Napco Security Technologies, Inc. (NSSC) AI Stock Analysis

Headquartered in Amityville, New York, Napco Security Technologies, Inc. is a developer, manufacturer, and global supplier of electronic security products for commercial, residential, institutional, industrial, and governmental sectors. The company's portfolio encompasses access control systems, door-locking products, intrusion and fire alarm systems, and advanced video surveillance solutions. Its access control offerings feature identification readers, control panels, PC-based computing solutions, and electronically activated door-locking devices such as biometric and microprocessor-based locks. Napco also supplies automatic communicators, cellular communication devices, fire alarm control panels, and video management systems, alongside related peripheral equipment.

Napco expanded revenue from $143.6M in FY2022 to $202.3M in FY2026, representing a 5-year revenue CAGR of 7.1%. Over this span, gross margin improved from 41.2% in FY2022 to 59.2% in FY2026, while operating margin widened from 12.7% to 22.6%. Annual net income increased from $19.6M in FY2022 to $43.0M in FY2026, though it declined from $49.8M in FY2024 and $43.4M in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue grew 10.0% year-over-year, and quarterly earnings grew 52.4% year-over-year, supported by a trailing twelve months operating margin of 32.2%.

As of June 30, 2026, Napco held $137.6M in cash and short-term investments against total debt of $5.2M, yielding net cash of $132.4M. Its debt-to-equity ratio stood at 0.03, supported by a current ratio of 4.90 and shareholders' equity of $191.0M. Operating cash flow reached $61.1M in FY2026, funding capital expenditures of $1.9M to generate $59.2M in free cash flow. Napco deployed cash to pay $20.3M in dividends during FY2026, while its 5-year share count change was -2.7%.

Napco trades at a trailing P/E of 29.6x and a forward P/E of 24.7x, both above the median of its US-listed Industrials peers of 24.8x and 17.2x, respectively. Its enterprise value stands at $1.15B with an EV to EBITDA multiple of 18.1x, compared to the peer median of 13.9x, and a price-to-sales ratio of 6.3x versus the peer median of 1.5x. Over the past year, the stock fell 16.3%, trailing the S&P 500 return of 16.8%. Over five years, Napco returned 67.3% versus 83.0% for the S&P 500.

Napco pays a quarterly dividend with an annual forward payout of $0.61 per share, representing a dividend yield of 1.71%. The dividend payout ratio is 37.9%, and the company has paid dividends for 4 consecutive years. Its last ex-dividend date was September 11, 2026.

Wall Street analyst coverage includes 5 Strong Buy ratings, 1 Buy rating, and zero Hold, Sell, or Strong Sell ratings. The mean price target is $50.67, representing a 42.4% upside compared to the last close of $35.57. For the fiscal year ending June 30, 2027, consensus estimates project EPS of $1.64 on revenue of $219.1M. Napco has beaten EPS estimates in each of the last 4 quarters, and its next earnings date is November 2, 2026.

This page is an AI-written research summary of Napco Security Technologies, Inc. (NSSC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: NSSC income statement, NSSC balance sheet, NSSC key metrics, NSSC analyst forecast, NSSC chart. See the NSSC stock overview for the latest quote and news.