Napco Story

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NSSC -- USA Stock  

USD 31.58  1.62  4.88%

Mistras would continue recover faster as its shares surged to 1.84 percent against NAPCO Security's 0.8397%. While some baby boomers are getting worried about industrials space, we are going to go over both, NAPCO Security and Mistras as potential short-term investments. We are going to analyze some of the competitive aspects of both NAPCO and Mistras.
Published over two weeks ago
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Is NAPCO riskier than Mistras Group (NYSE:MG)?
By analyzing existing basic indicators between NAPCO Security and Mistras, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Mistras with a short position in NAPCO Security. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. 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 120.43 percent. This suggests that the company is making $1.2 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.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Napco or NL Industries is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Napco Sec's Liquidity

Napco Sec financial leverage refers to using borrowed capital as a funding source to finance Napco Sec Tech ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Napco Sec financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Napco Sec's total debt and its cash.

Correlation Between Napco and NL Industries

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Napco Sec together with similar or unrelated positions with a negative correlation. For example, you can also add NL Industries to your portfolio. If NL Industries is not perfectly correlated to Napco Sec it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Napco Sec for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between NSSC and NL for more information.

Exercise or conversion by Kevin Buchel of 1000 shares of NAPCO Security subject to Rule 16b-3

Legal trades by Napco Sec 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 insider trading alert for exercise of common stock by Kevin Buchel, Senior Vice President, on 16th of February 2021. This event was filed by Napco Security Technologi with SEC on 2018-11-13. Statement of changes in beneficial ownership - SEC Form 4. Kevin Buchel currently serves as cfo, sr. vp of operations and fin., treasurer and director 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

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over NAPCO Security revenue. Based on the latest financial disclosure, NAPCO Security reported 98.25 M of revenue. This is 97.19% lower than that of the Industrials sector and 87.94% lower than that of the Security & Protection Services industry. The revenue for all United States stocks is 98.96% higher than that of NAPCO Security. As for Mistras we see revenue of 610.79 M, which is 25.05% lower than that of the Security & Protection Services

Sector
814.9 M
MG
610.8 M
NSSC98.25 Million6.45
Sector814.88 Million53.47
MG610.79 Million40.08

Some NAPCO technical indicators suggest relapse

NAPCO Security current mean deviation builds up over 1.76. NAPCO Security shows above-average downside volatility for the selected time horizon. We advise investors to inspect NAPCO Security further and ensure that all market timing and asset allocation strategies are consistent with the estimation of NAPCO Security future alpha.

Our Final Take On NAPCO Security

Whereas some other firms in the security & protection services industry are either recovering or due for a correction, NAPCO may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 7th of February 2021, our actual 30 days advice on the company is Hold. We believe NAPCO Security is undervalued with very small chance of bankruptcy 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 Vlad Skutelnik do not own shares of Napco Sec Tech. Please refer to our Terms of Use for any information regarding our disclosure principles.

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