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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. NAPCO Security Technologies's annualized ROCE % for the quarter that ended in Mar. 2026 was 31.76%.
NAPCO Security Technologies (NAS:NSSC) ROCE % Explanation
ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.
Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.
NAPCO Security Technologies ROCE % Related Terms
NAPCO Security Technologies ROCE % 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.
(1) Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
NAPCO Security Technologies (NSSC) has a ROCE % of 31.76% as of Mar. 2026.
Is NAPCO Security Technologies' ROCE % too high?
NAPCO Security Technologies' current ROCE % is 31.76%. The Business Services industry median ROCE % is 9.11. NAPCO Security Technologies' value of 31.76% is 248.8% above this industry median. 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' ROCE % compare to EVLV and MG?
NAPCO Security Technologies' ROCE % of 31.76% can be compared against companies in the Business Services industry. The industry median ROCE % is 9.11. NAPCO Security Technologies' value of 31.76% is 248.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Business Services company?
The median ROCE % among Business Services companies is 9.11, based on 1,070 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NAPCO Security Technologies's current ROCE % of 31.76% is 248.8% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Business Services industry, the median ROCE % is 9.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NAPCO Security Technologies's current ROCE % is 31.76%. 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 ROCE % is 31.76% and 248.8% above the Business Services industry median of 9.11. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For NAPCO Security Technologies (NSSC), the current ROCE % is 31.76% 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:
ROCE %: 31.76%
GF Value™: $43.03 vs. price of $37.80 (12.2% below fair value)
Industry Position: 248.8% above the Business Services median
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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