NAPCO Security Technologies, Inc (NSSC) stock analysis

P/E below its 5-year median

NAPCO Security Technologies's P/E of 24.9 is below its own 5-year median of 35.4.

P/E above the industry

NAPCO Security Technologies's P/E of 24.9 is above the Communications Equipment median of 24.9.

EV/EBITDA below its 5-year median

NAPCO Security Technologies's EV/EBITDA of 20.0 is below its 5-year median of 29.4.

P/B above the industry

NAPCO Security Technologies's price-to-book of 5.53 is above the Communications Equipment median of 2.54.

Trading below fair value

The share price of $30.62 is below our fair value estimate of $32.66.

Margin of safety under 20%

The price is 6.3% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 6.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 18.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -1.2% over the last twelve months, against a 5-year average of 22.8% a year.

Growing slower than the industry

Revenue grew 8.7% over the last twelve months; the Communications Equipment median is 10.9%.

Company guidance

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

Gross margin improving

Gross margin was 59.7% over the last twelve months, against 55.8% a year earlier.

Return on equity over 15%

Return on equity was 23.4% over the last twelve months and averaged 24.1% over five years.

Return on capital over 10%

Return on invested capital was 59.8%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

NAPCO Security Technologies's return on equity of 23.4% is above the Communications Equipment median of -3.7%.

Earnings grew over 5 years

Net income grew 22.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 21.6% over the last twelve months, against a 5-year average of 20.2%.

Net margin above the industry

NAPCO Security Technologies's net margin of 21.6% is above the Communications Equipment median of -2.2%.

No debt

NAPCO Security Technologies 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 7.23 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 23.57; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

NAPCO Security Technologies paid dividends worth 2.0% of the share price over the last twelve months.

Yield below Treasuries

The 2.0% 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; NAPCO Security Technologies yields 2.0%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 47.2% of net income.

Covered by free cash flow

Dividends take 41.3% of free cash flow.