NAPCO Security Technologies Inc (NSSC, Financial), a leading provider of security products, has been making waves in the Business Services industry. As of August 7, 2023, the company's stock price stands at $36.67, reflecting a gain of 3.34% today and a 9.08% increase over the past four weeks. With a market capitalization of $1.35 billion, NAPCO's financial performance is impressive, as indicated by its GF Score of 90 out of 100. This score places the company in the category of stocks with good outperformance potential.
Financial Strength Analysis
NAPCO's Financial Strength rank of 9/10 indicates a robust financial situation. This rank is determined by factors such as interest coverage, debt to revenue ratio, and Altman Z score. With an interest coverage of 129.62 and a low debt to revenue ratio of 0.03, NAPCO demonstrates a low debt burden and a strong ability to service its debt. The high Altman Z-Score of 35.60 further underscores the company's financial stability.
Profitability Rank Analysis
The company's Profitability Rank of 9/10 suggests a high level of profitability and business stability. This rank is based on factors such as Operating Margin, Piotroski F-Score, and the trend of the Operating Margin. With an Operating Margin of 21.84%, a Piotroski F-Score of 7, and a consistent profitability trend over the past 10 years, NAPCO's profitability is commendable.
Growth Rank Analysis
NAPCO's Growth Rank of 10/10 reveals impressive revenue and profitability growth. This rank is determined by the 5-year revenue growth rate, 3-year revenue growth rate, and 5-year EBITDA growth rate. With a 5-year revenue growth rate of 9.90, a 3-year revenue growth rate of 12.10, and a 5-year EBITDA growth rate of 24.30, NAPCO's growth trajectory is strong.
GF Value Rank Analysis
The GF Value Rank of 3/10 implies that NAPCO's valuation is relatively low. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank Analysis
NAPCO's Momentum Rank of 6/10 suggests a decent stock price performance. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its main competitors within the Business Services industry, NAPCO holds a strong position. CoreCivic Inc (CXW, Financial) and The GEO Group Inc (GEO, Financial) have GF Scores of 73 and 74 respectively, while Evolv Technologies Holdings Inc (EVLV, Financial) lags behind with a GF Score of 18. More details can be found on the competitors page.
Conclusion
In conclusion, NAPCO Security Technologies Inc's high GF Score and individual ranks indicate a strong financial performance and good outperformance potential. The company's robust financial strength, high profitability, impressive growth, and decent momentum make it a compelling choice for investors. However, its relatively low GF Value Rank suggests that the stock may be undervalued, warranting further investigation.
