NAPCO SECURITY TECHNOLOGIES (NSSC) Stock Fundamental Analysis
USA - NASDAQ:NSSC - US6304021057 - Common Stock
44.15 USD
+0.37 (+0.85%)
44.15 USD
0 (0%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. NSSC is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, NSSC could be worth investigating further for quality investing!.
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 each of the past 5 years.
Each year in the past 5 years NSSC had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 21.91%, NSSC belongs to the best of the industry, outperforming 95.16% of the companies in the same industry.
NSSC has a Return On Equity of 25.74%. This is amongst the best in the industry. NSSC outperforms 91.13% of its industry peers.
With an excellent Return On Invested Capital value of 23.26%, NSSC belongs to the best of the industry, outperforming 96.77% 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 9.38%.
The last Return On Invested Capital (23.26%) for NSSC is above the 3 year average (22.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.91% | ||
| ROE | 25.74% | ||
| ROIC | 23.26% |
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
With an excellent Profit Margin value of 23.90%, NSSC belongs to the best of the industry, outperforming 96.77% 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 25.47% is amongst the best of the industry. NSSC outperforms 100.00% of its industry peers.
NSSC's Operating Margin has improved in the last couple of years.
The Gross Margin of NSSC (55.63%) is better than 91.94% of its industry peers.
In the last couple of years the Gross Margin of NSSC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.47% | ||
| PM (TTM) | 23.9% | ||
| GM | 55.63% |
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
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 reduced compared to 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
NSSC has an Altman-Z score of 35.92. This indicates that NSSC is financially healthy and has little risk of bankruptcy at the moment.
NSSC has a better Altman-Z score (35.92) than 97.58% 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 | 35.92 |
ROIC/WACC2.53
WACC9.19%
2.3 Liquidity
NSSC has a Current Ratio of 6.75. This indicates that NSSC is financially healthy and has no problem in meeting its short term obligations.
NSSC has a better Current ratio (6.75) than 87.90% of its industry peers.
NSSC has a Quick Ratio of 5.51. This indicates that NSSC is financially healthy and has no problem in meeting its short term obligations.
NSSC has a better Quick ratio (5.51) than 88.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.75 | ||
| Quick Ratio | 5.51 |
3. Growth
3.1 Past
The earnings per share for NSSC have decreased strongly by -11.19% in the last year.
The Earnings Per Share has been growing by 33.70% on average over the past years. This is a very strong growth
Looking at the last year, NSSC shows a decrease in Revenue. The Revenue has decreased by -3.81% in the last year.
The Revenue has been growing by 12.36% on average over the past years. This is quite good.
EPS 1Y (TTM)-11.19%
EPS 3Y42.07%
EPS 5Y33.7%
EPS Q2Q%-8.33%
Revenue 1Y (TTM)-3.81%
Revenue growth 3Y8.14%
Revenue growth 5Y12.36%
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 12.02% yearly.
NSSC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.72% yearly.
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 3Y22.72%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 37.10 indicates a quite expensive valuation of NSSC.
Compared to the rest of the industry, the Price/Earnings ratio of NSSC is on the same level as its industry peers.
When comparing the Price/Earnings ratio of NSSC to the average of the S&P500 Index (26.11), we can say NSSC is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 33.33, the valuation of NSSC can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as NSSC.
NSSC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.1 | ||
| Fwd PE | 33.33 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NSSC.
NSSC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NSSC is cheaper than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.62 | ||
| EV/EBITDA | 30.06 |
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)3.28
PEG (5Y)1.1
EPS Next 2Y12.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.28%, 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 2.06. NSSC pays more dividend than 90.32% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, NSSC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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
31.41% of the earnings are spent on dividend by NSSC. This is a low number and sustainable payout ratio.
DP31.41%
EPS Next 2Y12.02%
EPS Next 3YN/A
44.15
+0.37 (+0.85%)
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-0.85%
Ins Owners4.45%
Ins Owner Change0.03%
Market Cap1.57B
Revenue(TTM)181.62M
Net Income(TTM)43.41M
Analysts80
Price Target43.86 (-0.66%)
Short Float %7.41%
Short Ratio6.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend0.38
Dividend Growth(5Y)N/A
DP31.41%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.72%
Min EPS beat(2)1.82%
Max EPS beat(2)21.63%
EPS beat(4)2
Avg EPS beat(4)-2.54%
Min EPS beat(4)-18.45%
Max EPS beat(4)21.63%
EPS beat(8)5
Avg EPS beat(8)7.21%
EPS beat(12)9
Avg EPS beat(12)16.13%
EPS beat(16)11
Avg EPS beat(16)12.2%
Revenue beat(2)1
Avg Revenue beat(2)5.98%
Min Revenue beat(2)-0.09%
Max Revenue beat(2)12.05%
Revenue beat(4)1
Avg Revenue beat(4)-3.32%
Min Revenue beat(4)-15.65%
Max Revenue beat(4)12.05%
Revenue beat(8)2
Avg Revenue beat(8)-1.24%
Revenue beat(12)5
Avg Revenue beat(12)-0.04%
Revenue beat(16)9
Avg Revenue beat(16)0.93%
PT rev (1m)6.61%
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 | 37.1 | ||
| Fwd PE | 33.33 | ||
| P/S | 8.67 | ||
| P/FCF | 30.62 | ||
| P/OCF | 29.41 | ||
| P/B | 9.34 | ||
| P/tB | 9.52 | ||
| EV/EBITDA | 30.06 |
EPS(TTM)1.19
EY2.7%
EPS(NY)1.32
Fwd EY3%
FCF(TTM)1.44
FCFY3.27%
OCF(TTM)1.5
OCFY3.4%
SpS5.09
BVpS4.73
TBVpS4.64
PEG (NY)3.28
PEG (5Y)1.1
Graham Number11.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.91% | ||
| ROE | 25.74% | ||
| ROCE | 26.57% | ||
| ROIC | 23.26% | ||
| ROICexc | 54.05% | ||
| ROICexgc | 56.53% | ||
| OM | 25.47% | ||
| PM (TTM) | 23.9% | ||
| GM | 55.63% | ||
| FCFM | 28.31% |
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-Score7
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 92.97% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.29% | ||
| Profit Quality | 118.44% | ||
| Current Ratio | 6.75 | ||
| Quick Ratio | 5.51 | ||
| Altman-Z | 35.92 |
F-Score7
WACC9.19%
ROIC/WACC2.53
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)-11.19%
EPS 3Y42.07%
EPS 5Y33.7%
EPS Q2Q%-8.33%
EPS Next Y11.31%
EPS Next 2Y12.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.81%
Revenue growth 3Y8.14%
Revenue growth 5Y12.36%
Sales Q2Q%0.78%
Revenue Next Year13.03%
Revenue Next 2Y10.88%
Revenue Next 3Y22.72%
Revenue Next 5YN/A
EBIT growth 1Y-14.05%
EBIT growth 3Y36.47%
EBIT growth 5Y30.98%
EBIT Next Year25.75%
EBIT Next 3Y47.03%
EBIT Next 5YN/A
FCF growth 1Y17.45%
FCF growth 3Y95.79%
FCF growth 5Y42.69%
OCF growth 1Y17.98%
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 3 / 10 to NAPCO SECURITY TECHNOLOGIES (NSSC). This can be considered as Overvalued.
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 37.1 and the Price/Book (PB) ratio is 9.34.
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.