Logo image of NATI

NATIONAL INSTRUMENTS CORP (NATI) Stock Fundamental Analysis

NASDAQ:NATI - Nasdaq - US6365181022 - Common Stock - Currency: USD

59.98  0 (0%)

After market: 59.98 0 (0%)

Fundamental Rating

6

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 has an excellent profitability rating, but there are some minor concerns on its financial health. NATI is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make NATI suitable for growth investing!


Dividend Valuation Growth Profitability Health

Quickly go to:

8

1. Profitability

1.1 Basic Checks

NATI had positive earnings in the past year.
NATI had a positive operating cash flow in the past year.
In the past 5 years NATI has always been profitable.
NATI had a positive operating cash flow in each of the past 5 years.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 50M 100M 150M 200M 250M

1.2 Ratios

NATI has a Return On Assets of 7.59%. This is amongst the best in the industry. NATI outperforms 80.95% of its industry peers.
With a decent Return On Equity value of 14.73%, NATI is doing good in the industry, outperforming 79.37% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.62%, NATI is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NATI is in line with the industry average of 9.16%.
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 2015 2016 2017 2018 2019 2020 2021 2022 2 4 6 8 10

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's Operating Margin of 15.54% is amongst the best of the industry. NATI outperforms 88.89% of its industry peers.
NATI's Operating Margin has declined in the last couple of years.
The Gross Margin of NATI (68.83%) is better than 98.41% of its industry peers.
NATI's Gross Margin has declined in the last couple of years.
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 2015 2016 2017 2018 2019 2020 2021 2022 20 40 60

More info and screens

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NATI is creating some value.
Compared to 1 year ago, NATI has less shares outstanding
NATI has a worse debt/assets ratio than last year.
NATI Yearly Shares OutstandingNATI Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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.
With an excellent Altman-Z score value of 5.59, NATI belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
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 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 2015 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.
Looking at the Current ratio, with a value of 2.49, NATI is in line with its industry, outperforming 45.24% of the companies in the same industry.
A Quick Ratio of 1.54 indicates that NATI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.54, NATI perfoms like the industry average, outperforming 41.27% of the companies in the same industry.
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 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

More info and screens

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 118.10% over the past year.
NATI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.47% yearly.
NATI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.28%.
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

Based on estimates for the next years, NATI will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.72% on average per year.
The Revenue is expected to grow by 8.13% on average over the next years. This is quite good.
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.
NATI Yearly Revenue VS EstimatesNATI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

NATI is valuated quite expensively with a Price/Earnings ratio of 26.19.
Compared to the rest of the industry, the Price/Earnings ratio of NATI is on the same level as its industry peers.
NATI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.82, which indicates a rather expensive current 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, NATI is valued a bit cheaper.
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

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NATI is on the same level as its industry peers.
NATI's Price/Free Cash Flow ratio is in line with the industry average.
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 excellent 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%

More info and screens

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.87%, NATI has a reasonable but not impressive dividend return.
NATI's Dividend Yield is rather good when compared to the industry average which is at 1.83. NATI pays more dividend than 92.06% of the companies in the same industry.
NATI's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
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 been paying a dividend for at least 10 years, so it has a reliable track record.
NATI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.92%
Div Incr Years9
Div Non Decr Years11
NATI Yearly Dividends per shareNATI Yearly Dividends per shareYearly Dividends per share 2015 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.
NATI's earnings are growing more than its dividend. This makes the dividend growth 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 2015 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

More info and screens

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 SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)07-27 2023-07-27/amc
Earnings (Next)10-25 2023-10-25/amc
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 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
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%
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 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%