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NVECNVE Corporation
$106.65$516M
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  4. Financial Ratios

NVE Corporation (NVEC) Financial Ratios

Latest Ratios: P/E Ratio 34.0x · EV/EBITDA 31.4x · ROE 25.2%. (1997–2026 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

NVEC Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Market Cap$516M$317M$308M$436M$401M$263M$339M$252M$475M$403M$401M
Enterprise Value$515M$316M$301M$427M$400M$254M$329M$245M$468M$398M$392M
P/E Ratio →33.9720.8620.5025.4717.6618.1628.9717.3432.7428.9630.89
P/S Ratio19.5912.0411.9214.6410.489.7615.869.9217.9413.4914.14
P/B Ratio8.865.444.956.665.984.084.783.235.744.664.32
P/FCF35.6521.9123.6323.9422.0921.9125.4815.9233.5527.6933.78
P/OCF30.9719.0321.5523.9221.0021.0725.3615.8733.3926.5832.36

P/E links to full P/E history page with 30-year chart

NVEC EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
EV / Revenue—12.0111.6514.3110.459.4015.419.6417.6813.3313.85
EV / EBITDA31.4419.3018.4722.6515.4715.1324.7815.2528.1420.4821.10
EV / EBIT32.3517.7516.7020.8414.7614.4925.8315.7929.3921.5722.49
EV / FCF—21.8523.0823.4022.0221.1024.7515.4633.0727.3633.09

NVEC Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Gross Margin78.7%78.7%83.6%77.3%78.9%76.8%80.7%80.8%80.3%79.0%78.5%
Operating Margin60.5%60.5%61.8%62.1%67.0%60.5%59.6%61.1%60.2%61.8%61.6%
Net Profit Margin57.7%57.7%58.2%57.5%59.3%53.8%54.7%57.2%54.8%46.6%45.7%

Return on Capital

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
ROE25.2%25.2%23.6%25.8%34.5%21.4%15.7%18.1%17.1%15.5%13.5%
ROA24.3%24.3%23.0%25.2%33.2%20.7%15.4%17.8%17.0%15.4%13.3%
ROIC21.2%21.2%21.7%22.8%31.9%21.1%14.5%15.9%15.2%16.7%14.9%
ROCE25.9%25.9%24.8%27.8%38.7%23.9%17.0%19.2%18.8%20.6%18.2%

NVEC Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Debt / Equity0.020.020.010.010.010.010.010.01———
Debt / EBITDA0.060.060.060.020.020.040.060.05———
Net Debt / Equity—-0.01-0.11-0.15-0.02-0.15-0.14-0.09-0.08-0.06-0.09
Net Debt / EBITDA-0.05-0.05-0.44-0.53-0.04-0.59-0.73-0.45-0.41-0.24-0.44
Debt / FCF—-0.06-0.55-0.54-0.06-0.82-0.73-0.46-0.49-0.33-0.69
Interest Coverage———————————

Net cash position: cash ($2M) exceeds total debt ($905539)

NVEC Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Current Ratio28.2128.2128.4032.0516.8016.9023.7143.1932.8433.0332.13
Quick Ratio22.0022.0022.0325.1413.3014.8219.9238.3127.7329.3529.06
Cash Ratio17.3817.3818.5921.449.3812.7417.6234.1023.1725.7925.37
Asset Turnover—0.430.400.450.550.400.290.320.320.340.30
Inventory Turnover0.790.790.570.951.261.231.061.261.221.721.81
Days Sales Outstanding—53.5750.6338.5162.2463.6333.5638.6941.3035.3144.29

NVEC Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Dividend Yield3.7%6.1%6.3%4.4%4.8%7.3%5.7%7.7%4.1%4.8%4.8%
Payout Ratio127.3%127.3%128.4%112.9%85.1%133.3%165.3%133.4%133.5%139.2%149.4%

Total Shareholder Return Metrics

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Earnings Yield2.9%4.8%4.9%3.9%5.7%5.5%3.5%5.8%3.1%3.5%3.2%
FCF Yield2.8%4.6%4.2%4.2%4.5%4.6%3.9%6.3%3.0%3.6%3.0%
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.1%0.0%0.3%0.0%0.0%0.0%
Total Shareholder Yield3.7%6.1%6.3%4.4%4.8%7.4%5.7%8.0%4.1%4.8%4.8%
Shares Outstanding—$5M$5M$5M$5M$5M$5M$5M$5M$5M$5M

Key Metrics

Growth RegimeAccelerating
ProfitabilityStrong
Balance SheetFortress
Cash FlowRobust
Top Statement Risk

Extreme revenue concentration and cyclicality

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2027Q1)

Premium Valuation Reflects Growth Reacceleration

NVE's forward P/E of 21.45 and EV/EBITDA of 17.57 represent a significant discount to its trailing multiples, suggesting the market is pricing in the recent 80.7% YoY revenue growth acceleration reported in Q1 2027.

The substantial gap between trailing and forward multiples indicates the market is pricing in a significant earnings expansion, which aligns with the reported revenue surge. However, the PEG ratio of 5.98 suggests the current valuation may already embed aggressive growth expectations, warranting scrutiny of the sustainability of this acceleration given the company's historical volatility.

Elite Margins Driven by Operating Leverage

NVE's operating margin expanded to 65.8% in Q1 2027, a level that appears structurally superior to peers and is driven by a lean cost structure where combined R&D and SG&A expenses represent only 15.5% of revenue.

The gross margin expansion from 75.5% in Q4 2024 to 81.3% in Q1 2027 suggests improved pricing power or a favorable product mix shift. This, combined with a fixed-cost base, creates exceptional operating leverage, as evidenced by operating income scaling to $7.3M on $11.0M revenue. The sustainability of these elite margins is the key analytical question.

ROIC Inflection Points to Improved Capital Efficiency

Return on Invested Capital has improved markedly from a low of 3.7% in Q3 2025 to 9.5% in Q1 2027, indicating the recent revenue surge is translating into more efficient deployment of the company's capital base.

The ROIC expansion appears driven primarily by margin improvement rather than asset turnover, which remains low at 0.18. This suggests the company is generating more profit per dollar of revenue, but the asset base is not yet turning over faster. The trend is positive, but the absolute ROIC level remains modest, implying there may be room for further efficiency gains.

Working Capital Swings Mask Underlying Efficiency

The cash conversion cycle has improved significantly from a peak of 897 days in Q3 2025 to 336 days in Q1 2027, primarily driven by a reduction in days inventory outstanding from 877 to 303 days.

The dramatic reduction in DIO suggests improved inventory management or a shift in product mix towards faster-moving items. However, the CCC remains extremely long, indicating that a substantial portion of working capital is tied up in inventory. This long cycle creates cash flow volatility and represents a key area for potential efficiency improvement.

Negligible Leverage Provides Strategic Flexibility

With a debt-to-equity ratio of just 0.02 and no interest coverage ratio reported due to minimal debt, NVE operates with virtually no financial leverage, as evidenced by total debt of only $905.8K against a market capitalization of over $1 billion.

The near-zero leverage position provides a fortress balance sheet and significant strategic flexibility for acquisitions, R&D investment, or weathering cyclical downturns. This conservative structure is appropriate given the company's cyclical semiconductor market exposure and historical revenue volatility.

The Misleading Safety of the Current Ratio

The current ratio of 23.72 in Q1 2027, while appearing to indicate extreme liquidity, is likely the most misapplied ratio for NVE's business model as it obscures the operational reality of a very long cash conversion cycle.

A high current ratio is typically interpreted as a sign of liquidity strength, but for NVE, it is inflated by a massive inventory balance (DIO of 303 days) that is not readily convertible to cash. The quick ratio of 19.28, while still high, provides a more accurate picture by excluding inventory. Investors should focus on the cash conversion cycle and free cash flow generation rather than the current ratio to assess true liquidity.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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NVEC — Frequently Asked Questions

Quick answers to the most common questions about buying NVEC stock.

What is NVE Corporation's P/E ratio?

NVE Corporation's current P/E ratio is 34.0x. The historical average is 32.8x. This places it at the 81th percentile of its historical range.

What is NVE Corporation's EV/EBITDA?

NVE Corporation's current EV/EBITDA is 31.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.8x.

What is NVE Corporation's ROE?

NVE Corporation's return on equity (ROE) is 25.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 10.8%.

Is NVEC stock overvalued?

Based on historical data, NVE Corporation is trading at a P/E of 34.0x. This is at the 81th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is NVE Corporation's dividend yield?

NVE Corporation's current dividend yield is 3.75% with a payout ratio of 127.3%.

What are NVE Corporation's profit margins?

NVE Corporation has 78.7% gross margin and 60.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.

How much debt does NVE Corporation have?

NVE Corporation's Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.