NAPCO SECURITY TECHNOLOGIES (NSSC) Stock Fundamental Analysis
NASDAQ:NSSC - Nasdaq - US6304021057 - Common Stock - Currency: USD
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. These ratings would make NSSC suitable for quality investing!
1. Profitability
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.
In the past 5 years NSSC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 23.87%, NSSC belongs to the top of the industry, outperforming 96.80% of the companies in the same industry.
The Return On Equity of NSSC (27.77%) is better than 93.60% of its industry peers.
With an excellent Return On Invested Capital value of 24.94%, NSSC belongs to the best of the industry, outperforming 97.60% of the companies in the same industry.
NSSC had an Average Return On Invested Capital over the past 3 years of 18.84%. This 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 Rank | Sector 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%
1.3 Margins
NSSC has a Profit Margin of 25.94%. This is amongst the best in the industry. NSSC outperforms 96.80% of its industry peers.
In the last couple of years the Profit Margin of NSSC has grown nicely.
Looking at the Operating Margin, with a value of 27.60%, NSSC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NSSC has grown nicely.
NSSC has a better Gross Margin (55.45%) than 92.80% of its industry peers.
NSSC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
NSSC has more 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 25.61. This indicates that NSSC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 25.61, NSSC belongs to the best of the industry, outperforming 97.60% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 25.61 |
ROIC/WACC2.67
WACC9.34%
2.3 Liquidity
A Current Ratio of 7.55 indicates that NSSC has no problem at all paying 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.
With an excellent Quick ratio value of 5.83, NSSC belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.55 | ||
| Quick Ratio | 5.83 |
3. Growth
3.1 Past
The earnings per share for NSSC have decreased by -3.17% in the last year.
Measured over the past years, NSSC shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.95% on average per year.
NSSC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.07%.
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)-3.17%
EPS 3Y49.01%
EPS 5Y31.95%
EPS Q2Q%-22.22%
Revenue 1Y (TTM)11.07%
Revenue growth 3Y18.32%
Revenue growth 5Y12.91%
Sales Q2Q%-10.77%
3.2 Future
Based on estimates for the next years, NSSC will show a small growth in Earnings Per Share. The EPS will grow by 3.34% on average per year.
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-14.4%
EPS Next 2Y-5.52%
EPS Next 3Y3.34%
EPS Next 5YN/A
Revenue Next Year-7.15%
Revenue Next 2Y-0.78%
Revenue Next 3Y1.8%
Revenue Next 5Y14.49%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.33, 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 65.60% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, NSSC is valued at the same level.
The Price/Forward Earnings ratio is 23.79, which indicates a rather expensive current valuation of NSSC.
NSSC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.94. NSSC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 23.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NSSC is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NSSC indicates a somewhat cheap valuation: NSSC is cheaper than 74.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.94 | ||
| EV/EBITDA | 17.05 |
4.3 Compensation for Growth
NSSC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y-5.52%
EPS Next 3Y3.34%
5. Dividend
5.1 Amount
NSSC has a Yearly Dividend Yield of 2.03%. 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 2.09. NSSC pays more dividend than 93.60% of the companies in the same industry.
NSSC's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
5.2 History
NSSC has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
24.77% of the earnings are spent on dividend by NSSC. This is a low number and sustainable payout ratio.
DP24.77%
EPS Next 2Y-5.52%
EPS Next 3Y3.34%
NASDAQ:NSSC (5/22/2025, 2:30:15 PM)
28.46
+0.16 (+0.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners95.36%
Inst Owner Change-2.1%
Ins Owners4.35%
Ins Owner Change0%
Market Cap1.04B
Analysts78.18
Price Target26.72 (-6.11%)
Short Float %11.34%
Short Ratio7.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP24.77%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-13.82%
PT rev (3m)-44.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.98%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)-7.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.83%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)-6.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 23.79 | ||
| P/S | 5.55 | ||
| P/FCF | 20.94 | ||
| P/OCF | 19.85 | ||
| P/B | 5.95 | ||
| P/tB | 6.07 | ||
| EV/EBITDA | 17.05 |
EPS(TTM)1.22
EY4.29%
EPS(NY)1.2
Fwd EY4.2%
FCF(TTM)1.36
FCFY4.78%
OCF(TTM)1.43
OCFY5.04%
SpS5.12
BVpS4.79
TBVpS4.69
PEG (NY)N/A
PEG (5Y)0.73
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 25.61 |
F-Score8
WACC9.34%
ROIC/WACC2.67
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)-3.17%
EPS 3Y49.01%
EPS 5Y31.95%
EPS Q2Q%-22.22%
EPS Next Y-14.4%
EPS Next 2Y-5.52%
EPS Next 3Y3.34%
EPS Next 5YN/A
Revenue 1Y (TTM)11.07%
Revenue growth 3Y18.32%
Revenue growth 5Y12.91%
Sales Q2Q%-10.77%
Revenue Next Year-7.15%
Revenue Next 2Y-0.78%
Revenue Next 3Y1.8%
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%