NPKNational Presto Industries, Inc.
Is the business good?
The checks split: mostly cash-backed earnings (0.8×) and margins steady.
Operating profit is mostly backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NPK?
National Presto Industries, Inc. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 1.5 points above what the capital costs: growth creates value
- Operating margin
- 9.6%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q2 2026
- Cash conversion
- 0.81×
Cash conversion · −0.60× a year ago · most of the operating profit arrived as cash, working capital took the rest
- Gross margin
- 16%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 16% |
| FY2021 | 8.4% |
| FY2022 | 6.9% |
| FY2023 | 10% |
| FY2024 | 12% |
| FY2025 | 8.0% |
Details›
- Gross margin12 months to Q2 2026
- 16%
- Operating margin12 months to Q2 2026
- 9.6%
- Net margin12 months to Q2 2026
- 7.9%
- Free cash flow margin
- 4.9%
- Revenue, trailing twelve months
- $545M
- Free cash flow, trailing twelve months
- $26M
- Net income, trailing twelve months
- $43M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.