National Presto Industries Inc (NPK) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

National Presto Industries's EV/EBITDA of 19.2 is above its 5-year median of 13.9.

P/B below the industry

National Presto Industries's price-to-book of 2.49 is below the Fabricated Metal Products, except Machinery and Transportation Equipment median of 2.80.

Trading above fair value

The share price of $143.39 is above our fair value estimate of $107.41.

Margin of safety under 20%

The price is 33.5% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 16.1% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 3.0% over the last twelve months, against a 5-year average of -6.8% a year.

Growing faster than the industry

Revenue grew 20.9% over the last twelve months; the Fabricated Metal Products, except Machinery and Transportation Equipment median is 10.2%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 16.5% over the last twelve months, against 19.2% a year earlier.

Return on equity under 15%

Return on equity was 10.9% over the last twelve months and averaged 8.6% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 10.8%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

National Presto Industries's return on equity of 10.9% is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 9.0%.

Earnings shrank over 5 years

Net income shrank 6.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 7.9% over the last twelve months, against a 5-year average of 8.2%.

Net margin above the industry

National Presto Industries's net margin of 7.9% is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 4.5%.

No debt

National Presto Industries has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 5.22 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 10.36; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

National Presto Industries paid dividends worth 0.7% of the share price over the last twelve months.

Yield below Treasuries

The 0.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; National Presto Industries yields 0.7%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 16.7% of net income.

Covered by free cash flow

Dividends take 27.1% of free cash flow.