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Napco Security Technologies, Inc.

Rank #81Capital ReturnWatchlistCompare with other stocks

NSSC · Nasdaq · Industrials

Napco Security Technologies, Inc. (NSSC) — Rank #81 by gross profitability (GP/assets 0.50) · ROE 22.5% · Piotroski F-Score N/A.

As-of 2026-10-30 · CIK 0000069633 · all metrics point-in-time as of the filing date.

About

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.

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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.

Industry
Security & Protection Services
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
June 30

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

1,049

Industry

Security & Protection Services

Exchange

Nasdaq

9/11

Flags passed

NSSC fails 1 critical flag

Passes 9 of 11 quality flags, 1 caution

  • FAIL
    Operating margin declining

    Operating margin lower than prior year

  • CAUTION
    Disclosure regression

    A previously-disclosed line item is no longer reported — worth checking the filing for why

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Revenue not declining
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating

No data Balance sheet — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.50
Return on equity
22.5%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.25
Current ratio
4.90×
Net cash
$137.56M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.5%

Growth

2/2 pass
Revenue growth
11.4%
Piotroski F-Score
N/A
Share dilution
-1.7%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

Warning: Operating margin declining · GP/assets 0.50

Gross profitability (GP / assets)

0.50

Primary signal (Novy-Marx).

3rd of 5 SIC 3669 peers

Return on equity

22.5%

Gross margin

59.2%

1st of 5 SIC 3669 peers

Revenue growth (YoY)

11.4%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

6.0%

Revenue CAGR (5Y)

12.1%

Earnings CAGR (3Y)

16.6%

FCF CAGR (3Y)

39.7%

Cash Flow Health

Is the cash real?

No warning flags · FCF 38% above net income

Free cash flow

$59.23M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

37.7%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.5%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $137.56M

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.25

Current ratio

4.90×

1st of 5 SIC 3669 peers

Quick ratio

3.91×

Net cash

$137.56M

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

3.0 / 5

Good
Payout ratio
47.3%4/5 Strong
FCF coverage
2.91×4/5 Strong
Dividend growth streak
3 yr2/5 Fair
Balance-sheet health
D/E 0.25 · IC N/A2/5 Fair

Capital allocation quality

Composite score

3.3 / 5

Good
Share count trend(net buybacks)
-1.7%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency
3 yr2/5 Fair
Net debt trajectory(deleveraging)
16.1%5/5 Strong

Lifecycle Phase History

20212026
Op. Leverage
Hypergrowth
Capital Return
Value

Price History

NSSC+72.0% · +11.4% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports