What Are the Fundamentals of NAPCO Security Technologies (NSSC)?

NAPCO Security Technologies moved -1.5% this afternoon session, trading between a high of $21.9858 and a low of $21.3743 per share. Yesterday the stock finished at $21.92 per share, compared to an average analyst target price of $28.8.

Napco Security Technologies, Inc. develops, manufactures, and sells electronic security products in the United States and internationally. The small-cap telecommunications equipment company is based in the United States, and over the last twelve months it has returned a dividend yield of 0.3%. NAPCO Security Technologies has trailing twelve months earnings per share (EPS) of 0.73, which at today's prices amounts to a price to earnings (P/E) ratio of 29.6.

Based on its expected future earnings growth, the company has a price to earnings growth (PEG) ratio of 14.35. Usually a PEG ratio between 0 and 1 indicates a potentially undervalued company.

Overview of the Company's Gross Margins:

Date Reported Revenue ($ k) Cost of Revenue ($ k) Gross Margins (%) YoY Growth (%)
2022-08-29 143,593 -84,437 41 -8.89
2021-09-13 114,035 -63,287 45 7.14
2020-09-15 101,359 -58,515 42 -2.33
2019-10-28 102,932 -58,732 43 4.88
2018-09-13 91,746 -53,751 41 -2.38
2017-09-13 87,374 -51,073 42

NAPCO Security Technologies's 42.3% average gross margins are thinner than the 53.85% average of the Communication Equipment industry, implying that the firm might be lacking in competitivity.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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