Latest Ratios: P/E Ratio 32.3x · EV/EBITDA 26.6x · 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 | $1.4B | $1.1B | $1.9B | $1.3B | $759M | $670M | $433M | $553M | $276M | $177M | $120M |
| Enterprise Value | $1.3B | $1.0B | $1.8B | $1.2B | $729M | $636M | $426M | $545M | $271M | $177M | $121M |
| P/E Ratio → | 32.27 | 24.95 | 38.77 | 47.47 | 38.85 | 34.30 | 50.87 | 44.97 | 36.65 | 31.33 | 19.88 |
| P/S Ratio | 7.54 | 5.97 | 10.20 | 7.54 | 5.29 | 4.67 | 4.27 | 5.37 | 3.01 | 2.03 | 1.46 |
| P/B Ratio | 8.31 | 6.43 | 11.42 | 7.17 | 5.42 | 5.89 | 5.65 | 7.77 | 4.35 | 3.12 | 2.34 |
| P/FCF | 26.64 | 21.08 | 43.99 | 58.99 | 110.82 | 30.49 | 49.79 | 82.93 | 41.91 | 171.40 | 14.19 |
| P/OCF | 25.59 | 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 | 26.62 | 20.73 | 33.01 | 37.90 | 36.45 | 31.79 | 36.81 | 36.65 | 27.57 | 22.87 | 15.65 |
| EV / EBIT | 27.92 | 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 | 3.1% | 4.0% | 2.6% | 2.1% | 2.6% | 2.9% | 2.0% | 2.2% | 2.7% | 3.2% | 5.0% |
| FCF Yield | 3.8% | 4.7% | 2.3% | 1.7% | 0.9% | 3.3% | 2.0% | 1.2% | 2.4% | 0.6% | 7.0% |
| Buyback Yield | 2.7% | 3.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.6% | 0.7% | 0.5% | 0.0% | 0.9% |
| Total Shareholder Yield | 3.7% | 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 |
Internal financial control volatility
Based on current market data, NSSC trades at a forward P/E of 25.03, which suggests investors are pricing in a transition toward a high-margin service model rather than valuing the company as a traditional, cyclical industrial manufacturer prone to hardware-driven revenue volatility.
The current valuation premium relative to traditional industrial peers appears to hinge on the market's expectation that recurring service revenue will eventually dominate the earnings mix. However, given the recent deceleration in growth and the volatility in quarterly net income, this multiple may be vulnerable if the company fails to demonstrate consistent margin expansion in the coming fiscal periods.
As reported in recent financial statements, NSSC's ROIC has experienced a notable decline, falling to -1.2% in 2026Q3 from a peak of 12.9% in 2026Q2, which indicates that the company is currently struggling to generate efficient returns on its invested capital base.
The sharp contraction in ROIC suggests that recent operational headwinds and potential inventory management issues are significantly impairing the company's ability to compound value. Investors should monitor whether this decay is a temporary byproduct of the current hardware cycle or a structural shift in the profitability of the core service offerings.
According to quarterly filings, NSSC's cash conversion cycle reached 179 days in 2026Q3, driven largely by a high days inventory outstanding of 151 days, which highlights a persistent inefficiency in managing hardware stock levels relative to the pace of customer demand.
The elevated DIO suggests that the company may be carrying excessive inventory, potentially to mitigate supply chain risks, but this strategy ties up significant capital that could otherwise be deployed more productively. The inability to compress this cycle indicates that the company's working capital management remains a drag on overall operational efficiency.
Based on reported figures, NSSC maintains a negligible debt-to-equity ratio of 0.03, providing a fortress-like balance sheet that effectively insulates the company from interest rate sensitivity and provides significant optionality for future strategic capital allocation or potential M&A activity.
This lack of leverage is a critical defensive feature, especially given the recent volatility in operating margins and the company's history of financial restatements. The absence of debt service obligations allows management to navigate operational downturns without the risk of covenant breaches or liquidity constraints that often plague more leveraged industrial peers.
The P/E ratio is frequently misapplied to NSSC because it fails to account for the significant non-cash charges and inventory-related accounting adjustments that have historically distorted the company's reported net income, thereby obscuring the underlying cash-generative capacity of the recurring service revenue stream.
Analysts should instead prioritize EV/EBITDA or free cash flow yield to better capture the true earning power of the business, as these metrics are less susceptible to the accounting volatility that has plagued the company's bottom line. Relying solely on P/E risks misinterpreting the quality of earnings during periods of inventory write-downs or operational restructuring.
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 32.3x. The historical average is 29.0x. This places it at the 61th percentile of its historical range.
Napco Security Technologies, Inc.'s current EV/EBITDA is 26.6x. 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 32.3x. This is at the 61th 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 0.97% 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.