Napco Security Technologies, Inc.

Fundamentals8.0
Price Action3.0
News Sentiment6.0
AI Rating
6.0

Key Drivers

  • Cash-rich balance
  • Quarter margin slip
  • Premium multiples

AI
AI Summary

6.0

NSSC now looks less like a simple quality-growth name and more like a profitable recurring-revenue compounder whose 15%+ services growth and strong cash generation are being overshadowed by legal costs, operating expense pressure, and a valuation that leaves little room for misses—so the stock likely needs several clean quarters before the market re-rates it higher.

RecurringRevenue
ExecutionRisk
Valuation‍

Price Chart

Loading chart...

Financial Metrics

-
Revenue (TTM)
-
Net Income (TTM)
-
EPS (Q)
-
MCAP

Deep Analysis

Research tool. Not personalized advice.

Fundamental Analysis

8.0

Key Financial Insights:

  • Cash-rich balance
  • Quarter margin slip
  • Premium multiples

NSSC combines strong profitability, liquidity, and free cash flow with a recent quarter of margin pressure and a premium valuation, making execution on earnings recovery the key risk/reward driver.

cashflow
marginpressure

Price Behavior

3.0
Research tool. Not personalized advice. Technical analysis is for informational purposes only.

Key Price Behavior Insights:

  • Lower-high trend
  • Broken support
  • Oversold decline

NSSC remains in a clear downtrend, with lower highs and lower lows over the last month, broken support now acting as resistance, and only a potential stabilization zone in the mid-to-high $30s if the latest low holds. ക ക

bearish
downtrend
Support Level: $36.00-$39.00
Resistance Level: $40.00-$46.00

Sharp selloffs on 2026-05-01 and again from 2026-05-12 to 2026-05-15 signal sustained bearish momentum

Sentiment & News

6.0

Key News Insights:

  • Recurring Growth
  • Litigation Charge
  • Dividend Raised

Napco posted strong Q3 growth led by recurring service revenue and EBITDA gains, but a litigation charge caused a small net loss and the stock fell despite a raised dividend.

RecurringRevenue
Margins

The update is mildly positive for the long term given strong recurring revenue and margins, but near-term sentiment may stay pressured by the legal hit and share-price volatility