# Nve (NVEC.US)

Canonical: https://gigainvestors.com/s/NVEC

Analysis as of: 2026-10-16T07:30:44.998Z. Financial observations: FY2000–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $103.70 per share; close as of 2026-10-15.

Estimated value: low $42.95 per share, central $48.27 per share, high $55.35 per share. Buy at or below the central value $48.27 per share. Valuation as of 2026-10-16T07:30:44.998Z; scenarios are not confidence intervals.

Expected annual return: 6.0% at the stated quote. About 6.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 5 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.03×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.62×

- FY2019: 0.60×

- FY2020: 0.61×

- FY2021: 0.60×

- FY2022: 0.61×

- FY2023: 0.67×

- FY2024: 0.62×

- FY2025: 0.62×

- FY2026: 0.60×

- LTM to Jun 2026: 0.62×

### moat: pass

- ROIC, median of available years: 28.7%

- ROIC, second-lowest year: 19.6%

- Typical minus recent gross margin: 0.2 pp

- Typical gross margin (annual median): 79.0%

- Recent gross margin (lower of latest and 3-year median): 78.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.8%

- ROIC including acquisitions, ten-year median: 31.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 18.2%

- FY2018: 21.1%

- FY2019: 20.6%

- FY2020: 25.2%

- FY2021: 19.6%

- FY2022: 40.0%

- FY2023: 42.6%

- FY2024: 35.4%

- FY2025: 32.2%

- FY2026: 34.5%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $82M

- Net income, five-year total: $85M

- Return on incremental invested capital: 42.6%

- Working capital / revenue, annual change: 2.3 pp

- Working capital / revenue, change between three-year averages: 15.8 pp

- Working capital / revenue, final three-year average: 38.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 0.99×

- FY2024: 1.02×

- FY2025: 0.94×

- FY2026: 0.89×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 20.6% vs 34.5%

- Per-share earnings: 2.68 to 3.14 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.0%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: -$84M

- Cumulative retained earnings: -$35M

- Diluted shares, 10-year annual growth: -0.0%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 2.0%

- Per-share value change: $0.46

- Per-share value, starting three-year median: $2.68

- Per-share value, ending three-year median: $3.14

- Buybacks concentrated in cheaper years (correlation): 0.40

- Average buyback yield: 0.1%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- Acquisition spending: $9.5M

- Cumulative net income, 10 years: $152M

- ROIC, first three-year median: 20.6%

- ROIC, last three-year median: 34.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: $2.68

- FY2018: $2.87

- FY2019: $2.99

- FY2020: $3.00

- FY2021: $2.42

- FY2022: $3.00

- FY2023: $4.70

- FY2024: $3.54

- FY2025: $3.11

- FY2026: $3.14

### accounting: pass

- Sloan accruals: -2.4%

- Receivables to sales index (DSRI): 1.06×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.10×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 0.6%

- FY2018: -1.4%

- FY2019: 0.3%

- FY2020: -1.7%

- FY2021: -2.3%

- FY2022: 3.0%

- FY2023: 5.2%

- FY2024: -1.7%

- FY2025: 1.2%

- FY2026: -2.4%

## Holders

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 11.2% a year for ten years · "NVEC Reports Solid Y/Y Earnings Growth in Q4, Unveils Strong Outlook" (finance.yahoo.com, May 2026) · sales +18.7%

Story as of 2026-10-16T09:59:17.505Z; price observation 2026-10-15.

Price needs cash profits to grow 11.2% a year for ten years

- 2026-05-13: NVEC Reports Solid Y/Y Earnings Growth in Q4, Unveils Strong Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/nvec-reports-solid-y-y-144000981.html))

### Sales · FY2026–2027

sales +18.7%; source https://www.sec.gov/Archives/edgar/data/724910/000137647426000348/nvec-20260331_10k.htm; observed 2026-05-06.

- FY2018: $30M 

- FY2019: $26M 

- FY2020: $25M 

- FY2021: $21M 

- FY2022: $27M 

- FY2023: $38M 

- FY2024: $30M 

- FY2025: $26M 

- FY2026: $26M 

- FY2027: $31M 

### Gross margin · FY2026

gross margin 78.7%; source https://www.sec.gov/Archives/edgar/data/724910/000137647426000348/nvec-20260331_10k.htm; observed 2026-05-06.

- FY2017: 78.5% 

- FY2018: 79.0% 

- FY2019: 80.3% 

- FY2020: 80.8% 

- FY2021: 80.7% 

- FY2022: 76.8% 

- FY2023: 78.9% 

- FY2024: 77.3% 

- FY2025: 83.6% 

- FY2026: 78.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in semiconductors; annual sales are USD 26.3 million.

- Source: https://www.sec.gov/Archives/edgar/data/724910/000137647426000348/nvec-20260331_10k.htm (filed 2026-05-06); FY2026: revenue 26331218; grossProfit 20731764; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); NVEC.US: NVE Corporation develops and sells devices that use spintronics, a nanotechnology relying on electron spin to acquire, store, and transmit information in the United States. The company manufactures spintronic products, including sensors and couplers for use in sensing and transmitting data. Its products comprise standard sensors to detect the presence of a magnetic or metallic material to determine position, rotation, or speed for the factory automation market; and custom and medical sensors for medical devices to replace electromechanical magnetic switches. The company also offers spintronic couplers for power conversion, industrial Internet of Things (IIoT), and the Artificial Intelligence of Things (AIoT) markets; DC-to-DC converters for use in energy conversion systems and industrial networks for IIoT and AIoT. Additionally, it undertakes contracts for research and development and licenses spintronic magnetoresistive random access memory technology. The company sells its products through distributors. NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota.

### Why customers stay

Margins ranged from 77.3% to 83.6% during 2024–26; it earns 28.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-06); FY2024: grossProfit / revenue = 77.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-06); FY2025: grossProfit / revenue = 83.6%.

- Source: https://www.sec.gov/Archives/edgar/data/724910/000137647426000348/nvec-20260331_10k.htm (filed 2026-05-06); FY2026: grossProfit / revenue = 78.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-06); 10-year return on capital observations [[2017,0.1823051312003927],[2018,0.2105882639987833],[2019,0.2057149849723968],[2020,0.2520610727797019],[2021,0.195529090174197],[2022,0.39956890840402326],[2023,0.42608136524306683],[2024,0.35437849733556004],[2025,0.32215254758436057],[2026,0.34545411798816383]]; median 0.2871068101820312. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 0.3% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-06); FY2017: growth capex 0; upkeep 519835; owner earnings 13576485. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-06); FY2018: growth capex 0; upkeep 604800; owner earnings 14287524. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-06); FY2019: growth capex 0; upkeep 68265; owner earnings 15144868. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-06); FY2020: growth capex 0; upkeep 52041; owner earnings 15024570. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-06); FY2021: growth capex 0; upkeep 62727; owner earnings 12174583. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-06); FY2022: growth capex 59598; upkeep 424981; owner earnings 14507501. Growth capex / owner earnings = 0.004108081743368483.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-06); FY2023: growth capex 510144.18511273345; upkeep 425646.81488726655; owner earnings 22526417.185112733. Growth capex / owner earnings = 0.022646485720324745.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-06); FY2024: growth capex 0; upkeep 16731; owner earnings 17416115. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-06); FY2025: growth capex 0; upkeep 1257109; owner earnings 14131639. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/724910/000137647426000348/nvec-20260331_10k.htm (filed 2026-05-06); FY2026: growth capex 38178.20544718858; upkeep 2150958.7945528114; owner earnings 13508264.20544719. Growth capex / owner earnings = 0.0028262850701271645.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-06); Dividend observations: [[2017,19346040],[2018,19365040],[2019,19374040],[2020,19384040],[2021,19336540],[2022,19333409],[2023,19323304],[2024,19331304],[2025,19339684],[2026,19348664]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); NVEC.US SharesStats.PercentInsiders = 0.416 percentage points; cache date 2026-10-05.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/724910/000137647426000348/nvec-20260331_10k.htm (filed 2026-05-06); 
The loss of supply from any of our key single-source wafer suppliers could substantially impact our ability to produce and deliver products and seriously harm our business and financial condition.

Our critical suppliers include suppliers of certain raw silicon and semiconductor foundry wafers that are incorporated in our products. We maintain inventory of some critical wafers, but we have not identified or qualified alternate suppliers for many of the wafers now being obtained from single sources. Most of our wafer purchases are from foreign manufacturers, some of which have been subject to tariffs and could be subject to increased tariffs or restrictions in the future. Wafer supplies could be affected by geopolitical conflicts or acts of God such as floods, typhoons, cyclones, earthquakes, or pandemics, and risks related to extreme weather may be exacerbated by the effects of climate change. Wafer supply interruptions for any reason could seriously jeopardize our ability to provide products that are critical to our business and operations and may cause us to lose revenue.

Shortages of any critical chemicals or supplies could impact our ability to produce and deliver products and cause loss of revenue.

There are a number of critical chemicals and supplies that we require to make products. These include certain gases, photoresists, polymers, metals, and specialized alloys. We maintain inventory of critical chemicals and materials, but in many cases, we are dependent on single sources, and some of the materials could be subject to shortages or be discontinued by their suppliers at any time. Supply interruptions or shortages for any reason could seriously jeopardize our ability to provide products that are critical to our business and operations and may cause us to lose revenue.

A loss of supply from any of our packaging vendors could impact our ability to deliver products and cause loss of revenue.

We are dependent on our packaging vendors. Because of the unique materials our products use, the complexity of some of our products, unique magnetic requirements, and high isolation voltage specifications, many of our products are more challenging to package than conventional integrated circuits. We have alternate vendors or potential alternate vendors for the majority of our products, but it could be expensive, time-consuming, or impractical to convert to another vendor in the event of a supply interruption due to vendors’ business decisions, business conditions, U.S. import restrictions, geopolitical conflicts, or acts of God, including floods, typhoons, earthquakes, or pandemics. Supply delays, interruptions, or loss of inventory could seriously jeopardize our ability to provide products that are critical to our business and operations and may cause us to lose revenue.

We risk losing business to our competitors.

We have a number of competitors a

### What the price says

The price assumes cash profits grow 11.2% yearly over ten years; actual growth was 0.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-06); Ten-year compound average after fade. Initial solved rate 0.14805741487949298. Price 103.7; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 2.6493023742726067 → FY2026 2.7914429534176612. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $56.27 per share

- 2016-11: $66.77 per share

- 2016-12: $71.43 per share

- 2017-01: $77.59 per share

- 2017-02: $78.36 per share

- 2017-03: $82.79 per share

- 2017-04: $81.41 per share

- 2017-05: $78.94 per share

- 2017-06: $77.00 per share

- 2017-07: $78.88 per share

- 2017-08: $75.84 per share

- 2017-09: $78.97 per share

- 2017-10: $85.08 per share

- 2017-11: $83.62 per share

- 2017-12: $86.00 per share

- 2018-01: $83.82 per share

- 2018-02: $69.51 per share

- 2018-03: $83.11 per share

- 2018-04: $84.57 per share

- 2018-05: $110.55 per share

- 2018-06: $121.78 per share

- 2018-07: $106.82 per share

- 2018-08: $113.68 per share

- 2018-09: $105.88 per share

- 2018-10: $84.70 per share

- 2018-11: $95.54 per share

- 2018-12: $87.54 per share

- 2019-01: $95.29 per share

- 2019-02: $102.82 per share

- 2019-03: $97.89 per share

- 2019-04: $95.81 per share

- 2019-05: $72.96 per share

- 2019-06: $69.63 per share

- 2019-07: $67.22 per share

- 2019-08: $64.20 per share

- 2019-09: $66.35 per share

- 2019-10: $62.25 per share

- 2019-11: $63.59 per share

- 2019-12: $71.40 per share

- 2020-01: $73.36 per share

- 2020-02: $63.27 per share

- 2020-03: $52.03 per share

- 2020-04: $56.77 per share

- 2020-05: $60.53 per share

- 2020-06: $61.83 per share

- 2020-07: $54.24 per share

- 2020-08: $53.43 per share

- 2020-09: $49.08 per share

- 2020-10: $46.13 per share

- 2020-11: $51.19 per share

- 2020-12: $56.18 per share

- 2021-01: $63.89 per share

- 2021-02: $70.47 per share

- 2021-03: $70.10 per share

- 2021-04: $76.53 per share

- 2021-05: $69.86 per share

- 2021-06: $74.05 per share

- 2021-07: $75.07 per share

- 2021-08: $70.21 per share

- 2021-09: $63.97 per share

- 2021-10: $67.97 per share

- 2021-11: $67.27 per share

- 2021-12: $68.30 per share

- 2022-01: $61.87 per share

- 2022-02: $57.20 per share

- 2022-03: $54.47 per share

- 2022-04: $46.38 per share

- 2022-05: $49.46 per share

- 2022-06: $46.62 per share

- 2022-07: $54.92 per share

- 2022-08: $50.72 per share

- 2022-09: $46.65 per share

- 2022-10: $62.01 per share

- 2022-11: $63.71 per share

- 2022-12: $64.75 per share

- 2023-01: $72.87 per share

- 2023-02: $75.98 per share

- 2023-03: $82.99 per share

- 2023-04: $75.41 per share

- 2023-05: $89.37 per share

- 2023-06: $97.44 per share

- 2023-07: $79.21 per share

- 2023-08: $88.45 per share

- 2023-09: $82.14 per share

- 2023-10: $68.00 per share

- 2023-11: $71.67 per share

- 2023-12: $78.43 per share

- 2024-01: $79.99 per share

- 2024-02: $83.59 per share

- 2024-03: $90.18 per share

- 2024-04: $81.40 per share

- 2024-05: $77.53 per share

- 2024-06: $74.69 per share

- 2024-07: $89.30 per share

- 2024-08: $83.75 per share

- 2024-09: $79.87 per share

- 2024-10: $75.37 per share

- 2024-11: $77.28 per share

- 2024-12: $81.43 per share

- 2025-01: $71.66 per share

- 2025-02: $68.84 per share

- 2025-03: $63.74 per share

- 2025-04: $58.11 per share

- 2025-05: $71.16 per share

- 2025-06: $73.61 per share

- 2025-07: $63.33 per share

- 2025-08: $64.58 per share

- 2025-09: $65.27 per share

- 2025-10: $69.05 per share

- 2025-11: $63.94 per share

- 2025-12: $59.33 per share

- 2026-01: $67.49 per share

- 2026-02: $68.84 per share

- 2026-03: $65.50 per share

- 2026-04: $82.79 per share

- 2026-05: $97.94 per share

- 2026-06: $104.55 per share

- 2026-07: $116.27 per share

- 2026-08: $100.12 per share

- 2026-09: $110.08 per share

- 2026-10: $103.70 per share

## Annual estimated value (USD per share)

- FY2017: low $40.04 per share, central $51.34 per share, high $59.14 per share

- FY2018: low $37.37 per share, central $41.81 per share, high $47.72 per share

- FY2019: low $32.47 per share, central $36.42 per share, high $41.66 per share

- FY2020: low $32.96 per share, central $36.75 per share, high $41.79 per share

- FY2021: low $31.18 per share, central $34.98 per share, high $40.03 per share

- FY2022: low $41.12 per share, central $45.91 per share, high $52.29 per share

- FY2023: low $54.94 per share, central $64.58 per share, high $74.62 per share

- FY2024: low $43.80 per share, central $49.22 per share, high $56.44 per share

- FY2025: low $37.68 per share, central $42.28 per share, high $48.39 per share

- FY2026: low $36.47 per share, central $40.95 per share, high $46.91 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/724910/000137647426000348/nvec-20260331_10k.htm); period 2026-03-31, filed 2026-05-06.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.