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NAPCO Security TechnologiesNSSC -0.07%99 Gross Margin % is 59.98% as of Mar. 2026, which is 41% above its 10-year median of 42.61. GuruFocus rates NSSC with a GF Score™ of 99/100 and a GF Value™ of $43.03 (Modestly Undervalued). Among 1,005 Business Services companies, NAPCO Security Technologies ranks better than 76.12% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
NAPCO Security Technologies had a gross margin of 59.98% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
NAPCO Security Technologies Gross Margin % Related Terms
NAPCO Security Technologies Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Security & Protection Services subindustry, NAPCO Security Technologies's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NAPCO Security Technologies Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, NAPCO Security Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NAPCO Security Technologies's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
NAPCO Security Technologies (NSSC) has a Gross Margin % of 59.98% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NAPCO Security Technologies and its competitors. This is 41% above median its historical median of 42.61. Over the past decade, NAPCO Security Technologies' Gross Margin % has ranged from 33.43 to 56.97. According to the industry distribution chart, NAPCO Security Technologies ranks #240 out of 1005 companies in the Business Services industry, placing it in the top 23.9%.
Is NAPCO Security Technologies' Gross Margin % too high?
NAPCO Security Technologies' current Gross Margin % of 59.98% is 41% above median its 10-year median of 42.61. Over the past 10 years, this metric has ranged from a low of 33.43 to a high of 56.97. The Business Services industry median Gross Margin % is 34.32. NAPCO Security Technologies' value of 59.98% is 74.8% above this industry median. Based on the distribution chart, NAPCO Security Technologies ranks #240 out of 1005 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, NAPCO Security Technologies has a GF Score™ of 99/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NAPCO Security Technologies' Gross Margin % compare to EVLV and MG?
According to the Business Services industry distribution chart, NAPCO Security Technologies ranks #240 out of 1005 companies for Gross Margin %. This places NAPCO Security Technologies in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 34.32. NAPCO Security Technologies' value of 59.98% is 74.8% above this benchmark. Historically, NAPCO Security Technologies' own Gross Margin % has ranged from 33.43 to 56.97 over the past decade. While the company's 10-year median is 42.61 vs. the industry median of 34.32, NAPCO Security Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.32, based on 1,005 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NAPCO Security Technologies's current Gross Margin % of 59.98% is 74.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on NAPCO Security Technologies and its competitors. For the Business Services industry, the median Gross Margin % is 34.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NAPCO Security Technologies's current Gross Margin % is 59.98%, which is 41% above median its own 10-year median of 42.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NAPCO Security Technologies stock overvalued right now?
Based on GuruFocus' analysis, NAPCO Security Technologies (NSSC) is currently considered Modestly Undervalued. The stock's GF Value™ is $43.03, compared to a current price of $37.80 — trading 12.2% below its estimated fair value. The current Gross Margin % is 59.98%, which is 41% above median its 10-year median of 42.61 and 74.8% above the Business Services industry median of 34.32. NAPCO Security Technologies' overall GF Score™ is 99/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For NAPCO Security Technologies (NSSC), the current Gross Margin % is 59.98% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NAPCO Security Technologies (NSSC) Overvalued in 2026?
Based on GuruFocus' analysis, NAPCO Security Technologies stock appears to be undervalued.
The current stock price of $37.80 is trading 12.2% below its estimated GF Value™ of $43.03.
GuruFocus considers NAPCO Security Technologies to be Modestly Undervalued.
Key valuation signals for NSSC:
Gross Margin %: 59.98% (41% above median its 10-year median of 42.61)
GF Value™: $43.03 vs. price of $37.80 (12.2% below fair value)
Industry Position: 74.8% above the Business Services median (#240 of 1005)
No single metric tells the full story. See the NSSC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NAPCO Security Technologies Inc manufactures security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products. Its products are used for various applications which includes alarm systems like automatic communicators, combination control panels/digital communicators and digital keypad systems, fire alarm control panel and area detectors mainly used for commercial, residential, institutional, industrial and governmental uses. Geographically, the company derives a majority of its revenue from the United States.
99GF Score
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