Is NSSC a good stock to buy?
We came across a bullish thesis on Napco Security Technologies, Inc. on InfoArb Sheets’s Substack
In this article, we will summarize the bulls’ thesis on NSSC. Napco Security Technologies, Inc.’s share was trading at $35.14 as of June 9th. NSSC’s trailing and forward P/E were 34.16 and 24.69 respectively according to Yahoo Finance.
Angelo Giampiccolo/ Napco Security Technologies, Inc. (NSSC) is a security hardware and services company increasingly driven by high-margin recurring service revenue (RSR), which exceeds 90% gross margins versus roughly 29% for equipment, making mix a key profitability driver. In Q3 2026, the company delivered solid operational performance, with revenue rising 11.8% year over year to $49.2 million and non-GAAP EPS increasing 39.3% to $0.39, alongside adjusted EBITDA margin expansion to 32.2%, reflecting strong operating leverage. 15 AI Stocks That Are Quietly Making Investors Rich Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential While GAAP EPS fell to $(0.01) due to a $16 million litigation settlement, underlying performance remained robust, suggesting the core business continues to scale despite one-time distortions. Management’s commentary highlighted a more compelling forward narrative centered on RSR growth, particularly driven by Starlink fire radios and the ongoing copper-to-cellular conversion opportunity, which still has a long runway given the large installed base.