Loading...

NVE

Nasdaq:NVEC
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NVEC
Nasdaq
$361M
Market Cap
  1. Home
  2. US
  3. Semiconductors
Company description

NVE Corporation develops and sells devices that use spintronics, a nanotechnology that utilizes electron spin to acquire, store, and transmit information. The last earnings update was 48 days ago. More info.


Add to Portfolio Compare Print
  • NVE has significant price volatility in the past 3 months.
NVEC Share Price and Events
7 Day Returns
2.8%
NasdaqCM:NVEC
-4.1%
US Semiconductor
0.1%
US Market
1 Year Returns
-36.8%
NasdaqCM:NVEC
-11.1%
US Semiconductor
1.2%
US Market
NVEC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NVE (NVEC) 2.8% -3.7% -21.5% -36.8% 28.7% 39.8%
US Semiconductor -4.1% -3% -6.4% -11.1% 67.5% 78.8%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • NVEC underperformed the Semiconductor industry which returned -11.1% over the past year.
  • NVEC underperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
NVEC
Industry
5yr Volatility vs Market
Related Companies

Value

 Is NVE undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of NVE to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for NVE.

NasdaqCM:NVEC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:NVEC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.22
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.224 (1 + (1- 21%) (0%))
1.15
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.15 * 5.96%)
9.58%

Discounted Cash Flow Calculation for NasdaqCM:NVEC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for NVE is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqCM:NVEC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.58%)
2019 13.36 Est @ -3.52% 12.19
2020 13.14 Est @ -1.65% 10.94
2021 13.10 Est @ -0.33% 9.95
2022 13.17 Est @ 0.59% 9.13
2023 13.33 Est @ 1.23% 8.44
2024 13.56 Est @ 1.68% 7.83
2025 13.83 Est @ 1.99% 7.29
2026 14.13 Est @ 2.22% 6.80
2027 14.47 Est @ 2.37% 6.35
2028 14.83 Est @ 2.48% 5.94
Present value of next 10 years cash flows $84.86
NasdaqCM:NVEC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $14.83 × (1 + 2.73%) ÷ (9.58% – 2.73%)
$222.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $222.29 ÷ (1 + 9.58%)10
$89.03
NasdaqCM:NVEC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $84.86 + $89.03
$173.89
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $173.89 / 4.85
$35.88
NasdaqCM:NVEC Discount to Share Price
Calculation Result
Value per share (USD) From above. $35.88
Current discount Discount to share price of $74.49
= -1 x ($74.49 - $35.88) / $35.88
-107.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of NVE is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for NVE's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NVE's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:NVEC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.00
NasdaqCM:NVEC Share Price ** NasdaqCM (2019-06-18) in USD $74.49
United States of America Semiconductor Industry PE Ratio Median Figure of 69 Publicly-Listed Semiconductor Companies 22.43x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of NVE.

NasdaqCM:NVEC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:NVEC Share Price ÷ EPS (both in USD)

= 74.49 ÷ 3.00

24.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NVE is overvalued based on earnings compared to the US Semiconductor industry average.
  • NVE is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does NVE's expected growth come at a high price?
Raw Data
NasdaqCM:NVEC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-2.7%per year
United States of America Semiconductor Industry PEG Ratio Median Figure of 63 Publicly-Listed Semiconductor Companies 0.96x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for NVE, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on NVE's assets?
Raw Data
NasdaqCM:NVEC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $17.08
NasdaqCM:NVEC Share Price * NasdaqCM (2019-06-18) in USD $74.49
United States of America Semiconductor Industry PB Ratio Median Figure of 107 Publicly-Listed Semiconductor Companies 2.47x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NasdaqCM:NVEC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:NVEC Share Price ÷ Book Value per Share (both in USD)

= 74.49 ÷ 17.08

4.36x

* Primary Listing of NVE.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NVE is overvalued based on assets compared to the US Semiconductor industry average.
X
Value checks
We assess NVE's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. NVE has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover NVE, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-2.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NVE expected to grow at an attractive rate?
  • NVE's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • NVE's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Unable to compare NVE's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:NVEC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:NVEC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -2.7%
United States of America Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 18%
United States of America Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:NVEC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:NVEC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
NasdaqCM:NVEC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 26 14 15
2018-12-31 29 16 16
2018-09-30 30 16 16
2018-06-30 29 15 15
2018-03-31 30 15 14
2017-12-31 29 13 13
2017-09-30 29 14 13
2017-06-30 29 13 13
2017-03-31 28 12 13
2016-12-31 28 13 13
2016-09-30 26 12 12
2016-06-30 26 13 12

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NVE's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if NVE is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:NVEC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from NVE Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:NVEC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
NasdaqCM:NVEC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.00
2018-12-31 3.21
2018-09-30 3.24
2018-06-30 3.01
2018-03-31 2.87
2017-12-31 2.70
2017-09-30 2.68
2017-06-30 2.71
2017-03-31 2.68
2016-12-31 2.59
2016-09-30 2.40
2016-06-30 2.40

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if NVE will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess NVE's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NVE has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has NVE performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare NVE's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • NVE's year on year earnings growth rate has been positive over the past 5 years.
  • NVE's 1-year earnings growth exceeds its 5-year average (4.3% vs 3.1%)
  • NVE's earnings growth has not exceeded the US Semiconductor industry average in the past year (4.3% vs 22.6%).
Earnings and Revenue History
NVE's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from NVE Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:NVEC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 26.47 14.51 1.22 4.11
2018-12-31 28.78 15.53 1.35 4.00
2018-09-30 29.87 15.68 1.39 3.73
2018-06-30 29.36 14.56 1.36 3.79
2018-03-31 29.86 13.91 1.44 3.70
2017-12-31 28.82 13.06 1.40 3.78
2017-09-30 28.92 12.97 1.47 3.75
2017-06-30 29.23 13.11 1.47 3.49
2017-03-31 28.33 12.95 1.46 3.34
2016-12-31 27.57 12.52 1.45 3.37
2016-09-30 26.13 11.62 1.48 3.28
2016-06-30 26.10 11.62 1.66 3.14
2016-03-31 27.72 12.29 1.75 3.06
2015-12-31 29.19 13.35 1.94 2.76
2015-09-30 29.46 13.57 2.07 2.72
2015-06-30 30.45 14.13 2.17 2.88
2015-03-31 30.58 14.37 2.31 3.00
2014-12-31 29.00 13.27 2.27 3.13
2014-09-30 29.18 13.25 2.28 3.34
2014-06-30 28.21 12.61 2.31 3.43
2014-03-31 25.93 11.14 2.24 3.59
2013-12-31 27.17 11.68 2.28 3.51
2013-09-30 27.23 11.80 2.31 3.11
2013-06-30 25.75 11.02 2.26 2.85
2013-03-31 27.03 11.83 2.24 2.57
2012-12-31 27.42 11.82 2.35 2.58
2012-09-30 27.05 11.21 2.30 2.79
2012-06-30 27.83 11.32 2.30 2.79

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • NVE has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • NVE used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.
  • NVE has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess NVE's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NVE has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is NVE's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up NVE's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NVE is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NVE has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NVE's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • NVE has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from NVE Company Filings, last reported 2 months ago.

NasdaqCM:NVEC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 82.78 0.00 19.37
2018-12-31 83.92 0.00 23.65
2018-09-30 85.15 0.00 29.99
2018-06-30 85.44 0.00 31.38
2018-03-31 86.44 0.00 25.52
2017-12-31 88.05 0.00 23.54
2017-09-30 89.56 0.00 22.03
2017-06-30 91.19 0.00 31.24
2017-03-31 92.68 0.00 27.79
2016-12-31 94.21 0.00 28.45
2016-09-30 96.08 0.00 28.01
2016-06-30 97.79 0.00 21.47
2016-03-31 99.26 0.00 27.23
2015-12-31 101.60 0.00 27.22
2015-09-30 104.19 0.00 35.89
2015-06-30 106.99 0.00 29.85
2015-03-31 108.33 0.00 29.54
2014-12-31 114.44 0.00 23.35
2014-09-30 111.69 0.00 17.91
2014-06-30 107.84 0.00 14.06
2014-03-31 103.70 0.00 13.62
2013-12-31 100.84 0.00 12.25
2013-09-30 97.96 0.00 9.89
2013-06-30 95.70 0.00 12.18
2013-03-31 93.98 0.00 12.22
2012-12-31 90.83 0.00 16.45
2012-09-30 87.95 0.00 17.84
2012-06-30 84.75 0.00 20.40
  • NVE has no debt.
  • NVE has not taken on any debt in the past 5 years.
  • NVE has no debt, it does not need to be covered by operating cash flow.
  • NVE has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess NVE's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NVE has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.37%
Current annual income from NVE dividends.
If you bought $2,000 of NVE shares you are expected to receive $107 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • NVE's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • NVE's dividend is above the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:NVEC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:NVEC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
NasdaqCM:NVEC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-01 4.000 5.229
2019-01-23 4.000 4.075
2018-10-15 4.000 4.456
2018-07-18 4.000 3.674
2018-05-02 4.000 3.580
2018-01-17 4.000 4.988
2017-10-18 4.000 4.681
2017-07-19 4.000 5.231
2017-05-03 4.000 5.050
2016-10-19 4.000 5.544
2016-07-20 4.000 6.888
2016-01-20 4.000 7.324
2015-10-21 4.000 7.106
2015-05-06 4.000 6.627

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, NVE has been paying a dividend for less than 10 years.
  • NVE has only been paying a dividend for 4 years, and since then there has been no growth.
Current Payout to shareholders
What portion of NVE's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.7x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess NVE's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can NVE afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NVE has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of NVE's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Daniel Baker
COMPENSATION $393,646
AGE 60
TENURE AS CEO 18.4 years
CEO Bio

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 of Printware, Inc., a Nasdaq National Market company now known as Printware LLC, which makes high-speed laser imaging systems. He was Printware’s Vice President of Sales, Marketing, and Product Development. Dr. Baker has 40 years of executive and engineering experience, including executive positions with Minntech Corporation and Percom Data Corporation. He served as Director of Electronic Development for Minntech Corporation (now known as Medivators Inc., a Cantel Medical Company) and Director of Engineering for Percom Data Corporation. Dr. Baker has been a Director of NVE Corp. since January 2001. He was a Printware director from 1993 until June 2000. Dr. Baker has Ph.D. in biomedical engineering and M.S. in Engineering from the University of Minnesota, an MBA in Finance from the University of Minnesota and a B.S. in biomedical Engineering from Case Western Reserve University.

CEO Compensation
  • Daniel's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Daniel's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the NVE management team in years:

18.4
Average Tenure
59
Average Age
  • The average tenure for the NVE management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Daniel Baker

TITLE
CEO, President & Director
COMPENSATION
$394K
AGE
60
TENURE
18.4 yrs

Curt Reynders

TITLE
CFO, Treasurer & Secretary
COMPENSATION
$216K
AGE
55
TENURE
13.4 yrs

Peter Eames

TITLE
Vice President of Advanced Technology
COMPENSATION
$158K
AGE
42
TENURE
2.4 yrs

John Myers

TITLE
Vice President of New Business Development
COMPENSATION
$136K
AGE
69
TENURE
22.4 yrs

Jay Brown

TITLE
Vice President
COMPENSATION
$139K
AGE
59
TENURE
19.4 yrs
Board of Directors Tenure

Average tenure and age of the NVE board of directors in years:

14.8
Average Tenure
60
Average Age
  • The average tenure for the NVE board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Terrence Glarner

TITLE
Independent Chairman
COMPENSATION
$19K
AGE
74
TENURE
18.4 yrs

Daniel Baker

TITLE
CEO, President & Director
COMPENSATION
$394K
AGE
60
TENURE
18.4 yrs

Patricia Hollister

TITLE
Director
COMPENSATION
$19K
AGE
58
TENURE
14.8 yrs

Gary Maharaj

TITLE
Director
COMPENSATION
$18K
AGE
55
TENURE
4.8 yrs

Richard Kramp

TITLE
Director
COMPENSATION
$18K
AGE
72
TENURE
4.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
03. Dec 18 Sell Curt Reynders Individual 30. Nov 18 30. Nov 18 -2,075 $95.15 $-197,436
30. Aug 18 Sell Curt Reynders Individual 29. Aug 18 29. Aug 18 -1,154 $118.71 $-136,991
24. Aug 18 Sell Curt Reynders Individual 22. Aug 18 22. Aug 18 -271 $119.63 $-32,420
X
Management checks
We assess NVE's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NVE has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Tempted To Sell NVE Corporation (NASDAQ:NVEC) Because Of Its P/E Ratio?

The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for NVE: P/E of 23.51 = $70.42 ÷ $3 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that buyers have to pay a higher price for each $1 the company has earned over the last year. … And as that P/E ratio drops, the company will look cheap, unless its share price increases.

Simply Wall St -

Should We Be Delighted With NVE Corporation's (NASDAQ:NVEC) ROE Of 18%?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for NVE: 18% = US$15m ÷ US$83m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Combining NVE's Debt And Its 18% Return On Equity One positive for shareholders is that NVE does not have any net debt! … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

What Can We Make Of NVE Corporation’s (NASDAQ:NVEC) High Return On Capital?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for NVE: 0.19 = US$16m ÷ (US$84m - US$836k) (Based on the trailing twelve months to March 2019.) So, NVE has an ROCE of 19%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. … In addition to low current liabilities (making a negligible impact on ROCE), NVE earns a sound return on capital employed.

Simply Wall St -

How Should Investors React To NVE Corporation's (NASDAQ:NVEC) CEO Pay?

Daniel Baker became the CEO of NVE Corporation (NASDAQ:NVEC) in 2001. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Daniel Baker's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What Kind Of Shareholders Own NVE Corporation (NASDAQ:NVEC)?

NVE is a smaller company with a market capitalization of US$488m, so it may still be flying under the radar of many institutional investors. … Our analysis of the ownership of the company, below, shows that. … institutional investors have bought into the company.

Simply Wall St -

One Thing To Remember About The NVE Corporation (NASDAQ:NVEC) Share Price

If you're interested in NVE Corporation (NASDAQ:NVEC), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … The first thing to understand about beta is that the beta of the overall market is one.

Simply Wall St -

Want To Invest In NVE Corporation (NASDAQ:NVEC)? Here's How It Performed Lately

For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. … NVEC's trailing twelve-month earnings (from 31 December 2018) of US$16m has. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 3.3%, indicating the rate at which NVEC is growing has accelerated

Simply Wall St -

Should You Buy NVE Corporation (NASDAQ:NVEC) For Its Dividend?

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … In the last few years NVE Corporation (NASDAQ:NVEC) has paid a dividend to shareholders. … 5 questions to ask before buying a dividend stock

Simply Wall St -

Did NVE Corporation (NASDAQ:NVEC) Use Debt To Deliver Its ROE Of 19%?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows NVE has a return on equity of 19% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.19 in profit.

Simply Wall St -

NVE Shareholders Booked A 99% Gain In The Last Three Years

One flawed but reasonable way to assess how sentiment around a company has changed, is to compare the earnings per share (EPS) with the share price. … NVE was able to grow its EPS at 2.7% per year over three years, sending the share price higher. … In comparison, the 26% per year gain in the share price outpaces the EPS growth.

Simply Wall St -

Company Info

Description

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.

Details
Name: NVE Corporation
NVEC
Exchange: NasdaqCM
Founded: 1989
$360,979,284
4,846,010
Website: http://www.nve.com
Address: NVE Corporation
11409 Valley View Road,
Eden Prairie,
Minnesota, 55344,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM NVEC Common Stock Nasdaq Capital Market US USD 22. Nov 2000
DB NVK Common Stock Deutsche Boerse AG DE EUR 22. Nov 2000
Number of employees
Current staff
Staff numbers
48
NVE employees.
Industry
Semiconductors
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:39
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2017/05/03
Last earnings filing: 2019/05/01
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.