Napco Security Technologies, Inc. Fundamental Analysis (NASDAQ: NSSC)
Napco Security Technologies, Inc. Fundamental Analysis (NASDAQ: NSSC)
Napco Security Technologies, Inc. (NASDAQ: NSSC) shows moderate financial fundamentals with a PE ratio of 29.62, profit margin of 21.27%, and ROE of 23.59%. The company generates $0.2B in annual revenue with weak year-over-year growth of -3.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NSSC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNSSC demonstrates superior asset utilization.
Valuation Score
WeakNSSC trades at a premium to fair value.
Growth Score
WeakNSSC faces weak or negative growth trends.
Financial Health Score
ExcellentNSSC maintains a strong and stable balance sheet.
Profitability Score
ExcellentNSSC achieves industry-leading margins.
Key Financial Metrics
Is NSSC Expensive or Cheap?
P/E Ratio
NSSC trades at 29.62 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NSSC's PEG of 17.62 indicates potential overvaluation.
Price to Book
The market values Napco Security Technologies, Inc. at 6.70 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 28.14 times EBITDA. This signals the market has high growth expectations.
How Well Does NSSC Make Money?
Net Profit Margin
For every $100 in sales, Napco Security Technologies, Inc. keeps $21.27 as profit after all expenses.
Operating Margin
Core operations generate 22.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.59 in profit for every $100 of shareholder equity.
ROA
Napco Security Technologies, Inc. generates $18.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Napco Security Technologies, Inc. generates strong operating cash flow of $61.21M, reflecting robust business health.
Free Cash Flow
Napco Security Technologies, Inc. generates strong free cash flow of $59.29M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.66 in free cash annually.
FCF Yield
NSSC converts 4.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
17.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How NSSC Stacks Against Its Sector Peers
| Metric | NSSC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.62 | 28.27 | Neutral |
| ROE | 23.59% | 1119.00% | Weak |
| Net Margin | 21.27% | -20989.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 4.90 | 21.75 | Strong Liquidity |
| ROA | 18.03% | -1330684.00% (disorted) | Strong |
NSSC outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Napco Security Technologies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
82.10%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
465.90%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
427.82%
Industry Style: Cyclical, Value, Infrastructure
High Growth