
NSSC Stock Forecast & Price Target
NSSC Analyst Ratings
Bulls say
NAPCO Security Technologies Inc. reported a robust growth in Recurring Service Revenue, which accounted for 48% of total revenues, increasing by 11% year-over-year to reach $23.4 million, surpassing consensus expectations. The company achieved an impressive 21% year-over-year increase in EBITDA, totaling $14.94 million, alongside a gross margin improvement to 56.6%, reflecting enhanced operational efficiency. Additionally, door-locking sales experienced a significant annual increase of approximately 23%, indicating strong demand for NAPCO's product offerings across various sectors.
Bears say
NAPCO Security Technologies Inc. has reported a decline in operating cash flow, which decreased to $11.6 million from $12.0 million a year ago and significantly from $14.6 million in the previous seasonally strong quarter, indicating reduced operational efficiency. Furthermore, the company's growth in equipment sales has slowed over the past two years, leading to deceleration in the related recurring service revenue business, despite margins remaining at high levels. Additionally, there are indications of risks associated with a slower recovery in the commercial security, fire alarm, and door-locking markets, which could adversely affect revenues, margins, and overall earnings performance.
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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