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NATI

National InstrumentsNasdaqGS:NATI Stock Report

Last Price

US$41.72

Market Cap

US$5.5b

7D

1.7%

1Y

-8.3%

Updated

16 Jan, 2022

Data

Company Financials +
NATI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance1/6
Financial Health5/6
Dividends4/6

NATI Stock Overview

National Instruments Corporation provides a software-centric platform and systems to engineers and scientists worldwide.

National Instruments Competitors

Keysight Technologies

NYSE:KEYS

US$34.3b

Teledyne Technologies

NYSE:TDY

US$19.6b

AMETEK

NYSE:AME

US$32.7b

Teradyne

NasdaqGS:TER

US$26.8b

Price History & Performance

Summary of all time highs, changes and price drops for National Instruments
Historical stock prices
Current Share PriceUS$41.72
52 Week HighUS$47.08
52 Week LowUS$38.10
Beta1.09
1 Month Change-1.44%
3 Month Change3.34%
1 Year Change-8.29%
3 Year Change-9.05%
5 Year Change34.97%
Change since IPO956.04%

Recent News & Updates

Jan 04
We Think National Instruments (NASDAQ:NATI) Can Manage Its Debt With Ease

We Think National Instruments (NASDAQ:NATI) Can Manage Its Debt With Ease

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Dec 19
Slowing Rates Of Return At National Instruments (NASDAQ:NATI) Leave Little Room For Excitement

Slowing Rates Of Return At National Instruments (NASDAQ:NATI) Leave Little Room For Excitement

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Nov 17
An Intrinsic Calculation For National Instruments Corporation (NASDAQ:NATI) Suggests It's 27% Undervalued

An Intrinsic Calculation For National Instruments Corporation (NASDAQ:NATI) Suggests It's 27% Undervalued

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of National Instruments...

Shareholder Returns

NATIUS ElectronicUS Market
7D1.7%-0.8%-0.5%
1Y-8.3%9.7%13.7%

Return vs Industry: NATI underperformed the US Electronic industry which returned 9.7% over the past year.

Return vs Market: NATI underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is NATI's price volatile compared to industry and market?
NATI volatility
NATI Average Weekly Movement3.8%
Electronic Industry Average Movement7.5%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: NATI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NATI's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19767,000Eric Starkloffhttps://www.ni.com

National Instruments Corporation provides a software-centric platform and systems to engineers and scientists worldwide. Its programming environments software includes NI LabVIEW, a graphical software platform to visualize hardware configuration, measurement data, and debugging of application; NI LabWindows/CVI, an ANSI C integrated development environment and engineering toolbox; and NI Measurement Studio, a suite of NET tools for building engineering applications in Microsoft Visual Studio.

National Instruments Fundamentals Summary

How do National Instruments's earnings and revenue compare to its market cap?
NATI fundamental statistics
Market CapUS$5.50b
Earnings (TTM)US$53.72m
Revenue (TTM)US$1.42b

102.4x

P/E Ratio

3.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NATI income statement (TTM)
RevenueUS$1.42b
Cost of RevenueUS$404.99m
Gross ProfitUS$1.01b
ExpensesUS$958.17m
EarningsUS$53.72m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 27, 2022

Earnings per share (EPS)0.41
Gross Margin71.42%
Net Profit Margin3.79%
Debt/Equity Ratio8.2%

How did NATI perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

264%

Payout Ratio

Valuation

Is National Instruments undervalued compared to its fair value and its price relative to the market?

28.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NATI ($41.72) is trading below our estimate of fair value ($58.33)

Significantly Below Fair Value: NATI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NATI is poor value based on its PE Ratio (102.4x) compared to the US Electronic industry average (18.4x).

PE vs Market: NATI is poor value based on its PE Ratio (102.4x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: NATI is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: NATI is overvalued based on its PB Ratio (4.5x) compared to the US Electronic industry average (2.5x).


Future Growth

How is National Instruments forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

29.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NATI's forecast earnings growth (29.3% per year) is above the savings rate (2%).

Earnings vs Market: NATI's earnings (29.3% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NATI's revenue (10.4% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: NATI's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NATI's Return on Equity is forecast to be high in 3 years time (21.1%)


Past Performance

How has National Instruments performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NATI has a large one-off loss of $54.1M impacting its September 30 2021 financial results.

Growing Profit Margin: NATI's current net profit margins (3.8%) are lower than last year (15.4%).


Past Earnings Growth Analysis

Earnings Trend: NATI's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: NATI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NATI had negative earnings growth (-72.8%) over the past year, making it difficult to compare to the Electronic industry average (42.1%).


Return on Equity

High ROE: NATI's Return on Equity (4.4%) is considered low.


Financial Health

How is National Instruments's financial position?


Financial Position Analysis

Short Term Liabilities: NATI's short term assets ($835.8M) exceed its short term liabilities ($353.3M).

Long Term Liabilities: NATI's short term assets ($835.8M) exceed its long term liabilities ($258.6M).


Debt to Equity History and Analysis

Debt Level: NATI has more cash than its total debt.

Reducing Debt: NATI's debt to equity ratio has increased from 2.3% to 8.2% over the past 5 years.

Debt Coverage: NATI's debt is well covered by operating cash flow (158%).

Interest Coverage: NATI's interest payments on its debt are well covered by EBIT (46.1x coverage).


Balance Sheet


Dividend

What is National Instruments's current dividend yield, its reliability and sustainability?

2.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NATI's dividend (2.59%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: NATI's dividend (2.59%) is low compared to the top 25% of dividend payers in the US market (3.44%).


Stability and Growth of Payments

Stable Dividend: NATI's dividends per share have been stable in the past 10 years.

Growing Dividend: NATI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (263.6%), NATI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NATI's dividends in 3 years are forecast to be well covered by earnings (40.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Eric Starkloff (46 yo)

3.25yrs

Tenure

US$11,465,634

Compensation

Mr. Eric Howard Starkloff serves as Chief Executive Officer and Director of National Instruments Corporation since February 1, 2020. He has been President National Instruments Corporation since October 23,...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD11.47M) is above average for companies of similar size in the US market ($USD6.40M).

Compensation vs Earnings: Eric's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: NATI's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: NATI's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NATI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

National Instruments Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: National Instruments Corporation
  • Ticker: NATI
  • Exchange: NasdaqGS
  • Founded: 1976
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Implied Market Cap: US$5.502b
  • Shares outstanding: 131.88m
  • Website: https://www.ni.com

Number of Employees


Location

  • National Instruments Corporation
  • 11500 North MoPac Expressway
  • Austin
  • Texas
  • 78759-3504
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:18
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.