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NAPCO Security Technologies (NAS:NSSC) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
NAPCO Security Technologies Net Margin % Related Terms
NAPCO Security Technologies Net 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 Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, NAPCO Security Technologies's Net Margin % distribution charts can be found below:
* The bar in red indicates where NAPCO Security Technologies's Net 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.
NAPCO Security Technologies (NSSC) has a Net Margin % of -0.83% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on NAPCO Security Technologies and its competitors. Over the past decade, NAPCO Security Technologies' Net Margin % has ranged from 6.41 to 26.38. According to the industry distribution chart, NAPCO Security Technologies ranks #105 out of 1071 companies in the Business Services industry, placing it in the top 9.8%.
Is NAPCO Security Technologies' Net Margin % too high?
NAPCO Security Technologies' current Net Margin % is -0.83%. Over the past 10 years, this metric has ranged from a low of 6.41 to a high of 26.38. Based on the distribution chart, NAPCO Security Technologies ranks #105 out of 1071 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' Net Margin % compare to EVLV and MG?
According to the Business Services industry distribution chart, NAPCO Security Technologies ranks #105 out of 1071 companies for Net Margin %. This places NAPCO Security Technologies in the top 10% of its industry — outperforming the majority of peers. The industry median Net Margin % is 3.85. Historically, NAPCO Security Technologies' own Net Margin % has ranged from 6.41 to 26.38 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Business Services company?
The median Net Margin % among Business Services companies is 3.85, based on 1,071 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on NAPCO Security Technologies and its competitors. For the Business Services industry, the median Net Margin % is 3.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NAPCO Security Technologies's current Net Margin % is -0.83%. 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 Net Margin % is -0.83%. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For NAPCO Security Technologies (NSSC), the current Net Margin % is -0.83% 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:
Net Margin %: -0.83%
GF Value™: $43.03 vs. price of $37.80 (12.2% below fair value)
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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