Napco Story

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NSSC -- USA Stock  

USD 31.13  2.01  6.07%

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 6,586. The current year Earnings before Tax is expected to grow to about 13.4 M, whereas Revenue Per Employee is forecasted to decline to about 74.6 K. The aim of this article is to give investors our take on NAPCO future value. We will analyze the reasons why it could be a game-changer for NAPCO Security investors.
Published over two weeks ago
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Will holding NAPCO (NASDAQ:NSSC) be justified in March 2021?
This firm has a beta of -0.2873. Let's try to break down what NAPCO's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, NAPCO Security will likely underperform. The beta indicator helps investors understand whether NAPCO Security moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if NAPCO deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Napco Sec Tech. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Napco Sec

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Napco Sec's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Napco Sec in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Napco Sec. Your research has to be compared to or analyzed against Napco Sec's peers to derive any actionable benefits. When done correctly, Napco Sec's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Napco Sec Tech.

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.

How Napco utilizes its cash?

To perform a cash flow analysis of Napco Sec, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Napco Sec is receiving and how much cash it distributes out in a given period. The Napco Sec cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Napco Sec Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 11.85 Million

Sale by Michael Carrieri of 5834 shares of Napco Sec

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 sale of napco security technologies inc. common stock by Michael Carrieri, Senior Vice President, on 2nd of March 2021. This event was filed by Napco Security Technologi with SEC on 2021-03-02. Statement of changes in beneficial ownership - SEC Form 4 [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

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.

Returns Breakdown

Return on Investment10.41
Return on Assets0.0859
Return on Equity0.11
Return Capital0.15
Return on Sales0.0983

Another 3 percent rise for NAPCO Security

NAPCO Security sortino ratio is up to 0.01. As of the 8th of February, NAPCO Security secures the Market Risk Adjusted Performance of (0.41), downside deviation of 3.38, and Mean Deviation of 1.76. In connection with fundamental indicators, the technical analysis model lets you check helpful technical drivers of NAPCO Security, as well as the relationship between them. Strictly speaking, you can use this information to find out if the entity will indeed mirror its model of past prices, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for NAPCO Security, which can be compared to its peers in the industry. Please verify NAPCO Security variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if NAPCO Security is priced fairly, providing market reflects its recent price of 30.31 per share. Given that NAPCO Security has jensen alpha of 0.1483, we recommend you to check NAPCO Security's last-minute market performance to make sure the company can sustain itself in the future.

Our Final Perspective on NAPCO Security

Whereas some other firms under the security & protection services industry are still a bit expensive, NAPCO Security may offer a potential longer-term growth to investors. With a relatively neutral outlook on the current economy, it is better to hold off any trading of NAPCO as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to NAPCO Security.

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 Gabriel Shpitalnik 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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