NATIONAL INSTRUMENTS CORP (NATI) Stock Fundamental Analysis
NASDAQ:NATI - Nasdaq - US6365181022 - Common Stock - Currency: USD
Overall NATI gets a fundamental rating of 6 out of 10. We evaluated NATI against 124 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
In the past year NATI was profitable.
In the past year NATI had a positive cash flow from operations.
In the past 5 years NATI has always been profitable.
In the past 5 years NATI always reported a positive cash flow from operatings.
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.
The Average Return On Invested Capital over the past 3 years for NATI is in line with the industry average of 8.93%.
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.
In the last couple of years the Profit Margin of NATI has grown nicely.
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.
NATI's Operating Margin has declined in the last couple of years.
NATI's Gross Margin of 68.83% is amongst the best of the industry. NATI outperforms 98.41% of its industry peers.
NATI's Gross Margin has declined in the last couple of years.
| 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.
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.
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.
NATI has a better Debt to FCF ratio (6.04) than 64.29% of its industry peers.
NATI has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
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
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's Current ratio of 2.49 is in line compared 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.
The Quick ratio of NATI (1.54) is comparable to the rest of the 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.
The Earnings Per Share has been growing by 12.47% on average over the past years. This is quite good.
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
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.
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.
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
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 29.62. NATI is around the same levels.
NATI is valuated rather expensively with a Price/Forward Earnings ratio of 20.82.
NATI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.70. NATI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.19 | ||
| Fwd PE | 20.82 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NATI.
NATI's Price/Free Cash Flow is on the same level as the industry average.
| 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.
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
NATI has a Yearly Dividend Yield of 1.87%.
Compared to an average industry Dividend Yield of 1.92, 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 2.27.
| 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.
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%
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%