NAPCO SECURITY TECHNOLOGIES (NSSC)
US6304021057 - Common Stock
NSSC gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 127 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 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
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 better Return On Assets (24.07%) than 98.40% of its industry peers.
Looking at the Return On Equity, with a value of 28.29%, NSSC belongs to the top of the industry, outperforming 95.20% of the companies in the same industry.
NSSC's Return On Invested Capital of 25.60% is amongst the best of the industry. NSSC outperforms 99.20% of its industry peers.
NSSC had an Average Return On Invested Capital over the past 3 years of 18.84%. This is significantly above the industry average of 8.74%.
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
NSSC has a better Profit Margin (26.43%) than 97.60% of its industry peers.
NSSC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 28.31%, NSSC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NSSC has grown nicely.
NSSC has a better Gross Margin (54.39%) than 92.00% 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.
Compared to 1 year ago, NSSC has more shares outstanding
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 29.61 indicates that NSSC is not in any danger for bankruptcy at the moment.
NSSC has a better Altman-Z score (29.61) than 97.60% 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 | 29.61 |
ROIC/WACC2.44
WACC10.48%
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.
With an excellent Current ratio value of 6.94, NSSC belongs to the best of the industry, outperforming 89.60% 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.
NSSC's Quick ratio of 5.47 is amongst the best of the industry. NSSC outperforms 88.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.94 | ||
| Quick Ratio | 5.47 |
3. Growth
3.1 Past
NSSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.93%, which is quite impressive.
Measured over the past years, NSSC shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.95% on average per year.
The Revenue has grown by 11.02% in the past year. This is quite good.
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.
NSSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.49% yearly.
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.
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
With a Price/Earnings ratio of 26.68, 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 67.20% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. NSSC is around the same levels.
Based on the Price/Forward Earnings ratio of 19.60, the valuation of NSSC can be described as rather expensive.
NSSC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NSSC is cheaper than 72.80% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NSSC to the average of the S&P500 Index (22.83), we can say NSSC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.68 | ||
| Fwd PE | 19.6 |
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 65.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.14 | ||
| EV/EBITDA | 21.79 |
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.
The excellent profitability rating of NSSC 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)3.17
PEG (5Y)0.84
EPS Next 2Y17.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NSSC has a Yearly Dividend Yield of 1.36%.
Compared to an average industry Dividend Yield of 1.85, NSSC pays a better dividend. On top of this NSSC pays more dividend than 90.40% of the companies listed in the same industry.
With a Dividend Yield of 1.36, NSSC pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
NSSC does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
20.42% of the earnings are spent on dividend by NSSC. This is a low number and sustainable payout ratio.
DP20.42%
EPS Next 2Y17.54%
EPS Next 3YN/A
NAPCO SECURITY TECHNOLOGIES
NASDAQ:NSSC (12/20/2024, 8:00:01 PM)
After market: 36.26 -0.03 (-0.08%)36.29
-0.39 (-1.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners92.1%
Inst Owner Change2.53%
Ins Owners4.47%
Ins Owner Change0.08%
Market Cap1.33B
Analysts80
Price Target45.39 (25.08%)
Short Float %8.62%
Short Ratio7.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Dividend Growth(5Y)N/A
DP20.42%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-18.03%
PT rev (3m)-19.3%
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%
Revenue NY rev (3m)-3.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.68 | ||
| Fwd PE | 19.6 | ||
| P/S | 6.96 | ||
| P/FCF | 30.14 | ||
| P/OCF | 28.82 | ||
| P/B | 7.45 | ||
| P/tB | 7.6 | ||
| EV/EBITDA | 21.79 |
EPS(TTM)1.36
EY3.75%
EPS(NY)1.85
Fwd EY5.1%
FCF(TTM)1.2
FCFY3.32%
OCF(TTM)1.26
OCFY3.47%
SpS5.21
BVpS4.87
TBVpS4.77
PEG (NY)3.17
PEG (5Y)0.84
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 | 29.61 |
F-Score7
WACC10.48%
ROIC/WACC2.44
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 Year7.65%
Revenue Next 2Y10.3%
Revenue Next 3Y14.95%
Revenue Next 5Y14.49%
EBIT growth 1Y41.52%
EBIT growth 3Y44.33%
EBIT growth 5Y31.28%
EBIT Next Year13.16%
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%