NAPCO SECURITY TECHNOLOGIES (NSSC) Stock Fundamental Analysis
USA - NASDAQ:NSSC - US6304021057 - Common Stock
40.35 USD
-0.04 (-0.1%)
40.35 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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NSSC is not valued too expensively and it also shows a decent growth rate. These ratings could make NSSC a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
NSSC had positive earnings in the past year.
In the past year NSSC had a positive cash flow from operations.
Each year in the past 5 years NSSC has been profitable.
Each year in the past 5 years NSSC had a positive operating cash flow.
1.2 Ratios
NSSC has a Return On Assets of 21.55%. This is amongst the best in the industry. NSSC outperforms 95.12% of its industry peers.
NSSC has a Return On Equity of 25.20%. This is amongst the best in the industry. NSSC outperforms 91.06% of its industry peers.
NSSC has a Return On Invested Capital of 23.18%. This is amongst the best in the industry. NSSC outperforms 96.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NSSC is significantly above the industry average of 9.58%.
The last Return On Invested Capital (23.18%) for NSSC is above the 3 year average (22.23%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 23.76%, NSSC belongs to the top of the industry, outperforming 96.75% of the companies in the same industry.
In the last couple of years the Profit Margin of NSSC has grown nicely.
NSSC's Operating Margin of 25.72% is amongst the best of the industry. NSSC outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of NSSC has grown nicely.
NSSC has a better Gross Margin (55.82%) than 91.87% of its industry peers.
NSSC's Gross Margin has improved in the last couple of years.
| 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.
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.
2.2 Solvency
An Altman-Z score of 32.89 indicates that NSSC is not in any danger for bankruptcy at the moment.
NSSC has a Altman-Z score of 32.89. This is amongst the best in the industry. NSSC outperforms 97.56% 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 | 32.89 |
ROIC/WACC2.54
WACC9.12%
2.3 Liquidity
NSSC has a Current Ratio of 7.06. This indicates that NSSC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 7.06, NSSC belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
NSSC has a Quick Ratio of 5.79. This indicates that NSSC is financially healthy and has no problem in meeting its short term obligations.
NSSC's Quick ratio of 5.79 is amongst the best of the industry. NSSC outperforms 88.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.06 | ||
| Quick Ratio | 5.79 |
3. Growth
3.1 Past
The earnings per share for NSSC have decreased by -9.56% in the last year.
Measured over the past years, NSSC shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.70% on average per year.
Looking at the last year, NSSC shows a decrease in Revenue. The Revenue has decreased by -2.28% in the last 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
The Earnings Per Share is expected to grow by 12.02% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.44% on average over the next years. This is quite good.
EPS Next Y11.31%
EPS Next 2Y12.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.03%
Revenue Next 2Y10.88%
Revenue Next 3Y13.44%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 32.80, NSSC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NSSC is valued a bit cheaper than 60.98% of the companies in the same industry.
NSSC is valuated rather expensively when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
NSSC is valuated quite expensively with a Price/Forward Earnings ratio of 27.02.
NSSC's Price/Forward Earnings ratio is in line with the industry average.
NSSC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.8 | ||
| Fwd PE | 27.02 |
4.2 Price Multiples
NSSC's Enterprise Value to EBITDA is on the same level as the industry average.
73.17% of the companies in the same industry are more expensive than NSSC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.93 | ||
| EV/EBITDA | 26.3 |
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.
NSSC's earnings are expected to grow with 12.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.9
PEG (5Y)0.97
EPS Next 2Y12.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NSSC has a Yearly Dividend Yield of 1.35%.
Compared to an average industry Dividend Yield of 2.13, NSSC pays a better dividend. On top of this NSSC pays more dividend than 91.06% of the companies listed in the same industry.
With a Dividend Yield of 1.35, NSSC pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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
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 2Y12.02%
EPS Next 3YN/A
40.35
-0.04 (-0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners92.04%
Inst Owner Change-3.37%
Ins Owners4.45%
Ins Owner Change0.03%
Market Cap1.44B
Revenue(TTM)186.79M
Net Income(TTM)44.39M
Analysts80
Price Target43.86 (8.7%)
Short Float %7.41%
Short Ratio6.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend0.38
Dividend Growth(5Y)N/A
DP41.96%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.96%
Min EPS beat(2)10.28%
Max EPS beat(2)21.63%
EPS beat(4)3
Avg EPS beat(4)3.82%
Min EPS beat(4)-18.45%
Max EPS beat(4)21.63%
EPS beat(8)5
Avg EPS beat(8)4.45%
EPS beat(12)9
Avg EPS beat(12)14.76%
EPS beat(16)12
Avg EPS beat(16)13.84%
Revenue beat(2)2
Avg Revenue beat(2)7.45%
Min Revenue beat(2)2.85%
Max Revenue beat(2)12.05%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-15.65%
Max Revenue beat(4)12.05%
Revenue beat(8)3
Avg Revenue beat(8)-0.86%
Revenue beat(12)5
Avg Revenue beat(12)-0.35%
Revenue beat(16)9
Avg Revenue beat(16)0.92%
PT rev (1m)4.45%
PT rev (3m)42.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.6%
EPS NY rev (1m)0.64%
EPS NY rev (3m)10.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.8 | ||
| Fwd PE | 27.02 | ||
| P/S | 7.7 | ||
| P/FCF | 27.93 | ||
| P/OCF | 27.08 | ||
| P/B | 8.17 | ||
| P/tB | 8.32 | ||
| EV/EBITDA | 26.3 |
EPS(TTM)1.23
EY3.05%
EPS(NY)1.49
Fwd EY3.7%
FCF(TTM)1.44
FCFY3.58%
OCF(TTM)1.49
OCFY3.69%
SpS5.24
BVpS4.94
TBVpS4.85
PEG (NY)2.9
PEG (5Y)0.97
Graham Number11.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.55% | ||
| ROE | 25.2% | ||
| ROCE | 26.48% | ||
| ROIC | 23.18% | ||
| ROICexc | 55.56% | ||
| ROICexgc | 58.03% | ||
| OM | 25.72% | ||
| PM (TTM) | 23.76% | ||
| GM | 55.82% | ||
| FCFM | 27.58% |
ROA(3y)20.71%
ROA(5y)17.58%
ROE(3y)24.31%
ROE(5y)21.36%
ROIC(3y)22.23%
ROIC(5y)19.01%
ROICexc(3y)43.76%
ROICexc(5y)35.53%
ROICexgc(3y)45.67%
ROICexgc(5y)37.35%
ROCE(3y)25.4%
ROCE(5y)21.72%
ROICexgc growth 3Y36.08%
ROICexgc growth 5Y28.5%
ROICexc growth 3Y36.71%
ROICexc growth 5Y29.29%
OM growth 3Y26.19%
OM growth 5Y16.57%
PM growth 3Y20.53%
PM growth 5Y25.45%
GM growth 3Y10.5%
GM growth 5Y5.68%
F-Score6
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 70.92% | ||
| Cap/Sales | 0.87% | ||
| Interest Coverage | -6005.75 | ||
| Cash Conversion | 105.55% | ||
| Profit Quality | 116.05% | ||
| Current Ratio | 7.06 | ||
| Quick Ratio | 5.79 | ||
| Altman-Z | 32.89 |
F-Score6
WACC9.12%
ROIC/WACC2.54
Cap/Depr(3y)106.68%
Cap/Depr(5y)92.61%
Cap/Sales(3y)1.25%
Cap/Sales(5y)1.13%
Profit Quality(3y)95.51%
Profit Quality(5y)92.84%
High Growth Momentum
Growth
EPS 1Y (TTM)-9.56%
EPS 3Y42.07%
EPS 5Y33.7%
EPS Q2Q%13.33%
EPS Next Y11.31%
EPS Next 2Y12.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.28%
Revenue growth 3Y8.14%
Revenue growth 5Y12.36%
Sales Q2Q%11.74%
Revenue Next Year13.03%
Revenue Next 2Y10.88%
Revenue Next 3Y13.44%
Revenue Next 5YN/A
EBIT growth 1Y-11.22%
EBIT growth 3Y36.47%
EBIT growth 5Y30.98%
EBIT Next Year25.75%
EBIT Next 3Y22.42%
EBIT Next 5YN/A
FCF growth 1Y47.05%
FCF growth 3Y95.79%
FCF growth 5Y42.69%
OCF growth 1Y40.28%
OCF growth 3Y85.91%
OCF growth 5Y39.02%
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 of NAPCO SECURITY TECHNOLOGIES (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 valuation of NAPCO SECURITY TECHNOLOGIES based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NAPCO SECURITY TECHNOLOGIES (NSSC) is 32.8 and the Price/Book (PB) ratio is 8.17.
What is the expected EPS growth for NAPCO SECURITY TECHNOLOGIES (NSSC) stock?
The Earnings per Share (EPS) of NAPCO SECURITY TECHNOLOGIES (NSSC) is expected to grow by 11.31% in the next year.