Corporate Webpages NVE Corporation
"NVE" in NVE Corporation stands for "non-volatile electronics."
This refers to memories that retain information when power is
removed. The company says its "enabling technology" utilizes
electron spin rather than charge to acquire, store, and transmit
information. The company manufactures sensors and couplers used
to acquire and transmit data. Its "spintronic magnetoresistive
random access memory technology" is licensed to others, commonly
known as "MRAM." In 2006, the company brought out a number of
optimistic statements for MRAM technology but was forced to
admit the potential for this was less-than-anticipated causing
the stock price to drop and a number of class-action lawsuits to
be filed.
We penalized this stock rather heavily in our analysis because
certain news releases suggested the company has not accurately
reported executive salaries and stock option compensation
(options which were not available to the general public.) We
had to rely on information the company did release for some
parts of our evaluation, but found it highly suspect.
This is yet another time Market Grader and Street.Com together
(which both think highly of the stock) have led us down the
garden path to violate some rule of selection due to our initial
mistake in evaluation. This time is was average daily volume,
which fell well below 300,000 shares, which means the stock is
not very good for day trading. It tends to move in one
direction for long periods of time favoring trend detection
methods for trading over longer time periods.
The stock has a ver high Zenith Index suggesting that it has
strong fundamentals, which is what Market Grader and Street.Com
undoubtedly saw. Again, however, we have to rely on what the
company itself reports. When one area becomes suspect, all
become suspect. The stock has taken a bit of a hit recently,
and we sought to find out why. (Negative chart patterns really
hurt the overall rating.) Frankly, we could find no very good
reason and projected earnings for next year are much higher.
Second quarter results did fall short of analysts' expectations,
and there weren't very many analysts involved. But perhaps more
significantly, a share decline was touched off when the CFO
began selling stock in the company with timing grade "A." The
company does have a high corporate governance rating based upon
who is on the Board of Directors, i.e. appear to be fairly independent.
We believe the recent downturn in the company's stock has made
it favorable relative to others in the electronic semiconductor
industry, although Cramer warns, do not rely on others in the same
industry group to carry a less-well performing stock higher.
10-25-2009: NVE Corporation (NVEC): Putting the Spin on Spintronics
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Financial Ratios
Market Grader
Intrinsic Value (Disc. CashFlow)
Intrinsic Value (Proj. Earnings)
Scout Stock Rating
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Stock Report
Management's Discussion
Moving Average Chart
Channel Potential
Intraday Chart
Stock Fetcher
Point & Figure Chart
Wall Street Analyzer
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Time Series Forecast
Neural Network Prediction
Stock Options
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Recommendation
Corporate Wepages
Company Profile |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
NVE Corp. (NVEC ) Sector: Technology
11409 Valley View Road Industry: Semiconductor - Specialized
Eden Prairie, MN 55344 Exchange: Nasdaq
NVE Corporation engages in the development and sale of devices that
use spintronics, a nanotechnology that relies on electron spin
rather than electron charge to acquire, store, and transmit
information. It provides standard sensors that detect the presence
of a magnet or metal to determine position or speed; and custom
sensors primarily for medical devices to replace electromechanical
magnetic switches. The company also offers spintronic couplers,
including IL600-Series passive-input couplers; IL700/IL200-Series
digital-input couplers; IL500-Series couplers; and
IL400/IL3000-Series isolated network signal couplers. In addition,
it licenses the spintronic magnetoresistive random access memory
technology, as well as provides contract research and development
services. NVE Corporation sells its products through distributors
primarily in the United States, Europe, and Asia. The company was
founded in 1982 and is based in Eden Prairie, Minnesota.
Last Trade: 42.38 52-Week Range: 63.64 - 16.56
Trade Date: 10-25 Avg. Volume: 99,997 Shares
Index Membership: N/A Employees: 50
Corporate Governance:
NVE Corp.'s Corporate Governance Quotient (CGQ-«) as of 1-Oct-09 is
better than 89.2% of Russell 3000 companies and 79.7% of
Semiconductors & Semiconductor Equipment companies.
EPS: 2.32 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: N/A Mkt Cap: $ 198,420K
Payout Ratio: 0.00%
Last Split Factor (new for old): 1:5 Split Date: 22-Nov-02
Key Statistics:
Enterprise Value: $ 194,970K Revenue (ttm) : $ 26,120K
Gross Profit: $ 16,650K
Earnings before Income Tax, Depreciation and Amortization: $ 15,680K
Enterprise Value/Revenue (ttm): 7.46 Revenue per Share: $ 5.59
Enterprise Value/EBITDA (ttm): 12.44 Qtrly Rev Growth (y to y): 13.60%
P/E Ratio (fwd projected): 0.00 P/E Ratio (current): 18.24
P/E Growth Ratio (5 yr expected): 0.72 Operating Margin: 58.36%
Price/Sales Ratio: 8.03 Profit Margin: 42.92%
Price/Book Value: 4.46 Book Value: $ 9.74/sh.
Return on Assets: 21.80% Net Income Avl to Common: $ 11,210K
Return on Equity: 26.30% Diluted Earnings/Share: $ 2.32
Qrtly Earnings Growth (yoy): 17.10%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 4,240K Operating Cash Flow:$ 11,960K
Total Debt: $ 0K Lvgd Free Cash Flow:$ 10,470K
Total Debt/Equity: 0.00
Total Cash/Share: $ 0.90
Current Ratio: 8.94
Share Statistics: Stock Price History:
Shares Outstanding: 4,680K Stk 52-Week Change: 73.90%
Float: 4,690K S&P 500 52-Wk Chng: 23.13%
Sh. Short % of Float: 4.00% 50-Day Moving Avg: 53.13
Short Ratio: 1.50 200-Day Moving Avg: 46.77
% Held by Institutions: 59.90% Beta: 0.96
% Held by Insiders: 0.41%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Sep-09 Dec-09 Mar-10 Mar-11
Average Earnings Estimate 0.57 0.54 2.40 0.00
Average Revenue Estimate 6M 6M 27M 31M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 0.000 EPS Growth (Qrtly YoY): 0.061
PEG Ratio (ttm, 5 yr expected): 0.020 P/E Ratio (ttm): 0.168
Revenue Growth (Qrtly YoY): 0.089
Annual Income Statements: All numbers in thousands)
Period Ending 31-Mar-09 31-Mar-08 31-Mar-07
Total Revenue 23,372 20,529 16,461
Cost of Revenue 6,724 6,833 5,788
Gross Profit 16,648 13,696 10,673
Operating Expenses:
Research & Development 1,219 1,488 2,177
Selling, General & Administrative 2,178 2,159 1,951
Non-Recurring Expenses 0 0 0
Other Operating Expenses 0 0 0
Total Operating Expenses 0 0 0
Operating Income or Loss 13,252 10,049 6,546
Income from Continuing Operations:
Total Other Income/Expenses Net 1,176 1,031 647
Earnings Before Interest & Taxes 14,428 11,080 7,192
Interest Expense 0 0 1
Income Before Taxes 14,428 11,080 7,192
Income Tax Expense 4,645 3,893 2,411
Minority Interest 0 0 0
Net Income from Continuing Op.s 9,783 7,187 4,781
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 9,783 7,187 4,781
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 9,783 7,187 4,781
Quarterly Income Statements: All numbers in thousands)
Period Ending 30-Jun-09 31-Mar-09 31-Dec-08 30-Sep-08
Total Revenue 6,835 6,897 5,884 5,728
Cost of Revenue 1,891 1,806 1,763 1,748
Gross Profit 4,943 5,090 4,121 3,980
Operating Expenses:
Research & Development 267 293 259 281
Selling, General & Adminis. 636 554 509 585
Non-Recurring Expenses 0 0 0 0
Other Operating Expenses 0 0 0 0
Total Operating Expenses 0 0 0 0
Operating Income or Loss 4,040 4,244 3,353 3,114
Income from Continuing Operations:
Total Other Income/Expenses Net 370 333 308 277
Earnings Before Int. & Taxes 4,410 4,577 3,661 3,391
Interest Expense 0 0 0 0
Income Before Taxes 4,410 4,577 3,661 3,391
Income Tax Expense 1,471 1,466 1,192 1,091
Minority Interest 0 0 0 0
Net Income from Continuing Op.s 2,939 3,111 2,468 2,300
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 2,939 3,111 2,468 2,300
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 2,939 3,111 2,468 2,300
Annual Balance Sheets: All Numbers in Thousands
Period Ending 31-Mar-09 31-Mar-08 31-Mar-07
Current Assets:
Cash & Cash Equivalents 1,875 1,886 397
Short Term Investments 0 796 982
Net Receivables 4,034 3,679 3,333
Inventory 2,248 2,457 2,017
Other Current Assets 669 530 334
Total Current Assets 8,826 9,347 7,063
Long-Term Investments 32,447 22,055 16,909
Property, Plant & Equipt 1,293 1,365 1,038
Goodwill 0 0 0
Intangible Assets 0 0 0
Accumulated Amortization 0 0 0
Other Assets 0 0 0
Deferred Long Term Asset Charges 0 0 0
Total Assets 42,566 32,768 25,010
Current Liabilities:
Accounts Payable 895 1,067 1,093
Short/Current Long Term Debt 0 0 0
Other Current Liabilities 104 188 29
Total Current Liabilities 999 1,255 1,122
Long Term Debt 0 0 0
Other Liabilities 0 0 0
Deferred LT Liability Charges 0 0 0
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 999 1,255 1,122
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 47 46 46
Retained Earnings 22,607 12,824 5,637
Treasury Stock 0 0 0
Capital Surplus 19,167 18,540 18,289
Other Stockholder Equity -253 103 -84
Total Stockholder Equity 41,568 31,513 23,888
Net Tangible Assets 41,568 31,513 23,888
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending 30-Jun-09 31-Mar-09 31-Dec-08 30-Sep-08
Current Assets:
Cash & Cash Equivalents 1,252 1,875 2,438 1,719
Short Term Investments 751 0 499 1,285
Net Receivables 3,275 4,034 3,209 3,600
Inventory 2,068 2,248 2,462 2,443
Other Current Assets 712 669 615 513
Total Current Assets 8,057 8,826 9,222 9,562
Long-Term Investments 38,616 32,447 29,179 26,036
Property, Plant & Equipt 1,238 1,293 1,422 1,258
Goodwill 0 0 0 0
Intangible Assets 0 0 0 0
Accumulated Amortization 0 0 0 0
Other Assets 0 0 0 0
Deferred LT Asset Charges 83 104 125 146
Total Assets 47,912 42,566 39,823 36,856
Current Liabilities:
Accounts Payable 2,235 895 1,018 897
Current Portion LT Debt 0 0 0 0
Other Current Liabilities 0 0 0 0
Total Current Liabilities 2,318 999 1,143 1,042
Long Term Debt 0 0 0 0
Other Liabilities 0 0 0 0
Deferred LT Liab. Charges 0 0 0 0
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 2,318 999 1,143 1,042
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 47 47 47 47
Retained Earnings 25,546 22,607 19,496 17,027
Treasury Stock 0 0 0 0
Capital Surplus 19,442 19,167 19,101 19,095
Other Stockholder Equity 559 -253 37 -356
Total Stockholder Equity 45,594 41,568 38,681 35,813
Net Tangible Assets 45,594 41,568 38,681 35,813
Annual Cash Flow: All Numbers in Thousands
Period Ending 31-Mar-09 31-Mar-08 31-Mar-07
Net Income 9,783 3,111 4,781
Operating Activites:
Depreciation 474 561 530
Adjustments to Net Income 68 886 342
Changes in Accounts Recv'bls -141 -1,221 -338
Changes in Liabilities -256 132 175
Changes in Inventories 209 -440 133
Changes in Other Op'ing Actv's 0 -196 -102
Total Cash Flow fr Operations 9,998 6,909 5,520
Investing Activities:
Capital Expenditures -402 -818 -322
Investments -10,152 -4,685 -8,167
Other Cash Flows fr Investing 0 2 0
Total Cash Flows fr Investing -10,550 -5,502 -8,488
Financing Acitivies:
Dividends Paid 0 0 0
Sale or Purchase of Stock 270 47 26
Net Borrowings 0 0 -33
Other Cash Flows fr Financing 270 34 2,084
Total Cash Flows fr Financing 541 81 2,077
Effect of Exchange Rate Change 0 0 0
Change in Cash & Cash Equiv.s -11 1,488 -891
Quarterly Cash Flow: All Numbers in Thousands
Period Ending 30-Jun-09 31-Mar-09 31-Dec-08 30-Sep-08
Net Income 2,939 3,111 2,468 2,300
Operating Activites:
Depreciation 91 130 119 60
Adjustments to Net Income 12 10 4 66
Changes in Accounts Recv'bls 294 -667 169 -817
Changes in Liabilities 1,319 -144 100 -633
Changes in Inventories 180 214 -19 89
Changes in Other Oper'g Acts -42 -55 -101 72
Total Cash Flow f Operations 4,792 2,600 2,740 1,138
Investing Activities:
Capital Expenditures -36 -1 -283 -77
Investments -5,649 -3,222 -1,739 -1,212
Other Cash Flows fr Investing 0 0 1 0
Total Cash Flows fr Investing -5,685 -3,223 -2,021 -1,289
Financing Acitivies:
Dividends Paid 0 0 0 0
Sale or Purchase of Stock 153 26 0 32
Net Borrowings 0 0 0 0
Other Cash Flows fr Financing 117 34 0 0
Total Cash Flows fr Financing 270 60 0 32
Effect of Exchange Rate Chg 0 0 0 0
Change in Cash & Cash Equiv. -624 -563 719 -119
NVEC NVE Corp. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 1.5351 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 0.1600 Forward P/E Ratio < 28? 0.0000
Sales Tests:
Price/Sales Ratio < 2.3? 0.2864 Inventory/Sales < 5%? 0.5198
Sales < $1 billion? 3.0000 Operating Margin < 7.5%? 0.1285
Balance Sheet Tests:
Debt/Equity < 0.40? 1.0000 Long-Term Debt Service: 3.0000
LTD Being Reduced? 1.0000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 3.0000 Working Capital >= 1.5? 0.5754
Leverage Ratio < 20%? 3.0000 Debt / Assets < 1? 1.0000
Quick Ratio > 1? 1.9530 Inventory Turnover > 1? 2.2901
Shares Out Decreasing? 0.6000 Market Cap.> 1.5 Billion? 3.0000
Profit Margin > 7.5%? 3.0000
Income Tests:
Dividend Yield > 2.0%? 0.0000 EPS Annual Growth > 10%? 0.0000
Enterprise Value/Revenue: 3.0000 EPS 5-yr Growth > 20%? 0.0000
Enterprise Value/EBITDA: 1.7767 EPS Growth Consistent? 2.4000
EPS Qrtly Growth > 10%? 1.7100 Collection < 45 days? 0.7143
Rev. Qtrly Growth > 15%? 2.0400 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? 0.0000 Borrowing Int. Rate< 6%? 1.0000
Stock Performance Tests:
Volatility > 25%? 3.0000 % Held by Insiders < 5%? 3.0000
Beta > 1.25? 0.7680 % Held by Institut. < 50? 0.8347
50 Da MA > 200 Da MA? 0.4502 % Held by Institut. > 30? 1.9967
52-Wk Change vs. S&P 500: 1.5421 Short Ratio > 5? 0.3000
Price/Book Value < 3? -0.4600 Short % of Float > 20? 0.2000
Return on Assets > 17%? 1.2824 Average Volume > 100,000? 1.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 1.1423 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 1.3537
Cash Flow / Assets >.10? 2.1853
NVEC NVE Corp. Overall Zenith Index: 1.4752
Financial Statements |
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for NVE Corporation:
Symbol? NVEC
Total Months Available: 81
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
34.00 16.56 47.90 26.20 63.64 40.00
RANGE = 63.64 TO 16.56 Close = 43.44
CHANNEL = 40.00 TO 34.00 Degree = 1
Volatility = 13.81% Index = 1
Intraday Chart |
20 Days:
1 Day:
The following table details which MACD signals on the preceding chart are best taken. Originally, this was set up for a two-day span, but ten days gives a better sample. Unfortunately, with the 10-day span, the colored lines on the histogram are much harder to read. Both spans are shown above. Red turning into green on the histogram is a buy and green turning into red is a sell, but with the following conditions. The share price must have moved at least 0.2% away from the previous signal price in order to avoid whipsawing. More importantly, the +/- magnitude of the MACD (the blue line, which crosses the red line at signal time) must be greater than the minimum required magnitude indicated below. Otherwise, the signal is ignored. This system does not work at all on NVE Corporation, so beware of using oscillator indicators. NVEC Minimum Magnitude MACD for Action = ± 0.0600 Ticker Day Time Hist. MACD Sig Line Act Price Profit NVEC 23 13:00 0.0040 0.0430 0.0389 42.38 0.00
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | + 1 |
| Industry | + 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| GAAP vs. non-GAAP Earnings < 1% | + 1 |
| Cash Flow | + 1 |
| Ratios | + 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | + 1 |
| Projected Earnings | + 1 |
| Research Reports | + 1 |
| Analysts | + 1 |
| Executive Perquisites | + 1 |
| Insider Activity | - 1 |
| Institutional Activity | + 1 |
| Management Reporting | - 1 |
| Short Interest | + 1 |
| Sentiment | - 1 |
| Standard & Poor's | + 1 |
| Moving Average | - 1 |
| Stock Fetcher | + 1 |
| Point & Figure | - 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | - 1 |
| Time Series Chart | - 1 |
| Neural Network | - 1 |
| Stock Options | - 1 |
| Ultimate Trading Systems | - 1 |
| Total | + 8 |
Place 790 shares of NVE Corporation (NVEC) on the Active List.
