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NAPCO SECURITY TECHNOLOGIES (NSSC) Stock Fundamental Analysis

USA - NASDAQ:NSSC - US6304021057 - Common Stock

41.74 USD
-0.25 (-0.6%)
Last: 9/19/2025, 10:18:03 AM
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 is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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9

1. Profitability

1.1 Basic Checks

In the past year NSSC was profitable.
NSSC had a positive operating cash flow in the past year.
NSSC had positive earnings in 4 of the past 5 years.
NSSC had a positive operating cash flow in 4 of the past 5 years.
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

NSSC has a Return On Assets of 23.74%. This is amongst the best in the industry. NSSC outperforms 96.00% of its industry peers.
With an excellent Return On Equity value of 28.05%, NSSC belongs to the best of the industry, outperforming 92.80% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 25.06%, NSSC belongs to the top of the industry, outperforming 98.40% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NSSC is significantly above the industry average of 9.48%.
The last Return On Invested Capital (25.06%) for NSSC is above the 3 year average (18.84%), which is a sign of increasing profitability.
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.
In the last couple of years the Profit Margin of NSSC has grown nicely.
Looking at the Operating Margin, with a value of 26.56%, NSSC belongs to the top 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.
Looking at the Gross Margin, with a value of 56.33%, NSSC belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
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

NSSC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
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.
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 34.66 indicates that NSSC is not in any danger for bankruptcy at the moment.
NSSC has a better Altman-Z score (34.66) than 98.40% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 34.66
ROIC/WACC2.7
WACC9.3%
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 88.80% of its industry peers.
A Quick Ratio of 5.22 indicates that NSSC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 5.22, NSSC belongs to the top of the industry, outperforming 87.20% of the companies in the same industry.
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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4

3. Growth

3.1 Past

NSSC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.19%.
NSSC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.70% yearly.
EPS 1Y (TTM)-11.19%
EPS 3Y42.07%
EPS 5Y33.7%
EPS Q2Q%-8.33%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.78%

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 13.20% yearly.
The Revenue is expected to grow by 22.72% on average over the next years. This is a very strong growth
EPS Next Y1.61%
EPS Next 2Y13.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.5%
Revenue Next 2Y10.33%
Revenue Next 3Y22.72%
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.
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 1.5

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 35.08, NSSC can be considered very expensive at the moment.
NSSC's Price/Earnings ratio is a bit cheaper when compared to the industry. NSSC is cheaper than 60.80% of the companies in the same industry.
When comparing the Price/Earnings ratio of NSSC to the average of the S&P500 Index (27.41), we can say NSSC is valued slightly more expensively.
With a Price/Forward Earnings ratio of 34.52, NSSC can be considered very expensive at the moment.
NSSC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, NSSC is valued quite expensively.
Industry RankSector Rank
PE 35.08
Fwd PE 34.52
NSSC Price Earnings VS Forward Price EarningsNSSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 72.80% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 29.29
EV/EBITDA 27.63
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NSSC has an outstanding profitability rating, which may justify a higher PE ratio.
NSSC's earnings are expected to grow with 13.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)21.73
PEG (5Y)1.04
EPS Next 2Y13.2%
EPS Next 3YN/A

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3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.35%, NSSC has a reasonable but not impressive dividend return.
NSSC's Dividend Yield is rather good when compared to the industry average which is at 1.39. NSSC pays more dividend than 91.20% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, NSSC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.35%

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
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

NSSC pays out 28.37% of its income as dividend. This is a sustainable payout ratio.
DP28.37%
EPS Next 2Y13.2%
EPS Next 3YN/A
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 (9/19/2025, 10:18:03 AM)

41.74

-0.25 (-0.6%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)08-25 2025-08-25/bmo
Earnings (Next)11-03 2025-11-03
Inst Owners90.68%
Inst Owner Change0.34%
Ins Owners4.43%
Ins Owner Change-0.3%
Market Cap1.49B
Analysts80
Price Target41.14 (-1.44%)
Short Float %7.91%
Short Ratio7.63
Dividend
Industry RankSector Rank
Dividend Yield 1.35%
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP28.37%
Div Incr Years1
Div Non Decr Years1
Ex-Date09-12 2025-09-12 (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)34.07%
PT rev (3m)45.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.84%
EPS NY rev (1m)0.35%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
Industry RankSector Rank
PE 35.08
Fwd PE 34.52
P/S 8.21
P/FCF 29.29
P/OCF 27.96
P/B 9.21
P/tB 9.41
EV/EBITDA 27.63
EPS(TTM)1.19
EY2.85%
EPS(NY)1.21
Fwd EY2.9%
FCF(TTM)1.42
FCFY3.41%
OCF(TTM)1.49
OCFY3.58%
SpS5.08
BVpS4.53
TBVpS4.44
PEG (NY)21.73
PEG (5Y)1.04
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 34.66
F-Score7
WACC9.3%
ROIC/WACC2.7
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)-11.19%
EPS 3Y42.07%
EPS 5Y33.7%
EPS Q2Q%-8.33%
EPS Next Y1.61%
EPS Next 2Y13.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.78%
Revenue Next Year12.5%
Revenue Next 2Y10.33%
Revenue Next 3Y22.72%
Revenue Next 5YN/A
EBIT growth 1Y-6.84%
EBIT growth 3Y44.33%
EBIT growth 5Y31.28%
EBIT Next Year-8.98%
EBIT Next 3Y4.99%
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%