NAPCO SECURITY TECHNOLOGIES (NSSC) Stock Fundamental Analysis
NASDAQ:NSSC - Nasdaq - US6304021057 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to NSSC. NSSC was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. NSSC gets an excellent profitability rating and is at the same time showing great financial health properties. NSSC is growing strongly while it is still valued neutral. This is a good combination! This makes NSSC very considerable 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.
Each year in the past 5 years NSSC has been profitable.
NSSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NSSC has a better Return On Assets (24.07%) than 97.50% of its industry peers.
The Return On Equity of NSSC (28.29%) is better than 95.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 25.60%, NSSC belongs to the top of the industry, outperforming 98.33% of the companies in the same industry.
NSSC had an Average Return On Invested Capital over the past 3 years of 18.84%. This is significantly above the industry average of 8.99%.
The 3 year average ROIC (18.84%) for NSSC is below the current ROIC(25.60%), indicating increased profibility in the last year.
| 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
The Profit Margin of NSSC (26.43%) is better than 96.67% of its industry peers.
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 93.33% of its industry peers.
NSSC's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NSSC is creating value.
The number of shares outstanding for NSSC has been increased compared to 1 year ago.
The number of shares outstanding for NSSC has been reduced compared to 5 years ago.
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.
2.2 Solvency
An Altman-Z score of 29.98 indicates that NSSC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 29.98, NSSC belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
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 | 29.98 |
ROIC/WACC2.47
WACC10.37%
2.3 Liquidity
A Current Ratio of 6.94 indicates that NSSC has no problem at all paying its short term obligations.
With an excellent Current ratio value of 6.94, NSSC belongs to the best of the industry, outperforming 89.17% of the companies in the same industry.
A Quick Ratio of 5.47 indicates that NSSC has no problem at all paying its short term obligations.
The Quick ratio of NSSC (5.47) is better than 88.33% 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.
NSSC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.02%.
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
NSSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.54% yearly.
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 Year7.49%
Revenue Next 2Y10.47%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.42 indicates a quite expensive valuation of NSSC.
Based on the Price/Earnings ratio, NSSC is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
NSSC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.15, NSSC is valued on the expensive side.
70.83% of the companies in the same industry are more expensive than NSSC, based on the Price/Forward Earnings ratio.
NSSC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 93.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.42 | ||
| Fwd PE | 20.15 |
4.2 Price Multiples
NSSC's Enterprise Value to EBITDA ratio is in line with the industry average.
NSSC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NSSC is cheaper than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.97 | ||
| EV/EBITDA | 22.13 |
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 17.54% in the coming years.
PEG (NY)3.26
PEG (5Y)0.86
EPS Next 2Y17.54%
EPS Next 3YN/A
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 1.82. NSSC pays more dividend than 91.67% of the companies in the same industry.
With a Dividend Yield of 1.35, NSSC pays less dividend than the S&P500 average, which is at 2.27.
| 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 Years1
Div Non Decr Years1
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 (1/31/2025, 1:16:36 PM)
37.295
+0.09 (+0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners92.1%
Inst Owner Change-0.7%
Ins Owners4.47%
Ins Owner Change0.13%
Market Cap1.37B
Analysts81.82
Price Target45.39 (21.71%)
Short Float %8.69%
Short Ratio7.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP20.42%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.63%
Min EPS beat(2)-15.16%
Max EPS beat(2)-0.11%
EPS beat(4)2
Avg EPS beat(4)5.09%
Min EPS beat(4)-15.16%
Max EPS beat(4)28.21%
EPS beat(8)6
Avg EPS beat(8)20.24%
EPS beat(12)9
Avg EPS beat(12)17.18%
EPS beat(16)12
Avg EPS beat(16)17.72%
Revenue beat(2)0
Avg Revenue beat(2)-5.73%
Min Revenue beat(2)-9.61%
Max Revenue beat(2)-1.86%
Revenue beat(4)1
Avg Revenue beat(4)-1.51%
Min Revenue beat(4)-9.61%
Max Revenue beat(4)6.14%
Revenue beat(8)3
Avg Revenue beat(8)-0.42%
Revenue beat(12)7
Avg Revenue beat(12)1.29%
Revenue beat(16)10
Avg Revenue beat(16)2.84%
PT rev (1m)0%
PT rev (3m)-18.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.81%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-4.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.42 | ||
| Fwd PE | 20.15 | ||
| P/S | 7.16 | ||
| P/FCF | 30.97 | ||
| P/OCF | 29.62 | ||
| P/B | 7.66 | ||
| P/tB | 7.81 | ||
| EV/EBITDA | 22.13 |
EPS(TTM)1.36
EY3.65%
EPS(NY)1.85
Fwd EY4.96%
FCF(TTM)1.2
FCFY3.23%
OCF(TTM)1.26
OCFY3.38%
SpS5.21
BVpS4.87
TBVpS4.77
PEG (NY)3.26
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.07% | ||
| ROE | 28.29% | ||
| ROCE | 29.22% | ||
| ROIC | 25.6% | ||
| ROICexc | 57.11% | ||
| ROICexgc | 59.64% | ||
| OM | 28.31% | ||
| PM (TTM) | 26.43% | ||
| GM | 54.39% | ||
| FCFM | 23.11% |
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 Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 92.73% | ||
| Cap/Sales | 1.05% | ||
| Interest Coverage | 2459.95 | ||
| Cash Conversion | 82.04% | ||
| Profit Quality | 87.42% | ||
| Current Ratio | 6.94 | ||
| Quick Ratio | 5.47 | ||
| Altman-Z | 29.98 |
F-Score7
WACC10.37%
ROIC/WACC2.47
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)25.93%
EPS 3Y49.01%
EPS 5Y31.95%
EPS Q2Q%7.14%
EPS Next Y8.41%
EPS Next 2Y17.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.02%
Revenue growth 3Y18.32%
Revenue growth 5Y12.91%
Sales Q2Q%5.58%
Revenue Next Year7.49%
Revenue Next 2Y10.47%
Revenue Next 3Y14.95%
Revenue Next 5Y14.49%
EBIT growth 1Y41.52%
EBIT growth 3Y44.33%
EBIT growth 5Y31.28%
EBIT Next Year12.55%
EBIT Next 3Y30.05%
EBIT Next 5Y27.1%
FCF growth 1Y2713.31%
FCF growth 3Y25.81%
FCF growth 5Y45.73%
OCF growth 1Y1492.52%
OCF growth 3Y25.43%
OCF growth 5Y39.3%