NVE CORP (NVEC) Stock Fundamental Analysis
NASDAQ:NVEC - Nasdaq - US6294452064 - Common Stock - Currency: USD
NVEC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making NVEC a very profitable company, without any liquidiy or solvency issues. NVEC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year NVEC was profitable.
NVEC had a positive operating cash flow in the past year.
NVEC had positive earnings in each of the past 5 years.
In the past 5 years NVEC always reported a positive cash flow from operatings.
1.2 Ratios
NVEC has a better Return On Assets (23.44%) than 96.36% of its industry peers.
The Return On Equity of NVEC (24.19%) is better than 89.09% of its industry peers.
NVEC has a Return On Invested Capital of 21.19%. This is amongst the best in the industry. NVEC outperforms 94.55% of its industry peers.
NVEC had an Average Return On Invested Capital over the past 3 years of 25.49%. This is significantly above the industry average of 10.57%.
The 3 year average ROIC (25.49%) for NVEC is well above the current ROIC(21.19%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.44% | ||
| ROE | 24.19% | ||
| ROIC | 21.19% |
ROA(3y)27.27%
ROA(5y)23.89%
ROE(3y)28.04%
ROE(5y)24.61%
ROIC(3y)25.49%
ROIC(5y)22.48%
1.3 Margins
With an excellent Profit Margin value of 58.22%, NVEC belongs to the best of the industry, outperforming 98.18% of the companies in the same industry.
In the last couple of years the Profit Margin of NVEC has remained more or less at the same level.
With an excellent Operating Margin value of 61.81%, NVEC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NVEC's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 83.63%, NVEC belongs to the best of the industry, outperforming 98.18% of the companies in the same industry.
NVEC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.81% | ||
| PM (TTM) | 58.22% | ||
| GM | 83.63% |
OM growth 3Y0.72%
OM growth 5Y0.25%
PM growth 3Y2.69%
PM growth 5Y0.36%
GM growth 3Y2.89%
GM growth 5Y0.7%
2. Health
2.1 Basic Checks
NVEC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for NVEC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, NVEC has more shares outstanding
There is no outstanding debt for NVEC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
NVEC has an Altman-Z score of 105.95. This indicates that NVEC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NVEC (105.95) is better than 99.09% of its industry peers.
There is no outstanding debt for NVEC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 105.95 |
ROIC/WACC2.09
WACC10.13%
2.3 Liquidity
NVEC has a Current Ratio of 28.40. This indicates that NVEC is financially healthy and has no problem in meeting its short term obligations.
NVEC has a better Current ratio (28.40) than 100.00% of its industry peers.
NVEC has a Quick Ratio of 22.03. This indicates that NVEC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 22.03, NVEC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 28.4 | ||
| Quick Ratio | 22.03 |
3. Growth
3.1 Past
The earnings per share for NVEC have decreased strongly by -12.13% in the last year.
NVEC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.43% yearly.
The Revenue for NVEC has decreased by -13.17% in the past year. This is quite bad
Measured over the past years, NVEC shows a small growth in Revenue. The Revenue has been growing by 2.40% on average per year.
EPS 1Y (TTM)-12.13%
EPS 3Y13.5%
EPS 5Y3.43%
EPS Q2Q%1.27%
Revenue 1Y (TTM)-13.17%
Revenue growth 3Y11.73%
Revenue growth 5Y2.4%
Sales Q2Q%-1.84%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.79, NVEC is valued on the expensive side.
Based on the Price/Earnings ratio, NVEC is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NVEC to the average of the S&P500 Index (26.32), we can say NVEC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.79 | ||
| Fwd PE | N/A |
4.2 Price Multiples
68.18% of the companies in the same industry are more expensive than NVEC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NVEC is valued a bit cheaper than 76.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.05 | ||
| EV/EBITDA | 18.99 |
4.3 Compensation for Growth
The excellent profitability rating of NVEC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.78
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.56%, NVEC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.50, NVEC pays a better dividend. On top of this NVEC pays more dividend than 97.27% of the companies listed in the same industry.
NVEC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
5.2 History
The dividend of NVEC decreases each year by -0.19%.
NVEC has paid a dividend for at least 10 years, which is a reliable track record.
NVEC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
NVEC pays out 128.38% of its income as dividend. This is not a sustainable payout ratio.
DP128.38%
EPS Next 2YN/A
EPS Next 3YN/A
70.26
-1.07 (-1.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners73.26%
Inst Owner Change3.76%
Ins Owners0.04%
Ins Owner Change0.14%
Market Cap340.06M
Analysts43.33
Price TargetN/A
Short Float %2.69%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
Yearly Dividend4
Dividend Growth(5Y)-0.19%
DP128.38%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.79 | ||
| Fwd PE | N/A | ||
| P/S | 13.14 | ||
| P/FCF | 26.05 | ||
| P/OCF | 23.76 | ||
| P/B | 5.46 | ||
| P/tB | 5.46 | ||
| EV/EBITDA | 18.99 |
EPS(TTM)3.55
EY5.05%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)2.7
FCFY3.84%
OCF(TTM)2.96
OCFY4.21%
SpS5.35
BVpS12.87
TBVpS12.87
PEG (NY)N/A
PEG (5Y)5.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.44% | ||
| ROE | 24.19% | ||
| ROCE | 25.34% | ||
| ROIC | 21.19% | ||
| ROICexc | 32.31% | ||
| ROICexgc | 32.31% | ||
| OM | 61.81% | ||
| PM (TTM) | 58.22% | ||
| GM | 83.63% | ||
| FCFM | 50.45% |
ROA(3y)27.27%
ROA(5y)23.89%
ROE(3y)28.04%
ROE(5y)24.61%
ROIC(3y)25.49%
ROIC(5y)22.48%
ROICexc(3y)36.82%
ROICexc(5y)34.16%
ROICexgc(3y)36.82%
ROICexgc(5y)34.16%
ROCE(3y)30.5%
ROCE(5y)26.89%
ROICexcg growth 3Y-7.17%
ROICexcg growth 5Y5.12%
ROICexc growth 3Y-7.17%
ROICexc growth 5Y5.12%
OM growth 3Y0.72%
OM growth 5Y0.25%
PM growth 3Y2.69%
PM growth 5Y0.36%
GM growth 3Y2.89%
GM growth 5Y0.7%
F-Score4
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 387.75% | ||
| Cap/Sales | 4.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.69% | ||
| Profit Quality | 86.65% | ||
| Current Ratio | 28.4 | ||
| Quick Ratio | 22.03 | ||
| Altman-Z | 105.95 |
F-Score4
WACC10.13%
ROIC/WACC2.09
Cap/Depr(3y)251.57%
Cap/Depr(5y)176.02%
Cap/Sales(3y)2.46%
Cap/Sales(5y)1.89%
Profit Quality(3y)91.03%
Profit Quality(5y)93.94%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.13%
EPS 3Y13.5%
EPS 5Y3.43%
EPS Q2Q%1.27%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-13.17%
Revenue growth 3Y11.73%
Revenue growth 5Y2.4%
Sales Q2Q%-1.84%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-13.64%
EBIT growth 3Y-0.69%
EBIT growth 5Y0.62%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-28.4%
FCF growth 3Y2.79%
FCF growth 5Y-3.81%
OCF growth 1Y-21.58%
OCF growth 3Y4.61%
OCF growth 5Y-2.08%