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NAPCO SECURITY TECHNOLOGIES (NSSC) Stock Fundamental Analysis

NASDAQ:NSSC - Nasdaq - US6304021057 - Common Stock - Currency: USD

29.96  +0.27 (+0.91%)

After market: 29.96 0 (0%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to NSSC. NSSC was compared to 125 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. These ratings could make NSSC a good candidate for quality investing.


Dividend Valuation Growth Profitability Health

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10

1. Profitability

1.1 Basic Checks

NSSC had positive earnings in the past year.
NSSC had a positive operating cash flow in the past year.
In the past 5 years NSSC has always been profitable.
In the past 5 years NSSC always reported a positive cash flow from operatings.
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

With an excellent Return On Assets value of 23.74%, NSSC belongs to the best of the industry, outperforming 96.80% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.05%, NSSC belongs to the top of the industry, outperforming 94.40% of the companies in the same industry.
The Return On Invested Capital of NSSC (25.06%) is better than 97.60% of its industry peers.
NSSC had an Average Return On Invested Capital over the past 3 years of 18.84%. This is significantly above the industry average of 9.38%.
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 Profit Margin of 25.00%. This is amongst the best in the industry. NSSC outperforms 96.80% of its industry peers.
NSSC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 26.56%, NSSC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NSSC's Operating Margin has improved in the last couple of years.
NSSC has a better Gross Margin (56.33%) than 91.20% of its industry peers.
In the last couple of years the Gross Margin of NSSC has grown nicely.
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

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NSSC is creating value.
NSSC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NSSC has less shares outstanding
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 25.68 indicates that NSSC is not in any danger for bankruptcy at the moment.
NSSC's Altman-Z score of 25.68 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 25.68
ROIC/WACC2.81
WACC8.93%
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.
NSSC has a better Current ratio (6.74) than 84.80% of its industry peers.
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 84.80% 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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5

3. Growth

3.1 Past

NSSC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.17%.
The Earnings Per Share has been growing by 31.95% on average over the past years. This is a very strong growth
NSSC shows a decrease in Revenue. In the last year, the revenue decreased by -1.05%.
NSSC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.91% yearly.
EPS 1Y (TTM)-3.17%
EPS 3Y49.01%
EPS 5Y31.95%
EPS Q2Q%-22.22%
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y18.32%
Revenue growth 5Y12.91%
Sales Q2Q%-10.77%

3.2 Future

The Earnings Per Share is expected to grow by 3.34% on average over the next years.
NSSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.49% yearly.
EPS Next Y-14.24%
EPS Next 2Y-5.52%
EPS Next 3Y3.34%
EPS Next 5YN/A
Revenue Next Year-7.15%
Revenue Next 2Y-0.78%
Revenue Next 3Y1.8%
Revenue Next 5Y14.49%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
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

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 24.56, which indicates a rather expensive current valuation of NSSC.
Compared to the rest of the industry, the Price/Earnings ratio of NSSC indicates a somewhat cheap valuation: NSSC is cheaper than 69.60% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. NSSC is around the same levels.
NSSC is valuated quite expensively with a Price/Forward Earnings ratio of 25.05.
NSSC's Price/Forward Earnings ratio is in line with the industry average.
NSSC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.70.
Industry RankSector Rank
PE 24.56
Fwd PE 25.05
NSSC Price Earnings VS Forward Price EarningsNSSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NSSC indicates a somewhat cheap valuation: NSSC is cheaper than 61.60% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NSSC indicates a somewhat cheap valuation: NSSC is cheaper than 77.60% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 21.03
EV/EBITDA 18.93
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 excellent profitability rating of NSSC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-5.52%
EPS Next 3Y3.34%

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3

5. Dividend

5.1 Amount

NSSC has a Yearly Dividend Yield of 1.88%.
NSSC's Dividend Yield is rather good when compared to the industry average which is at 1.95. NSSC pays more dividend than 93.60% of the companies in the same industry.
NSSC's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
Industry RankSector Rank
Dividend Yield 1.88%

5.2 History

NSSC has paid a dividend for less than 5 years, so there is no long track record yet.
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

28.37% of the earnings are spent on dividend by NSSC. This is a low number and sustainable payout ratio.
DP28.37%
EPS Next 2Y-5.52%
EPS Next 3Y3.34%
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 (7/1/2025, 8:00:02 PM)

After market: 29.96 0 (0%)

29.96

+0.27 (+0.91%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)05-05 2025-05-05/bmo
Earnings (Next)08-25 2025-08-25/amc
Inst Owners90.75%
Inst Owner Change-2.09%
Ins Owners4.43%
Ins Owner Change-0.3%
Market Cap1.07B
Analysts76.36
Price Target28.25 (-5.71%)
Short Float %9.66%
Short Ratio8.25
Dividend
Industry RankSector Rank
Dividend Yield 1.88%
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP28.37%
Div Incr Years1
Div Non Decr Years1
Ex-Date06-12 2025-06-12 (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)5.73%
PT rev (3m)-11.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.48%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-6.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.38%
Valuation
Industry RankSector Rank
PE 24.56
Fwd PE 25.05
P/S 5.9
P/FCF 21.03
P/OCF 20.07
P/B 6.61
P/tB 6.75
EV/EBITDA 18.93
EPS(TTM)1.22
EY4.07%
EPS(NY)1.2
Fwd EY3.99%
FCF(TTM)1.42
FCFY4.76%
OCF(TTM)1.49
OCFY4.98%
SpS5.08
BVpS4.53
TBVpS4.44
PEG (NY)N/A
PEG (5Y)0.77
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 25.68
F-Score7
WACC8.93%
ROIC/WACC2.81
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)-3.17%
EPS 3Y49.01%
EPS 5Y31.95%
EPS Q2Q%-22.22%
EPS Next Y-14.24%
EPS Next 2Y-5.52%
EPS Next 3Y3.34%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y18.32%
Revenue growth 5Y12.91%
Sales Q2Q%-10.77%
Revenue Next Year-7.15%
Revenue Next 2Y-0.78%
Revenue Next 3Y1.8%
Revenue Next 5Y14.49%
EBIT growth 1Y-6.84%
EBIT growth 3Y44.33%
EBIT growth 5Y31.28%
EBIT Next Year-9.1%
EBIT Next 3Y2.99%
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%