NAPCO SECURITY TECHNOLOGIES (NSSC)
US6304021057 - Common Stock
Taking everything into account, NSSC scores 8 out of 10 in our fundamental rating. NSSC was compared to 127 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 is showing excellent growth while it is valued at reasonable prices. 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.
Measured over the past 3 years, the Average Return On Invested Capital for NSSC 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 has a Profit Margin of 25.58%. This is amongst the best in the industry. NSSC outperforms 99.20% of its industry peers.
In the last couple of years the Profit Margin of NSSC has grown nicely.
With an excellent Operating Margin value of 28.21%, NSSC belongs to the best 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.
The Gross Margin of NSSC (52.93%) is better than 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.
The number of shares outstanding for NSSC has been increased compared to 1 year ago.
The number of shares outstanding for NSSC has been reduced compared to 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 41.59. This indicates that NSSC is financially healthy and has little risk of bankruptcy at the moment.
NSSC's Altman-Z score of 41.59 is amongst the best of the industry. NSSC outperforms 97.60% of its industry peers.
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 | 41.59 |
ROIC/WACC2.86
WACC9.12%
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.
NSSC has a Current ratio of 7.93. This is amongst the best in the industry. NSSC outperforms 88.80% of its industry peers.
A Quick Ratio of 6.08 indicates that NSSC has no problem at all paying its short term obligations.
NSSC has a better Quick ratio (6.08) than 86.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.93 | ||
| Quick Ratio | 6.08 |
3. Growth
3.1 Past
NSSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.57%, which is quite impressive.
NSSC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.80% yearly.
Looking at the last year, NSSC shows a quite strong growth in Revenue. The Revenue has grown by 8.66% in the last year.
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
Based on estimates for the next years, NSSC will show a very strong growth in Earnings Per Share. The EPS will grow by 30.84% on average per year.
Based on estimates for the next years, NSSC will show a quite strong growth in Revenue. The Revenue will grow by 18.66% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.11 indicates a quite expensive valuation of NSSC.
The rest of the industry has a similar Price/Earnings ratio as NSSC.
NSSC is valuated rather expensively when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 30.07, the valuation of NSSC can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NSSC is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.15. NSSC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.11 | ||
| Fwd PE | 30.07 |
4.2 Price Multiples
NSSC's Enterprise Value to EBITDA is on the same level as the industry average.
NSSC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.98 | ||
| EV/EBITDA | 28.77 |
4.3 Compensation for Growth
NSSC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of NSSC 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)1.01
PEG (5Y)1.01
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 (5/17/2024, 7:16:44 PM)
After market: 45.5 0 (0%)45.5
+0.69 (+1.54%)
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 Cap1.67B
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)
Avg EPS beat(2)
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 | 36.11 | ||
| Fwd PE | 30.07 | ||
| 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)1.01
PEG (5Y)1.01
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