Latest Ratios: P/E Ratio 30.0x · EV/EBITDA 24.6x · ROE 25.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.3B | $1.1B | $1.9B | $1.3B | $759M | $670M | $433M | $553M | $276M | $177M | $120M |
| Enterprise Value | $1.2B | $1.0B | $1.8B | $1.2B | $729M | $636M | $426M | $545M | $271M | $177M | $121M |
| P/E Ratio → | 29.98 | 24.95 | 38.77 | 47.47 | 38.85 | 34.30 | 50.87 | 44.97 | 36.65 | 31.33 | 19.88 |
| P/S Ratio | 7.01 | 5.97 | 10.20 | 7.54 | 5.29 | 4.67 | 4.27 | 5.37 | 3.01 | 2.03 | 1.46 |
| P/B Ratio | 7.72 | 6.43 | 11.42 | 7.17 | 5.42 | 5.89 | 5.65 | 7.77 | 4.35 | 3.12 | 2.34 |
| P/FCF | 24.75 | 21.08 | 43.99 | 58.99 | 110.82 | 30.49 | 49.79 | 82.93 | 41.91 | 171.40 | 14.19 |
| P/OCF | 23.77 | 20.25 | 42.44 | 51.91 | 91.11 | 29.16 | 41.99 | 63.88 | 35.09 | 72.40 | 13.12 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.54 | 9.79 | 7.19 | 5.08 | 4.43 | 4.20 | 5.29 | 2.95 | 2.03 | 1.47 |
| EV / EBITDA | 24.62 | 20.73 | 33.01 | 37.90 | 36.45 | 31.79 | 36.81 | 36.65 | 27.57 | 22.87 | 15.65 |
| EV / EBIT | 25.83 | 21.75 | 34.33 | 40.31 | 39.99 | 34.87 | 35.71 | 40.45 | 32.17 | 27.79 | 19.16 |
| EV / FCF | — | 19.57 | 42.21 | 56.23 | 106.40 | 28.92 | 48.96 | 81.73 | 41.10 | 171.44 | 14.31 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 55.6% | 55.6% | 53.9% | 43.1% | 41.2% | 41.2% | 42.3% | 42.6% | 41.4% | 33.9% | 33.4% |
| Operating Margin | 25.5% | 25.5% | 28.5% | 17.8% | 12.7% | 12.7% | 9.9% | 13.1% | 9.2% | 7.3% | 7.7% |
| Net Profit Margin | 23.9% | 23.9% | 26.4% | 16.0% | 13.6% | 13.6% | 7.7% | 11.9% | 8.3% | 6.4% | 7.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 25.7% | 25.7% | 28.7% | 17.0% | 15.4% | 20.6% | 10.6% | 18.2% | 12.7% | 10.4% | 11.8% |
| ROA | 21.9% | 21.9% | 24.5% | 14.5% | 12.4% | 15.5% | 8.2% | 15.4% | 10.6% | 8.3% | 8.9% |
| ROIC | 38.2% | 38.2% | 38.5% | 19.9% | 14.5% | 18.4% | 11.4% | 16.7% | 11.0% | 8.8% | 8.9% |
| ROCE | 26.6% | 26.6% | 29.9% | 18.2% | 13.5% | 17.4% | 12.7% | 19.9% | 13.5% | 11.0% | 11.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.06 | 0.14 | — | — | 0.06 | 0.09 |
| Debt / EBITDA | 0.11 | 0.11 | 0.10 | 0.17 | 0.28 | 0.35 | 0.95 | — | — | 0.45 | 0.62 |
| Net Debt / Equity | — | -0.46 | -0.46 | -0.33 | -0.22 | -0.30 | -0.09 | -0.11 | -0.08 | 0.00 | 0.02 |
| Net Debt / EBITDA | -1.60 | -1.60 | -1.39 | -1.85 | -1.51 | -1.73 | -0.63 | -0.54 | -0.54 | 0.01 | 0.13 |
| Debt / FCF | — | -1.51 | -1.78 | -2.75 | -4.42 | -1.58 | -0.83 | -1.20 | -0.81 | 0.04 | 0.12 |
| Interest Coverage | — | — | — | — | 64.40 | 64.40 | 1324.11 | 641.24 | 103.88 | 76.84 | 35.32 |
Net cash position: cash ($83M) exceeds total debt ($5M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 6.75 | 6.75 | 6.75 | 7.59 | 6.67 | 4.52 | 4.45 | 4.55 | 5.71 | 4.90 | 5.10 |
| Quick Ratio | 5.51 | 5.51 | 5.51 | 6.03 | 4.89 | 2.98 | 2.47 | 2.50 | 3.10 | 2.39 | 2.72 |
| Cash Ratio | 4.12 | 4.12 | 4.12 | 4.40 | 3.39 | 1.77 | 1.04 | 0.56 | 0.56 | 0.33 | 0.42 |
| Asset Turnover | — | 0.92 | 0.95 | 0.82 | 0.86 | 0.97 | 0.97 | 1.20 | 1.25 | 1.23 | 1.27 |
| Inventory Turnover | 2.69 | 2.69 | 2.91 | 2.78 | 2.41 | 2.07 | 1.69 | 2.00 | 2.19 | 2.20 | 2.56 |
| Days Sales Outstanding | — | 60.51 | 58.20 | 68.64 | 66.46 | 74.27 | 82.58 | 92.09 | 90.46 | 84.70 | 84.10 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.0% | 1.3% | 0.7% | 0.2% | — | — | — | — | — | — | — |
| Payout Ratio | 31.4% | 31.4% | 26.6% | 8.5% | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.3% | 4.0% | 2.6% | 2.1% | 2.6% | 2.9% | 2.0% | 2.2% | 2.7% | 3.2% | 5.0% |
| FCF Yield | 4.0% | 4.7% | 2.3% | 1.7% | 0.9% | 3.3% | 2.0% | 1.2% | 2.4% | 0.6% | 7.0% |
| Buyback Yield | 2.9% | 3.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.6% | 0.7% | 0.5% | 0.0% | 0.9% |
| Total Shareholder Yield | 3.9% | 4.7% | 0.7% | 0.2% | 0.0% | 0.0% | 0.6% | 0.7% | 0.5% | 0.0% | 0.9% |
| Shares Outstanding | — | $36M | $37M | $37M | $37M | $37M | $37M | $37M | $38M | $38M | $38M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying NSSC stock.
Napco Security Technologies, Inc.'s current P/E ratio is 30.0x. The historical average is 29.0x. This places it at the 50th percentile of its historical range.
Napco Security Technologies, Inc.'s current EV/EBITDA is 24.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.0x.
Napco Security Technologies, Inc.'s return on equity (ROE) is 25.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 8.3%.
Based on historical data, Napco Security Technologies, Inc. is trading at a P/E of 30.0x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Napco Security Technologies, Inc.'s current dividend yield is 1.05% with a payout ratio of 31.4%.
Napco Security Technologies, Inc. has 55.6% gross margin and 25.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Napco Security Technologies, Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Elevated valuation vs. peers
Metrics are mathematically derived from official filings.
Premium Valuation Reflects Growth Acceleration
NSSC trades at a significant premium to peers with a P/E of 29.71 and EV/EBITDA of 24.37, yet its PEG ratio of 0.76 suggests the market may be underpricing its recent earnings acceleration.
The valuation multiples appear elevated relative to the peer group, particularly compared to ALRM's P/E of 23.36 and EV/EBITDA of 16.55. However, the PEG ratio below 1.0 indicates that the current earnings growth rate, which has accelerated to double-digit levels, is not fully reflected in the price-to-earnings multiple. This suggests the market is pricing in a continuation of the strong profitability expansion seen in recent quarters, but the premium warrants scrutiny of growth sustainability.
Margin Expansion Drives Exceptional Earning Power
Gross margins have expanded to 61.3% in the latest quarter, a 600 basis point improvement from 2024Q4, driving operating margins to a peak of 33.0% and demonstrating powerful pricing power or favorable mix shifts.
The decomposition shows that profitability improvement is broad-based, with gross margin expansion providing the primary tailwind. The operating margin expansion to 33.0% from 27.7% a year prior indicates effective cost control and operating leverage, as SG&A expenses have not scaled proportionally with revenue. This level of profitability appears exceptional for the sector and may represent a cyclical peak, making the sustainability of these margins the key question for investors.
ROIC Surge Signals Compounding Potential
Return on invested capital has surged to 20.1% in 2026Q4 from 9.8% in 2025Q4, driven almost entirely by margin expansion rather than asset turnover, indicating the business is generating significantly more profit per dollar of capital deployed.
The ROIC trend is impressive, moving from a mid-single-digit return to over 20% in a single year. This improvement is overwhelmingly driven by the net profit margin expansion, as asset turnover has remained relatively stable around 0.24. The high ROIC relative to the company's near-zero cost of debt suggests substantial economic value creation, but the rapid ascent warrants monitoring to determine if it represents a new, sustainable plateau or a temporary peak.
Negligible Leverage Eliminates Financial Risk
With a debt-to-equity ratio of just 0.03 and a debt-to-EBITDA of 0.31, NSSC operates with a virtually unleveraged balance sheet, rendering interest coverage metrics irrelevant and eliminating any refinancing or covenant risk.
The leverage profile is exceptionally conservative, with total debt of approximately $5.2M held against $221.4M in equity. This structure provides maximum financial flexibility and insulates the company from interest rate volatility. The absence of meaningful leverage means that all operating cash flow is available for reinvestment or shareholder returns, but it also raises questions about optimal capital structure and whether the company is under-utilizing debt to enhance returns.
Working Capital Cycle Extends Despite Growth
The cash conversion cycle has lengthened to 162 days in 2026Q4 from 158 days in 2024Q4, primarily due to a significant increase in days inventory outstanding to 134 days, which may indicate inventory build-up ahead of anticipated demand.
The efficiency metrics reveal a mixed picture. While days sales outstanding has remained stable around 55 days, the sharp increase in DIO from 130 to 134 days has extended the overall cycle. This inventory build-up could be strategic, supporting the reported revenue acceleration, but it also ties up working capital. The company's ability to convert this inventory into sales will be critical to maintaining the strong free cash flow generation observed in recent quarters.
The Misleading Safety of the Current Ratio
The current ratio of 4.90 is the most commonly misapplied metric for NSSC, as it is inflated by $126.9M in cash that represents 53% of total assets, obscuring the true operational liquidity needs of the business.
Investors often cite the high current ratio as a sign of exceptional liquidity, but this metric is distorted by the massive cash hoard. The quick ratio of 4.19 is only marginally lower, confirming that inventory is not the primary driver. A more meaningful analysis would focus on operating cash flow generation relative to working capital needs, as the company's true liquidity is derived from its robust cash flow, not its static balance sheet composition. The cash accumulation itself may signal a lack of compelling reinvestment opportunities.