NATIONAL INSTRUMENTS CORP (NATI) Stock Fundamental Analysis
NASDAQ:NATI - Nasdaq - US6365181022 - Common Stock - Currency: USD
NATI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 not priced too expensively while it is growing strongly. 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.
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's Return On Assets of 7.59% is amongst the best of the industry. NATI outperforms 80.95% of its industry peers.
NATI's Return On Equity of 14.73% is fine compared to the rest of the industry. NATI outperforms 79.37% of its industry peers.
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 9.30%.
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.
With an excellent Operating Margin value of 15.54%, NATI belongs to the best 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's Gross Margin of 68.83% is amongst the best of the industry. NATI outperforms 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NATI is creating some value.
NATI has less shares outstanding than it did 1 year ago.
The debt/assets ratio for NATI is higher compared to a year ago.
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.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 6.04 | ||
| Altman-Z | 5.59 |
ROIC/WACC1.14
WACC10.19%
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.
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.
NATI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.47% yearly.
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.
NATI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.13% yearly.
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
With a Price/Earnings ratio of 26.19, NATI can be considered very expensive at the moment.
NATI's Price/Earnings is on the same level as the industry average.
NATI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.82 indicates a rather expensive valuation of NATI.
The rest of the industry has a similar Price/Forward Earnings ratio as NATI.
When comparing the Price/Forward Earnings ratio of NATI to the average of the S&P500 Index (21.70), we can say NATI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.19 | ||
| Fwd PE | 20.82 |
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.
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.
NATI has an outstanding profitability rating, which 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
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 1.95. 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 2.42.
| 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 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
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%
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%