NVE Corporation Fundamental Analysis (NASDAQ: NVEC)
NVE Corporation (NASDAQ: NVEC) shows moderate financial fundamentals with a PE ratio of 32.19, profit margin of 57.64%, and ROE of 30.53%. The company generates $0.0B in annual revenue with weak year-over-year growth of -13.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NVEC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNVEC demonstrates superior asset utilization.
Valuation Score
ModerateNVEC shows balanced valuation metrics.
Growth Score
WeakNVEC faces weak or negative growth trends.
Financial Health Score
ExcellentNVEC maintains a strong and stable balance sheet.
Profitability Score
ExcellentNVEC achieves industry-leading margins.
Key Financial Metrics
Is NVEC Expensive or Cheap?
P/E Ratio
NVEC trades at 32.19 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NVEC's PEG of 1.34 indicates fair valuation.
Price to Book
The market values NVE Corporation at 9.69 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.45 times EBITDA. This signals the market has high growth expectations.
How Well Does NVEC Make Money?
Net Profit Margin
For every $100 in sales, NVE Corporation keeps $57.64 as profit after all expenses.
Operating Margin
Core operations generate 62.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.53 in profit for every $100 of shareholder equity.
ROA
NVE Corporation generates $29.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NVE Corporation generates strong operating cash flow of $16.77M, reflecting robust business health.
Free Cash Flow
NVE Corporation generates strong free cash flow of $15.59M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.22 in free cash annually.
FCF Yield
NVEC converts 2.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
18.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
23.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.29
vs 25 benchmark
ROCE
Return on capital employed
0.32
vs 25 benchmark
How NVEC Stacks Against Its Sector Peers
| Metric | NVEC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.19 | 35.65 | Neutral |
| ROE | 30.53% | 651.00% | Weak |
| Net Margin | 57.64% | -138740.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.26 | Strong (Low Leverage) |
| Current Ratio | 23.72 | 5.96 | Strong Liquidity |
| ROA | 29.01% | 227.00% | Weak |
NVEC outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NVE Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2.04%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
3.93%
Industry Style: Growth, Innovation, High Beta
GrowingFCF CAGR
-9.78%
Industry Style: Growth, Innovation, High Beta
Declining