(NSSC) NAPCO Security Technologies - Overview
Sector: Industrials | Industry: Security & Protection Services | Exchange: NASDAQ (USA) | Market Cap: 1.325m USD | Total Return: 29.5% in 12m
Avg Turnover: 14.4M
EPS Trend: 67.0%
Qual. Beats: 4
Rev. Trend: 90.4%
Qual. Beats: 0
Warnings
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
NAPCO Security Technologies, Inc. (NSSC) designs and manufactures a diverse range of electronic security products, including access control systems, fire alarms, and video surveillance equipment. Headquartered in New York, the company serves commercial, residential, and governmental sectors through a network of independent distributors and installers. Its product portfolio spans from mechanical deadbolts to sophisticated biometric readers and cellular communication devices used for remote alarm signaling.
The business model increasingly emphasizes recurring service revenue generated through its cellular communication modules, which provide a higher-margin alternative to one-time hardware sales. In the specialized school security market, the company provides integrated systems designed to automate lockdowns and enhance campus safety. For a deeper look into the companys financial health and valuation metrics, investors may find ValueRay to be a useful resource. The electronic security industry is currently driven by the technological transition from traditional landline monitoring to wireless and internet-based reporting systems.
- Recurring monthly revenue expansion from cellular alarm communicators improves gross margins
- School security infrastructure spending increases demand for integrated access control systems
- Expansion of professional dealer network drives higher hardware sales and installations
- Supply chain costs and electronic component availability impact manufacturing production cycles
- High-margin software services growth offsets cyclical fluctuations in traditional hardware sales
| Net Income: 36.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.25 > 0.02 and ΔFCF/TA -1.55 > 1.0 |
| NWC/Revenue: 77.98% < 20% (prev 71.61%; Δ 6.37% < -1%) |
| CFO/TA 0.26 > 3% & CFO 58.1m > Net Income 36.9m |
| Net Debt (-119.7m) to EBITDA (42.5m): -2.82 < 3 |
| Current Ratio: 4.95 > 1.5 & < 3 |
| Outstanding Shares: last quarter (35.7m) vs 12m ago -1.55% < -2% |
| Gross Margin: 56.97% > 18% (prev 0.56%; Δ 5.64k% > 0.5%) |
| Asset Turnover: 95.54% > 50% (prev 94.95%; Δ 0.59% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBITDA TTM and Interest Expense TTM) |
| A: 0.69 (Total Current Assets 192.8m - Total Current Liabilities 39.0m) / Total Assets 222.0m |
| B: 0.94 (Retained Earnings 209.0m / Total Assets 222.0m) |
| C: 0.20 (EBIT TTM 40.3m / Avg Total Assets 206.4m) |
| D: 4.74 (Book Value of Equity 209.6m / Total Liabilities 44.2m) |
| Altman-Z'' = 13.90 = AAA |
| DSRI: 1.14 (Receivables 31.3m/25.2m, Revenue 197.2m/181.2m) |
| GMI: 0.99 (GM 56.97% / 56.33%) |
| AQI: 0.54 (AQ_t 0.07 / AQ_t-1 0.12) |
| SGI: 1.09 (Revenue 197.2m / 181.2m) |
| TATA: -0.10 (NI 36.9m - CFO 58.1m) / TA 222.0m) |
| Beneish M = -3.23 (Cap -4..+1) = AA |
As of May 28, 2026, the stock is trading at USD 36.16 with a total of 341,336 shares traded.
Over the past week, the price has changed by +0.95%,
over one month by -21.54%,
over three months by -22.15% and
over the past year by +29.53%.
NAPCO Security Technologies has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold NSSC.
- StrongBuy: 1
- Buy: 1
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 50.3 | 39.2% |
P/E Trailing = 36.0097
P/E Forward = 24.6914
P/S = 6.7187
P/B = 7.4537
P/EG = 16.27
Revenue TTM = 197.2m USD
EBIT TTM = 40.3m USD
EBITDA TTM = 42.5m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 5.22m USD (from shortLongTermDebtTotal, last quarter) (leases 5.22m already included)
Net Debt = -119.7m USD (calculated: Debt 5.22m - CCE 125.0m)
Enterprise Value = 1.21b USD (1.33b + Debt 5.22m - CCE 125.0m)
Interest Coverage Ratio = unknown (Ebit TTM 40.3m / Interest Expense TTM 0.0)
EV/FCF = 21.39x (Enterprise Value 1.21b / FCF TTM 56.4m)
FCF Yield = 4.68% (FCF TTM 56.4m / Enterprise Value 1.21b)
FCF Margin = 28.58% (FCF TTM 56.4m / Revenue TTM 197.2m)
Net Margin = 18.70% (Net Income TTM 36.9m / Revenue TTM 197.2m)
Gross Margin = 56.97% ((Revenue TTM 197.2m - Cost of Revenue TTM 84.9m) / Revenue TTM)
Gross Margin QoQ = 59.98% (prev 58.62%)
Tobins Q-Ratio = 5.43 (Enterprise Value 1.21b / Total Assets 222.0m)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 5.22m)
Taxrate = 13.31% (6.66m / 50.1m)
NOPAT = 34.9m (EBIT 40.3m * (1 - 13.31%))
Current Ratio = 4.95 (Total Current Assets 192.8m / Total Current Liabilities 39.0m)
Debt / Equity = 0.03 (Debt 5.22m / totalStockholderEquity, last quarter 177.8m)
Debt / EBITDA = -2.82 (Net Debt -119.7m / EBITDA 42.5m)
Debt / FCF = -2.12 (Net Debt -119.7m / FCF TTM 56.4m)
Total Stockholder Equity = 176.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 17.87% (Net Income 36.9m / Total Assets 222.0m)
RoE = 20.86% (Net Income TTM 36.9m / Total Stockholder Equity 176.8m)
RoCE = 22.01% (EBIT 40.3m / Capital Employed (Total Assets 222.0m - Current Liab 39.0m))
RoIC = 60.12% (NOPAT 34.9m / Invested Capital 58.1m)
WACC = 9.75% (E(1.33b)/V(1.33b) * Re(9.79%) + D(5.22m)/V(1.33b) * Rd(0.0%) * (1-Tc(0.13)))
Discount Rate = 9.79% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -71.91 | Cagr: -1.61%
[DCF] Terminal Value 72.03% ; FCFF base≈54.4m ; Y1≈59.0m ; Y5≈72.8m
[DCF] Fair Price = 28.47 (EV 897.3m - Net Debt -119.7m = Equity 1.02b / Shares 35.7m; r=9.75% [WACC]; 5y FCF grow 9.64% → 2.50% )
EPS Correlation: 67.05 | EPS CAGR: 7.55% | SUE: 1.13 | # QB: 4
Revenue Correlation: 90.42 | Revenue CAGR: 4.31% | SUE: -0.01 | # QB: 0
EPS next Quarter (2026-09-30): EPS=0.39 | Chg30d=-1.28% | Revisions=+20% | Analysts=2
EPS current Year (2026-06-30): EPS=1.49 | Chg30d=+1.36% | Revisions=+20% | GrowthEPS=+17.9% | GrowthRev=+9.6%
EPS next Year (2027-06-30): EPS=1.62 | Chg30d=+0.62% | Revisions=+20% | GrowthEPS=+8.7% | GrowthRev=+10.1%
[Analyst] Revisions Ratio: +20%