Why NASDAQ:NSSC Stands Out as a Quality Stock.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if NAPCO SECURITY TECHNOLOGIES (NASDAQ:NSSC) is suited for quality investing. Investors should of course do their own research, but we spotted NAPCO SECURITY TECHNOLOGIES showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of NAPCO SECURITY TECHNOLOGIES

• Over the past 5 years, NAPCO SECURITY TECHNOLOGIES has experienced impressive revenue growth, with 13.14% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• The ROIC excluding cash and goodwill of NAPCO SECURITY TECHNOLOGIES stands at 54.61%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• NAPCO SECURITY TECHNOLOGIES maintains a healthy Debt/Free Cash Flow Ratio of 0.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• NAPCO SECURITY TECHNOLOGIES exhibits impressive Profit Quality (5-year) with a 84.52% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• NAPCO SECURITY TECHNOLOGIES has experienced impressive EBIT growth over the past 5 years, with 29.25% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• 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.

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall NSSC gets a fundamental rating of 8 out of 10. We evaluated NSSC against 127 industry peers in the Electronic Equipment, Instruments & Components industry. NSSC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NSSC is growing strongly while it is still valued neutral. This is a good combination! These ratings would make NSSC suitable 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.

Keep in mind

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.