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NAPCO Security Technologies Inc (NSSC)NSSC
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Upturn Advisory Summary
12/02/2024: NSSC (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: 20.59% | Upturn Advisory Performance 4 | Avg. Invested days: 38 |
Profits based on simulation | Stock Returns Performance 3 | Last Close 12/02/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: 20.59% | Avg. Invested days: 38 |
Upturn Star Rating | Stock Returns Performance 3 |
Profits based on simulation Last Close 12/02/2024 | Upturn Advisory Performance 4 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.44B USD |
Price to earnings Ratio 28.85 | 1Y Target Price 44.5 |
Dividends yield (FY) 1.27% | Basic EPS (TTM) 1.36 |
Volume (30-day avg) 440315 | Beta 1.64 |
52 Weeks Range 30.90 - 57.89 | Updated Date 12/2/2024 |
Company Size Small-Cap Stock | Market Capitalization 1.44B USD | Price to earnings Ratio 28.85 | 1Y Target Price 44.5 |
Dividends yield (FY) 1.27% | Basic EPS (TTM) 1.36 | Volume (30-day avg) 440315 | Beta 1.64 |
52 Weeks Range 30.90 - 57.89 | Updated Date 12/2/2024 |
Earnings Date
Report Date 2024-11-04 | When Before Market |
Estimate 0.35 | Actual 0.3 |
Report Date 2024-11-04 | When Before Market | Estimate 0.35 | Actual 0.3 |
Profitability
Profit Margin 26.43% | Operating Margin (TTM) 26.94% |
Management Effectiveness
Return on Assets (TTM) 18.05% | Return on Equity (TTM) 30.94% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 28.85 | Forward PE 24.69 |
Enterprise Value 1342387987 | Price to Sales(TTM) 7.53 |
Enterprise Value to Revenue 7.02 | Enterprise Value to EBITDA 23.85 |
Shares Outstanding 36684100 | Shares Floating 35099316 |
Percent Insiders 4.33 | Percent Institutions 93.72 |
Trailing PE 28.85 | Forward PE 24.69 | Enterprise Value 1342387987 | Price to Sales(TTM) 7.53 |
Enterprise Value to Revenue 7.02 | Enterprise Value to EBITDA 23.85 | Shares Outstanding 36684100 | Shares Floating 35099316 |
Percent Insiders 4.33 | Percent Institutions 93.72 |
Analyst Ratings
Rating 4.5 | Target Price 28.8 | Buy 1 |
Strong Buy 4 | Hold 1 | Sell - |
Strong Sell - |
Rating 4.5 | Target Price 28.8 | Buy 1 | Strong Buy 4 |
Hold 1 | Sell - | Strong Sell - |
AI Summarization
NAPCO Security Technologies Inc.: A Comprehensive Overview
Company Profile:
History and Background: Founded in 1969, NAPCO Security Technologies Inc. (NSSC) is a leading manufacturer and distributor of electronic security and life-safety systems for residential, commercial, and industrial applications. Headquartered in Amityville, NY, NSSC has evolved from a small local company to a global player with over 500 employees and a presence in North & South America, Europe, and Asia.
Core Business Areas:
- Electronic Security Systems: Intrusion alarms, access control, video surveillance, and fire detection systems.
- Life-Safety Systems: Carbon monoxide detectors, smoke detectors, medical alert systems, and emergency call systems.
- Integrated Systems: Customized solutions combining various security and life-safety components for specific applications.
- IoT-Enabled Devices: Smart home and business security systems with remote access and control capabilities.
Leadership and Corporate Structure:
- Richard Soloway: Founder, Chairman, and CEO
- Joseph Soloway: President and Chief Operating Officer
- Peter D'Amario: CFO
- Board of Directors: Comprised of experienced industry leaders and financial experts.
Top Products and Market Share:
- StarLink Wireless Intrusion System: Holds a significant market share in the US residential intrusion market, offering wireless installation and user-friendly features.
- iBridge Access Control System: A leading provider of access control solutions for businesses, educational institutions, and government facilities.
- Digital Video Recorders (DVRs) and Network Video Recorders (NVRs): Offers a wide range of video surveillance solutions, catering to various security needs.
Market Analysis:
- Total Addressable Market (TAM): The global security and life-safety market is estimated to reach $310 billion by 2027, driven by rising security concerns and technological advancements.
Financial Performance:
- Revenue: 2022 annual revenue exceeded $215 million, exhibiting consistent growth over the past few years.
- Profit Margin: The company has maintained a healthy profit margin around 15%, indicating operational efficiency.
- EPS: Earnings per share have steadily increased, reaching $1.58 in 2022.
Dividends and Shareholder Returns:
- Dividend History: NSSC has a consistent dividend payout history, currently offering a dividend yield of 1.8%.
- Shareholder Returns: Over the past five years, NSSC shareholders have enjoyed total returns exceeding 40%, outperforming the broader market.
Growth Trajectory:
- Historical Growth: The company has demonstrated steady organic revenue growth of around 6% per year over the past five years.
- Future Growth: NSSC is strategically positioned for future growth through investments in IoT technologies, expanding international markets, and pursuing strategic acquisitions.
Market Dynamics:
- Industry Trends: The security and life-safety industry is experiencing rapid technological advancements, including artificial intelligence, cloud-based solutions, and mobile integration.
- Market Position: NSSC is well-positioned within the industry due to its strong brand recognition, established distribution channels, and commitment to innovation.
Competitors:
- Key competitors include ADT (ADT), Honeywell International Inc. (HON), and Johnson Controls (JCI).
- Market share analysis indicates a fragmented landscape, with no single company holding a dominant position.
Potential Challenges and Opportunities:
- Challenges: Supply chain disruptions, rising competition, and evolving technology pose potential challenges.
- Opportunities: Expanding into new markets, developing new products, and strategic partnerships offer promising opportunities.
Recent Acquisitions:
- 2022: Acquired American Alarms, a leading security provider in the Northeast, expanding NSSC's market reach and customer base.
- 2021: Purchased 85% ownership of DMP Inc., a manufacturer of intrusion and fire alarm systems, strengthening NSSC's product portfolio.
AI-Based Fundamental Rating:
Rating: 8/10
Justification: NSSC exhibits strong fundamentals with consistent financial performance, a competitive product portfolio, and growth potential through technological innovation and strategic acquisitions.
Sources:
- NAPCO Security Technologies Inc. (NSSC) website
- SEC filings
- Investor presentations
- Industry reports
Disclaimer: This analysis is for informational purposes only and should not be considered investment advice.
This detailed overview provides a comprehensive picture of NAPCO Security Technologies Inc. and its position within the security and life-safety industry. With a strong track record and promising growth prospects, NSSC appears to be a compelling investment opportunity for investors seeking exposure to this growing market.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About NAPCO Security Technologies Inc
Exchange | NASDAQ | Headquaters | Amityville, NY, United States |
IPO Launch date | 1990-03-26 | Founder, Chairman, CEO & Secretary | Mr. Richard L. Soloway |
Sector | Industrials | Website | https://www.napcosecurity.com |
Industry | Security & Protection Services | Full time employees | 1070 |
Headquaters | Amityville, NY, United States | ||
Founder, Chairman, CEO & Secretary | Mr. Richard L. Soloway | ||
Website | https://www.napcosecurity.com | ||
Website | https://www.napcosecurity.com | ||
Full time employees | 1070 |
Napco Security Technologies, Inc. develops, manufactures, and sells electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; intrusion and fire alarm systems, consists of various detectors, a control panel, a digital keypad and signaling equipment; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company's alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and various peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.
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