# NAPCO Security Technologies Inc. (NSSC) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Industrials / Commercial Services. Price $31.77, market value $1.1 billion.

## Valuation
- **P/E (trailing): 25.8×** (5-yr avg 35.3×, 3-yr avg 31.3×). NAPCO Security Technologies Inc. trades at 25.8× trailing earnings, well below its own five-year average of 35.3×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 18.0×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 5.6×**. Each dollar of revenue is priced at 5.6×.
- **Price / book: 5.7×**. The shares trade at 5.7× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 21.1×**. Enterprise value is 21.1× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 4.4%** (5-yr avg 2.8%). Free cash flow equals 4.4% 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: 3.9%**. The inverse of the P/E: 3.9% of the price is earned each year.

## Profitability
- **Gross margin: 59.7%**. NAPCO Security Technologies Inc. keeps 59.7% of revenue after the direct cost of what it sells.
- **Operating margin: 22.7%**. 22.7% 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: 55.5%**. Return on all capital, debt included, is 55.5%: comfortably above what that capital costs.
- **Return on assets: 18.4%**. Each dollar of assets produces 18.4% 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: 17.74**. A Z-score of 17.74 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.14%** ($0.61 per share, trailing). NAPCO Security Technologies Inc. yields 2.14%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 47%** (41% 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.

## Price and momentum
- **Total return (1 yr): -26.5%** (YTD -22.4%, 3-mo -15.7%). The shares are down 26.5% over twelve months including dividends.
- **From 52-week high: -38.6%** (2.5% above the low). Trading 39% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 30**. An RSI of 30 is neutral.
- **Beta (1 yr): 1.17** (volatility 44%). Beta of 1.17 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.