Napco Security Technologies, Inc. (NSSC) Stock

Napco Security Technologies, Inc. (NSSC) is a Technology stock trading at $37.77 (as of 2026-08-20), with a market capitalization of $1.35B and a trailing P/E of 38.1. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Napco Security Technologies, Inc. develops, manufactures, and sells electronic security products in the United States and internationally. The company offers access control systems, door-locking products, intrusion and fire alarm systems, and video surveillance systems for commercial, residential, institutional, industrial, and governmental applications. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company's alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products primarily to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.

Understand Napco Security Technologies, Inc.: how it makes money

Napco Security Technologies develops, manufactures, and sells electronic security products such as access control systems, electronic door locking devices, intrusion and fire alarm systems, and video surveillance, generating revenue from both equipment sales and recurring service revenue.

The profit model depends on recurring service revenue plus the sales mix of electronic security equipment (equipment and locking-related products), and in the latest quarter the company still reported a negative operating margin (gross margin was 60.0%, operating margin was -2.4%).

Revenue by segment (latest quarter)
Net$0.1B

Business quality (Weak): Latest-quarter economics show strong gross margin but a loss at the operating level, so investors should focus on whether recurring service revenue and equipment mix can translate into operating profitability.

Valuation: At 36× earnings, NSSC trades 29% below the Semiconductors average (51×). Note: one-time items can distort reported P/E.

Bull case

  • Recurring Service Revenue exists: The latest-quarter operating metrics include Recurring Service Revenue (0.02 USD_B), indicating a recurring component alongside equipment sales.
  • Solid gross margin: Gross margin was 60.0%, suggesting product gross profit generation remains relatively strong even though operating results were negative.
  • Broad product coverage: The company sells multiple security categories, including access control, door locking devices, and intrusion and fire alarm systems.

Bear case

  • Negative operating margin: Operating margin was -2.4% in the latest quarter, meaning operating profitability was not achieved despite the stated gross margin.
  • Revenue reported as very small (rounding risk): The reported revenue_b is 0.0B while component figures in the dataset are non-zero (for example, Net Revenue 0.05B), so small absolute changes may swing results.
  • Dealer channel and hardware mix sensitivity: Operating metric inputs reference dealer companies (Number of Dealer Companies: 10000) and locking mix (Locking Percentage of Hardware Sales: 61%), so shifts in distribution scale or product mix could pressure results.
Valuation — source: SEC EDGAR (first-party)
Price$37.77
Market Cap$1.35B
P/E Ratio38.1
EV / EBITDA30.7
Price / Book7.59
Price / Sales7.08
FCF Yield8.6%
DCF Value (model)$20.75
DCF Upside vs Price-45.1%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$181.62M
Net Margin23.9%
Revenue Growth (YoY)11.8%
EPS Growth (YoY)-103.6%
FCF Growth (YoY)13.4%
Financial Health — source: SEC EDGAR
Altman Z-Score31.29 (safe)
Valuation vs Sector & Industry
Stock P/E38.1
Sector P/E (Technology)33.9
Industry P/E (Electronic Equipment)39.4
vs Sector12.4%
vs Industry-3.2%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($223.80M)
Institutional Holders Tracked10
Company
SectorTechnology
IndustryElectronic Equipment
CEORichard L. Soloway
Employees1,070
CountryUS
IPO Date1981-12-29

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NSSC earnings history · NSSC institutional & insider holders · NSSC KPIs & operating metrics · NSSC financials · NSSC investor presentations & press releases · NSSC SEC filings · NSSC peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.