NATIONAL INSTRUMENTS CORP (NATI) Fundamental Analysis & Valuation

NASDAQ:NATI • US6365181022

59.98 USD
0 (0%)
At close: Oct 10, 2023
59.98 USD
0 (0%)
After Hours: 10/10/2023, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This NATI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to NATI. NATI was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. Both the profitability and the financial health of NATI get a neutral evaluation. Nothing too spectacular is happening here. NATI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make NATI a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

6

1. NATI Profitability Analysis

1.1 Basic Checks

  • NATI had positive earnings in the past year.
  • In the past year NATI had a positive cash flow from operations.
NATI Yearly Net Income VS EBIT VS OCF VS FCFNATI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 50M 100M 150M 200M 250M

1.2 Ratios

  • With an excellent Return On Assets value of 7.59%, NATI belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
  • NATI has a Return On Equity of 14.73%. This is in the better half of the industry: NATI outperforms 79.37% of its industry peers.
  • NATI's Return On Invested Capital of 11.62% is fine compared to the rest of the industry. NATI outperforms 78.57% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for NATI is in line with the industry average of 8.86%.
  • The last Return On Invested Capital (11.62%) for NATI is above the 3 year average (7.47%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.59%
ROE 14.73%
ROIC 11.62%
ROA(3y)5.92%
ROA(5y)7.37%
ROE(3y)10.37%
ROE(5y)11.48%
ROIC(3y)7.47%
ROIC(5y)9.07%
NATI Yearly ROA, ROE, ROICNATI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2 4 6 8 10

1.3 Margins

  • NATI has a Profit Margin of 10.37%. This is amongst the best in the industry. NATI outperforms 85.71% of its industry peers.
  • In the last couple of years the Profit Margin of NATI has grown nicely.
  • NATI has a better Operating Margin (15.54%) than 88.89% of its industry peers.
  • In the last couple of years the Operating Margin of NATI has declined.
  • NATI has a Gross Margin of 68.83%. This is amongst the best in the industry. NATI outperforms 98.41% of its industry peers.
  • In the last couple of years the Gross Margin of NATI has declined.
Industry RankSector Rank
OM 15.54%
PM (TTM) 10.37%
GM 68.83%
OM growth 3Y-5.86%
OM growth 5Y-3.61%
PM growth 3Y-11.08%
PM growth 5Y15.71%
GM growth 3Y-3.39%
GM growth 5Y-1.9%
NATI Yearly Profit, Operating, Gross MarginsNATI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 20 40 60

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5

2. NATI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NATI is creating some value.
  • The number of shares outstanding for NATI has been reduced compared to 1 year ago.
  • The debt/assets ratio for NATI is higher compared to a year ago.
NATI Yearly Shares OutstandingNATI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
NATI Yearly Total Debt VS Total AssetsNATI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B

2.2 Solvency

  • An Altman-Z score of 5.59 indicates that NATI is not in any danger for bankruptcy at the moment.
  • NATI has a better Altman-Z score (5.59) than 80.95% of its industry peers.
  • NATI has a debt to FCF ratio of 6.04. This is a slightly negative value and a sign of low solvency as NATI would need 6.04 years to pay back of all of its debts.
  • NATI has a Debt to FCF ratio of 6.04. This is in the better half of the industry: NATI outperforms 64.29% of its industry peers.
  • A Debt/Equity ratio of 0.46 indicates that NATI is not too dependend on debt financing.
  • The Debt to Equity ratio of NATI (0.46) is worse than 71.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 6.04
Altman-Z 5.59
ROIC/WACC1.14
WACC10.19%
NATI Yearly LT Debt VS Equity VS FCFNATI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • NATI has a Current Ratio of 2.49. This indicates that NATI is financially healthy and has no problem in meeting its short term obligations.
  • NATI has a Current ratio of 2.49. This is comparable to the rest of the industry: NATI outperforms 45.24% of its industry peers.
  • NATI has a Quick Ratio of 1.54. This is a normal value and indicates that NATI is financially healthy and should not expect problems in meeting its short term obligations.
  • NATI has a Quick ratio (1.54) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 2.49
Quick Ratio 1.54
NATI Yearly Current Assets VS Current LiabilitesNATI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. NATI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 118.10% over the past year.
  • Measured over the past years, NATI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.47% on average per year.
  • The Revenue has grown by 10.28% in the past year. This is quite good.
  • The Revenue has been growing slightly by 5.14% on average over the past years.
EPS 1Y (TTM)118.1%
EPS 3Y11.61%
EPS 5Y12.47%
EPS Q2Q%41.67%
Revenue 1Y (TTM)10.28%
Revenue growth 3Y6.98%
Revenue growth 5Y5.14%
Sales Q2Q%5.38%

3.2 Future

  • The Earnings Per Share is expected to grow by 17.72% on average over the next years. This is quite good.
  • Based on estimates for the next years, NATI will show a quite strong growth in Revenue. The Revenue will grow by 8.13% on average per year.
EPS Next Y41.27%
EPS Next 2Y29.81%
EPS Next 3Y23.66%
EPS Next 5Y17.72%
Revenue Next Year4.18%
Revenue Next 2Y5.95%
Revenue Next 3Y6.85%
Revenue Next 5Y8.13%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
NATI Yearly Revenue VS EstimatesNATI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B 2.5B
NATI Yearly EPS VS EstimatesNATI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

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4

4. NATI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 26.19 indicates a quite expensive valuation of NATI.
  • The rest of the industry has a similar Price/Earnings ratio as NATI.
  • The average S&P500 Price/Earnings ratio is at 26.29. NATI is around the same levels.
  • Based on the Price/Forward Earnings ratio of 20.82, the valuation of NATI can be described as rather expensive.
  • NATI's Price/Forward Earnings ratio is in line with the industry average.
  • NATI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.57.
Industry RankSector Rank
PE 26.19
Fwd PE 20.82
NATI Price Earnings VS Forward Price EarningsNATI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as NATI.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of NATI is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 81.64
EV/EBITDA 23.42
NATI Per share dataNATI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • NATI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of NATI may justify a higher PE ratio.
  • NATI's earnings are expected to grow with 23.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.63
PEG (5Y)2.1
EPS Next 2Y29.81%
EPS Next 3Y23.66%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. NATI Dividend Analysis

5.1 Amount

  • NATI has a Yearly Dividend Yield of 1.87%.
  • Compared to an average industry Dividend Yield of 0.44, NATI pays a better dividend. On top of this NATI pays more dividend than 92.06% of the companies listed in the same industry.
  • NATI's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.87%

5.2 History

  • The dividend of NATI has a limited annual growth rate of 5.92%.
  • NATI has paid a dividend for at least 10 years, which is a reliable track record.
  • NATI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.92%
Div Incr Years9
Div Non Decr Years11
NATI Yearly Dividends per shareNATI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • NATI pays out 82.37% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of NATI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP82.37%
EPS Next 2Y29.81%
EPS Next 3Y23.66%
NATI Yearly Income VS Free CF VS DividendNATI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 50M 100M 150M 200M
NATI Dividend Payout.NATI Dividend Payout, showing the Payout Ratio.NATI Dividend Payout.PayoutRetained Earnings

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NATI Fundamentals: All Metrics, Ratios and Statistics

NATIONAL INSTRUMENTS CORP

NASDAQ:NATI (10/10/2023, 8:00:01 PM)

After market: 59.98 0 (0%)

59.98

0 (0%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)07-27
Earnings (Next)10-25
Inst Owners0.21%
Inst Owner Change0%
Ins Owners4.99%
Ins Owner Change0%
Market Cap7.97B
Revenue(TTM)1.73B
Net Income(TTM)179.40M
Analysts50
Price Target61.2 (2.03%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.87%
Yearly Dividend1.12
Dividend Growth(5Y)5.92%
DP82.37%
Div Incr Years9
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.87%
Min EPS beat(2)-13.79%
Max EPS beat(2)12.04%
EPS beat(4)1
Avg EPS beat(4)-1.65%
Min EPS beat(4)-13.79%
Max EPS beat(4)12.04%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.97%
Min Revenue beat(2)-5.67%
Max Revenue beat(2)-0.28%
Revenue beat(4)0
Avg Revenue beat(4)-2.65%
Min Revenue beat(4)-5.67%
Max Revenue beat(4)-0.28%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.08%
Revenue NQ rev (1m)99900.9%
Revenue NQ rev (3m)-5.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.34%
Valuation
Industry RankSector Rank
PE 26.19
Fwd PE 20.82
P/S 4.6
P/FCF 81.64
P/OCF 48.95
P/B 6.54
P/tB 20.63
EV/EBITDA 23.42
EPS(TTM)2.29
EY3.82%
EPS(NY)2.88
Fwd EY4.8%
FCF(TTM)0.73
FCFY1.22%
OCF(TTM)1.23
OCFY2.04%
SpS13.03
BVpS9.17
TBVpS2.91
PEG (NY)0.63
PEG (5Y)2.1
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 7.59%
ROE 14.73%
ROCE 13.87%
ROIC 11.62%
ROICexc 12.51%
ROICexgc 23.26%
OM 15.54%
PM (TTM) 10.37%
GM 68.83%
FCFM 5.64%
ROA(3y)5.92%
ROA(5y)7.37%
ROE(3y)10.37%
ROE(5y)11.48%
ROIC(3y)7.47%
ROIC(5y)9.07%
ROICexc(3y)8.65%
ROICexc(5y)12.27%
ROICexgc(3y)18.12%
ROICexgc(5y)22.9%
ROCE(3y)8.92%
ROCE(5y)10.83%
ROICexgc growth 3Y-12.99%
ROICexgc growth 5Y-9.66%
ROICexc growth 3Y-18.06%
ROICexc growth 5Y-11.01%
OM growth 3Y-5.86%
OM growth 5Y-3.61%
PM growth 3Y-11.08%
PM growth 5Y15.71%
GM growth 3Y-3.39%
GM growth 5Y-1.9%
F-Score5
Asset Turnover0.73
Health
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 6.04
Debt/EBITDA 1.57
Cap/Depr 72.02%
Cap/Sales 3.77%
Interest Coverage 250
Cash Conversion 45.28%
Profit Quality 54.38%
Current Ratio 2.49
Quick Ratio 1.54
Altman-Z 5.59
F-Score5
WACC10.19%
ROIC/WACC1.14
Cap/Depr(3y)55.4%
Cap/Depr(5y)67.95%
Cap/Sales(3y)3.5%
Cap/Sales(5y)3.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)118.1%
EPS 3Y11.61%
EPS 5Y12.47%
EPS Q2Q%41.67%
EPS Next Y41.27%
EPS Next 2Y29.81%
EPS Next 3Y23.66%
EPS Next 5Y17.72%
Revenue 1Y (TTM)10.28%
Revenue growth 3Y6.98%
Revenue growth 5Y5.14%
Sales Q2Q%5.38%
Revenue Next Year4.18%
Revenue Next 2Y5.95%
Revenue Next 3Y6.85%
Revenue Next 5Y8.13%
EBIT growth 1Y76.65%
EBIT growth 3Y0.72%
EBIT growth 5Y1.35%
EBIT Next Year57.07%
EBIT Next 3Y24.81%
EBIT Next 5Y13.12%
FCF growth 1Y13.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y23.64%
OCF growth 3Y-42.36%
OCF growth 5Y-28.15%

NATIONAL INSTRUMENTS CORP / NATI FAQ

Can you provide the ChartMill fundamental rating for NATIONAL INSTRUMENTS CORP?

ChartMill assigns a fundamental rating of 6 / 10 to NATI.


Can you provide the valuation status for NATIONAL INSTRUMENTS CORP?

ChartMill assigns a valuation rating of 4 / 10 to NATIONAL INSTRUMENTS CORP (NATI). This can be considered as Fairly Valued.


Can you provide the profitability details for NATIONAL INSTRUMENTS CORP?

NATIONAL INSTRUMENTS CORP (NATI) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for NATI stock?

The Price/Earnings (PE) ratio for NATIONAL INSTRUMENTS CORP (NATI) is 26.19 and the Price/Book (PB) ratio is 6.54.


Can you provide the financial health for NATI stock?

The financial health rating of NATIONAL INSTRUMENTS CORP (NATI) is 6 / 10.