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NAPCO Security Technologies Inc (NSSC)



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Upturn Advisory Summary
08/28/2025: NSSC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $37.5
1 Year Target Price $37.5
1 | Strong Buy |
1 | Buy |
3 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 5.35% | Avg. Invested days 30 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.37B USD | Price to earnings Ratio 32.21 | 1Y Target Price 37.5 |
Price to earnings Ratio 32.21 | 1Y Target Price 37.5 | ||
Volume (30-day avg) 5 | Beta 1.42 | 52 Weeks Range 18.91 - 45.31 | Updated Date 08/29/2025 |
52 Weeks Range 18.91 - 45.31 | Updated Date 08/29/2025 | ||
Dividends yield (FY) 1.34% | Basic EPS (TTM) 1.19 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-08-25 | When - | Estimate 0.27 | Actual 0.33 |
Profitability
Profit Margin 23.9% | Operating Margin (TTM) 25.09% |
Management Effectiveness
Return on Assets (TTM) 14.44% | Return on Equity (TTM) 24.98% |
Valuation
Trailing PE 32.21 | Forward PE 24.69 | Enterprise Value 1272869616 | Price to Sales(TTM) 7.53 |
Enterprise Value 1272869616 | Price to Sales(TTM) 7.53 | ||
Enterprise Value to Revenue 7.01 | Enterprise Value to EBITDA 26.23 | Shares Outstanding 35656400 | Shares Floating 34076485 |
Shares Outstanding 35656400 | Shares Floating 34076485 | ||
Percent Insiders 4.44 | Percent Institutions 92.36 |
Upturn AI SWOT
NAPCO Security Technologies Inc

Company Overview
History and Background
NAPCO Security Technologies, Inc. was founded in 1969. It has evolved from a manufacturer of locks to a security solutions provider, focusing on electronic security products, wireless technology, and alarm communication services.
Core Business Areas
- NAPCO Security Group: Manufactures and sells electronic security equipment, including control panels, keypads, detectors, and sirens.
- Alarm Lock: Designs, manufactures, and sells access control solutions such as electronic locks and keypads.
- Marks USA: Manufactures and sells high-security mechanical locks and door hardware.
- Continental Access: Provides integrated access control and security management systems.
Leadership and Structure
Richard Soloway serves as the Chairman and President. The company operates with a functional organizational structure, with departments focused on manufacturing, sales, marketing, and engineering.
Top Products and Market Share
Key Offerings
- iSecure Connected Home Security System: A wireless security and automation system for residential and small business use. Competitors include ADT (ADT), SimpliSafe (private), and Ring (AMZN). Market share not precisely available but is a growing segment for NAPCO. Revenue from this product family accounts for a significant portion of recurring service revenue.
- StarLink Cellular/IP Communicators: Provides alarm reporting and remote access capabilities using cellular and IP networks. Competitors include Telguard (private) and Resideo (REZI). NAPCO has a strong position in this market driven by sunset of 3G networks driving upgrades. Market share figures are unavailable however StarLink drives a large portion of recurring revenue.
- NetworX intrusion and fire alarm control panels: A control panel designed for commercial intrusion and fire systems. Competitors are Honeywell (HON), Bosch (private), and Johnson Controls (JCI).
- Alarm Lock Trilogy Series: A range of keyless access control solutions. Competitors are Allegion (ALLE), ASSA ABLOY (private).
Market Dynamics
Industry Overview
The security industry is growing, driven by increasing demand for security solutions in residential and commercial markets. Factors such as increasing crime rates, technological advancements, and regulatory compliance are fueling this growth.
Positioning
NAPCO is positioned as a provider of both security hardware and recurring service revenue driven by connected solutions. They emphasize ease of installation and comprehensive product offerings. Competitive advantages include its integrated product lines and focus on the professional installer channel.
Total Addressable Market (TAM)
The global security market is estimated to be in the hundreds of billions of USD. NAPCO is well-positioned to capture a portion of this TAM through its diverse product portfolio and focus on emerging technologies. NAPCO is positioned towards the DIY and small business segment.
Upturn SWOT Analysis
Strengths
- Strong brand recognition in the security industry
- Diverse product portfolio
- Recurring revenue stream from connected services
- Strong relationships with professional installers
- Vertically integrated manufacturing
Weaknesses
- Limited global presence
- Reliance on professional installer channel
- Exposure to raw material price fluctuations
- Smaller market capitalization compared to larger competitors
Opportunities
- Expansion into international markets
- Development of new products and services
- Acquisitions of complementary businesses
- Increased demand for smart home security solutions
- Growth of the IoT security market
Threats
- Intense competition from larger players
- Rapid technological advancements
- Cybersecurity risks
- Economic downturns
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- Resideo Technologies Inc (REZI)
- Johnson Controls International plc (JCI)
- ADT Inc. (ADT)
- Allegion PLC (ALLE)
Competitive Landscape
NAPCO differentiates itself through its vertically integrated manufacturing and focus on the professional installer channel. However, it faces intense competition from larger, more diversified players with greater resources.
Major Acquisitions
Gemini Security Systems
- Year: 2010
- Acquisition Price (USD millions): 12.2
- Strategic Rationale: Expanded product line and distribution network.
Growth Trajectory and Initiatives
Historical Growth: NAPCO has experienced growth through organic expansion and acquisitions.
Future Projections: Analysts project continued growth for NAPCO, driven by demand for security solutions and connected services.
Recent Initiatives: NAPCO has been focused on expanding its product offerings, growing its recurring revenue base, and investing in new technologies.
Summary
NAPCO is a well-established security solutions provider with a strong brand and recurring revenue streams. They are positioned to capitalize on growth in the security market but face intense competition from larger players. Its vertically integrated manufacturing is a positive. NAPCO needs to continue innovating and expanding its product offerings to maintain its competitive advantage.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- 10-K Filings
- Industry Reports
- Analyst Reports
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market data and competitor information are subject to change.
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 | Industry Security & Protection Services | Full time employees 1061 | Website https://www.napcosecurity.com |
Full time employees 1061 | Website https://www.napcosecurity.com |
Napco Security Technologies, Inc. engages in the development, manufacturing, and sale of electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. The company's 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. Its 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. The company 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. It 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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