Napco Security Technologies
Market Cap
US$430.6m
Last Updated
2020/02/19 00:22 UTC
Data Sources
Company Financials +
Executive Summary
Napco Security Technologies, Inc. manufactures and sells security products and software worldwide.
Rewards
Risk Analysis
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: NSSC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
0.6%
NSSC
-2.3%
US Electronic
0.06%
US Market
1 Year Return
10.5%
NSSC
7.7%
US Electronic
19.4%
US Market
Return vs Industry: NSSC exceeded the US Electronic industry which returned 7.7% over the past year.
Return vs Market: NSSC underperformed the US Market which returned 19.4% over the past year.
Shareholder returns
| NSSC | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.6% | -2.3% | 0.06% |
| 30 Day | -27.5% | -6.2% | 1.1% |
| 90 Day | -25.3% | 1.1% | 8.9% |
| 1 Year | 10.5%10.5% | 8.8%7.7% | 21.9%19.4% |
| 3 Year | 167.0%167.0% | 34.4%30.8% | 48.9%39.3% |
| 5 Year | 327.3%327.3% | 66.6%58.5% | 71.9%53.1% |
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
2 weeks ago | Simply Wall St
Is Napco Security Technologies, Inc.'s (NASDAQ:NSSC) High P/E Ratio A Problem For Investors?4 weeks ago | Simply Wall St
Is Napco Security Technologies, Inc. (NASDAQ:NSSC) A High Quality Stock To Own?1 month ago | Simply Wall St
Napco Security Technologies, Inc. (NASDAQ:NSSC) Is Employing Capital Very EffectivelyValuation
Is Napco Security Technologies undervalued compared to its fair value and its price relative to the market?
29.63x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NSSC ($23.5) is trading above our estimate of fair value ($1.33)
Significantly Below Fair Value: NSSC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NSSC is poor value based on its PE Ratio (29.6x) compared to the Electronic industry average (19.6x).
PE vs Market: NSSC is poor value based on its PE Ratio (29.6x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: NSSC is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: NSSC is overvalued based on its PB Ratio (5.5x) compared to the US Electronic industry average (1.9x).
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: NSSC's forecast earnings growth (25% per year) is above the savings rate (1.7%).
Earnings vs Market: NSSC's earnings (25% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NSSC's revenue (10% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: NSSC'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 NSSC'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: NSSC has high quality earnings.
Growing Profit Margin: NSSC's current net profit margins (13.7%) are higher than last year (10.1%).
Past Earnings Growth Analysis
Earnings Trend: NSSC's earnings have grown significantly by 24.9% per year over the past 5 years.
Accelerating Growth: NSSC's earnings growth over the past year (48%) exceeds its 5-year average (24.9% per year).
Earnings vs Industry: NSSC earnings growth over the past year (48%) exceeded the Electronic industry 14.6%.
Return on Equity
High ROE: NSSC's Return on Equity (18.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Napco Security Technologies's financial position?
Financial Position Analysis
Short Term Liabilities: NSSC's short term assets ($71.3M) exceed its short term liabilities ($15.1M).
Long Term Liabilities: NSSC's short term assets ($71.3M) exceed its long term liabilities ($8.0M).
Debt to Equity History and Analysis
Debt Level: NSSC is debt free.
Reducing Debt: NSSC has no debt compared to 5 years ago when its debt to equity ratio was 25.2%.
Debt Coverage: NSSC has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: NSSC has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: NSSC has a high level of physical assets or inventory.
Debt Coverage by Assets: NSSC's debt is not covered by short term assets (assets are -8.0251893559928E+16x debt).
Next Steps
Dividend
What is Napco Security Technologies's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate NSSC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate NSSC'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 NSSC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NSSC'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 NSSC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
20.8yrs
Average management tenure
CEO
Richard Soloway (73yo)
22.1yrs
Tenure
US$1,151,174
Compensation
Mr. Richard L. Soloway has been the Chief Executive Officer and President of Napco Security Technologies, Inc. (formerly Napco Security Systems Inc.) since 1998 and has been its Secretary since 1975. Mr. S ...
CEO Compensation Analysis
Compensation vs Market: Richard's total compensation ($USD1.15M) is below average for companies of similar size in the US market ($USD1.68M).
Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 22.1yrs | US$1.15m | 33.72% $145.2m | |
| Senior VP of Operations & Finance | 22.1yrs | US$446.45k | 1.41% $6.1m | |
| Senior Vice President of Corporate Sales & Marketing | 20.8yrs | US$470.92k | 0.65% $2.8m | |
| Senior Vice President of Engineering Development | 19.8yrs | US$436.60k | 0.14% $601.9k | |
| Director of Investor Relations | 3.8yrs | no data | no data |
20.8yrs
Average Tenure
63.5yo
Average Age
Experienced Management: NSSC's management team is seasoned and experienced (20.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 22.1yrs | US$1.15m | 33.72% $145.2m | |
| Senior VP of Operations & Finance | 22.1yrs | US$446.45k | 1.41% $6.1m | |
| Independent Director | 35.1yrs | US$81.17k | 0.58% $2.5m | |
| Director | 19.1yrs | US$40.67k | 0.18% $790.6k | |
| Independent Director | 25.1yrs | US$48.67k | 0.18% $762.3k | |
| Independent Director | 15.9yrs | US$44.67k | 0.022% $93.2k |
23.6yrs
Average Tenure
69.5yo
Average Age
Experienced Board: NSSC's board of directors are seasoned and experienced ( 23.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NSSC 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: NSSC
- Exchange: NasdaqGS
- Founded: 1969
- Industry: Electronic Equipment and Instruments
- Sector: Tech
- Market Cap: US$430.649m
- Shares outstanding: 18.48m
- Website: https://www.napcosecurity.com
Number of Employees
Location
- Napco Security Technologies, Inc.
- 333 Bayview Avenue
- Amityville
- New York
- 11701
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NSSC | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jun 1981 |
| NS1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 00:22 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.