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NVE
(NASDAQ:NVEC)
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Rating:74Outperform
Price Target:
$77.00
▼(-28.12% Downside)
Action:Reiterated
Date:10/23/26
Score is driven primarily by strong financial quality (elite profitability, low leverage, strong cash generation). This is partially offset by very weak technicals (price far below moving averages with negative MACD) and only mixed valuation (P/E ~27.9 despite a strong ~3.88% dividend yield). Earnings-call commentary is supportive overall, but includes near-term revenue and defense-sales volatility.
Positive Factors
Exceptional Profitability
NVE's exceptionally high gross and net margins indicate strong pricing power, differentiated technology, and an efficient operating model. Such profitability creates substantial internal funding for product development and capacity expansion while providing resilience if revenue growth remains uneven.
Negative Factors
Uneven Revenue Trajectory
Revenue performance remains uneven across periods, with a sharp quarterly decline despite strong first-half growth and a modest TTM contraction. This variability makes near-term earnings less predictable and raises execution risk as management works to convert recovery expectations into sustained expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional Profitability
NVE's exceptionally high gross and net margins indicate strong pricing power, differentiated technology, and an efficient operating model. Such profitability creates substantial internal funding for product development and capacity expansion while providing resilience if revenue growth remains uneven.
Read all positive factors
NVE Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue across different business segments, highlighting which areas are driving growth and profitability, and where the company might need to adjust its strategy.
Analyzes revenue across different business segments, highlighting which areas are driving growth and profitability, and where the company might need to adjust its strategy.
Data provided by:
The Fly
The FlyNVE (NVEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$351.87M
Dividend Yield5.51%
Average Volume (3M)114.23K
Price to Earnings (P/E)19.6
Beta (1Y)1.19
Revenue Growth24.06%
EPS Growth29.27%
CountryUS
Employees41
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)3.70
Shares Outstanding4,844,079
10 Day Avg. Volume144,608
30 Day Avg. Volume114,229
Financial Highlights & Ratios
PEG Ratio32.54
Price to Book (P/B)5.44
Price to Sales (P/S)12.03
P/FCF Ratio21.90
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue16.63
Enterprise Value/Gross Profit20.97
Enterprise Value/Ebitda24.24
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NVE Business Overview & Revenue Model
Company Description
NVE Corporation develops and sells devices that use spintronics, a nanotechnology relying on electron spin to acquire, store, and transmit information, both in the United States and internationally. The company manufactures spintronic products, in...
How the Company Makes Money
NVE makes money primarily by selling proprietary spintronics-based components to electronics customers and distributors. Its core revenue stream is product revenue from (1) magnetic sensors (used to detect position, speed, current, and magnetic fi...
NVE Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 20, 2027
Earnings Call Sentiment Positive
The call was generally optimistic. First-half revenue grew 36%, distributor sales increased sharply, profitability metrics remained strong, operating cash flow improved, and management highlighted positive momentum in robotics, automation, power conversion, and new products. However, the second quarter included an 8% revenue decline, a 95% decrease in defense product sales, lower net income and EPS, and higher operating expenses. Management characterized the main sales disruptions as temporary and expected second-half revenue to be consistent with the first half.Positive Updates
Strong Distributor Sales Growth
Distributor sales increased 67% in the second quarter compared with the prior-year quarter, driven by strengthening industry conditions and strong demand for new and legacy commercial products. First-half distributor sales growth was described as being in the 40% range, and the company said distributor sales accelerated in the second quarter versus the first quarter.
Negative Updates
Second-Quarter Revenue Decline
Total revenue decreased 8% in the second quarter compared with the prior-year quarter. The decline was due to a 9% decrease in product sales, partially offset by a 25% increase in contract R&D revenue.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Distributor Sales Growth
Distributor sales increased 67% in the second quarter compared with the prior-year quarter, driven by strengthening industry conditions and strong demand for new and legacy commercial products. First-half distributor sales growth was described as being in the 40% range, and the company said distributor sales accelerated in the second quarter versus the first quarter.
Read all positive updates
Company Guidance
Management expects medical device and defense sales to recover in the current quarter, revenues in the second half of the fiscal year to be consistent with the first half, and the effective tax rate to be between 14% and 16% for at least the remainder of the fiscal year; Peter Eames said the company expects to return to growth in the next quarter, expects continued growth in power conversion, expects growth long term from wafer level chip scale products, and expects revenue to increasingly come from new customers. NVE said typical product ASP is perhaps $1 to $2 per sensor, with the potential for several NVE sensors per robot and “certainly in the tens of centers” per humanoid robot, while its capacity is well within producing millions of sensors and tens of millions of sensors and can easily scale well beyond that in the short term; the company also declared another $1.00 per share quarterly dividend to be paid at the end of November.NVE Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.75M | 26.33M | 25.87M | 29.80M | 38.25M | 26.99M |
| Gross Profit | 24.37M | 20.73M | 21.64M | 23.03M | 30.19M | 20.72M |
| EBITDA | 21.09M | 18.28M | 18.36M | 20.78M | 27.29M | 17.92M |
| Net Income | 17.88M | 15.20M | 15.06M | 17.12M | 22.69M | 14.51M |
Balance Sheet | ||||||
| Total Assets | 59.86M | 60.87M | 64.28M | 66.78M | 69.26M | 67.47M |
| Cash, Cash Equivalents and Short-Term Investments | 23.65M | 19.84M | 21.73M | 22.20M | 17.18M | 31.29M |
| Total Debt | 871.32K | 905.54K | 921.23K | 355.15K | 518.71K | 602.14K |
| Total Liabilities | 1.89M | 2.62M | 2.01M | 1.21M | 2.18M | 2.90M |
| Stockholders Equity | 57.98M | 58.25M | 62.27M | 65.57M | 67.08M | 64.57M |
Cash Flow | ||||||
| Free Cash Flow | 18.66M | 14.47M | 13.05M | 18.23M | 18.16M | 12.02M |
| Operating Cash Flow | 19.80M | 16.66M | 14.31M | 18.25M | 19.09M | 12.50M |
| Investing Cash Flow | -1.58M | -3.63M | 2.67M | 9.58M | -8.53M | 7.02M |
| Financing Cash Flow | -19.36M | -19.35M | -19.23M | -19.21M | -19.34M | -19.50M |
NVE Technical Analysis
Negative
107.12
Price Trends
104.74
Negative
105.02
Negative
89.26
Negative
Market Momentum
-5.84
Positive
25.27
Positive
15.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVEC, the sentiment is Negative. The current price of 107.12 is above the 20-day moving average (MA) of 104.78, above the 50-day MA of 104.74, and above the 200-day MA of 89.26, indicating a bearish trend. The MACD of -5.84 indicates Positive momentum. The RSI at 25.27 is Positive, neither overbought nor oversold. The STOCH value of 15.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVEC.
NVE Risk Analysis
NVE disclosed 13 risk factors in its most recent earnings report. NVE reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We could incur losses on our marketable securities. Q1, 2024
2.
We face the risk of credit losses Q1, 2024
3.
Our business could be negatively impacted by cybersecurity events or information technology disruptions. Q1, 2024
NVE Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $351.87M | 19.63 | 30.52% | 5.51% | 24.06% | 29.27% | |
68 Neutral | $5.10B | -183.84 | -12.86% | ― | 3.51% | -5666.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $5.87B | 388.64 | 1.48% | ― | 24.22% | ― | |
57 Neutral | $306.57M | -116.36 | -3.79% | ― | 20.89% | -240.91% | |
52 Neutral | $66.57M | -4.29 | -11.17% | ― | 3.11% | 46.15% | |
49 Neutral | $148.35M | -8.44 | -21.39% | ― | 13.65% | 15.74% |
* Technology Sector Average
NVEC
NVE
72.64
3.63
5.26%
GSIT
GSI Technology
3.86
-8.19
-67.97%
INVE
INVE Technologies
2.79
-1.09
-28.09%
PI
IMPINJ
167.07
-70.81
-29.77%
MRAM
Everspin Technologies
12.59
1.98
18.66%
ALGM
Allegro MicroSystems
31.48
1.00
3.28%
NVE Corporate Events
DividendsFinancial Disclosures
NVE Corporation Posts Mixed Q2 Results, Declares Dividend
Positive
Oct 21, 2026
On October 21, 2026, NVE Corporation reported that second-quarter fiscal 2027 revenue fell 8% year on year to $5.83 million, as a 9% decline in product sales was only partly offset by a 25% rise in contract research and development revenue, with n...
Executive/Board ChangesShareholder Meetings
NVE Announces Leadership Transition and Board Expansion
Positive
Aug 10, 2026
At NVE’s 2026 Annual Meeting of Shareholders on August 6, 2026, longtime president and chief executive officer Daniel A. Baker retired from his executive roles under a previously disclosed succession plan and was reelected to the board as ch...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.