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NSSC

Napco Security TechnologiesNasdaqGS:NSSC Stock Report

Market Cap

US$846.4m

7D

0.5%

1Y

48.3%

Updated

03 Dec, 2021

Data

Company Financials +
NSSC fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance5/6
Financial Health6/6
Dividends0/6

NSSC Stock Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for Napco Security Technologies
Historical stock prices
Current Share PriceUS$46.11
52 Week HighUS$52.00
52 Week LowUS$25.27
Beta1.28
1 Month Change0.70%
3 Month Change17.06%
1 Year Change48.26%
3 Year Change189.64%
5 Year Change462.32%
Change since IPO4,879.88%

Recent News & Updates

Shareholder Returns

NSSCUS ElectronicUS Market
7D0.5%-0.6%-2.7%
1Y48.3%21.0%16.6%

Return vs Industry: NSSC exceeded the US Electronic industry which returned 24.5% over the past year.

Return vs Market: NSSC exceeded the US Market which returned 19.4% over the past year.

Price Volatility

Is NSSC's price volatile compared to industry and market?
NSSC volatility
NSSC Average Weekly Movement6.9%
Electronic Industry Average Movement7.1%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: NSSC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NSSC's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19691,102Richard Solowayhttps://www.napcosecurity.com

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

Napco Security Technologies Fundamentals Summary

How do Napco Security Technologies's earnings and revenue compare to its market cap?
NSSC fundamental statistics
Market CapUS$846.40m
Earnings (TTM)US$20.33m
Revenue (TTM)US$121.91m

41.6x

P/E Ratio

6.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NSSC income statement (TTM)
RevenueUS$121.91m
Cost of RevenueUS$69.00m
Gross ProfitUS$52.92m
ExpensesUS$32.58m
EarningsUS$20.33m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.11
Gross Margin43.40%
Net Profit Margin16.68%
Debt/Equity Ratio0%

How did NSSC perform over the long term?

See historical performance and comparison

Valuation

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

9.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NSSC ($46.11) is trading below our estimate of fair value ($50.95)

Significantly Below Fair Value: NSSC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NSSC is poor value based on its PE Ratio (41.6x) compared to the US Electronic industry average (17.6x).

PE vs Market: NSSC is poor value based on its PE Ratio (41.6x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: NSSC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: NSSC is overvalued based on its PB Ratio (8.4x) compared to the US Electronic industry average (2.6x).


Future Growth

How is Napco Security Technologies forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

33.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NSSC's forecast earnings growth (33.3% per year) is above the savings rate (2%).

Earnings vs Market: NSSC's earnings (33.3% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: NSSC's revenue (15.5% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: NSSC's revenue (15.5% 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?

18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NSSC has a large one-off gain of $3.9M impacting its September 30 2021 financial results.

Growing Profit Margin: NSSC's current net profit margins (16.7%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: NSSC's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: NSSC's earnings growth over the past year (167.3%) exceeds its 5-year average (18.4% per year).

Earnings vs Industry: NSSC earnings growth over the past year (167.3%) exceeded the Electronic industry 51.2%.


Return on Equity

High ROE: NSSC's Return on Equity (20.1%) is considered high.


Financial Health

How is Napco Security Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: NSSC's short term assets ($97.5M) exceed its short term liabilities ($15.7M).

Long Term Liabilities: NSSC's short term assets ($97.5M) exceed its long term liabilities ($8.4M).


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 7.5%.

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


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?

22.1yrs

Average management tenure


CEO

Richard Soloway (75 yo)

23.92yrs

Tenure

US$1,289,947

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 ($USD1.29M) is below average for companies of similar size in the US market ($USD2.36M).

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 (22.1 years average tenure).


Board Members

Experienced Board: NSSC's board of directors are seasoned and experienced ( 20.9 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 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$846.399m
  • Shares outstanding: 18.36m
  • Website: https://www.napcosecurity.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:55
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
Annual Earnings2021/06/30


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.