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Napco Security Technologies

Market Cap

US$608.0m

Last Updated

2021/05/16 04:05 UTC

Data Sources

Company Financials +

Executive Summary

Napco Security Technologies, Inc. develops, manufactures, and sells security products in the United States and internationally. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NSSC's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.9%

NSSC

-2.7%

US Electronic

-1.7%

US Market


1 Year Return

50.6%

NSSC

73.8%

US Electronic

50.8%

US Market

Return vs Industry: NSSC underperformed the US Electronic industry which returned 73.8% over the past year.

Return vs Market: NSSC matched the US Market which returned 50.8% over the past year.


Shareholder returns

NSSCIndustryMarket
7 Day-2.9%-2.7%-1.7%
30 Day-0.2%-4.2%-1.2%
90 Day4.1%-1.8%0.4%
1 Year50.6%50.6%77.5%73.8%53.3%50.8%
3 Year179.7%179.7%64.0%57.1%61.5%51.4%
5 Year480.4%480.4%170.5%153.1%125.9%100.7%

Long-Term 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

Valuation

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

27.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NSSC ($33.14) is trading below our estimate of fair value ($45.43)

Significantly Below Fair Value: NSSC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NSSC is poor value based on its PE Ratio (76.2x) compared to the US Electronic industry average (25.4x).

PE vs Market: NSSC is poor value based on its PE Ratio (76.2x) compared to the US market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: NSSC is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: NSSC is overvalued based on its PB Ratio (6.9x) compared to the US Electronic industry average (2.8x).


Future Growth

How is Napco Security Technologies forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

44.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NSSC's forecast earnings growth (44% per year) is above the savings rate (2%).

Earnings vs Market: NSSC's earnings (44% per year) are forecast to grow faster than the US market (14.7% per year).

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

Revenue vs Market: NSSC's revenue (14.9% per year) is forecast to grow faster than the US market (9% per year).

High Growth Revenue: NSSC's revenue (14.9% 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


Past Performance

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

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NSSC has high quality earnings.

Growing Profit Margin: NSSC's current net profit margins (7.8%) are lower than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: NSSC's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: NSSC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NSSC had negative earnings growth (-47.3%) over the past year, making it difficult to compare to the Electronic industry average (13.3%).


Return on Equity

High ROE: NSSC's Return on Equity (9.1%) is considered low.


Financial Health

How is Napco Security Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: NSSC's short term assets ($85.7M) exceed its short term liabilities ($15.7M).

Long Term Liabilities: NSSC's short term assets ($85.7M) exceed its long term liabilities ($10.7M).


Debt to Equity History and Analysis

Debt Level: NSSC's debt to equity ratio (4.4%) is considered satisfactory.

Reducing Debt: NSSC's debt to equity ratio has reduced from 15.6% to 4.4% over the past 5 years.

Debt Coverage: NSSC's debt is well covered by operating cash flow (515.4%).

Interest Coverage: NSSC's interest payments on its debt are well covered by EBIT (727.5x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

21.5yrs

Average management tenure


CEO

Richard Soloway (74 yo)

23.33yrs

Tenure

US$1,135,372

Compensation

Mr. Richard L. Soloway is Founder, 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...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD1.14M) is below average for companies of similar size in the US market ($USD2.45M).

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


Leadership Team

Experienced Management: NSSC's management team is seasoned and experienced (21.5 years average tenure).


Board Members

Experienced Board: NSSC's board of directors are seasoned and experienced ( 20.3 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$608.031m
  • Shares outstanding: 18.35m
  • Website: https://www.napcosecurity.com

Number of Employees


Location

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

Listings


Biography

Napco Security Technologies, Inc. develops, manufactures, and sells security products in the United States and internationally. The company offers access control systems, door-locking products, intrusion a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 04:05
End of Day Share Price2021/05/14 00:00
Earnings2021/03/31
Annual Earnings2020/06/30


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.