NAPCO Security Current Valuation vs. Gross Profit
| NSSC Stock | USD 40.06 0.84 2.14% |
For NAPCO Security profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NAPCO Security to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NAPCO Security Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NAPCO Security's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NAPCO Security Technologies over time as well as its relative position and ranking within its peers.
NAPCO |
Is Electronic Equipment, Instruments & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NAPCO Security. If investors know NAPCO will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NAPCO Security listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of NAPCO Security Techn is measured differently than its book value, which is the value of NAPCO that is recorded on the company's balance sheet. Investors also form their own opinion of NAPCO Security's value that differs from its market value or its book value, called intrinsic value, which is NAPCO Security's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NAPCO Security's market value can be influenced by many factors that don't directly affect NAPCO Security's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NAPCO Security's value and its price as these two are different measures arrived at by different means. Investors typically determine if NAPCO Security is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NAPCO Security's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
NAPCO Security Techn Gross Profit vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NAPCO Security's current stock value. Our valuation model uses many indicators to compare NAPCO Security value to that of its competitors to determine the firm's financial worth. NAPCO Security Technologies is rated top company in current valuation category among its peers. It also is considered to be number one stock in gross profit category among its peers fabricating about 0.05 of Gross Profit per Current Valuation. The ratio of Current Valuation to Gross Profit for NAPCO Security Technologies is roughly 18.44 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the NAPCO Security's earnings, one of the primary drivers of an investment's value.NAPCO Current Valuation vs. Competition
NAPCO Security Technologies is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is now estimated at about 6.53 Billion. NAPCO Security totals roughly 1.34 Billion in current valuation claiming about 21% of equities under Information Technology industry.
NAPCO Gross Profit vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
NAPCO Security |
| = | 1.34 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
NAPCO Security |
| = | 72.79 M |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
NAPCO Gross Profit Comparison
NAPCO Security is currently under evaluation in gross profit category among its peers.
NAPCO Security Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NAPCO Security, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NAPCO Security will eventually generate negative long term returns. The profitability progress is the general direction of NAPCO Security's change in net profit over the period of time. It can combine multiple indicators of NAPCO Security, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Napco Security Technologies, Inc. develops, manufactures, and sells electronic security products in the United States and internationally. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York. Napco Sec operates under Security Protection Services classification in the United States and is traded on NASDAQ Exchange. It employs 1149 people.
NAPCO Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NAPCO Security. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of NAPCO Security position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the NAPCO Security's important profitability drivers and their relationship over time.
Use NAPCO Security in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if NAPCO Security position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NAPCO Security will appreciate offsetting losses from the drop in the long position's value.NAPCO Security Pair Trading
NAPCO Security Technologies Pair Trading Analysis
The ability to find closely correlated positions to NAPCO Security could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NAPCO Security when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back NAPCO Security - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling NAPCO Security Technologies to buy it.
The correlation of NAPCO Security is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as NAPCO Security moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NAPCO Security Techn moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for NAPCO Security can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your NAPCO Security position
In addition to having NAPCO Security in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Soft Drinks Thematic Idea Now
Soft Drinks
Entities manufacturing and distributing non alcoholic beverages across different markets. The Soft Drinks theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Soft Drinks Theme or any other thematic opportunities.
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Check out Correlation Analysis. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
To fully project NAPCO Security's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NAPCO Security Techn at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include NAPCO Security's income statement, its balance sheet, and the statement of cash flows.