| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 29 | 30.0x | 17.8x | Bottom tier | |
Growth | 74 | 14.7% | 7.1% | Top tier | |
Quality | 92 | 21.0% | 4.5% | Top tier | |
Safety | 94 | — | 2.6x | Top tier | |
Capital Return | 50 | 1.62% | 2.12% | Around median | |
Momentum | 37 | 22.9% | 2.9% | Bottom tier | |
Sentiment | 23 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Napco Security Technologies operates in security and protection technologies through a model that combines equipment sales with connected services that generate recurring revenue. Its portfolio includes StarLink fire communicators, intrusion detection products, access control systems, Trilogy, ArchiTech, Marks USA, and Alarm Lock locks, as well as the Continental CA4K platform; it targets schools, universities, healthcare facilities, airports, multifamily housing, and government projects. The company generates revenue by selling this equipment to distributors, dealers, and integrators, then benefits from activating connected devices to generate high-margin recurring service fees.
In fiscal Q4 2026, net sales rose 10% to a record 55.8 million dollars, comprising 30.5 million dollars from equipment and 25.3 million dollars from recurring services. Gross profit reached 34.2 million dollars, and gross margin expanded to 61.3% from 52.8% in the comparable period, while net income reached 17.8 million dollars, or 31.8% of revenue. Net income rose 52.7%, diluted earnings per share reached 0.50 dollars, and adjusted earnings before interest, taxes, depreciation, and amortization increased 44.3% to 20.6 million dollars, with a margin of 36.8%.
In fiscal 2026, the company recorded revenue of 202.3 million dollars, gross profit of 119.8 million dollars, net income of 43.0 million dollars, and earnings per share of 1.20 dollars. Recurring service revenue reached 97.5 million dollars, compared with approximately 105 million dollars from equipment, and the annual gross margin reached 59.2%. On a non-GAAP basis, net income rose 32% to 57.3 million dollars, and diluted earnings per share increased 34.5% to 1.60 dollars.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is Buy, with an average price target of 52 dollars, which is also both the highest and lowest target, meaning there is no dispersion among the submitted targets. The 52 dollars target is slightly above the 52-week range high of 51.77 dollars, compared with a low of 33.91 dollars, but the context does not provide an earnings multiple that can be used to test this valuation. Record earnings and recurring revenue growth support the optimistic target, while the valuation should account for the fact that fiscal Q4 2026 margins benefited from a nonrecurring tariff refund and that the company faces higher tariff and component costs.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
StarLink fire communicators are the primary driver because unit sales precede activation and the start of service fees by approximately five to seven months. Recurring service revenue rose 13% to 97.5 million dollars in fiscal 2026, with a gross margin of 90.3%. Based on July 2026 revenue, the annualized recurring revenue run rate reached approximately 103 million dollars.
Gross margin increased to 61.3% from 52.8%, while gross profit rose 27.7% to 34.2 million dollars. AIIPA tariff refunds contributed approximately 600 basis points to the margin and also increased diluted earnings per share by approximately 0.09 dollars. Equipment margin rose to 37.4% from 22.9% due to the tariff refund and lower inventory reserves, while recurring services maintained a margin of 90.1%.
MVP is a cloud-based access control platform designed to integrate with lock devices and provide configurations for enterprises and smaller facilities. The platform aims to add a new source of recurring fees for the company and its dealers alongside the StarLink model. On the August 24, 2026 call, management explained that MVP revenue was not yet material and that it hoped it would become measurable near the end of calendar 2026, with the timing potentially varying by a few months.
Cash, cash equivalents, and marketable securities reached 138 million dollars in June 2026, up 38.7% from 99.2 million dollars in June 2025. The company had no debt, and working capital reached 166 million dollars. It also generated free cash flow of 59.2 million dollars in fiscal 2026, an increase of 15.2% and a margin of 29.3%.
The company targets more than 131 thousand schools from kindergarten through twelfth grade and approximately 5.3 thousand colleges and universities with interconnected security products. Its offerings combine Trilogy and ArchiTech locks, the Continental CA4K access control platform, and alarm technologies within a scalable architecture. On the August 24, 2026 call, management stated that Pepperdine used its products in residences, classrooms, administrative offices, and remote locations, then returned to request an additional phase after adding new residences.
On the August 24, 2026 call, Kevin S. Buchel was introduced as Chief Executive Officer and President after more than 25 years with the company. Founder Richard L. Soloway assumed the position of Founder and Executive Chairman of the Board, while remaining involved in strategic direction and supporting the management team. Andrew J. Vuono participated in the call as Chief Financial Officer, and management presented the change as a continuation of the company's operating principles.
