FY 2026 earnings snapshot and how the stories stack up

NVE (NVEC) has just wrapped up FY 2026 with fourth quarter revenue of US$7.7 million and basic EPS of US$1.02, set against trailing twelve month revenue of US$26.3 million and EPS of US$3.14 as the stock trades at US$88.59. Over recent quarters the company has seen revenue range from US$6.1 million to US$7.7 million and quarterly EPS move between US$0.68 and US$1.02. This gives investors a clearer read on how the topline and per share earnings have been tracking into the latest print. With trailing net margins sitting in the high 50% range, this set of results keeps the focus firmly on how durable that profitability profile really is.

See our full analysis for NVE.

With the headline numbers on the table, the next step is to line them up against the key narratives around growth, income and valuation to see which stories hold up and which start to look stretched.

Margins stay high at 57.7%

• Trailing net profit margin sits at 57.7%, only slightly below last year’s 58.2%, while trailing twelve month net income is US$15.2 million on revenue of US$26.3 million.
• What stands out for a bullish view is that very high margins sit alongside only about 0.9% per year earnings growth over five years, which means:
  • Supporters can point to the 57.7% margin and US$15.2 million of trailing net income as evidence that profitability is strong on current operations.
  • Skeptics can counter that the modest 0.9% earnings growth rate limits the argument that this level of profitability has translated into rapid expansion.

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P/E of 28.2x sits below peers

• The stock trades on a trailing P/E of 28.2x compared with a semiconductor peer average of 35.2x and a wider US Semiconductor industry average of 53.7x.
• For a bullish angle, the lower P/E relative to peers is often read as a value argument, yet the numbers create some tension for that view:
  • Supporters can highlight that 28.2x against 35.2x and 53.7x lines up with the idea of paying less than many peers for each dollar of trailing earnings.
  • At the same time, the modest 0.9% annual earnings growth rate means the discount sits beside limited recent growth, which can weaken a straightforward value pitch.

Dividend and DCF raise cash questions

• The trailing dividend yield of 4.52% is described as not well covered by earnings or free cash flow, and the current price of US$88.59 is well above a DCF fair value of about US$38.40.
• Bears who focus on cash returns and valuation have clear data points to lean on here:
  • The comment that the 4.52% yield is poorly covered ties directly to concerns that current cash outflows to shareholders may be stretching the underlying cash generation.
  • The gap between the US$88.59 share price and the US$38.40 DCF fair value figure backs a cautious view that trailing cash flow estimates do not align with the current market price.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on NVE's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Balancing strong margins with questions around cash coverage and valuation may lead to differing opinions. Consider acting quickly, reviewing the full data, and weighing up the 2 key rewards and 1 important warning sign

See What Else Is Out There

High margins sit alongside only about 0.9% annual earnings growth, a dividend flagged as not well covered, and a share price above the cited DCF figure.

If that mix of slow growth, cash coverage questions, and a premium to DCF makes you cautious, compare it with companies screened as 51 high quality undervalued stocks today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.