One-glance verdict
Within fair range
$70.15 our estimate vs market $107.83
54% above our estimate
Fundamentals snapshot
NVE Corporation
NVEC · NCM · Technology · Semiconductors
Current price
$107.83
52-week range
$57.21 - $135.00
Market cap
$521.59M
Balance sheet
Healthy
8.41x Adequate
Net cash $20.87M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 18.7% last year.
- Reward Returns 29.8% on equity, ahead of 83% of its peers.
- Risk Forward P/E (38.1x) is higher than trailing (29.0x) - earnings are expected to drop.
- Risk Stock trades 37.2% above its 5-year average P/E.
What this company does
NVE Corporation
NVE Corporation makes tiny, highly advanced sensors and data transmitters using a special technology called spintronics. The company earns money by selling these components to manufacturers of factory equipment, medical devices, and smart internet-connected gadgets. This matters because NVE's parts help make these final products smaller, more reliable, and more energy-efficient.
How the company got here
NVE Corporation was founded in 1989 as Nonvolatile Electronics, Inc., a spin-off from Honeywell, to commercialize a new technology called spintronics. This technology uses the spin of an electron, a property like a tiny magnet, to store and transmit information, which is different from traditional electronics that use the electron's charge. In its early years, the company focused heavily on research, often funded by government contracts, which helped build its expertise and patent portfolio. A key turning point was the shift from being primarily a research company to focusing on selling its own products, like sensors and couplers, which are now used in medical devices and factory automation. The company went public on the NASDAQ stock exchange in 2003, giving it more resources to grow.
What it actually does
NVE creates tiny electronic components that are used inside other companies' products, particularly in the industrial, scientific, and medical fields. Think of their main technology, spintronics, as a more efficient way for electronics to sense, store, and send data. Because their parts are very small, precise, and use very little power, they are ideal for devices like medical implants or sensors in automated factories. Essentially, NVE provides the microscopic "eyes and nerves" for complex electronic systems made by other manufacturers.
Product Sales
This is NVE's main business, making up the vast majority of its revenue (the total money it brings in from sales). The company manufactures and sells physical electronic parts called sensors and couplers. Other businesses buy these components to build into their own, larger products; for example, a medical device company might buy NVE's sensors to use in a new heart pacemaker. These products are sold worldwide through distributors (companies that act as middlemen to sell products to a wider range of customers).
Contract Research and Development
This is a much smaller part of NVE's business. Government agencies and other industrial companies pay NVE to conduct research and develop new applications for its spintronics technology. This work helps fund the discovery of next-generation capabilities and has been important for building the company's collection of patents (exclusive rights to its inventions). While it doesn't bring in as much money as selling products, this research keeps the company at the forefront of its specialized field.
What management is betting on now
The company's current focus is on expanding the use of its existing products in specialized, high-value markets rather than competing with larger companies on price. They are particularly targeting the Industrial Internet of Things (IIoT), where everyday factory equipment is connected to the internet to share data, and medical devices that require extremely small and low-power components. Management is also investing in developing new, even more sensitive and efficient sensors to solve difficult technical problems for their customers. After completing a major expansion of its manufacturing capabilities, the company is positioned to produce more of its components and meet growing demand in areas like robotics and artificial intelligence at the edge (AIoT, or processing data directly on a device).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$1.92M
FY2025 Q3
$3.81M
FY2025 Q4
$2.39M
FY2026 Q1
$4.13M
FY2026 Q2
$2.72M
FY2026 Q3
$-4.79M
FY2026 Q4
$-3.43M
FY2027 Q1
$1.08M
Revenue
$11.03M
Net income
$6.39M
Diluted EPS
1.32
Operating cash flow
$5.31M
Free cash flow
$1.08M
Fetching…
Sources
Revenue
$7.65M
Net income
$4.93M
Diluted EPS
1.02
Operating cash flow
$4.49M
Free cash flow
$-3.43M
Fetching…
Sources
Revenue
$6.22M
Net income
$3.38M
Diluted EPS
0.70
Operating cash flow
$4.19M
Free cash flow
$-4.79M
Fetching…
Sources
Revenue
$6.35M
Net income
$3.31M
Diluted EPS
0.68
Operating cash flow
$2.79M
Free cash flow
$2.72M
Fetching…
Sources
Revenue
$6.10M
Net income
$3.58M
Diluted EPS
0.74
Operating cash flow
$5.19M
Free cash flow
$4.13M
Fetching…
Sources
Revenue
$7.27M
Net income
$3.89M
Diluted EPS
0.80
Operating cash flow
$2.48M
Free cash flow
$2.39M
Fetching…
Sources
Revenue
$5.06M
Net income
$3.05M
Diluted EPS
0.63
Operating cash flow
$3.84M
Free cash flow
$3.81M
Fetching…
Sources
Revenue
$6.76M
Net income
$4.03M
Diluted EPS
0.83
Operating cash flow
$2.13M
Free cash flow
$1.92M
Fetching…
Sources
Is it cheap or expensive?
Fair value $70.15 vs current price $107.83
Our most-likely fair value is $70.15 a share — about 34.9% away from today's price of $107.83, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $20.9M - more cash than debt. Interest coverage 8.4x.
Net debt
$-20.87M
Interest coverage
8.41x
NVE Corporation's profit covers its interest bill about 8.4 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
NVEC
BASELINE
NVE Corporation
Total debt $905.83K Interest coverage 8.41x This is the baseline the peer rows are being compared against.
Total debt $304.01M Interest coverage 1.13x -87% vs NVEC Carries about 7.4x less debt cushion than NVEC.
Total debt $89.89M Interest coverage 19.50x +132% vs NVEC Carries about 2.3x more debt cushion than NVEC.
Total debt $4.58M Interest coverage -919.60x -100% vs NVEC This peer has almost no interest-payment cushion compared with NVEC.
What you should know
The case for and against NVEC
3 Rewards
3 Risks
Rewards
-
Revenue grew 18.7% last year.
-
Returns 29.8% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (38.1x) is higher than trailing (29.0x) - earnings are expected to drop.
-
Stock trades 37.2% above its 5-year average P/E.
-
Insider ownership is only 0.4% (peer median: 5.9%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
28.99x
Forward P/E
38.10x
P/B
8.73x
P/S
16.69x
EV/EBITDA
25.02x
PEG ratio
0.84x
Profitability
How much profit each dollar creates
Gross margin
79.3%
Operating margin
65.8%
Net margin
57.6%
ROE
29.8%
ROA
19.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
23.72x
Quick ratio
19.13x
Total debt
$905.83K
Total cash
$21.77M
Growth
How the business has been compounding
Revenue TTM
$31.26M
Revenue 5Y CAGR
0.9%
EPS TTM
3.72
EPS 5Y CAGR
-12.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$16.77M
Free CF TTM
$14.47M
FCF margin
46.3%
Dividend
Shareholder payout
Yield
3.9%
Payout ratio
107.5%
Last ex-div date
2026-08-03