NVE Corp (NVEC) Stock Analysis
Verdict: AVOID
A 95% collapse in defense revenue and heavy insider selling undermine yield appeal, leaving NVE vulnerable despite 79% gross margins.
Investment score: 35/100
Analysis as of
Is NVE Corp stock worth reviewing? The TradeMates thesis
The TradeMates model assigns NVEC a score of 35/100 and an AVOID rating following a 33.7% single-day decline triggered by weak Q2 earnings and a 95% crash in defense sales.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 60/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 30/100 (weight 15%)
- Insider Sentiment: 15/100 (weight 10%)
- Analyst Consensus: 35/100 (weight 10%)
- Risk-Adjusted Return: 30/100 (weight 15%)
NVE Corp opportunities and risks
What speaks for NVEC
- High Gross Margins reflect strong pricing power
What speaks against NVEC
- Extreme Defense Segment Concentration Risk
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| NVEC | 18.5x | 10.8x | 15.5x | 79.3% | 58.1% | 5.6% |
| AMBQ | n/a | 12.2x | n/a | 43.6% | -37.8% | -3.2% |
| CEVA | n/a | 6.9x | n/a | 87.4% | -9.5% | -0.1% |
| AOSL | n/a | 1.0x | n/a | 22.3% | -6.2% | -2.5% |
| KOPN | 75.8x | 14.3x | 87.4x | 41.9% | 18.1% | -3.0% |
| INDI | n/a | 1.6x | n/a | 21.5% | -65.2% | -22.9% |
| Peer median | n/a | 6.9x | n/a | 41.9% | -9.5% | -3.0% |
Frequently asked questions about NVE Corp (NVEC)
Is NVEC stock a good investment?
The TradeMates model rates NVE Corp as AVOID with an investment score of 35/100. The TradeMates model assigns NVEC a score of 35/100 and an AVOID rating following a 33.7% single-day decline triggered by weak Q2 earnings and a 95% crash in defense sales. This is algorithmic model output, not personal investment advice.
Is NVEC stock a buy?
The TradeMates model verdict for NVEC is AVOID with an investment score of 35/100. Treat this as a model signal to review, not a personal buy recommendation.