NYSE:NPK
NATIONAL PRESTO INDUSTRIES INC
A global manufacturer of precision industrial components delivering consistent revenue growth through diversified product lines and strategic market expansion.
Key Metrics
Investment Thesis
Bull Case
Investors may favor this stock due to its consistent double-digit revenue growth trajectory and improving profitability margins; the expanding global footprint offers multiple avenues for future organic expansion and market penetration.
Bear Case
Concerns arise from significant inventory buildup of $278.0M which could indicate slowing demand or obsolescence risks; negative operating cash flow of $53.4M despite net profits suggests potential working capital inefficiencies or aggressive accruals.
About NATIONAL PRESTO INDUSTRIES INC
National Presto Industries Inc. manufactures and distributes industrial machinery, including high-performance motors and pumps, serving global markets in construction, agriculture, and manufacturing sectors.
Analysis
Management Discussion
The company delivered strong operational performance with revenue growing from $321.6M in 2022 to $388.2M in 2024, accompanied by net income rising from $20.7M to $41.5M over the same period.
Industry Overview
The industrial machinery sector is characterized by cyclical demand tied to global infrastructure spending and manufacturing output; companies with strong R&D pipelines and vertical integration tend to outperform during economic expansions.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $321.6M | $340.9M | $388.2M |
| Cost of Revenue | $266.5M | $273.5M | $309.7M |
| Gross Profit | $55.1M | $67.5M | $78.6M |
| Operating Expenses | $33.0M | $32.4M | $33.4M |
| Operating Income | $22.1M | $35.0M | $45.2M |
| G&A | $27.1M | $30.8M | $31.8M |
| Stock-Based Comp | $476.0K | $512.0K | $575.0K |
| D&A | $3.0M | $6.0M | — |
| Depreciation | $2.8M | $4.4M | $3.5M |
| Amortization | $582.0K | $1.6M | $1.5M |
| Other OpEx | $5.9M | $1.6M | $1.5M |
| Non-Operating Income | $3.8M | $7.4M | $5.5M |
| Pre-Tax Income | $25.9M | $42.4M | $50.7M |
| Income Tax | $5.2M | $7.9M | $9.2M |
| Continuing Ops | $20.7M | $34.6M | $41.5M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $20.7M | $34.6M | $41.5M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $20.7M | $34.6M | $41.5M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $326.6M | $360.1M | $366.7M |
| Cash & Equivalents | $70.7M | $87.7M | $17.7M |
| Marketable Securities | $24.9M | $26.5M | $5.0M |
| Accounts Receivable | $71.0M | $48.7M | $62.3M |
| Inventory | $152.1M | $190.4M | $278.0M |
| Other Current Assets | $7.9M | $6.9M | $3.7M |
| Long-Term Assets | $85.2M | $80.4M | $86.7M |
| PP&E (Net) | $41.8M | $39.2M | $43.2M |
| Intangibles | $6.9M | $5.3M | $3.8M |
| Goodwill | $18.6M | $19.4M | $19.4M |
| Operating Leases | $10.7M | $10.7M | $10.0M |
| Other LT Assets | $7.2M | $5.8M | $10.3M |
| Total Assets | $411.8M | $440.5M | $453.4M |
| Current Liabilities | $53.6M | $72.0M | $74.4M |
| Accounts Payable | $34.6M | $38.2M | $44.6M |
| Current Leases | $577.0K | $678.0K | $564.0K |
| Deferred Revenue | — | $13.7M | $7.3M |
| Taxes Payable | $2.6M | $2.5M | $4.7M |
| Other Current Liab | $0 | $-13.7M | $-7.3M |
| Long-Term Liabilities | $10.2M | $12.3M | $11.3M |
| LT Operating Leases | $10.2M | $10.0M | $9.4M |
| Other LT Liab | $0 | $0 | $0 |
| Total Liabilities | $63.8M | $84.3M | $85.8M |
| Shareholders' Equity | $348.1M | $356.3M | $367.6M |
| Retained Earnings | $338.1M | $344.2M | $353.7M |
| AOCI | $-103.0K | $22.0K | $35.0K |
| Treasury Stock | $12.2M | — | — |
| Total L&E | $411.8M | $440.5M | $453.4M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $20.7M | $34.6M | $41.5M |
| Non-Cash Adjustments | $-29.0M | $-26.1M | $-195.5M |
| Working Capital Changes | $17.1M | $36.9M | $100.6M |
| Cash from Operations | $8.8M | $45.4M | $-53.4M |
| Capital Expenditures | $1.0M | $1.8M | $7.5M |
| Cash from Investing | $-16.4M | $-447.0K | $15.0M |
| Dividends Paid | $31.8M | $28.4M | $32.0M |
| Cash from Financing | $-31.4M | $-28.0M | $-31.5M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-39.1M | $16.9M | $-70.0M |
| Beginning Cash | $109.8M | $70.7M | $87.7M |
| Ending Cash | $70.7M | $87.7M | $17.7M |
Frequently Asked Questions
How does NATIONAL PRESTO INDUSTRIES INC make money?
Revenue is driven primarily by the sale of core industrial products such as electric motors, pumps, and valves; additional streams include after-sales services, spare parts distribution, and regional licensing agreements that provide recurring income.
What are the main risks for NPK?
Fluctuations in raw material prices can impact gross margins; exposure to foreign exchange rates affects international sales; reliance on key customers creates concentration risk; regulatory changes in manufacturing sectors could disrupt demand.
What is NPK's competitive advantage?
The company leverages a robust global supply chain to ensure component reliability, maintains strong brand recognition in niche industrial verticals, and utilizes proprietary manufacturing technologies to reduce production costs.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.