NAPCO SECURITY TECHNOLOGIES (NSSC)
US6304021057 - Common Stock
Taking everything into account, NSSC scores 8 out of 10 in our fundamental rating. NSSC was compared to 124 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, NSSC could be worth investigating further for growth and 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
With an excellent Return On Assets value of 24.07%, NSSC belongs to the best of the industry, outperforming 99.19% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.29%, NSSC belongs to the top of the industry, outperforming 95.94% of the companies in the same industry.
The Return On Invested Capital of NSSC (25.60%) is better than 99.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NSSC is significantly above the industry average of 8.68%.
The last Return On Invested Capital (25.60%) for NSSC is above the 3 year average (18.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.07% | ||
| ROE | 28.29% | ||
| ROIC | 25.6% |
ROA(3y)17.81%
ROA(5y)14.67%
ROE(3y)21.47%
ROE(5y)18.22%
ROIC(3y)18.84%
ROIC(5y)16.75%
1.3 Margins
With an excellent Profit Margin value of 26.43%, NSSC belongs to the best of the industry, outperforming 98.37% of the companies in the same industry.
NSSC's Profit Margin has improved in the last couple of years.
NSSC has a better Operating Margin (28.31%) than 100.00% of its industry peers.
NSSC's Operating Margin has improved in the last couple of years.
NSSC has a Gross Margin of 54.39%. This is amongst the best in the industry. NSSC outperforms 91.87% of its industry peers.
In the last couple of years the Gross Margin of NSSC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.31% | ||
| PM (TTM) | 26.43% | ||
| GM | 54.39% |
OM growth 3Y21.99%
OM growth 5Y16.27%
PM growth 3Y25%
PM growth 5Y16.78%
GM growth 3Y6.61%
GM growth 5Y4.64%
2. Health
2.1 Basic Checks
NSSC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
NSSC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NSSC has been reduced compared to 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 29.80 indicates that NSSC is not in any danger for bankruptcy at the moment.
The Altman-Z score of NSSC (29.80) is better than 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 | 29.8 |
ROIC/WACC2.55
WACC10.05%
2.3 Liquidity
NSSC has a Current Ratio of 6.94. This indicates that NSSC is financially healthy and has no problem in meeting its short term obligations.
NSSC has a Current ratio of 6.94. This is amongst the best in the industry. NSSC outperforms 88.62% of its industry peers.
NSSC has a Quick Ratio of 5.47. This indicates that NSSC is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of NSSC (5.47) is better than 88.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.94 | ||
| Quick Ratio | 5.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.93% over the past year.
NSSC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.95% yearly.
Looking at the last year, NSSC shows a quite strong growth in Revenue. The Revenue has grown by 11.02% in the last year.
Measured over the past years, NSSC shows a quite strong growth in Revenue. The Revenue has been growing by 12.91% on average per year.
EPS 1Y (TTM)25.93%
EPS 3Y49.01%
EPS 5Y31.95%
EPS Q2Q%7.14%
Revenue 1Y (TTM)11.02%
Revenue growth 3Y18.32%
Revenue growth 5Y12.91%
Sales Q2Q%5.58%
3.2 Future
Based on estimates for the next years, NSSC will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.54% on average per year.
Based on estimates for the next years, NSSC will show a quite strong growth in Revenue. The Revenue will grow by 14.49% on average per year.
EPS Next Y8.41%
EPS Next 2Y17.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.65%
Revenue Next 2Y10.3%
Revenue Next 3Y14.95%
Revenue Next 5Y14.49%
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
Based on the Price/Earnings ratio of 27.46, the valuation of NSSC can be described as expensive.
Based on the Price/Earnings ratio, NSSC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.96. NSSC is around the same levels.
The Price/Forward Earnings ratio is 20.17, which indicates a rather expensive current valuation of NSSC.
Based on the Price/Forward Earnings ratio, NSSC is valued a bit cheaper than 70.73% of the companies in the same industry.
NSSC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.46 | ||
| Fwd PE | 20.17 |
4.2 Price Multiples
NSSC's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NSSC indicates a somewhat cheap valuation: NSSC is cheaper than 64.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.01 | ||
| EV/EBITDA | 21.96 |
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 17.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.27
PEG (5Y)0.86
EPS Next 2Y17.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NSSC has a Yearly Dividend Yield of 1.35%.
The stock price of NSSC dropped by -32.68% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.95, NSSC pays a better dividend. On top of this NSSC pays more dividend than 89.43% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.23, NSSC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
NSSC is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NSSC pays out 20.42% of its income as dividend. This is a sustainable payout ratio.
DP20.42%
EPS Next 2Y17.54%
EPS Next 3YN/A
NAPCO SECURITY TECHNOLOGIES
NASDAQ:NSSC (11/21/2024, 8:00:01 PM)
After market: 37 -0.34 (-0.91%)37.34
+0.4 (+1.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.46 | ||
| Fwd PE | 20.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.27
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.07% | ||
| ROE | 28.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.31% | ||
| PM (TTM) | 26.43% | ||
| GM | 54.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.94 | ||
| Quick Ratio | 5.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)25.93%
EPS 3Y49.01%
EPS 5Y
EPS Q2Q%
EPS Next Y8.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.02%
Revenue growth 3Y18.32%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y