Friday, March 15, 2019

N A P C O SECURITY TECH (NSSC) Company Analysis

Description

Napco Security Technologies, Inc. manufactures and sells security products and software worldwide. The company offers access control systems, door security 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; 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.
Valueline Performance = 1
Investor's Business Daily = 99
Price Earnings Ratio = 39
Earnings Per Share Growth = 114
Price Earnings/EPS Growth Ratio (PEG) = .34



Flawless balance sheet with solid track record

NSSC delivered a bottom-line expansion of 57% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did NSSC outperformed its past performance, its growth also exceeded the Electronic industry expansion, which generated a 40% earnings growth. This is what investors like to see!  NSSC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that NSSC manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at NSSC’s capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.


Company Website

2018 Annual Report 

Corporate Presentation


The ability of the educational administrative community to secure adequate, objective advice and counsel on how to address the mass shooting crisis, from the current configuration of the security industry, has been compromised by several factors. First of all, there has been a large duplication of effort, with thousands of school districts across the country acting locally in trying to secure knowledge and expertise in security. Additionally, there is no single certified body of specialized, education sector security professionals in existence, that can be assured in supplying education officials with objective, accurate, unbiased and above all, cost-effective guidance in ameliorating the mass shooting threat at their schools. Finally, there is no universally accepted process for auditing a school facility for security vulnerability and no quantitative measurement tool to be utilized in conducting that audit. This paper outlines the need for a national school security association or body to be created, as well as the unification of the security industry, in creating a comprehensive process and clearing house for expertise to be constructively applied to the school active shooter problem.

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