Napco Security Technologies, Inc. (NSSC, Financial) announced a third-quarter revenue of $44.0 million, surpassing the anticipated $43.14 million. The company achieved an impressive 30% adjusted EBITDA, alongside maintaining a robust gross margin of 91% in their RSR segment. Revenue from this segment grew by 10.6%, reaching $21.6 million.
At a recent security conference in Las Vegas, NSSC unveiled their latest innovation, the cloud-based MVP Access platform. This platform aims to generate monthly recurring revenue streams for both locking and access control dealers, as well as the company itself. Despite challenges from tariff-related uncertainties, NSSC has implemented price increases across its equipment products to mitigate potential impacts.
Given that NSSC manufactures primarily in the Dominican Republic and the USA, the company feels well-positioned to handle tariff changes compared to competitors relying on manufacturing in China and Mexico. Additionally, NSSC has increased its quarterly dividend, announcing a payout of $0.14 per share to be distributed on July 3, 2025. This marks an increase from the last dividend issued on April 3, 2025, underscoring the company's ongoing commitment to rewarding shareholders.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for NAPCO Security Technologies Inc (NSSC, Financial) is $27.20 with a high estimate of $37.00 and a low estimate of $21.00. The average target implies an upside of 14.38% from the current price of $23.78. More detailed estimate data can be found on the NAPCO Security Technologies Inc (NSSC) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, NAPCO Security Technologies Inc's (NSSC, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for NAPCO Security Technologies Inc (NSSC, Financial) in one year is $36.88, suggesting a upside of 55.09% from the current price of $23.78. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the NAPCO Security Technologies Inc (NSSC) Summary page.
