National Presto Industries, Inc. Fundamental Analysis (NYSE: NPK)
National Presto Industries, Inc. Fundamental Analysis (NYSE: NPK)
National Presto Industries, Inc. (NYSE: NPK) shows moderate financial fundamentals with a PE ratio of 25.78, profit margin of 7.86%, and ROE of 10.83%. The company generates $0.5B in annual revenue with strong year-over-year growth of 29.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NPK's fundamental strength across five key dimensions:
Efficiency Score
WeakNPK struggles to generate sufficient returns from assets.
Valuation Score
WeakNPK trades at a premium to fair value.
Growth Score
ModerateNPK shows steady but slowing expansion.
Financial Health Score
ExcellentNPK maintains a strong and stable balance sheet.
Profitability Score
WeakNPK struggles to sustain strong margins.
Key Financial Metrics
Is NPK Expensive or Cheap?
P/E Ratio
NPK trades at 25.78 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NPK's PEG of 10.04 indicates potential overvaluation.
Price to Book
The market values National Presto Industries, Inc. at 2.69 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 18.75 times EBITDA. This signals the market has high growth expectations.
How Well Does NPK Make Money?
Net Profit Margin
For every $100 in sales, National Presto Industries, Inc. keeps $7.86 as profit after all expenses.
Operating Margin
Core operations generate 9.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.83 in profit for every $100 of shareholder equity.
ROA
National Presto Industries, Inc. generates $8.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
National Presto Industries, Inc. generates limited operating cash flow of $33.46M, signaling weaker underlying cash strength.
Free Cash Flow
National Presto Industries, Inc. produces free cash flow of $26.43M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.69 in free cash annually.
FCF Yield
NPK converts 2.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How NPK Stacks Against Its Sector Peers
| Metric | NPK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.78 | 30.00 | Better (Cheaper) |
| ROE | 10.83% | 1114.00% | Weak |
| Net Margin | 7.86% | -25183.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 5.22 | 21.63 | Strong Liquidity |
| ROA | 8.59% | -1320911.00% (disorted) | Weak |
NPK outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews National Presto Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.61%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-30.62%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-121.96%
Industry Style: Cyclical, Value, Infrastructure
Declining