
NSSC Stock Forecast & Price Target
NSSC Analyst Ratings
Bulls say
NAPCO Security Technologies Inc. demonstrated a strong financial performance, with recurring service revenue accounting for 48% of total revenues, which increased by 11% year-over-year to $23.4 million, outperforming market expectations. The company's EBITDA also reflected robust growth, rising by 21% year-over-year to $14.94 million, supported by a gross margin of 56.6%, which improved by 380 basis points quarter-over-quarter. Additionally, door-locking sales saw a substantial increase of approximately 23% year-over-year, indicating strong demand in a key segment of the business.
Bears say
NAPCO Security Technologies Inc. has reported a decline in operating cash flow for the quarter, falling to $11.6 million from $12.0 million a year ago and significantly lower than the $14.6 million seen in the seasonally strong FQ4, indicating potential liquidity issues. The company's growth has notably decelerated over the past two years, specifically in equipment sales, which has adversely impacted its recurring service revenue expansion, despite maintaining high margins. Additionally, the company's bear case scenario highlights risks related to slower recovery in key sectors such as Intrusion and Access Alarm Products, along with variability in the door-locking business, further contributing to concerns over future revenue, margins, and overall earnings stability.
This aggregate rating is based on analysts' research of NAPCO Security Technologies and is not a guaranteed prediction by Public.com or investment advice.
NSSC Analyst Forecast & Price Prediction
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