National Presto Industries (NPK) concentration risks

National Presto's concentration exposures are structurally different across its business lines. On the supply side, the majority of its housewares and small appliance products are manufactured by a handful of third-party suppliers in Asia, primarily in China — a high dependency that is idiosyncratic to sourcing decisions rather than tied to broader macro trends. The Defense segment carries a separate, moderate concentration: because its sales are primarily to the U.S. Government and its prime contractors, the segment depends heavily on the contracts underlying those programs, a mixed exposure combining government-budget structural risk with contract-specific dependency. On the customer side, Amazon.com accounted for 10% of consolidated net sales, a comparatively small share of overall revenue. These three exposures largely run in parallel rather than compounding one another, since they sit in different segments and different points of the value chain. The supplier concentration is the one most likely to move the verdict if China-sourcing conditions changed, given its high share; the government-contract dependency is a slower-moving, programmatic risk; and the Amazon relationship, at a low share of sales, is the least consequential of the three on its own.

For the engine’s reasoning on NPK’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.

Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.