# NAPCO Security Technologies Inc. (NSSC) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Industrials / Professional Services. Price $37.01, market value $1.3 billion.

## Valuation
- **P/E (trailing): 30.8×** (5-yr avg 35.3×, 3-yr avg 31.3×). NAPCO Security Technologies Inc. trades at 30.8× trailing earnings, close to its own five-year average of 35.3×. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 20.5×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 6.5×**. Each dollar of revenue is priced at 6.5×.
- **Price / book: 7.4×**. The shares trade at 7.4× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 25.2×**. Enterprise value is 25.2× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 4.5%** (5-yr avg 2.8%). Free cash flow equals 4.5% of the market value, above its five-year average of 2.8%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 3.2%**. The inverse of the P/E: 3.2% of the price is earned each year.

## Profitability
- **Gross margin: 59.2%**. NAPCO Security Technologies Inc. keeps 59.2% of revenue after the direct cost of what it sells.
- **Operating margin: 22.6%**. 22.6% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 21.3%**. 21.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 22.5%**. 22.5% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 55.0%**. Return on all capital, debt included, is 55.0%: comfortably above what that capital costs.
- **Return on assets: 18.0%**. Each dollar of assets produces 18.0% of profit.

## Growth
- **Revenue growth (1 yr): 11.4%** (3-yr 6.0%/yr, 5-yr 12.1%/yr). Revenue grew 11.4% over the last year, against 12.1% a year compounded over five years.
- **EPS growth (1 yr): 0.8%** (3-yr 18.0%/yr, 5-yr 23.4%/yr). Earnings per share rose 0.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 39.7%/yr**. Free cash flow has compounded at 39.7% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.01**. Debt is 0.01 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. NAPCO Security Technologies Inc. holds more cash than debt.
- **Current ratio: 4.90** (quick 4.90). Current assets cover the next year's liabilities 4.90 times.
- **Altman Z-score: 20.09**. A Z-score of 20.09 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.65%** ($0.58 per share, trailing). NAPCO Security Technologies Inc. yields 1.65%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 47%** (34% of free cash flow). 47% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 3**. 3 straight years of increases.

## Analyst view
- **Analyst consensus: strong_buy** (6 analysts). 6 analysts cover NAPCO Security Technologies Inc.; the consensus is strong_buy, with an average price target of $50.67 (+37% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -4.3%** (YTD -10.6%, 3-mo 6.3%). The shares are down 4.3% over twelve months including dividends.
- **From 52-week high: -28.5%** (9.1% above the low). Trading 29% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 50**. An RSI of 50 is neutral.
- **Beta (1 yr): 1.26** (volatility 40%). Beta of 1.26 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=NSSC · Page: https://foliofundamentals.com/stocks/nssc

Not investment advice.