National Presto Industries Inc. Common Stock (NPK)

FairStock Score: 40/100 — MIXED

Key Financials

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Conservative balance sheet with debt-to-equity of just 0.08, providing financial flexibility
• Altman Z-Score of 7.9 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 21.7% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($76) with negative 82% margin of safety—limited downside protection

AI Analysis

National Presto Industries Inc. Common Stock is a micro-cap industrials company valued at $991 million. Revenue stands at $504 million. From a quality standpoint, National shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 7.9 confirms fortress-level solvency. On valuation, the stock is trading at a premium 30.2x earnings, with trades above its Graham Number with a negative 82% margin. Growth dynamics show revenue growing at 21.7% and profit growth of -27.6%. Our composite FairStock Score of 40/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

National's 22% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 30x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer