NAPCO Security Technologies Inc.
Find Ratings ReportsNAPCO SECURITY TECH INC's gross profit margin for the second quarter of its fiscal year 2024 has significantly increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. NAPCO SECURITY TECH INC is extremely liquid. Currently, the Quick Ratio is 5.04 which clearly shows the ability to cover any short-term cash needs. NSSC managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 29.85% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q2 FY24 | Q2 FY23 |
---|---|---|
Net Sales ($mil) | 47.55 | 42.31 |
EBITDA ($mil) | 14.8 | 4.85 |
EBIT ($mil) | 14.24 | 4.38 |
Net Income ($mil) | 12.61 | 3.93 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 78.97 | 47.1 |
Total Assets ($mil) | 185.88 | 146.24 |
Total Debt ($mil) | 5.64 | 5.96 |
Equity ($mil) | 157.98 | 121.66 |
Profitability | Q2 FY24 | Q2 FY23 |
---|---|---|
Gross Profit Margin | 53.76 | 35.04 |
EBITDA Margin | 31.11 | 11.47 |
Operating Margin | 29.96 | 10.36 |
Sales Turnover | 0.95 | 1.1 |
Return on Assets | 23.24 | 12.18 |
Return on Equity | 27.35 | 14.65 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 7.06 | 6.36 |
Debt/Capital | 0.03 | 0.05 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 36.78 | 36.75 |
Div / share | 0.08 | 0.0 |
EPS | 0.34 | 0.11 |
Book value / share | 4.3 | 3.31 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 340640.0 | 417272.0 |
BUY. This stock's P/E ratio indicates a significant discount compared to an average of 53.34 for the Computer and Electronic Product Manufacturing subsector and a premium compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 9.18 indicates a significant premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 23.59. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, NAPCO SECURITY TECH INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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NSSC 34.00 | Peers 53.34 | NSSC 34.29 | Peers 44.47 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. NSSC is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. NSSC is trading at a discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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NSSC 26.47 | Peers 26.06 | NSSC 0.44 | Peers 1.95 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. NSSC is trading at a premium to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. NSSC trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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NSSC 9.18 | Peers 23.59 | NSSC 141.66 | Peers 123.02 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. NSSC is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. NSSC is expected to have an earnings growth rate that exceeds its peers. |
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Price/Sales |
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Sales Growth |
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NSSC 8.18 | Peers 14.13 | NSSC 10.23 | Peers 27.20 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. NSSC is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. NSSC significantly trails its peers on the basis of sales growth. |
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