38.84 USD
+0.31 (+0.8%)
38.84 USD
0 (0%)
NSSC gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 123 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 has a correct valuation and a medium growth rate. This makes NSSC very considerable for 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.
- NSSC had positive earnings in each of the past 5 years.
- NSSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 21.55%, NSSC belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
- NSSC's Return On Equity of 25.20% is amongst the best of the industry. NSSC outperforms 91.87% of its industry peers.
- The Return On Invested Capital of NSSC (23.18%) is better than 97.56% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NSSC is significantly above the industry average of 8.87%.
- The 3 year average ROIC (22.23%) for NSSC is below the current ROIC(23.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.55% | ||
| ROE | 25.2% | ||
| ROIC | 23.18% |
ROA(3y)20.71%
ROA(5y)17.58%
ROE(3y)24.31%
ROE(5y)21.36%
ROIC(3y)22.23%
ROIC(5y)19.01%
1.3 Margins
- NSSC has a better Profit Margin (23.76%) than 97.56% of its industry peers.
- In the last couple of years the Profit Margin of NSSC has grown nicely.
- NSSC has a Operating Margin of 25.72%. This is amongst the best in the industry. NSSC outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of NSSC has grown nicely.
- Looking at the Gross Margin, with a value of 55.82%, NSSC belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
- In the last couple of years the Gross Margin of NSSC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.72% | ||
| PM (TTM) | 23.76% | ||
| GM | 55.82% |
OM growth 3Y26.19%
OM growth 5Y16.57%
PM growth 3Y20.53%
PM growth 5Y25.45%
GM growth 3Y10.5%
GM growth 5Y5.68%
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 less shares outstanding than it did 1 year ago.
- NSSC has less shares outstanding than it did 5 years ago.
- NSSC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 31.56 indicates that NSSC is not in any danger for bankruptcy at the moment.
- NSSC has a better Altman-Z score (31.56) than 95.94% of its industry peers.
- NSSC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 31.56 |
ROIC/WACC2.61
WACC8.88%
2.3 Liquidity
- A Current Ratio of 7.06 indicates that NSSC has no problem at all paying its short term obligations.
- NSSC's Current ratio of 7.06 is amongst the best of the industry. NSSC outperforms 86.99% of its industry peers.
- A Quick Ratio of 5.79 indicates that NSSC has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 5.79, NSSC belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.06 | ||
| Quick Ratio | 5.79 |
3. Growth
3.1 Past
- NSSC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.56%.
- The Earnings Per Share has been growing by 33.70% on average over the past years. This is a very strong growth
- The Revenue has decreased by -2.28% in the past year.
- Measured over the past years, NSSC shows a quite strong growth in Revenue. The Revenue has been growing by 12.36% on average per year.
EPS 1Y (TTM)-9.56%
EPS 3Y42.07%
EPS 5Y33.7%
EPS Q2Q%13.33%
Revenue 1Y (TTM)-2.28%
Revenue growth 3Y8.14%
Revenue growth 5Y12.36%
Sales Q2Q%11.74%
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 13.90% yearly.
- Based on estimates for the next years, NSSC will show a quite strong growth in Revenue. The Revenue will grow by 13.46% on average per year.
EPS Next Y15.83%
EPS Next 2Y13.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.88%
Revenue Next 2Y12.18%
Revenue Next 3Y13.46%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 31.58 indicates a quite expensive valuation of NSSC.
- Based on the Price/Earnings ratio, NSSC is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
- NSSC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- The Price/Forward Earnings ratio is 25.16, which means the current valuation is very expensive for NSSC.
- Based on the Price/Forward Earnings ratio, NSSC is valued a bit cheaper than the industry average as 64.23% of the companies are valued more expensively.
- NSSC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.58 | ||
| Fwd PE | 25.16 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NSSC is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, NSSC is valued a bit cheaper than the industry average as 72.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.89 | ||
| EV/EBITDA | 24.99 |
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 13.90% in the coming years.
PEG (NY)1.99
PEG (5Y)0.94
EPS Next 2Y13.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- NSSC has a Yearly Dividend Yield of 1.41%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.46, NSSC pays a better dividend. On top of this NSSC pays more dividend than 92.68% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, NSSC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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
5.3 Sustainability
- 41.96% of the earnings are spent on dividend by NSSC. This is a bit on the high side, but may be sustainable.
DP41.96%
EPS Next 2Y13.9%
EPS Next 3YN/A
NAPCO SECURITY TECHNOLOGIES / NSSC FAQ
Can you provide the ChartMill fundamental rating for NAPCO SECURITY TECHNOLOGIES?
ChartMill assigns a fundamental rating of 8 / 10 to NSSC.
What is the valuation status for NSSC stock?
ChartMill assigns a valuation rating of 4 / 10 to NAPCO SECURITY TECHNOLOGIES (NSSC). This can be considered as Fairly Valued.
How profitable is NAPCO SECURITY TECHNOLOGIES (NSSC) stock?
NAPCO SECURITY TECHNOLOGIES (NSSC) has a profitability rating of 10 / 10.
What is the financial health of NAPCO SECURITY TECHNOLOGIES (NSSC) stock?
The financial health rating of NAPCO SECURITY TECHNOLOGIES (NSSC) is 10 / 10.
Is the dividend of NAPCO SECURITY TECHNOLOGIES sustainable?
The dividend rating of NAPCO SECURITY TECHNOLOGIES (NSSC) is 3 / 10 and the dividend payout ratio is 41.96%.