Nve Corp /New/ (NASDAQ: NVEC)

Sector: Technology Industry: Semiconductors CIK: 0000724910
Market Cap 312.81 Mn
P/B 5.24
P/E 22.62
P/S 12.62
ROIC (Qtr) 20.72
Div Yield % 7.73
Rev 1y % (Qtr) 22.95
Total Debt (Qtr) 934,409.00
Debt/Equity (Qtr) 0.02

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 14.65M provides robust 15.68x coverage of total debt 934409, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 3.41M provide 21.25x coverage of short-term debt 160413, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 59.96M provides 64.17x coverage of total debt 934409, indicating robust asset backing and low credit risk.
  • Operating cash flow of 14.65M provides strong 150.04x coverage of stock compensation 97668, indicating sustainable incentive practices.
  • Robust free cash flow of 12.38M exceeds capital expenditure of 2.27M by 5.44x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 14.65M provides thin coverage of dividend payments of (19.35M) with a -0.76 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of 2.62M provide weak support for R&D spending of 3.43M, which is 0.76x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 17.16M significantly exceed cash reserves of 3.41M, which is 5.03x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Long-term investments of 23.44M represent a high 4.96x of fixed assets 4.72M, indicating potential overexposure to financial assets versus operational capabilities.
  • Tangible assets of 59.96M provide limited backing for working capital of 30.18M, which is 1.99x, suggesting increased operational risk in market downturns.

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,120.22 Bn 6,867.04 847.78 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,782.57 Bn 362.79 138.75 31.18 Bn
3 AVGO Broadcom Inc. 1,393.11 Bn 119.76 35.84 65.14 Bn
4 MU Micron Technology Inc 453.24 Bn 657.82 30.76 12.43 Bn
5 AMD Advanced Micro Devices Inc 338.42 Bn 78.07 9.77 3.85 Bn
6 TXN Texas Instruments Inc 225.71 Bn 66.70 17.17 14.05 Bn
7 INTC Intel Corp 225.13 Bn -843.17 4.26 46.59 Bn
8 QCOM Qualcomm Inc/De 147.37 Bn 27.47 3.28 14.82 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 5.18 4.15
EV to Cash from Ops. EV/CFO 21.70 -405.91
EV to Debt EV to Debt 332.27 81.67
EV to EBIT EV/EBIT 18.57 -94.01
EV to EBITDA EV/EBITDA 20.71 112.02
EV to Free Cash Flow [EV/FCF] EV/FCF 23.80 103.01
EV to Market Cap EV to Market Cap 0.99 0.77
EV to Revenue EV/Rev 12.53 36.18
Price to Book Value [P/B] P/B 5.24 24.05
Price to Earnings [P/E] P/E 22.62 97.65
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.73 2.38
Dividend Payout Ratio % Div Payout % (Qtr) 136.50 3.97
Dividend per Basic Share Div per Share (Qtr) 4.00 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 156.31 21.06
Interest Coverage Interest Coverage 0.00 8.98
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -95.57 -149.31
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -37.86 70.06
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 5.42
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -5.48 51.85
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -2.10 91.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -2.92 36.72
EBT Growth (1y) % EBT 1y % (Qtr) -2.92 30.25
EPS Growth (1y) % EPS 1y % (Qtr) -5.48 49.61
FCF Growth (1y) % FCF 1y % (Qtr) -10.27 281.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -3.26 37.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.43 0.50
Cash Payout Ratio Cash Payout (Qtr) 1.14 0.09
Cash Ratio Cash Ratio (Qtr) 3.82 2.35
Current Ratio Curr Ratio (Qtr) 34.84 5.61
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 -0.02
Interest Cover Ratio Interest Cover Ratio 0.00 8.98
Times Interest Earned Times Interest Earned 0.00 8.98
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 68.30 -113.04
EBIT Margin % EBIT Margin % (Qtr) 66.91 -92.05
EBT Margin % EBT Margin % (Qtr) 66.91 -132.99
Gross Margin % Gross Margin % (Qtr) 79.20 47.72
Net Profit Margin % Net Margin % (Qtr) 54.60 -133.93