DB:NS1

Stock Analysis Report

Napco Security Technologies

Executive Summary

Napco Security Technologies, Inc. manufactures and sells security products and software worldwide.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has Napco Security Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NS1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.6%

NS1

2.9%

DE Electronic

2.1%

DE Market


1 Year Return

-25.2%

NS1

-25.6%

DE Electronic

-16.6%

DE Market

Return vs Industry: NS1 exceeded the German Electronic industry which returned -28.2% over the past year.

Return vs Market: NS1 underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

NS1IndustryMarket
7 Day-5.6%2.9%2.1%
30 Day-22.7%-15.1%-12.6%
90 Day-50.0%-20.6%-22.9%
1 Year-25.2%-25.2%-24.1%-25.6%-14.2%-16.6%
3 Year44.5%44.5%-1.6%-4.7%-14.8%-21.9%
5 Year138.6%138.6%58.4%46.9%-16.6%-27.8%

Price Volatility Vs. Market

How volatile is Napco Security Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Napco Security Technologies undervalued compared to its fair value and its price relative to the market?

19.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NS1 (€13.6) is trading above our estimate of fair value (€1.24)

Significantly Below Fair Value: NS1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NS1 is poor value based on its PE Ratio (19x) compared to the Electronic industry average (18.7x).

PE vs Market: NS1 is poor value based on its PE Ratio (19x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: NS1 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: NS1 is overvalued based on its PB Ratio (3.6x) compared to the DE Electronic industry average (1.2x).


Next Steps

Future Growth

How is Napco Security Technologies forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

25.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NS1's forecast earnings growth (25% per year) is above the savings rate (-0.4%).

Earnings vs Market: NS1's earnings (25% per year) are forecast to grow faster than the German market (14.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NS1's revenue (10% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: NS1's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NS1's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Napco Security Technologies performed over the past 5 years?

24.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NS1 has high quality earnings.

Growing Profit Margin: NS1's current net profit margins (13.7%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: NS1's earnings have grown significantly by 24.9% per year over the past 5 years.

Accelerating Growth: NS1's earnings growth over the past year (48%) exceeds its 5-year average (24.9% per year).

Earnings vs Industry: NS1 earnings growth over the past year (48%) exceeded the Electronic industry -7.4%.


Return on Equity

High ROE: NS1's Return on Equity (18.7%) is considered low.


Next Steps

Financial Health

How is Napco Security Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: NS1's short term assets ($71.3M) exceed its short term liabilities ($15.1M).

Long Term Liabilities: NS1's short term assets ($71.3M) exceed its long term liabilities ($8.0M).


Debt to Equity History and Analysis

Debt Level: NS1 is debt free.

Reducing Debt: NS1 has no debt compared to 5 years ago when its debt to equity ratio was 25.2%.

Debt Coverage: NS1 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NS1 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Napco Security Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NS1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NS1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NS1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NS1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NS1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

20.9yrs

Average management tenure


CEO

Richard Soloway (73yo)

22.25s

Tenure

US$1,153,903

Compensation

Mr. Richard L. Soloway has been the Chief Executive Officer and President of Napco Security Technologies, Inc. (formerly Napco Security Systems Inc.) since 1998 and has been its Secretary since 1975. Mr. S ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD1.15M) is above average for companies of similar size in the German market ($USD744.69K).

Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Soloway
Chairman22.25yrsUS$1.15m33.78% $87.0m
Kevin Buchel
Senior VP of Operations & Finance22.25yrsUS$446.45k1.41% $3.6m
Jorge Hevia
Senior Vice President of Corporate Sales & Marketing20.92yrsUS$470.92k0.65% $1.7m
Michael Carrieri
Senior Vice President of Engineering Development19.92yrsUS$436.60k0.14% $360.7k
Patrick McKillop
Director of Investor Relations3.92yrsno datano data

20.9yrs

Average Tenure

63.5yo

Average Age

Experienced Management: NS1's management team is seasoned and experienced (20.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Soloway
Chairman22.25yrsUS$1.15m33.78% $87.0m
Kevin Buchel
Senior VP of Operations & Finance22.25yrsUS$446.45k1.41% $3.6m
Randy Blaustein
Independent Director35.25yrsUS$81.17k0.58% $1.5m
Donna Soloway
Director19.25yrsUS$40.67k0.18% $473.8k
Andrew Wilder
Independent Director25.25yrsUS$48.67k0.18% $456.8k
Paul Beeber
Independent Director16.08yrsUS$44.67k0.022% $55.9k
Robert Ungar
Independent Director0.17yrno datano data

22.3yrs

Average Tenure

68yo

Average Age

Experienced Board: NS1's board of directors are seasoned and experienced ( 22.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NS1 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Napco Security Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Napco Security Technologies, Inc.
  • Ticker: NS1
  • Exchange: DB
  • Founded: 1969
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$278.604m
  • Listing Market Cap: US$257.625m
  • Shares outstanding: 18.45m
  • Website: https://www.napcosecurity.com

Number of Employees


Location

  • Napco Security Technologies, Inc.
  • 333 Bayview Avenue
  • Amityville
  • New York
  • 11701
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NSSCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1981
NS1DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1981

Biography

Napco Security Technologies, Inc. manufactures and sells security products and software worldwide. The company offers access control systems, door-locking products, intrusion and fire alarm systems, and video surveillance systems for commercial, residential, institutional, industrial, and governmental applications. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company’s alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and peripheral equipment for access control and video surveillance systems; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products primarily to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 23:27
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.