NAPCO Security Technologies Inc. Common Stock (NSSC)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, carry little debt, and sell at a sensible price. NAPCO fits the first two tests. For fiscal 2026, the year ended 2026-06-30, it reported revenue of $202.3 million, net income of $43.0 million, and diluted EPS of $1.20. That compares with fiscal 2025 revenue of $181.6 million, net income of $43.4 million, and diluted EPS of $1.19. Sales rose, but profit was flat. Go back to fiscal 2024 and net income was $49.8 million on revenue of $188.8 million, so the trend is not a straight line. The fiscal third quarter of 2026, ended 2026-03-31, was especially soft: revenue of $49.2 million and a net loss of $408,000. Still, FairStock calculates return on equity of 23.93% and return on capital employed of 17.51%, with debt-to-equity of just 0.03. Free cash flow was $59.2 million, a 4.6% yield. The Altman Z-Score of 18.91 suggests financial strength. The problem is price. At the 2026-10-13 close of $36.18, the FairStock P/E is 30.15, P/B is 6.78, and EV/EBITDA is 18.36. The Graham Number is $12.01, so the margin of safety is negative 201.25%. The PEG of 1.04 is not outrageous if growth returns, and the computed Lynch category is FAST GROWER based on five-year profit growth of 22.8% a year and revenue growth of 12.1%. But I want a margin of safety, and this price leaves little room for error.

In plain English: NAPCO makes electronic security and fire alarm systems for homes and businesses. The business earns solid profits and uses very little debt, but recent yearly profit has been flat and one quarter lost money. At the recent price, the shares look expensive compared with the company’s earnings and net assets, so growth needs to improve to justify the price.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer