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NAPCO SECURITY TECHNOLOGIES (NSSC) Stock Fundamental Analysis

NASDAQ:NSSC - US6304021057 - Common Stock

38.41 USD
+1.01 (+2.7%)
Last: 8/27/2025, 8:08:04 PM
37.66 USD
-0.75 (-1.95%)
After Hours: 8/27/2025, 8:08:04 PM
Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to NSSC. NSSC was compared to 124 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.


Dividend Valuation Growth Profitability Health

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9

1. Profitability

1.1 Basic Checks

In the past year NSSC was profitable.
NSSC had a positive operating cash flow in the past year.
NSSC had positive earnings in 4 of the past 5 years.
Of the past 5 years NSSC 4 years had a positive operating cash flow.
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

NSSC has a Return On Assets of 23.74%. This is amongst the best in the industry. NSSC outperforms 95.97% of its industry peers.
NSSC's Return On Equity of 28.05% is amongst the best of the industry. NSSC outperforms 92.74% of its industry peers.
NSSC has a better Return On Invested Capital (25.06%) than 97.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NSSC is significantly above the industry average of 9.70%.
The 3 year average ROIC (18.84%) for NSSC is below the current ROIC(25.06%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 23.74%
ROE 28.05%
ROIC 25.06%
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 (25.00%) than 96.77% of its industry peers.
NSSC's Profit Margin has improved in the last couple of years.
NSSC has a Operating Margin of 26.56%. 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.
With an excellent Gross Margin value of 56.33%, NSSC belongs to the best of the industry, outperforming 91.13% of the companies in the same industry.
NSSC's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 26.56%
PM (TTM) 25%
GM 56.33%
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.
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 32.04 indicates that NSSC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 32.04, NSSC belongs to the best of the industry, outperforming 97.58% 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 32.04
ROIC/WACC2.64
WACC9.51%
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 6.74. This indicates that NSSC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 6.74, NSSC belongs to the best of the industry, outperforming 87.90% of the companies in the same industry.
A Quick Ratio of 5.22 indicates that NSSC has no problem at all paying its short term obligations.
The Quick ratio of NSSC (5.22) is better than 87.10% of its industry peers.
Industry RankSector Rank
Current Ratio 6.74
Quick Ratio 5.22
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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4

3. Growth

3.1 Past

The earnings per share for NSSC have decreased strongly by -11.19% in the last year.
The Earnings Per Share has been growing by 33.70% on average over the past years. This is a very strong growth
EPS 1Y (TTM)-11.19%
EPS 3Y42.07%
EPS 5Y33.7%
EPS Q2Q%-8.33%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.78%

3.2 Future

NSSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.20% yearly.
The Revenue is expected to grow by 22.72% on average over the next years. This is a very strong growth
EPS Next Y1.61%
EPS Next 2Y13.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.75%
Revenue Next 2Y9.06%
Revenue Next 3Y22.72%
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 2027 0.5 1 1.5

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 32.28 indicates a quite expensive valuation of NSSC.
Based on the Price/Earnings ratio, NSSC is valued a bit cheaper than the industry average as 62.10% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.14, NSSC is valued at the same level.
With a Price/Forward Earnings ratio of 31.76, NSSC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NSSC is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of NSSC to the average of the S&P500 Index (22.80), we can say NSSC is valued slightly more expensively.
Industry RankSector Rank
PE 32.28
Fwd PE 31.76
NSSC Price Earnings VS Forward Price EarningsNSSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

NSSC's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NSSC indicates a somewhat cheap valuation: NSSC is cheaper than 73.39% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 26.96
EV/EBITDA 25.1
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

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.
A more expensive valuation may be justified as NSSC's earnings are expected to grow with 13.20% in the coming years.
PEG (NY)19.99
PEG (5Y)0.96
EPS Next 2Y13.2%
EPS Next 3YN/A

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3

5. Dividend

5.1 Amount

NSSC has a Yearly Dividend Yield of 1.50%.
NSSC's Dividend Yield is rather good when compared to the industry average which is at 1.60. NSSC pays more dividend than 91.13% of the companies in the same industry.
NSSC's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.5%

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
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 28.37% of its income as dividend. This is a sustainable payout ratio.
DP28.37%
EPS Next 2Y13.2%
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 (8/27/2025, 8:08:04 PM)

After market: 37.66 -0.75 (-1.95%)

38.41

+1.01 (+2.7%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)08-25 2025-08-25/bmo
Earnings (Next)11-03 2025-11-03
Inst Owners90.68%
Inst Owner Change0.34%
Ins Owners4.43%
Ins Owner Change-0.3%
Market Cap1.37B
Analysts76.67
Price Target30.69 (-20.1%)
Short Float %8.37%
Short Ratio10.52
Dividend
Industry RankSector Rank
Dividend Yield 1.5%
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP28.37%
Div Incr Years1
Div Non Decr Years1
Ex-Date09-12 2025-09-12 (0.14)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.31%
Min EPS beat(2)-18.45%
Max EPS beat(2)1.82%
EPS beat(4)1
Avg EPS beat(4)-7.97%
Min EPS beat(4)-18.45%
Max EPS beat(4)1.82%
EPS beat(8)5
Avg EPS beat(8)4.8%
EPS beat(12)9
Avg EPS beat(12)20.93%
EPS beat(16)11
Avg EPS beat(16)11.3%
Revenue beat(2)0
Avg Revenue beat(2)-7.87%
Min Revenue beat(2)-15.65%
Max Revenue beat(2)-0.09%
Revenue beat(4)0
Avg Revenue beat(4)-6.8%
Min Revenue beat(4)-15.65%
Max Revenue beat(4)-0.09%
Revenue beat(8)1
Avg Revenue beat(8)-3.3%
Revenue beat(12)5
Avg Revenue beat(12)-0.46%
Revenue beat(16)9
Avg Revenue beat(16)1.21%
PT rev (1m)0%
PT rev (3m)14.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.84%
EPS NY rev (1m)0.35%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.11%
Valuation
Industry RankSector Rank
PE 32.28
Fwd PE 31.76
P/S 7.56
P/FCF 26.96
P/OCF 25.73
P/B 8.48
P/tB 8.66
EV/EBITDA 25.1
EPS(TTM)1.19
EY3.1%
EPS(NY)1.21
Fwd EY3.15%
FCF(TTM)1.42
FCFY3.71%
OCF(TTM)1.49
OCFY3.89%
SpS5.08
BVpS4.53
TBVpS4.44
PEG (NY)19.99
PEG (5Y)0.96
Profitability
Industry RankSector Rank
ROA 23.74%
ROE 28.05%
ROCE 28.61%
ROIC 25.06%
ROICexc 53.41%
ROICexgc 55.79%
OM 26.56%
PM (TTM) 25%
GM 56.33%
FCFM 28.04%
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-Score7
Asset Turnover0.95
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 108.43%
Cap/Sales 1.34%
Interest Coverage 8022.83
Cash Conversion 105.68%
Profit Quality 112.14%
Current Ratio 6.74
Quick Ratio 5.22
Altman-Z 32.04
F-Score7
WACC9.51%
ROIC/WACC2.64
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)-11.19%
EPS 3Y42.07%
EPS 5Y33.7%
EPS Q2Q%-8.33%
EPS Next Y1.61%
EPS Next 2Y13.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.78%
Revenue Next Year6.75%
Revenue Next 2Y9.06%
Revenue Next 3Y22.72%
Revenue Next 5YN/A
EBIT growth 1Y-6.84%
EBIT growth 3Y44.33%
EBIT growth 5Y31.28%
EBIT Next Year-8.98%
EBIT Next 3Y4.99%
EBIT Next 5Y27.1%
FCF growth 1Y434.83%
FCF growth 3Y25.81%
FCF growth 5Y45.73%
OCF growth 1Y331.43%
OCF growth 3Y25.43%
OCF growth 5Y39.3%