NAPCO SECURITY TECHNOLOGIES (NSSC) Fundamental Analysis & Valuation
NASDAQ:NSSC • US6304021057
42.59 USD
-0.98 (-2.25%)
At close: Mar 5, 2026
42.75 USD
+0.16 (+0.38%)
After Hours: 3/5/2026, 5:47:26 PM
This NSSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall NSSC gets a fundamental rating of 8 out of 10. We evaluated NSSC against 124 industry peers in the Electronic Equipment, Instruments & Components industry. NSSC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NSSC has a correct valuation and a medium growth rate. These ratings could make NSSC a good candidate for quality investing.
1. NSSC Profitability Analysis
1.1 Basic Checks
- NSSC had positive earnings in the past year.
- In the past year NSSC had a positive cash flow from operations.
- NSSC had positive earnings in each of the past 5 years.
- NSSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- NSSC has a better Return On Assets (22.28%) than 97.58% of its industry peers.
- The Return On Equity of NSSC (25.66%) is better than 91.94% of its industry peers.
- NSSC has a better Return On Invested Capital (23.77%) than 98.39% 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 8.86%.
- The 3 year average ROIC (22.23%) for NSSC is below the current ROIC(23.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.28% | ||
| ROE | 25.66% | ||
| ROIC | 23.77% |
ROA(3y)20.71%
ROA(5y)17.58%
ROE(3y)24.31%
ROE(5y)21.36%
ROIC(3y)22.23%
ROIC(5y)19.01%
1.3 Margins
- NSSC has a Profit Margin of 24.70%. This is amongst the best in the industry. NSSC outperforms 97.58% of its industry peers.
- NSSC's Profit Margin has improved in the last couple of years.
- NSSC has a better Operating Margin (26.89%) 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 56.25%. This is amongst the best in the industry. NSSC outperforms 92.74% of its industry peers.
- In the last couple of years the Gross Margin of NSSC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.89% | ||
| PM (TTM) | 24.7% | ||
| GM | 56.25% |
OM growth 3Y26.19%
OM growth 5Y16.57%
PM growth 3Y20.53%
PM growth 5Y25.45%
GM growth 3Y10.5%
GM growth 5Y5.68%
2. NSSC Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NSSC is creating value.
- NSSC has less shares outstanding than it did 1 year ago.
- NSSC has less shares outstanding than it did 5 years ago.
- There is no outstanding debt for NSSC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- NSSC has an Altman-Z score of 37.29. This indicates that NSSC is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of NSSC (37.29) is better than 96.77% of its industry peers.
- NSSC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 37.29 |
ROIC/WACC2.64
WACC8.99%
2.3 Liquidity
- A Current Ratio of 7.99 indicates that NSSC has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 7.99, NSSC belongs to the top of the industry, outperforming 89.52% of the companies in the same industry.
- A Quick Ratio of 6.55 indicates that NSSC has no problem at all paying its short term obligations.
- The Quick ratio of NSSC (6.55) is better than 89.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.99 | ||
| Quick Ratio | 6.55 |
3. NSSC Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 2.31% over the past year.
- NSSC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.70% yearly.
- The Revenue has been growing slightly by 2.94% in the past year.
- Measured over the past years, NSSC shows a quite strong growth in Revenue. The Revenue has been growing by 12.36% on average per year.
EPS 1Y (TTM)2.31%
EPS 3Y42.07%
EPS 5Y33.7%
EPS Q2Q%35.71%
Revenue 1Y (TTM)2.94%
Revenue growth 3Y8.14%
Revenue growth 5Y12.36%
Sales Q2Q%12.2%
3.2 Future
- Based on estimates for the next years, NSSC will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.02% on average per year.
- NSSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.46% yearly.
EPS Next Y19.18%
EPS Next 2Y15.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.23%
Revenue Next 2Y12.46%
Revenue Next 3Y13.46%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. NSSC Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 32.02 indicates a quite expensive valuation of NSSC.
- NSSC's Price/Earnings ratio is a bit cheaper when compared to the industry. NSSC is cheaper than 62.90% of the companies in the same industry.
- When comparing the Price/Earnings ratio of NSSC to the average of the S&P500 Index (26.74), we can say NSSC is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 27.05, the valuation of NSSC can be described as expensive.
- Based on the Price/Forward Earnings ratio, NSSC is valued a bit cheaper than 64.52% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.82, NSSC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 27.05 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as NSSC.
- Based on the Price/Free Cash Flow ratio, NSSC is valued a bit cheaper than 73.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.3 | ||
| EV/EBITDA | 26.49 |
4.3 Compensation for Growth
- NSSC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- NSSC has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as NSSC's earnings are expected to grow with 15.02% in the coming years.
PEG (NY)1.67
PEG (5Y)0.95
EPS Next 2Y15.02%
EPS Next 3YN/A
5. NSSC Dividend Analysis
5.1 Amount
- NSSC has a Yearly Dividend Yield of 1.29%. Purely for dividend investing, there may be better candidates out there.
- NSSC's Dividend Yield is rather good when compared to the industry average which is at 0.44. NSSC pays more dividend than 91.94% of the companies in the same industry.
- NSSC's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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
5.3 Sustainability
- 40.08% of the earnings are spent on dividend by NSSC. This is a bit on the high side, but may be sustainable.
DP40.08%
EPS Next 2Y15.02%
EPS Next 3YN/A
NSSC Fundamentals: All Metrics, Ratios and Statistics
42.59
-0.98 (-2.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-02 2026-02-02/bmo
Earnings (Next)05-04 2026-05-04
Inst Owners90.84%
Inst Owner Change-2.59%
Ins Owners5.6%
Ins Owner Change-2.22%
Market Cap1.52B
Revenue(TTM)192.03M
Net Income(TTM)47.42M
Analysts81.67
Price Target50.66 (18.95%)
Short Float %9.12%
Short Ratio6.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend0.38
Dividend Growth(5Y)N/A
DP40.08%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-12 2026-03-12 (0.15)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.9%
Min EPS beat(2)10.28%
Max EPS beat(2)17.52%
EPS beat(4)4
Avg EPS beat(4)12.81%
Min EPS beat(4)1.82%
Max EPS beat(4)21.63%
EPS beat(8)5
Avg EPS beat(8)3.12%
EPS beat(12)9
Avg EPS beat(12)11.32%
EPS beat(16)13
Avg EPS beat(16)19.34%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)2.85%
Revenue beat(4)2
Avg Revenue beat(4)3.08%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)12.05%
Revenue beat(8)2
Avg Revenue beat(8)-1.94%
Revenue beat(12)4
Avg Revenue beat(12)-1.06%
Revenue beat(16)8
Avg Revenue beat(16)0.53%
PT rev (1m)1.71%
PT rev (3m)1.71%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)0.46%
EPS NY rev (1m)2.89%
EPS NY rev (3m)7.07%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 27.05 | ||
| P/S | 7.91 | ||
| P/FCF | 28.3 | ||
| P/OCF | 27.75 | ||
| P/B | 8.22 | ||
| P/tB | 8.36 | ||
| EV/EBITDA | 26.49 |
EPS(TTM)1.33
EY3.12%
EPS(NY)1.57
Fwd EY3.7%
FCF(TTM)1.5
FCFY3.53%
OCF(TTM)1.54
OCFY3.6%
SpS5.38
BVpS5.18
TBVpS5.09
PEG (NY)1.67
PEG (5Y)0.95
Graham Number12.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.28% | ||
| ROE | 25.66% | ||
| ROCE | 27.16% | ||
| ROIC | 23.77% | ||
| ROICexc | 60.47% | ||
| ROICexgc | 63.12% | ||
| OM | 26.89% | ||
| PM (TTM) | 24.7% | ||
| GM | 56.25% | ||
| FCFM | 27.94% |
ROA(3y)20.71%
ROA(5y)17.58%
ROE(3y)24.31%
ROE(5y)21.36%
ROIC(3y)22.23%
ROIC(5y)19.01%
ROICexc(3y)43.76%
ROICexc(5y)35.53%
ROICexgc(3y)45.67%
ROICexgc(5y)37.35%
ROCE(3y)25.4%
ROCE(5y)21.72%
ROICexgc growth 3Y36.08%
ROICexgc growth 5Y28.5%
ROICexc growth 3Y36.71%
ROICexc growth 5Y29.29%
OM growth 3Y26.19%
OM growth 5Y16.57%
PM growth 3Y20.53%
PM growth 5Y25.45%
GM growth 3Y10.5%
GM growth 5Y5.68%
F-Score7
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 47.41% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | -3441.87 | ||
| Cash Conversion | 101.54% | ||
| Profit Quality | 113.15% | ||
| Current Ratio | 7.99 | ||
| Quick Ratio | 6.55 | ||
| Altman-Z | 37.29 |
F-Score7
WACC8.99%
ROIC/WACC2.64
Cap/Depr(3y)106.68%
Cap/Depr(5y)92.61%
Cap/Sales(3y)1.25%
Cap/Sales(5y)1.13%
Profit Quality(3y)95.51%
Profit Quality(5y)92.84%
High Growth Momentum
Growth
EPS 1Y (TTM)2.31%
EPS 3Y42.07%
EPS 5Y33.7%
EPS Q2Q%35.71%
EPS Next Y19.18%
EPS Next 2Y15.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.94%
Revenue growth 3Y8.14%
Revenue growth 5Y12.36%
Sales Q2Q%12.2%
Revenue Next Year15.23%
Revenue Next 2Y12.46%
Revenue Next 3Y13.46%
Revenue Next 5YN/A
EBIT growth 1Y0.28%
EBIT growth 3Y36.47%
EBIT growth 5Y30.98%
EBIT Next Year35.56%
EBIT Next 3Y21.32%
EBIT Next 5YN/A
FCF growth 1Y35.91%
FCF growth 3Y95.79%
FCF growth 5Y42.69%
OCF growth 1Y29.4%
OCF growth 3Y85.91%
OCF growth 5Y39.02%
NAPCO SECURITY TECHNOLOGIES / NSSC FAQ
Can you provide the ChartMill fundamental rating for NAPCO SECURITY TECHNOLOGIES?
ChartMill assigns a fundamental rating of 8 / 10 to NSSC.
What is the valuation status for NSSC stock?
ChartMill assigns a valuation rating of 4 / 10 to NAPCO SECURITY TECHNOLOGIES (NSSC). This can be considered as Fairly Valued.
How profitable is NAPCO SECURITY TECHNOLOGIES (NSSC) stock?
NAPCO SECURITY TECHNOLOGIES (NSSC) has a profitability rating of 10 / 10.
What is the financial health of NAPCO SECURITY TECHNOLOGIES (NSSC) stock?
The financial health rating of NAPCO SECURITY TECHNOLOGIES (NSSC) is 10 / 10.
Is the dividend of NAPCO SECURITY TECHNOLOGIES sustainable?
The dividend rating of NAPCO SECURITY TECHNOLOGIES (NSSC) is 3 / 10 and the dividend payout ratio is 40.08%.