Communications Equipment, NEC
Napco Security Technologies, Inc. develops, manufactures, and sells electronic security products in the United States and internationally. The company offers access control systems, door-locking products, intrusion and fire alarm systems, and video surveillance systems for commercial, residential, institutional, industrial, and governmental applications. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company's alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products primarily to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.
Discounted Cash Flow Valuation of Napco Security Technologies, Inc
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +11.88%.
The trend of Net Margin over the past 5 years is +1.37%.
The average ROA over the past 5 years is +14.15%.
The trend of ROA over the past 5 years is +1.06%.
The average ROE over the past 5 years is +15.45%.
The trend of ROE over the past 5 years is +1.19%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is -.
The trend of Debt/FCF over the past 5 years is 0.14.
Graham’s Stability measure stands at 1.00.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +13.13%.
The trend of Revenue growth rate over the past 5 years is +2.03%.
The Earnings CAGR over the past 5 years is +28.81%.
The trend of Earnings growth rate over the past 5 years is +2.04%.
The Equity CAGR over the past 5 years is +17.18%.
The trend of Equity growth rate over the past 5 years is +1.97%.
The FCF CAGR over the past 5 years is +26.98%.
The trend of FCF growth rate over the past 5 years is +3.61%.