025% $82.6k
Richard Kramp
Independent Director5.5yrsUS$31.84kno data
Gary Maharaj
Independent Director5.5yrsUS$31.84kno 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$333.405m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVECNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDNov 2000
NVKDB (Deutsche Boerse AG)YesCommon StockDEEURNov 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:37
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.