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what it is
NVE makes specialized magnetic chips and components that help factories, robots, and medical devices sense, isolate, and store data.
how it gets paid
Last year NVE Corporation made $26M in revenue.
why growth slowed
Revenue fell 13.2% last year. Gross margin near 79% matters most because NVE's whole case rests on selling small.
what just happened
Latest reported quarter delivered $6.35M of revenue and $0.68 in diluted EPS, with gross margin near 79%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
70/100 earnings predictability — reasonably predictable
23.9x trailing p/e — priced about right
5.9% dividend yield — cash in your pocket every quarter
24.2% return on capital — every dollar works hard here
xvary composite: 50/100 — below average
What they do
NVE makes specialized magnetic chips and components that help factories, robots, and medical devices sense, isolate, and store data.
NVE wins by selling tiny parts that sit in expensive systems where failure costs more than the part itself. Its 61.8% operating margin means customers are paying for reliability, not bargain pricing. Spintronics (using electron spin instead of charge) → a different way to sense, isolate, and store information → so what: if your device cannot fail, you care more about proof than price.
How they make money
$26M
annual revenue · revenue declined -13.2% last year
total revenue
$26M
-13.2%
The products that matter
core specialty sensor line
Spintronic Sensors
no standalone revenue breakout here
NVE does not give you a clean revenue split for each product family in this snapshot. What you do know is that product sales rose 16% in Q3 and total quarterly revenue reached ~$6.35M (same quarter as the earnings strip above). You want the core product set, not just project work, driving that improvement.
core demand signal
government and partner research work
Contract R&D
$7.3M · 28% of revenue
This segment surged 335% from last year. That is real growth. It is also project-driven growth, which means it can make a quarter look better before the core sales base fully heals.
fastest growth
signal isolation and transmission parts
Isolators & Couplers
79% company gross margin in Q3
NVE's appeal is that a very small revenue base still throws off elite gross profit. Q3 gross margin was 79%, down from 84% a year earlier. That five-point move tells you mix matters a lot when the whole company only did ~$6.35M in the quarter.
margin sensitivity
Key numbers
0%
debt to capital
Long-term debt is just $1 million and rounds to 0% of capital, which means you are not betting on a lender's patience.
61.8%
operating margin
Operating margin → profit after running the business → so what: NVE keeps about $0.62 from each dollar of sales before taxes and interest.
24.2%
return on capital
Return on capital → profit from the money tied up in the business → so what: this small company is still producing strong returns on what it uses.
5.9%
dividend yield
You are being paid 5.9% a year to wait, which is unusual for a $326M tech company.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 40 / 100
- long-term debt $1M (0% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for NVEC right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest reported quarter delivered $6.35M of revenue and $0.68 in diluted EPS, with gross margin near 79%.
The business is still high margin, but the real story is volatility. Fiscal 2025 quarterly EPS ran from $0.63 to $0.85, which tells you order timing matters more here than smooth Wall Street narratives.
$6.35M
quarter revenue
$0.68
quarter EPS
79.0%
gross margin
the number that mattered
Gross margin near 79% matters most because NVE's whole case rests on selling small, high-value parts at prices customers keep accepting.
source: company earnings report, 2026
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What could go wrong
the specific risk here is simple: a 5.9% yield is carrying investor patience while the core revenue base is still only $26M.
med
the core sales base keeps shrinking
Annual revenue fell 13.2% to $26M, and product sales — still 72% of revenue — also fell 13.2%. If that base keeps eroding, the stock stops looking like a quirky income name and starts looking like a shrinking niche with a payout attached.
This is the main kill criterion. If product sales do not recover, the dividend has to do too much work.
med
margin drift cuts into the entire appeal
Gross margin fell to 79% in Q3 from 84% a year earlier. In most businesses that is a line item. In a company this small, it is the story, because the whole bull case rests on tiny revenue producing outsized profit.
If margins stay closer to 79% than 84%, earnings power drops even if sales stabilize.
med
the visible growth is coming from the less repeatable bucket
Contract R&D grew 335% and reached $7.3M, which helped carry the recent quarter. That helps. It is also not the same thing as broad product demand returning.
If project work cools before product sales regain traction, the rebound case thins out fast.
med
thin ownership and liquidity can move faster than fundamentals
This is a $326M stock and the holder detail in this snapshot is thin. That does not mean something is wrong. It means short-term price moves can get dramatic without a major change in the business.
If you own this, you need to separate business progress from share-price mood swings. They will not always arrive together.
If annual revenue slips again from the current $26M base and gross margin stays closer to 79% than 84%, the 5.9% yield stops looking like support and starts looking like the only reason people are still in the stock.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next catalyst
q4 fy2026 earnings release
Expected late April 2026. You want to see whether Q3 was the start of a pattern or just one clean quarter inside a still-messy year.
metric
gross margin
79% is still elite. It is also down from 84%. For a company this small, that spread tells you how much pricing and mix are doing for you.
trend
product sales versus contract r&d
Product sales are 72% of revenue and still matter most. Contract R&D is 28% and currently growing much faster. You need the larger bucket to carry more of the recovery.
risk
dividend support
A 5.9% yield is attractive until it becomes the only argument left. Watch management language closely if revenue stays around $26M or lower.
Analyst rankings
earnings predictability
70 / 100
This lands in the middle. in human-speak, analysts think the numbers are readable, but not smooth enough to treat this like a quiet compounder.
risk rank
4
Risk rank says safer than 20% of stocks. Plain English: the debt load is light, but you still own a small-cap business where quarterly mix can swing the story.
source: institutional data
Institutional activity
institutional ownership data for NVEC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$70
current price
n/a
target midpoint · n/a from current
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