National Presto Industries, Inc.
National Presto Industries, Inc. Fundamental Analysis
National Presto Industries, Inc. (NPK) shows weak financial fundamentals with a PE ratio of 30.50, profit margin of 6.57%, and ROE of 8.72%. The company generates $0.5B in annual revenue with strong year-over-year growth of 13.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NPK's fundamental strength across five key dimensions:
Efficiency Score
WeakNPK struggles to generate sufficient returns from assets.
Valuation Score
ModerateNPK shows balanced valuation metrics.
Growth Score
ExcellentNPK delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNPK maintains a strong and stable balance sheet.
Profitability Score
WeakNPK struggles to sustain strong margins.
Key Financial Metrics
Is NPK Expensive or Cheap?
P/E Ratio
NPK trades at 30.50 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NPK's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values National Presto Industries, Inc. at 2.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 20.49 times EBITDA. This signals the market has high growth expectations.
How Well Does NPK Make Money?
Net Profit Margin
For every $100 in sales, National Presto Industries, Inc. keeps $6.57 as profit after all expenses.
Operating Margin
Core operations generate 7.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.72 in profit for every $100 of shareholder equity.
ROA
National Presto Industries, Inc. generates $6.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
National Presto Industries, Inc. generates limited operating cash flow of $-9.19M, signaling weaker underlying cash strength.
Free Cash Flow
National Presto Industries, Inc. generates weak or negative free cash flow of $-36.38M, restricting financial flexibility.
FCF Per Share
Each share generates $-5.08 in free cash annually.
FCF Yield
NPK converts -3.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How NPK Stacks Against Its Sector Peers
| Metric | NPK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.50 | 25.96 | Worse (Expensive) |
| ROE | 8.72% | 1263.00% | Weak |
| Net Margin | 6.57% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.08 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 4.24 | 10.05 | Strong Liquidity |
| ROA | 6.56% | -1497918.00% (disorted) | Weak |
NPK outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews National Presto Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.90%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-3.32%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-648.90%
Industry Style: Cyclical, Value, Infrastructure
Declining