NAPCO SECURITY TECHNOLOGIES, INC (NSSC)

Technology · Communications Equipment, NEC · Price $35.35
Updated: Aug 31, 2026
Operating Income (TTM)
$37.5M
Trailing 12 Months
Growth Rate
30.28%
Log-Linear Regression (16Q)
Operating Margin
19.53%
Operational Efficiency
EV/Operating Income
30.7x
Valuation Multiple
Net Income
$36.9M
After Interest & Taxes

📈 Operating Income History (16 Quarters)

🧮 NSSC Operating Income Breakdown

Operating Income = Gross Profit - Operating Expenses (SG&A, R&D, etc.)
Revenue (Top Line) $192.1M
Less: Cost of Revenue → Gross Profit $109.1M
Equals: Operating Income (EBIT) $37.5M
Then: Less Interest & Taxes → Net Income $36.9M

Understanding Operating Income

Operating Income, also known as EBIT (Earnings Before Interest and Taxes), measures a company's profit from its core business operations before financing costs and taxes. For NSSC, the trailing twelve month operating income is $37.5M.

Why Operating Income Matters

Operating income isolates business performance from capital structure decisions (debt vs equity financing) and tax strategies. This makes it ideal for comparing companies with different debt levels or tax situations. It shows how efficiently management runs the core operations.

NSSC's operating income growth rate of 30.28% (based on log-linear regression of 16 quarters) indicates exceptional operational growth with improving efficiency.

Operating Income vs Other Profitability Metrics

Net Income: $36.9M →

The bottom line after interest and taxes. Net income shows the final profit, while operating income excludes financing decisions.

Free Cash Flow: $59.2M →

Actual cash generated after capital expenditures. FCF can differ significantly from operating income due to working capital and capex.

Owner Earnings: $53.0M →

Buffett's measure of true cash generation. Adds back depreciation and subtracts only maintenance capex.

Revenue: $192.1M →

The top line that operating income is derived from. Operating margin shows what percentage becomes operational profit.

Operating Margin Analysis

NSSC's operating margin of 19.53% shows what percentage of revenue converts to operating profit after all operating expenses. Operating margins between 15-25% are solid and typical of well-managed businesses.

EV/Operating Income Valuation

The EV/Operating Income ratio of 30.7x shows how the market values NSSC's operational earnings. Ratios above 25x indicate high growth expectations or premium valuation.

Summary: NSSC Operating Income Trend

NAPCO SECURITY TECHNOLOGIES, INC (NSSC) has an operating margin of 19.53%, which Zyberno classifies as good for a Technology company — above the 15% threshold Zyberno applies to technology businesses where software leverage and scalability drive operating margins. Operating income grew at 30.28% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses. For complete financial analysis, view the full NSSC stock report on Zyberno.

Frequently Asked Questions

What is NSSC's current operating income?

NAPCO SECURITY TECHNOLOGIES, INC's TTM operating income is $37.5M, growing at 30.28% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses.

Is NSSC's operating income growing?

NAPCO SECURITY TECHNOLOGIES, INC (NSSC) has an operating margin of 19.53%, which Zyberno classifies as good for a Technology company — above the 15% threshold Zyberno applies to technology businesses where software leverage and scalability drive operating margins. Operating income grew at 30.28% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses.

What is NSSC's operating margin?

NAPCO SECURITY TECHNOLOGIES, INC (NSSC) has an operating margin of 19.53%, which Zyberno classifies as good for a Technology company — above the 15% threshold Zyberno applies to technology businesses where software leverage and scalability drive operating margins. Operating income grew at 30.28% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses.

What is the difference between operating income and EBIT?

Operating income and EBIT (Earnings Before Interest and Taxes) are generally the same metric - both measure profit from core operations before financing costs and taxes. NSSC's EBIT/Operating Income is $37.5M.

How does operating income differ from net income?

Operating income excludes interest expense and income taxes, while net income includes them. NSSC's operating income is $37.5M versus net income of $36.9M. The difference reflects financing costs and tax burden.

📊 Valuation Trilogy
Three interconnected metrics built on Owner Earnings
💎
Intrinsic Value
DCF Fair Value
$46.23
🛡️
Margin of Safety
Valuation Gap
23.5%
🎯
Expected Return
Projected Annual
26.6%
Click any metric for full methodology and detailed analysis

📊 Full NSSC Stock Report

See NSSC's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.

💵 NSSC Free Cash Flow

Compare to Free Cash Flow which subtracts all capital expenditures, not just maintenance CapEx.

💰 NSSC Owner Earnings

Compare to Buffett's Owner Earnings metric which uses maintenance CapEx instead of total capital expenditures.

📈 NSSC Earnings Per Share

Analyze EPS trends, P/E ratio, earnings yield, and per-share profitability metrics.

🎯 NSSC Earnings Surprise (SUE)

See whether NSSC is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.

📊 NSSC Revenue

Analyze revenue trends, growth rate, P/S ratio, and top-line sales performance.

💰 NSSC Net Income

Analyze the bottom-line profit, P/E ratio, and net profit margin trends.

🔶 NSSC Operating Income

Analyze EBIT, operating margin, and core business profitability before interest and taxes.

💜 NSSC Gross Profit

Analyze gross margin, pricing power, and profitability before operating expenses.

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