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NAPCO SECURITY TECHNOLOGIES (NSSC) Stock Fundamental Analysis

NASDAQ:NSSC - Nasdaq - US6304021057 - Common Stock - Currency: USD

22.85  -0.02 (-0.09%)

After market: 22.73 -0.12 (-0.53%)

Fundamental Rating

7

Overall NSSC gets a fundamental rating of 7 out of 10. We evaluated NSSC against 125 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making NSSC a very profitable company, without any liquidiy or solvency issues. NSSC has a decent growth rate and is not valued too expensively. This makes NSSC very considerable for quality investing!


Dividend Valuation Growth Profitability Health

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10

1. Profitability

1.1 Basic Checks

In the past year NSSC was profitable.
In the past year NSSC had a positive cash flow from operations.
Each year in the past 5 years NSSC has been profitable.
NSSC had a positive operating cash flow in each of the past 5 years.
NSSC Yearly Net Income VS EBIT VS OCF VS FCFNSSC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M

1.2 Ratios

With an excellent Return On Assets value of 23.87%, NSSC belongs to the best of the industry, outperforming 96.80% of the companies in the same industry.
NSSC has a Return On Equity of 27.77%. This is amongst the best in the industry. NSSC outperforms 93.60% of its industry peers.
NSSC has a better Return On Invested Capital (24.94%) than 97.60% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NSSC is significantly above the industry average of 9.29%.
The 3 year average ROIC (18.84%) for NSSC is below the current ROIC(24.94%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 23.87%
ROE 27.77%
ROIC 24.94%
ROA(3y)17.81%
ROA(5y)14.67%
ROE(3y)21.47%
ROE(5y)18.22%
ROIC(3y)18.84%
ROIC(5y)16.75%
NSSC Yearly ROA, ROE, ROICNSSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

NSSC has a better Profit Margin (25.94%) than 96.80% of its industry peers.
In the last couple of years the Profit Margin of NSSC has grown nicely.
The Operating Margin of NSSC (27.60%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of NSSC has grown nicely.
NSSC has a Gross Margin of 55.45%. This is amongst the best in the industry. NSSC outperforms 93.60% of its industry peers.
In the last couple of years the Gross Margin of NSSC has grown nicely.
Industry RankSector Rank
OM 27.6%
PM (TTM) 25.94%
GM 55.45%
OM growth 3Y21.99%
OM growth 5Y16.27%
PM growth 3Y25%
PM growth 5Y16.78%
GM growth 3Y6.61%
GM growth 5Y4.64%
NSSC Yearly Profit, Operating, Gross MarginsNSSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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9

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NSSC is creating value.
The number of shares outstanding for NSSC has been increased compared to 1 year ago.
Compared to 5 years ago, NSSC has less shares outstanding
NSSC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
NSSC Yearly Shares OutstandingNSSC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
NSSC Yearly Total Debt VS Total AssetsNSSC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

2.2 Solvency

An Altman-Z score of 21.43 indicates that NSSC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 21.43, NSSC belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
NSSC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 21.43
ROIC/WACC2.82
WACC8.83%
NSSC Yearly LT Debt VS Equity VS FCFNSSC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

2.3 Liquidity

NSSC has a Current Ratio of 7.55. This indicates that NSSC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 7.55, NSSC belongs to the top of the industry, outperforming 89.60% of the companies in the same industry.
NSSC has a Quick Ratio of 5.83. This indicates that NSSC is financially healthy and has no problem in meeting its short term obligations.
NSSC has a Quick ratio of 5.83. This is amongst the best in the industry. NSSC outperforms 88.80% of its industry peers.
Industry RankSector Rank
Current Ratio 7.55
Quick Ratio 5.83
NSSC Yearly Current Assets VS Current LiabilitesNSSC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 9.24% over the past year.
The Earnings Per Share has been growing by 31.95% on average over the past years. This is a very strong growth
Looking at the last year, NSSC shows a small growth in Revenue. The Revenue has grown by 5.14% in the last year.
Measured over the past years, NSSC shows a quite strong growth in Revenue. The Revenue has been growing by 12.91% on average per year.
EPS 1Y (TTM)9.24%
EPS 3Y49.01%
EPS 5Y31.95%
EPS Q2Q%-17.65%
Revenue 1Y (TTM)5.14%
Revenue growth 3Y18.32%
Revenue growth 5Y12.91%
Sales Q2Q%-9.7%

3.2 Future

NSSC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.75% yearly.
NSSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.49% yearly.
EPS Next Y-13.67%
EPS Next 2Y-2.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.56%
Revenue Next 2Y-0.5%
Revenue Next 3Y14.95%
Revenue Next 5Y14.49%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
NSSC Yearly Revenue VS EstimatesNSSC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 100M 200M 300M
NSSC Yearly EPS VS EstimatesNSSC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 17.58, the valuation of NSSC can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NSSC indicates a somewhat cheap valuation: NSSC is cheaper than 76.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NSSC to the average of the S&P500 Index (28.88), we can say NSSC is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.03 indicates a rather expensive valuation of NSSC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NSSC indicates a somewhat cheap valuation: NSSC is cheaper than 65.60% of the companies listed in the same industry.
NSSC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.20.
Industry RankSector Rank
PE 17.58
Fwd PE 18.03
NSSC Price Earnings VS Forward Price EarningsNSSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

NSSC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NSSC is cheaper than 68.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NSSC is valued a bit cheaper than 78.40% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.81
EV/EBITDA 13.35
NSSC Per share dataNSSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

4.3 Compensation for Growth

NSSC has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as NSSC's earnings are expected to decrease with -2.75% in the coming years.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-2.75%
EPS Next 3YN/A

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4

5. Dividend

5.1 Amount

NSSC has a Yearly Dividend Yield of 2.20%.
The stock price of NSSC dropped by -37.74% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
NSSC's Dividend Yield is rather good when compared to the industry average which is at 2.26. NSSC pays more dividend than 92.80% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, NSSC has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.2%

5.2 History

NSSC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
NSSC Yearly Dividends per shareNSSC Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 0.1 0.2 0.3 0.4

5.3 Sustainability

NSSC pays out 24.77% of its income as dividend. This is a sustainable payout ratio.
DP24.77%
EPS Next 2Y-2.75%
EPS Next 3YN/A
NSSC Yearly Income VS Free CF VS DividendNSSC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
NSSC Dividend Payout.NSSC Dividend Payout, showing the Payout Ratio.NSSC Dividend Payout.PayoutRetained Earnings

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NAPCO SECURITY TECHNOLOGIES

NASDAQ:NSSC (4/30/2025, 8:25:18 PM)

After market: 22.73 -0.12 (-0.53%)

22.85

-0.02 (-0.09%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-03 2025-02-03/bmo
Earnings (Next)05-12 2025-05-12/amc
Inst Owners95.36%
Inst Owner Change-0.05%
Ins Owners4.35%
Ins Owner Change0%
Market Cap831.74M
Analysts78.18
Price Target27.74 (21.4%)
Short Float %10.27%
Short Ratio7.44
Dividend
Industry RankSector Rank
Dividend Yield 2.2%
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP24.77%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-12 2025-03-12 (0.125)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.8%
Min EPS beat(2)-18.45%
Max EPS beat(2)-15.16%
EPS beat(4)1
Avg EPS beat(4)-6.58%
Min EPS beat(4)-18.45%
Max EPS beat(4)7.41%
EPS beat(8)5
Avg EPS beat(8)10.58%
EPS beat(12)9
Avg EPS beat(12)21.52%
EPS beat(16)11
Avg EPS beat(16)13.35%
Revenue beat(2)0
Avg Revenue beat(2)-12.63%
Min Revenue beat(2)-15.65%
Max Revenue beat(2)-9.61%
Revenue beat(4)0
Avg Revenue beat(4)-6.96%
Min Revenue beat(4)-15.65%
Max Revenue beat(4)-0.72%
Revenue beat(8)2
Avg Revenue beat(8)-3.13%
Revenue beat(12)6
Avg Revenue beat(12)-0.32%
Revenue beat(16)9
Avg Revenue beat(16)1.22%
PT rev (1m)-13.38%
PT rev (3m)-38.88%
EPS NQ rev (1m)-6.65%
EPS NQ rev (3m)-29.88%
EPS NY rev (1m)-6.03%
EPS NY rev (3m)-20.36%
Revenue NQ rev (1m)-5.8%
Revenue NQ rev (3m)-21.21%
Revenue NY rev (1m)-4.81%
Revenue NY rev (3m)-14%
Valuation
Industry RankSector Rank
PE 17.58
Fwd PE 18.03
P/S 4.46
P/FCF 16.81
P/OCF 15.93
P/B 4.77
P/tB 4.87
EV/EBITDA 13.35
EPS(TTM)1.3
EY5.69%
EPS(NY)1.27
Fwd EY5.55%
FCF(TTM)1.36
FCFY5.95%
OCF(TTM)1.43
OCFY6.28%
SpS5.12
BVpS4.79
TBVpS4.69
PEG (NY)N/A
PEG (5Y)0.55
Profitability
Industry RankSector Rank
ROA 23.87%
ROE 27.77%
ROCE 28.47%
ROIC 24.94%
ROICexc 55.23%
ROICexgc 57.66%
OM 27.6%
PM (TTM) 25.94%
GM 55.45%
FCFM 26.52%
ROA(3y)17.81%
ROA(5y)14.67%
ROE(3y)21.47%
ROE(5y)18.22%
ROIC(3y)18.84%
ROIC(5y)16.75%
ROICexc(3y)32.83%
ROICexc(5y)27.74%
ROICexgc(3y)34.34%
ROICexgc(5y)29.3%
ROCE(3y)21.51%
ROCE(5y)19.12%
ROICexcg growth 3Y18.76%
ROICexcg growth 5Y16.34%
ROICexc growth 3Y20.53%
ROICexc growth 5Y18.36%
OM growth 3Y21.99%
OM growth 5Y16.27%
PM growth 3Y25%
PM growth 5Y16.78%
GM growth 3Y6.61%
GM growth 5Y4.64%
F-Score8
Asset Turnover0.92
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 123.46%
Cap/Sales 1.46%
Interest Coverage 2059.4
Cash Conversion 97.22%
Profit Quality 102.26%
Current Ratio 7.55
Quick Ratio 5.83
Altman-Z 21.43
F-Score8
WACC8.83%
ROIC/WACC2.82
Cap/Depr(3y)103.56%
Cap/Depr(5y)95.62%
Cap/Sales(3y)1.21%
Cap/Sales(5y)1.22%
Profit Quality(3y)67.68%
Profit Quality(5y)91.44%
High Growth Momentum
Growth
EPS 1Y (TTM)9.24%
EPS 3Y49.01%
EPS 5Y31.95%
EPS Q2Q%-17.65%
EPS Next Y-13.67%
EPS Next 2Y-2.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.14%
Revenue growth 3Y18.32%
Revenue growth 5Y12.91%
Sales Q2Q%-9.7%
Revenue Next Year-7.56%
Revenue Next 2Y-0.5%
Revenue Next 3Y14.95%
Revenue Next 5Y14.49%
EBIT growth 1Y7.9%
EBIT growth 3Y44.33%
EBIT growth 5Y31.28%
EBIT Next Year-9.06%
EBIT Next 3Y30.05%
EBIT Next 5Y27.1%
FCF growth 1Y54870%
FCF growth 3Y25.81%
FCF growth 5Y45.73%
OCF growth 1Y3122.16%
OCF growth 3Y25.43%
OCF growth 5Y39.3%