At a glance
NAPCO Security Technologies Inc is worth $1.42B, about 33 times its fiscal 2026 earnings. Revenue grew 11.4% to $202.3M in fiscal 2026, with 21.3% kept as profit; over 5 years it has grown 12.1% a year. It pays a 1.54% dividend yield, raised every year for at least 3 years, and returned $86.3M to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned −8.4% over the past year with dividends reinvested and +12.1% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 30.7% in the 2020 crash (S&P 500: 33.7%) and 35.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 1 month and 2 months after the lows.
The business in plain English
NAPCO Security Technologies designs and makes electronic security equipment. Its products include door locks, intrusion and fire alarm systems, access control systems (card readers and controllers that decide who can open a door) and video surveillance products. Its brands include Alarm Lock, Marks USA and NAPCO Access Pro. It sells mainly to independent distributors, dealers and installers. They fit the equipment in homes, businesses, schools, factories and government buildings. The company's plant in the Dominican Republic makes over 90% of its products, and its headquarters is in Amityville, New York.
Its most profitable business is recurring service revenue. Dealers install NAPCO's StarLink cellular communicators, which send alarm signals to monitoring stations. The dealers then pay NAPCO a monthly fee for the cellular connection. In the fiscal year ended June 30, 2026, services brought in $97.5 million. That was 48% of total revenue of $202.3 million, at a gross margin (the share of revenue left after direct costs) of about 90%. Door-locking devices added $69.1 million (34%), and intrusion and access alarm products added $35.7 million (18%).
School safety is a key market. NAPCO offers LocDown locks that a teacher can operate, as well as networked systems that let security staff lock down all or part of a campus from a central office. The company says that because it sells through distributors, its school revenue is hard to measure.
Price history
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NSSC -8.4% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Service revenue | $97.5M | 48.2% |
| Door locking devices | $69.1M | 34.2% |
| Intrusion and access alarm products | $35.7M | 17.6% |
| Shipping and Handling | $569K | 0.3% |
Latest results
- In Q1 FY2027 (ended Sep 30, 2026), revenue was $50.0M, up 1.7% from a year earlier, and net income was $13.0M (+6.9%).
- For fiscal 2026, revenue was $202.3M (+11.4% year over year; +12.1% a year from FY2021 to FY2026) with a 21.3% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +12.1% good |
|---|---|
| Operating margin | 22.6% good |
| Free cash flow margin | 29.3% good |
| Return on equity (FY2026) | 22.5% good |
| Return on assets (FY2026) | 18% good |
| Cash and investments | $134.6M (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $114.0M | $15.4M | $22.0M |
| FY2022 | $143.6M | $19.6M | $6.8M |
| FY2023 | $170.0M | $27.1M | $21.7M |
| FY2024 | $188.8M | $49.8M | $43.8M |
| FY2025 | $181.6M | $43.4M | $51.4M |
| FY2026 | $202.3M | $43.0M | $59.2M |
Valuation snapshot
| Market value | $1.42B |
|---|---|
| P/E ratio | 33 |
| Dividend yield | 1.54% |
Rank among 1514 US companies
Market value at each year end
NAPCO Security Technologies’s market value went from $159.8M at the end of 2016 to $1.42B on Oct 28, 2026, about 8.9 times as much; since the end of 2025 it is down 5%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $1.42B | -4.6% |
| 2025 | $1.49B | +14.0% |
| 2024 | $1.30B | +3.6% |
| 2023 | $1.26B | +24.8% |
| 2022 | $1.01B | +10.0% |
| 2021 | $917.4M | +90.7% |
| 2020 | $481.1M | -11.4% |
| 2019 | $543.1M | +85.6% |
| 2018 | $292.6M | +77.4% |
| 2017 | $164.9M | +3.2% |
| 2016 | $159.8M |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| NSSC price data to Oct 28, 2026 | -3.7% | -8.4% | +29.3% | +12.1% | +28.1% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -3.7% |
| 2025 | +19.3% |
| 2024 | +5.0% |
| 2023 | +25.6% |
| 2022 | +10.0% |
| 2021 | +90.6% |
| 2020 | -10.8% |
| 2019 | +86.6% |
| 2018 | +80.0% |
| 2017 | +2.9% |
| 2016 | +44.1% |
| 2015 | +25.5% |
| 2014 | -25.2% |
| 2013 | +72.5% |
| 2012 | +46.8% |
| 2011 | +40.9% |
| 2010 | +5.4% |
| 2009 | +30.5% |
| 2008 | -79.5% |
| 2007 | +6.5% |
| 2006 | -15.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 84.7% over that stretch · deepest drop along the way 87.6%, back to its old high 56.7 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 30.7% over that stretch · deepest drop along the way 30.7%, back to its old high 1.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 12.1% over that stretch · deepest drop along the way 35.3%, back to its old high 2.3 months after the low |
Insider activity
Form 4 filings from 2025-11-03 to 2026-11-03 (12 read): 0 open-market purchases and 8 sales ($33.7M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 27, 2026 | Richard Soloway Founder and Executive Chairman, Director | sell | $13.1M |
| Feb 5, 2026 | Richard Soloway CEO, Chairman of Board, Secy, Director | sell | $6.4M |
| Mar 2, 2026 | Richard Soloway CEO, Chairman of Board, Secy, Director | sell | $5.8M |
| Aug 26, 2026 | Richard Soloway Founder and Executive Chairman, Director | sell | $3.4M |
| Mar 3, 2026 | Richard Soloway CEO, Chairman of Board, Secy, Director | sell | $2.4M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 15% | Mar 31, 2026 |
| Copeland Capital Management, LLC | 5.8% | Sep 30, 2026 |
| Vanguard Capital Management | 5.02% | Jun 30, 2026 |
| FMR LLC | 3% | Mar 31, 2025 |
ETFs with the most weight in NSSC
| GUNZ Tuttle Capital Self Defense Index ETF | 3.6% |
| FSGS First Trust SMID Growth Strength ETF | 0.71% |
| JPSV JPMorgan Active Small Cap Value ETF | 0.35% |
| JSML Janus Henderson Small Cap Growth Alpha ETF | 0.3% |
| FSCC Federated Hermes MDT Small Cap Core ETF | 0.29% |
| QIDX Indexperts Quality Earnings Focused ETF | 0.18% |
| DGRS WisdomTree US Smallcap Quality Dividend Growth Fund | 0.18% |
| JSMD Janus Henderson Small/Mid Cap Growth Alpha ETF | 0.15% |
What could go wrong
- Monthly service growth could slow. Service fees are billed month to month. They made up about 48% of revenue in fiscal 2026, at a gross margin near 90%. Fewer new activations or more cancellations would hit profit hard.
- Most products come from one plant abroad. NAPCO makes over 90% of its products at its Dominican Republic plant. Disruption there, a weaker U.S. dollar against the Dominican peso, or tax changes for offshore operations could raise costs or delay shipments.
- Heavy reliance on distributors and dealers. NAPCO sells mainly through independent distributors, dealers and installers. Losing a major distributor, slow payment of money owed, or dealer failures in a downturn could hurt sales and cash flow.
- Legal claims and product-failure liability. Profit for fiscal 2026 included a one-time $16 million charge to settle a lawsuit. Future lawsuits, investigations, or claims after a security product fails could bring large payments and harm NAPCO's reputation.
- Artificial intelligence boom could squeeze chip supply. The company's annual report warns that demand from AI data centers could tighten supply or raise prices for the chips and electronic parts NAPCO needs. That could disrupt production and squeeze margins.
- Larger rivals with deeper pockets. NAPCO competes with about 12 equipment makers, most with greater resources. It spends roughly 6% to 7% of revenue on research and development. Rivals that spend more could launch better products or cut prices.
Recent events
- Quarterly results released; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Executive or board change
- Quarterly results released; Investor presentation or announcement
- Quarterly results released; Executive or board change; Investor presentation or announcement
- Shareholder vote results
- Quarterly results released; Investor presentation or announcement
For income and retirement investors
NAPCO pays a small but growing dividend. Dividends per share rose from about $0.06 in fiscal 2023 to $0.36, then $0.52, then $0.58 in the fiscal year ended June 30, 2026. That makes at least three straight annual increases. The dividend used 47.3% of earnings and 34.3% of free cash flow (the cash left after running and investing in the business). The yield was 1.54% as of October 28, 2026. NAPCO also spent about $36.8 million buying back its own shares in fiscal 2025. As of June 30, 2026, it held $137.6 million in cash and investments, and its filings showed no borrowings.
The share price has swung hard. It fell 87.6% in the 2008 financial crisis and took about 57 months to recover. It dropped 30.7% in the 2020 COVID crash and 35.3% in 2022, recovering within months both times. Its worst fall in the three years to October 28, 2026 was 65.4%. Single stocks like NSSC carry more risk than diversified funds.
Questions investors ask
How does NAPCO Security make money?
NAPCO makes money in two ways: it sells security equipment and charges monthly service fees. Dealers buy its door locks, alarm panels and access control products. They then pay a monthly fee for the cellular service that links installed StarLink communicators to monitoring stations. In the fiscal year ended June 30, 2026, services brought in 48% of $202.3 million in revenue. Door-locking devices brought in 34%, and intrusion and access alarm products 18%. Services carry a gross margin of about 90%, well above equipment.
Does NAPCO (NSSC) pay a dividend?
Yes. NAPCO paid $0.58 per share in the fiscal year ended June 30, 2026. That was up from $0.52 a year earlier and $0.36 in fiscal 2024. Dividends per share rose in every fiscal year from 2023 to 2026. The yield was 1.54% as of October 28, 2026. The dividend used 47.3% of earnings and 34.3% of free cash flow, so cash from the business covered it with room to spare.
Why was NAPCO's profit flat when its sales grew?
A one-time legal charge held it back. Revenue rose 11.4% to $202.3 million in the fiscal year ended June 30, 2026, but net income slipped to $43.0 million from $43.4 million. That result included a one-time $16 million charge to settle a lawsuit. Operating margin, the share of sales left after operating costs, was 22.6%. Free cash flow rose to $59.2 million from $51.4 million.
How has NSSC stock performed over the long term?
It has risen sharply over long periods but swings widely. As of October 28, 2026, the share price was up 1,088% over ten years (about 28.1% a year) and 77% over five years (about 12.1% a year). It was down 8.4% over one year. Volatility, a measure of how much the price moves around, was 40.7% over the past year. The worst fall within the last three years was 65.4%. These figures are share-price returns and leave out dividends.
Are NAPCO insiders selling shares?
Yes. Between October 29, 2025 and October 29, 2026, insider filings showed eight sales worth about $33.7 million and no purchases. The five largest sales were all by founder Richard Soloway. Filings listed him as CEO and chairman in early 2026 and as executive chairman by August 2026. His biggest sale, about $13.1 million, was on August 27, 2026. None of the eight was marked as part of a pre-arranged trading plan. Insiders sell for many reasons, such as taxes, so sales alone are not a clear signal.