NATIONAL INSTRUMENTS CORP (NATI) Stock Fundamental Analysis
NASDAQ:NATI - Nasdaq - US6365181022 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to NATI. NATI was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. NATI scores excellent on profitability, but there are some minor concerns on its financial health. NATI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make NATI suitable for growth investing!
1. Profitability
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 had positive earnings in each of the past 5 years.
Each year in the past 5 years NATI had a positive operating cash flow.
1.2 Ratios
NATI has a better Return On Assets (7.59%) than 80.95% of its industry peers.
The Return On Equity of NATI (14.73%) is better than 79.37% of its industry peers.
With a decent Return On Invested Capital value of 11.62%, NATI is doing good in the industry, outperforming 78.57% of the companies in the same industry.
NATI had an Average Return On Invested Capital over the past 3 years of 7.47%. This is in line with the industry average of 9.39%.
The 3 year average ROIC (7.47%) for NATI is below the current ROIC(11.62%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
NATI's Profit Margin of 10.37% is amongst the best of 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.
The Gross Margin of NATI (68.83%) is better than 98.41% of its industry peers.
In the last couple of years the Gross Margin of NATI has declined.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NATI is still 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.
2.2 Solvency
NATI has an Altman-Z score of 5.59. This indicates that NATI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NATI (5.59) is better 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.
The Debt to FCF ratio of NATI (6.04) is better than 64.29% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that NATI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.46, NATI is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 6.04 | ||
| Altman-Z | 5.59 |
ROIC/WACC1.14
WACC10.19%
2.3 Liquidity
A Current Ratio of 2.49 indicates that NATI has no problem at all paying its short term obligations.
NATI has a Current ratio (2.49) which is in line with 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.
Looking at the Quick ratio, with a value of 1.54, NATI is in line with its industry, outperforming 41.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
NATI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 118.10%, which is quite impressive.
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.
Looking at the last year, NATI shows a quite strong growth in Revenue. The Revenue has grown by 10.28% in the last year.
Measured over the past years, NATI shows a small growth in Revenue. The Revenue has been growing by 5.14% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.19, NATI can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as NATI.
NATI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.35.
A Price/Forward Earnings ratio of 20.82 indicates a rather expensive valuation of NATI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NATI is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.19. NATI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.19 | ||
| Fwd PE | 20.82 |
4.2 Price Multiples
NATI's Enterprise Value to EBITDA ratio is in line with the industry average.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.64 | ||
| EV/EBITDA | 23.42 |
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.
NATI has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NATI's earnings are expected to grow with 23.66% in the coming years.
PEG (NY)0.63
PEG (5Y)2.1
EPS Next 2Y29.81%
EPS Next 3Y23.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.87%, NATI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.04, 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 slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
The dividend of NATI has a limited annual growth rate of 5.92%.
NATI has been paying a dividend for at least 10 years, so it has 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
5.3 Sustainability
82.37% of the earnings are spent on dividend by NATI. 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%
59.98
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners0.21%
Inst Owner Change0%
Ins Owners4.99%
Ins Owner Change0%
Market Cap7.97B
Analysts50
Price Target61.2 (2.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Profitability
| Industry Rank | Sector 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%
ROICexcg growth 3Y-12.99%
ROICexcg 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 Rank | Sector 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%