NAPCO Story

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NSSC -- USA Stock  

USD 22.67  0.15  0.67%

NAPCO Security Net Income Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 10,224. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 18.5 M, whereas Revenue Per Employee is forecasted to decline to about 78.3 K. There are many examples of share prices slipping after an abrupt shift in one of the basic indicators. Let's go over some of NAPCO Security's important ratios. I will address the reasons this entity was abused by investors resulted from the current market uncertainty. NAPCO Security odds of financial turmoil is under 1 percent. Will NAPCO Security investors continue to acquire in October?
Published over two weeks ago
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Are investors happy with NAPCO Security (NASDAQ:NSSC) basic indicators?
NAPCO Security has Sharpe Ratio of -8.0E-4, which conveys that the company had -8.0E-4% of return per unit of volatility over the last month. Macroaxis viewpoint regarding estimating the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. NAPCO Security exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify NAPCO Security market risk adjusted performance of 6.21, and Mean Deviation of 2.26 to check out the risk estimate we provide.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include NAPCO Security income statement, its balance sheet, and the statement of cash flows. Potential NAPCO Security investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although NAPCO Security investors may use each financial statement separately, they are all related. The changes in NAPCO Security's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on NAPCO Security's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of NAPCO Security fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of NAPCO Security performance into the future periods or doing a reasonable stock valuation. The intrinsic value of NAPCO Security shares is the value that is considered the true value of the share. If the intrinsic value NAPCO is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares NAPCO Security. Please read more on our fundamental analysis page.

What is NAPCO Asset Breakdown?

NAPCO Security reports assets on its Balance Sheet. It represents the amount of NAPCO resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect NAPCO volatility, please check the breakdown of all its fundamentals

Are NAPCO Security Earnings Expected to grow?

The future earnings power of NAPCO Security involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of NAPCO Security factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. NAPCO Security stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of NAPCO expected earnings.

NAPCO Security Gross Profit

NAPCO Security Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing NAPCO Security previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show NAPCO Security Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Exercise or conversion by Jorge Hevia of 2000 shares of NAPCO Security subject to Rule 16b-3

Legal trades by NAPCO Security insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
NAPCO Security insider trading alert for exercise of common stock by Jorge Hevia, Senior Vice President, on 23rd of June 2020. This event was filed by Napco Security Technologi with SEC on 2020-02-07. Statement of changes in beneficial ownership - SEC Form 4. Jorge Hevia is currently serves as sr. vp of corporate sales and marketing of NAPCO Security [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at NAPCO

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of NAPCO Security is not uncomon. Many companies such as NAPCO Security have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of NAPCO is distributed among investors.

Ownership Allocation

NAPCO Security holds a total of 18.35 Million outstanding shares. Over half of NAPCO Security outstanding shares are owned by institutional investors. These institutional investors are typically referred to corporate investors that shop for positions in a given instrument to benefit from reduced trade commissions. Thus, these institutions are subject to different rules and regulation than regular investors in NAPCO Security. Please watch out for any change in the institutional holdings of NAPCO Security as this could mean something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Retail Investors
10.47%
Insiders
37.23%
Institutions
52.3%
Retail Investors10.47
Insiders37.23
Institutions52.3

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. NAPCO Security has an asset utilization ratio of 132.3 percent. This suggests that the company is making $1.32 for each dollar of assets. An increasing asset utilization means that NAPCO Security is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
66.9 M
Assets Non Current
19.1 M
Current Assets66.9 Million71.16
Assets Non Current19.08 Million20.29
Goodwill7.52 Million8.0
Tax Assets520,9580.55

NAPCO showing appearance of lower volatility

Current Jensen Alpha is up to -0.1. Price may slip again. NAPCO Security exhibits very low volatility with skewness of -0.69 and kurtosis of 0.98. However, we advise investors to further study NAPCO Security technical indicators to make sure all market info is available and is reliable.

Our Final Take On NAPCO Security

Whereas some firms within the security & protection services industry are still a little expensive, even after the recent corrections, NAPCO Security may offer a potential longer-term growth to investors. Taking everything into account, as of the 7th of September 2020, our latest 30 days 'Buy-Sell' recommendation on the company is Strong Buy. We believe NAPCO Security is undervalued with very small chance of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of NAPCO Security. Please refer to our Terms of Use for any information regarding our disclosure principles.

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