Is NVE CORP /NEW/ (NVEC) Halal?

NASDAQ Technology United States $317M
✗ NOT HALAL
Confidence: 90/100
NVE CORP /NEW/ (NVEC) is Not Halal under AAOIFI Standard 21. The company's impermissible income ratio of 7.38% exceeds the 5% threshold allowed under AAOIFI. NVE CORP /NEW/ operates in the Technology sector.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.3%
/ 30%
6.7%
/ 30%
1.1%
/ 30%
7.38%
/ 5%
✗ NOT HALAL
DJIM 0.3%
/ 33%
6.7%
/ 33%
1.1%
/ 33%
7.38%
/ 5%
✗ NOT HALAL
MSCI 1.4%
/ 33%
33.8%
/ 33%
5.6%
/ 33%
7.38%
/ 5%
✗ NOT HALAL
S&P 0.3%
/ 33%
6.7%
/ 33%
1.1%
/ 33%
7.38%
/ 5%
✗ NOT HALAL
FTSE 1.4%
/ 33%
33.8%
/ 33%
5.6%
/ 50%
7.38%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
22.4
Forward: 23.1
EPS
$2.92
Dividend Yield
611.0%
Payout: 137.0%
P/B Ratio
5.4
EV/EBITDA
18.8
EV: $297M
Revenue
$26M
Growth: 22.9%
Beta
1.2
High volatility
Current Ratio
34.8

Profitability

Gross Margin 79.2%
Operating Margin 60.2%
Net Margin 54.6%
Return on Equity (ROE) 23.4%
Return on Assets (ROA) 15.5%

Cash Flow & Balance Sheet

Operating Cash Flow$14M
Free Cash Flow$13M
Total Debt$921,231
Debt-to-Equity1.6
Current Ratio34.8
Total Assets$64M

Price & Trading

Last Close$66.58
50-Day MA$68.10
200-Day MA$67.64
Avg Volume48K
Beta1.2
52-Week Range
$51.50
$82.30

About NVE CORP /NEW/ (NVEC)

CEO
Dr. Daniel A. Baker Ph.D.
Employees
41
Sector
Technology
Industry
Semiconductors
Country
United States
Exchange
NASDAQ
Market Cap
$317M
Currency
USD

NVE Corporation develops and sells devices that use spintronics, a nanotechnology relying on electron spin to acquire, store, and transmit information, both in the United States and internationally. The company manufactures spintronic products, including sensors and couplers for use in sensing and transmitting data. Its products include standard sensors designed to detect the presence of magnetic or metallic materials, which help determine position, rotation, or speed in the factory automation market. In addition, the company offers custom and medical sensors for medical devices, intended to replace electromechanical magnetic switches. Further, the company provides spintronic couplers for power conversion and industrial Internet of Things (IIoT) markets, as well as DC-to-DC converters for use in power conversion systems and industrial networks for the IIoT and MRAM products. Additionally, it undertakes contracts for research and development and licenses spintronic magnetoresistive random access memory technology. The company sells its products through distributors. NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota.

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Frequently Asked Questions

Is NVE CORP /NEW/ (NVEC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), NVE CORP /NEW/ is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is NVE CORP /NEW/'s debt ratio?

NVE CORP /NEW/'s debt ratio is 0.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 1.4%.

What are NVE CORP /NEW/'s key financial metrics?

NVE CORP /NEW/ has a market capitalization of $317M, trailing P/E ratio of 22.4, and revenue of $26M. The company maintains a gross margin of 79.2% and a net margin of 54.6%. Return on equity stands at 23.4%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.