NATIONAL INSTRUMENTS CORP (NATI)
US6365181022 - Common Stock
Overall NATI gets a fundamental rating of 7 out of 10. We evaluated NATI against 127 industry peers in the Electronic Equipment, Instruments & Components industry. While NATI has a great profitability rating, there are some minor concerns on its financial health. NATI is growing strongly while it is still valued neutral. This is a good combination! This makes NATI very considerable for growth investing!
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.
Each year in the past 5 years NATI had a positive operating cash flow.
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.
The Return On Equity of NATI (14.73%) is better than 79.37% of its industry peers.
NATI has a Return On Invested Capital of 11.62%. This is in the better half 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 9.45%.
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 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
Looking at the Profit Margin, with a value of 10.37%, NATI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
NATI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.54%, NATI belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Operating Margin of NATI has declined.
NATI has a better Gross Margin (68.83%) 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
NATI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
NATI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NATI remains at a similar level compared to 5 years ago.
Compared to 1 year ago, NATI has a worse debt to assets ratio.
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 Altman-Z score of 5.59. This is amongst the best in the industry. NATI outperforms 80.95% of its industry peers.
The Debt to FCF ratio of NATI is 6.04, which is on the high side as it means it would take NATI, 6.04 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.04, NATI is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
NATI has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NATI (0.46) is worse than 71.43% of its industry peers.
| 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's Current ratio of 2.49 is in line compared to the rest of the industry. NATI outperforms 45.24% of its industry peers.
A Quick Ratio of 1.54 indicates that NATI should not have too much problems paying its short term obligations.
NATI has a Quick ratio (1.54) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.54 |
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%.
NATI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.14% yearly.
EPS 1Y (TTM)118.1%
EPS 3Y11.61%
EPS 5Y12.47%
EPS growth Q2Q41.67%
Revenue 1Y (TTM)10.28%
Revenue growth 3Y6.98%
Revenue growth 5Y5.14%
Revenue growth Q2Q5.38%
3.2 Future
NATI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.72% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.19, which means the current valuation is very expensive for NATI.
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 24.67.
With a Price/Forward Earnings ratio of 20.82, NATI is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as NATI.
NATI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.02.
| 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.
The rest of the industry has a similar Price/Free Cash Flow ratio as NATI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.64 | ||
| EV/EBITDA | 23.42 |
4.3 Compensation for Growth
The 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%
5. Dividend
5.1 Amount
NATI has a Yearly Dividend Yield of 1.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.75, NATI pays a better dividend. On top of this NATI pays more dividend than 92.06% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, NATI is paying slightly less dividend.
| 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 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
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%
NATIONAL INSTRUMENTS CORP
NASDAQ:NATI (10/10/2023, 7:00:01 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap7.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Dividend Growth(5Y)
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Surprises & Revisions
EPS beat(2)
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EPS NQ rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.19 | ||
| Fwd PE | 20.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.63
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 14.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.54% | ||
| PM (TTM) | 10.37% | ||
| GM | 68.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)118.1%
EPS 3Y11.61%
EPS 5Y
EPS growth Q2Q
EPS Next Y41.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.28%
Revenue growth 3Y6.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y