Daily Stock Analysis: NVE Corp

By Fredrik Arnold

Wednesday, September 28, 2022 6:52 AM EDT

NVE Corp, ticker (NVEC), is a small-cap semiconductor company in the technology business sector, is the third of five technology candidates vying for the last slot in my Viital folio. I did discuss NVEC previously back on April 7.

NVE Corp develops and sells devices that use spintronics, a nanotechnology that relies on electron spin.

It manufactures high-performance spintronic products including sensors and couplers that are used to acquire and transmit data.

The company's products include Digital sensors, Medical sensors, Rotation Sensors, GT Sensors, Angle Sensors, Analog sensors, MSOP Isolators, Passive-In Transceivers, and others.

Geographically, the company generates a majority of its revenue from the United States.

NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota

Three key data points gauge NVE Corporation:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

NVEC Price

NVE’s price per share was $47.23 at Todays market close. NVE’s share price fell by $18.14 or about 27.75% in the past year.

If NVE’s stock trades in the range of $36.00 to $72.00 this next year, its recent $47.23 share price might reach $60.00 by next year. That upside increase of $12.77 is $1.13 under the valuation projected by YCharts historical multiple calculation.

NVEC Dividends

NVE’s most recently declared quarterly dividend of $1.00 per share makes an annual dividend of $4.00 and casts a yield of 8.47%.

NVEC Returns

Adding the $4.00 NVEC dividend to my one-year price upside estimate of $12.77 shows a $16.77 potential gross gain.

At today’s $47.23 closing price, a little under $1000 would buy 21 shares.

A $10 broker fee (if charged) paid half at purchase and half at sale and might cost us $0.48 per share.

Subtract that maybe $0.48 brokerage cost from my estimated $16.77 gross gain estimate per share results in a net gain of $16.29 X 21 shares = $342.00 for a 34.2% net gain including an 8.47% annual yield.

In a year our $1K investment in shares of NVE Corporation could generate $84.70 in cash dividends. Of course, a single share of NVEC stock at yesterday's $47.23 price is almost 2x less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to buy NVEC shares based on their dividends for the year 2022. The dividend from $1K invested is 1.8 times greater than yesterday’s single share price. Consider yourself alerted. Now is the time.

All of the estimates above are speculation based on the past history of NVE Corporation. Only time and money invested in this stock will determine its market value.

More By This Author:

Current Report: The Hackett Group
Current Report: Vishay Intertechnology
Current Report: Energy Transfer

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.