NAPCO SECURITY TECHNOLOGIES (NSSC) Stock Fundamental Analysis
USA - NASDAQ:NSSC - US6304021057 - Common Stock
44.09 USD
+0.16 (+0.36%)
44.09 USD
0 (0%)
We assign a fundamental rating of 8 out of 10 to NSSC. NSSC was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. NSSC gets an excellent profitability rating and is at the same time showing great financial health properties. NSSC is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make NSSC a good candidate for quality investing.
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.
In the past 5 years NSSC has always been profitable.
Each year in the past 5 years NSSC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.91%, NSSC belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
NSSC has a Return On Equity of 25.74%. This is amongst the best in the industry. NSSC outperforms 91.06% of its industry peers.
The Return On Invested Capital of NSSC (23.26%) is better than 96.75% 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 9.33%.
The last Return On Invested Capital (23.26%) for NSSC is above the 3 year average (22.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.91% | ||
| ROE | 25.74% | ||
| ROIC | 23.26% |
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
Looking at the Profit Margin, with a value of 23.90%, NSSC belongs to the top of the industry, outperforming 96.75% of the companies in the same industry.
NSSC's Profit Margin has improved in the last couple of years.
NSSC has a better Operating Margin (25.47%) than 100.00% of its industry peers.
NSSC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 55.63%, NSSC belongs to the top of the industry, outperforming 91.87% of the companies in the same industry.
In the last couple of years the Gross Margin of NSSC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.47% | ||
| PM (TTM) | 23.9% | ||
| GM | 55.63% |
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. Health
2.1 Basic Checks
NSSC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for NSSC has been reduced compared to 1 year ago.
NSSC has less shares outstanding than it did 5 years ago.
NSSC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
NSSC has an Altman-Z score of 35.87. This indicates that NSSC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 35.87, NSSC belongs to the best of the industry, outperforming 96.75% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 35.87 |
ROIC/WACC2.54
WACC9.15%
2.3 Liquidity
NSSC has a Current Ratio of 6.75. This indicates that NSSC is financially healthy and has no problem in meeting its short term obligations.
NSSC has a Current ratio of 6.75. This is amongst the best in the industry. NSSC outperforms 87.80% of its industry peers.
A Quick Ratio of 5.51 indicates that NSSC has no problem at all paying its short term obligations.
NSSC has a Quick ratio of 5.51. This is amongst the best in the industry. NSSC outperforms 88.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.75 | ||
| Quick Ratio | 5.51 |
3. Growth
3.1 Past
NSSC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.19%.
Measured over the past years, NSSC shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.70% on average per year.
Looking at the last year, NSSC shows a decrease in Revenue. The Revenue has decreased by -3.81% in the last year.
NSSC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.36% yearly.
EPS 1Y (TTM)-11.19%
EPS 3Y42.07%
EPS 5Y33.7%
EPS Q2Q%-8.33%
Revenue 1Y (TTM)-3.81%
Revenue growth 3Y8.14%
Revenue growth 5Y12.36%
Sales Q2Q%0.78%
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 12.02% on average per year.
NSSC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.72% yearly.
EPS Next Y11.31%
EPS Next 2Y12.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.03%
Revenue Next 2Y10.88%
Revenue Next 3Y22.72%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.05, which means the current valuation is very expensive for NSSC.
The rest of the industry has a similar Price/Earnings ratio as NSSC.
The average S&P500 Price/Earnings ratio is at 26.89. NSSC is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 33.29, which means the current valuation is very expensive for NSSC.
NSSC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.99. NSSC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.05 | ||
| Fwd PE | 33.29 |
4.2 Price Multiples
NSSC's Enterprise Value to EBITDA ratio is in line with the industry average.
NSSC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NSSC is cheaper than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.58 | ||
| EV/EBITDA | 30.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NSSC does not grow enough to justify the current Price/Earnings ratio.
NSSC has an outstanding profitability rating, which may justify a higher PE ratio.
NSSC's earnings are expected to grow with 12.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.28
PEG (5Y)1.1
EPS Next 2Y12.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NSSC has a Yearly Dividend Yield of 1.27%.
Compared to an average industry Dividend Yield of 1.94, NSSC pays a better dividend. On top of this NSSC pays more dividend than 89.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, NSSC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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
NSSC pays out 31.41% of its income as dividend. This is a sustainable payout ratio.
DP31.41%
EPS Next 2Y12.02%
EPS Next 3YN/A
44.09
+0.16 (+0.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners92.04%
Inst Owner Change-0.17%
Ins Owners4.45%
Ins Owner Change0.03%
Market Cap1.57B
Revenue(TTM)181.62M
Net Income(TTM)43.41M
Analysts80
Price Target41.99 (-4.76%)
Short Float %7.49%
Short Ratio6.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend0.38
Dividend Growth(5Y)N/A
DP31.41%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.72%
Min EPS beat(2)1.82%
Max EPS beat(2)21.63%
EPS beat(4)2
Avg EPS beat(4)-2.54%
Min EPS beat(4)-18.45%
Max EPS beat(4)21.63%
EPS beat(8)5
Avg EPS beat(8)7.21%
EPS beat(12)9
Avg EPS beat(12)16.13%
EPS beat(16)11
Avg EPS beat(16)12.2%
Revenue beat(2)1
Avg Revenue beat(2)5.98%
Min Revenue beat(2)-0.09%
Max Revenue beat(2)12.05%
Revenue beat(4)1
Avg Revenue beat(4)-3.32%
Min Revenue beat(4)-15.65%
Max Revenue beat(4)12.05%
Revenue beat(8)2
Avg Revenue beat(8)-1.24%
Revenue beat(12)5
Avg Revenue beat(12)-0.04%
Revenue beat(16)9
Avg Revenue beat(16)0.93%
PT rev (1m)2.07%
PT rev (3m)36.84%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)3.6%
EPS NY rev (1m)0.64%
EPS NY rev (3m)10.75%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)4.74%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)6.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.05 | ||
| Fwd PE | 33.29 | ||
| P/S | 8.66 | ||
| P/FCF | 30.58 | ||
| P/OCF | 29.37 | ||
| P/B | 9.32 | ||
| P/tB | 9.51 | ||
| EV/EBITDA | 30.02 |
EPS(TTM)1.19
EY2.7%
EPS(NY)1.32
Fwd EY3%
FCF(TTM)1.44
FCFY3.27%
OCF(TTM)1.5
OCFY3.4%
SpS5.09
BVpS4.73
TBVpS4.64
PEG (NY)3.28
PEG (5Y)1.1
Graham Number11.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.91% | ||
| ROE | 25.74% | ||
| ROCE | 26.57% | ||
| ROIC | 23.26% | ||
| ROICexc | 54.05% | ||
| ROICexgc | 56.53% | ||
| OM | 25.47% | ||
| PM (TTM) | 23.9% | ||
| GM | 55.63% | ||
| FCFM | 28.31% |
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 Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 92.97% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.29% | ||
| Profit Quality | 118.44% | ||
| Current Ratio | 6.75 | ||
| Quick Ratio | 5.51 | ||
| Altman-Z | 35.87 |
F-Score7
WACC9.15%
ROIC/WACC2.54
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)-11.19%
EPS 3Y42.07%
EPS 5Y33.7%
EPS Q2Q%-8.33%
EPS Next Y11.31%
EPS Next 2Y12.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.81%
Revenue growth 3Y8.14%
Revenue growth 5Y12.36%
Sales Q2Q%0.78%
Revenue Next Year13.03%
Revenue Next 2Y10.88%
Revenue Next 3Y22.72%
Revenue Next 5YN/A
EBIT growth 1Y-14.05%
EBIT growth 3Y36.47%
EBIT growth 5Y30.98%
EBIT Next Year25.75%
EBIT Next 3Y47.03%
EBIT Next 5YN/A
FCF growth 1Y17.45%
FCF growth 3Y95.79%
FCF growth 5Y42.69%
OCF growth 1Y17.98%
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 of NAPCO SECURITY TECHNOLOGIES (NSSC) stock?
ChartMill assigns a valuation rating of 3 / 10 to NAPCO SECURITY TECHNOLOGIES (NSSC). This can be considered as Overvalued.
How profitable is NAPCO SECURITY TECHNOLOGIES (NSSC) stock?
NAPCO SECURITY TECHNOLOGIES (NSSC) has a profitability rating of 10 / 10.
What is the valuation of NAPCO SECURITY TECHNOLOGIES based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NAPCO SECURITY TECHNOLOGIES (NSSC) is 37.05 and the Price/Book (PB) ratio is 9.32.
What is the expected EPS growth for NAPCO SECURITY TECHNOLOGIES (NSSC) stock?
The Earnings per Share (EPS) of NAPCO SECURITY TECHNOLOGIES (NSSC) is expected to grow by 11.31% in the next year.