Should Quality Investors Include NASDAQ:NSSC in Their Portfolio?

In this article we will dive into NAPCO SECURITY TECHNOLOGIES (NASDAQ:NSSC) as a possible candidate for quality investing. Investors should always do their own research, but we noticed NAPCO SECURITY TECHNOLOGIES showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

• NAPCO SECURITY TECHNOLOGIES has shown strong performance in revenue growth over the past 5 years, with a 13.14% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• NAPCO SECURITY TECHNOLOGIES demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 54.61% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a Debt/Free Cash Flow Ratio of 0.0, NAPCO SECURITY TECHNOLOGIES exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a favorable Profit Quality (5-year) ratio of 84.52%, NAPCO SECURITY TECHNOLOGIES showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 29.25%, NAPCO SECURITY TECHNOLOGIES showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, NAPCO SECURITY TECHNOLOGIES showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What else is there to say on the fundamentals of NASDAQ:NSSC?

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

We assign a fundamental rating of 8 out of 10 to NSSC. NSSC was compared to 128 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 not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, NSSC could be worth investigating further for growth and quality investing!.

Check the latest full fundamental report of NSSC for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.