Is NAPCO SECURITY TECHNOLOGIES, INC (NSSC) Halal?

NASDAQ Industrials United States $1.4B
✓ HALAL
Confidence: 95/100
NAPCO SECURITY TECHNOLOGIES, INC (NSSC) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 0.4% against the AAOIFI threshold of 30%, NAPCO SECURITY TECHNOLOGIES, INC comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Security & Protection Services), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from June 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.4%
/ 30%
6.8%
/ 30%
2.1%
/ 30%
0.0%
/ 5%
✓ HALAL
DJIM 0.4%
/ 33%
6.8%
/ 33%
2.1%
/ 33%
0.0%
/ 5%
✓ HALAL
MSCI 2.7%
/ 33%
50.1%
/ 33%
15.2%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
S&P 0.4%
/ 33%
6.8%
/ 33%
2.1%
/ 33%
0.0%
/ 5%
✓ HALAL
FTSE 2.7%
/ 33%
50.1%
/ 33%
15.2%
/ 50%
0.0%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
29.0
Forward: 23.8
EPS
$1.32
Dividend Yield
157.0%
Payout: 41.3%
P/B Ratio
7.4
EV/EBITDA
23.0
EV: $1.3B
Revenue
$182M
Growth: 12.2%
Beta
1.4
High volatility
Current Ratio
8.0

Profitability

Gross Margin 56.6%
Operating Margin 30.6%
Net Margin 24.7%
Return on Equity (ROE) 26.4%
Return on Assets (ROA) 15.7%

Cash Flow & Balance Sheet

Operating Cash Flow$54M
Free Cash Flow$51M
Total Debt$5M
Debt-to-Equity2.8
Current Ratio8.0
Total Assets$198M

Price & Trading

Last Close$38.92
50-Day MA$42.21
200-Day MA$38.83
Avg Volume637K
Beta1.4
52-Week Range
$19.00
$48.12

About NAPCO SECURITY TECHNOLOGIES, INC (NSSC)

CEO
Mr. Richard L. Soloway
Employees
1,061
Sector
Industrials
Industry
Security & Protection Services
Country
United States
Exchange
NASDAQ
Market Cap
$1.4B
Currency
USD

Napco Security Technologies, Inc. engages in the development, manufacturing, and sale of electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. The company's access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; intrusion and fire alarm systems, consists of various detectors, a control panel, a digital keypad and signaling equipment; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. Its alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. The company also buys and resells various identification readers, video cameras, PC-based computers, and various peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. It markets and sells its products to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.

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Frequently Asked Questions

Is NAPCO SECURITY TECHNOLOGIES, INC (NSSC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), NAPCO SECURITY TECHNOLOGIES, INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is NAPCO SECURITY TECHNOLOGIES, INC's debt ratio?

NAPCO SECURITY TECHNOLOGIES, INC's debt ratio is 0.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 2.7%.

What are NAPCO SECURITY TECHNOLOGIES, INC's key financial metrics?

NAPCO SECURITY TECHNOLOGIES, INC has a market capitalization of $1.4B, trailing P/E ratio of 29.0, and revenue of $182M. The company maintains a gross margin of 56.6% and a net margin of 24.7%. Return on equity stands at 26.4%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.