NAPCO SECURITY TECHNOLOGIES (NSSC)
US6304021057 - Common Stock
We assign a fundamental rating of 8 out of 10 to NSSC. NSSC was compared to 127 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 not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, NSSC could be worth investigating further for growth and 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.
In the past 5 years NSSC always reported a positive cash flow from operatings.
1.2 Ratios
NSSC's Return On Assets of 24.05% is amongst the best of the industry. NSSC outperforms 99.20% of its industry peers.
With an excellent Return On Equity value of 27.86%, NSSC belongs to the best of the industry, outperforming 96.80% of the companies in the same industry.
NSSC has a Return On Invested Capital of 26.12%. This is amongst the best in the industry. NSSC outperforms 99.20% of its industry peers.
NSSC had an Average Return On Invested Capital over the past 3 years of 15.62%. This is significantly above the industry average of 9.10%.
The 3 year average ROIC (15.62%) for NSSC is below the current ROIC(26.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.05% | ||
| ROE | 27.86% | ||
| ROIC | 26.12% |
ROA(3y)14%
ROA(5y)12.79%
ROE(3y)17.74%
ROE(5y)16.16%
ROIC(3y)15.62%
ROIC(5y)15.18%
1.3 Margins
NSSC's Profit Margin of 25.58% is amongst the best of the industry. NSSC outperforms 99.20% of its industry peers.
In the last couple of years the Profit Margin of NSSC has grown nicely.
NSSC has a Operating Margin of 28.21%. This is amongst the best in the industry. NSSC outperforms 100.00% of its industry peers.
NSSC's Operating Margin has improved in the last couple of years.
NSSC has a Gross Margin of 52.93%. This is amongst the best in the industry. NSSC outperforms 91.20% of its industry peers.
NSSC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.21% | ||
| PM (TTM) | 25.58% | ||
| GM | 52.93% |
OM growth 3Y14.63%
OM growth 5Y14.24%
PM growth 3Y27.49%
PM growth 5Y13.98%
GM growth 3Y0.67%
GM growth 5Y0.77%
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.
Compared to 1 year ago, NSSC has more shares outstanding
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
An Altman-Z score of 42.81 indicates that NSSC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 42.81, NSSC belongs to the top of the industry, outperforming 97.60% 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 | 42.81 |
ROIC/WACC2.79
WACC9.35%
2.3 Liquidity
NSSC has a Current Ratio of 7.93. 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 7.93, NSSC belongs to the top of the industry, outperforming 88.80% of the companies in the same industry.
A Quick Ratio of 6.08 indicates that NSSC has no problem at all paying its short term obligations.
NSSC's Quick ratio of 6.08 is amongst the best of the industry. NSSC outperforms 86.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.93 | ||
| Quick Ratio | 6.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.57% over the past year.
The Earnings Per Share has been growing by 35.80% on average over the past years. This is a very strong growth
NSSC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.66%.
Measured over the past years, NSSC shows a quite strong growth in Revenue. The Revenue has been growing by 13.14% on average per year.
EPS 1Y (TTM)41.57%
EPS 3Y51.58%
EPS 5Y35.8%
EPS growth Q2Q24.14%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y18.8%
Revenue growth 5Y13.14%
Revenue growth Q2Q13.17%
3.2 Future
NSSC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.84% yearly.
NSSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.66% yearly.
EPS Next Y35.7%
EPS Next 2Y24.89%
EPS Next 3Y30.84%
EPS Next 5YN/A
Revenue Next Year11.42%
Revenue Next 2Y12.96%
Revenue Next 3Y20.05%
Revenue Next 5Y18.66%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
With a Price/Earnings ratio of 37.28, NSSC can be considered very expensive at the moment.
NSSC's Price/Earnings ratio is in line with the industry average.
NSSC is valuated rather expensively when we compare the Price/Earnings ratio to 28.67, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 31.05, which means the current valuation is very expensive for NSSC.
NSSC's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.15. NSSC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.28 | ||
| Fwd PE | 31.05 |
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.
NSSC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.27 | ||
| EV/EBITDA | 29.77 |
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 30.84% in the coming years.
PEG (NY)1.04
PEG (5Y)1.04
EPS Next 2Y24.89%
EPS Next 3Y30.84%
5. Dividend
5.1 Amount
NSSC has a yearly dividend return of 0.89%, which is pretty low.
Compared to an average industry Dividend Yield of 1.71, NSSC pays a better dividend. On top of this NSSC pays more dividend than 87.20% of the companies listed in the same industry.
With a Dividend Yield of 0.89, NSSC pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
NSSC is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NSSC pays out 25.33% of its income as dividend. This is a sustainable payout ratio.
DP25.33%
EPS Next 2Y24.89%
EPS Next 3Y30.84%
NAPCO SECURITY TECHNOLOGIES
NASDAQ:NSSC (5/20/2024, 7:00:02 PM)
After market: 46.97 0 (0%)46.97
+1.47 (+3.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.28 | ||
| Fwd PE | 31.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.04
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.05% | ||
| ROE | 27.86% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.21% | ||
| PM (TTM) | 25.58% | ||
| GM | 52.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 7.93 | ||
| Quick Ratio | 6.08 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)41.57%
EPS 3Y51.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y35.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.66%
Revenue growth 3Y18.8%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y