National Instruments
Market Cap
US$5.7b
Last Updated
2021/03/04 23:43 UTC
Data Sources
Company Financials +
Executive Summary
National Instruments Corporation provides a software-centric platform and systems to engineers and scientists worldwide. More Details
Snowflake Analysis
Excellent balance sheet average dividend payer.
Similar Companies
Share Price & News
How has National Instruments's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
Market Performance
7 Day Return
-6.4%
NATI
-7.8%
US Electronic
-2.4%
US Market
1 Year Return
5.5%
NATI
40.3%
US Electronic
31.2%
US Market
Return vs Industry: NATI underperformed the US Electronic industry which returned 40.3% over the past year.
Return vs Market: NATI underperformed the US Market which returned 31.2% over the past year.
Shareholder returns
| NATI | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.4% | -7.8% | -2.4% |
| 30 Day | -0.9% | -5.3% | -3.0% |
| 90 Day | 5.2% | 1.8% | 3.2% |
| 1 Year | 8.6%5.5% | 43.7%40.3% | 34.1%31.2% |
| 3 Year | -14.0%-20.1% | 39.0%33.2% | 48.1%38.6% |
| 5 Year | 59.5%41.2% | 136.5%121.0% | 116.5%92.3% |
Long-Term Price Volatility Vs. Market
How volatile is National Instruments's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Have Insiders Been Selling National Instruments Corporation (NASDAQ:NATI) Shares This Year?Valuation
Is National Instruments undervalued compared to its fair value and its price relative to the market?
38.16x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NATI ($41.82) is trading above our estimate of fair value ($35.93)
Significantly Below Fair Value: NATI is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NATI is poor value based on its PE Ratio (38.2x) compared to the US Electronic industry average (28.4x).
PE vs Market: NATI is poor value based on its PE Ratio (38.2x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: NATI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: NATI is overvalued based on its PB Ratio (4.5x) compared to the US Electronic industry average (2.6x).
Next Steps
Future Growth
How is National Instruments forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-6.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NATI's earnings are forecast to decline over the next 3 years (-6.8% per year).
Earnings vs Market: NATI's earnings are forecast to decline over the next 3 years (-6.8% per year).
High Growth Earnings: NATI's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NATI's revenue (7.6% per year) is forecast to grow slower than the US market (10.1% per year).
High Growth Revenue: NATI's revenue (7.6% 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 low in 3 years time (18.5%).
Next Steps
Past Performance
How has National Instruments performed over the past 5 years?
22.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NATI has a large one-off gain of $98.4M impacting its December 31 2020 financial results.
Growing Profit Margin: NATI's current net profit margins (11.2%) are lower than last year (12.1%).
Past Earnings Growth Analysis
Earnings Trend: NATI's earnings have grown significantly by 22.9% 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 (-12.1%) over the past year, making it difficult to compare to the Electronic industry average (-9.3%).
Return on Equity
High ROE: NATI's Return on Equity (11.7%) is considered low.
Next Steps
Financial Health
How is National Instruments's financial position?
Financial Position Analysis
Short Term Liabilities: NATI's short term assets ($849.5M) exceed its short term liabilities ($381.9M).
Long Term Liabilities: NATI's short term assets ($849.5M) exceed its long term liabilities ($277.8M).
Debt to Equity History and Analysis
Debt Level: NATI's debt to equity ratio (7.9%) is considered satisfactory.
Reducing Debt: NATI's debt to equity ratio has increased from 3.4% to 7.9% over the past 5 years.
Debt Coverage: NATI's debt is well covered by operating cash flow (186.3%).
Interest Coverage: NATI earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is National Instruments's current dividend yield, its reliability and sustainability?
2.58%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NATI's dividend (2.58%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: NATI's dividend (2.58%) is low compared to the top 25% of dividend payers in the US market (3.72%).
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 (94.9%), 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 covered by earnings (62.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.2yrs
Average management tenure
CEO
Eric Starkloff (45 yo)
1.08yrs
Tenure
US$2,445,874
Compensation
Mr. Eric Howard Starkloff serves as Chief Executive Officer and Director of National Instruments Corporation since February 1, 2020. He has been President National Instruments Corporation since October 23,...
CEO Compensation Analysis
Compensation vs Market: Eric's total compensation ($USD2.45M) is below average for companies of similar size in the US market ($USD6.40M).
Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.08yrs | US$2.45m | 0.18% $ 10.3m | |
| Executive VP & CFO | 3.83yrs | US$1.86m | 0.061% $ 3.5m | |
| Senior Vice President of Global Product Research & Development | 7.17yrs | US$1.33m | 0.043% $ 2.4m | |
| Head of Investor Relations | no data | no data | no data | |
| Senior VP & Chief Legal Officer | 2.17yrs | no data | no data | |
| Vice President of Brand | 1.17yrs | no data | no data | |
| Vice President of Strategy & Corporate Development | no data | no data | no data | |
| Chief Marketing Officer | 0.17yr | no data | no data | |
| Senior Vice President of Global Sales & Support | 0.17yr | no data | no data | |
| Senior VP & Chief People Officer | 4.17yrs | no data | no data | |
| Senior Vice President of Global Supply Chain & Manufacturing | 0.75yr | no data | no data | |
| Managing Director for ASEAN & ANZ | no data | no data | no data |
1.2yrs
Average Tenure
52.5yo
Average Age
Experienced Management: NATI's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.08yrs | US$2.45m | 0.18% $ 10.3m | |
| Independent Director | 2yrs | US$409.68k | 0.0090% $ 516.2k | |
| Independent Director | 20.67yrs | US$266.61k | 0.087% $ 5.0m | |
| Director & Independent Observer | 4.17yrs | US$8.49m | 0.21% $ 12.1m | |
| Independent Director | 5yrs | US$250.68k | 0.017% $ 987.1k | |
| Independent Director | 1yr | no data | 0.0068% $ 387.8k | |
| Independent Director | 2yrs | US$408.11k | 0.0090% $ 516.2k | |
| Independent Director | 18.5yrs | US$263.75k | 0.081% $ 4.6m | |
| Independent Chairman of the Board | 2.17yrs | US$359.11k | 0.027% $ 1.5m |
2.2yrs
Average Tenure
58yo
Average Age
Experienced Board: NATI's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.
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 company bio, 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
- Market Cap: US$5.729b
- Shares outstanding: 131.61m
- Website: https://www.ni.com
Number of Employees
Location
- National Instruments Corporation
- 11500 North MoPac Expressway
- Austin
- Texas
- 78759-3504
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NATI | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Mar 1995 |
| NI1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 1995 |
Biography
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 plat...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/04 23:43 |
| End of Day Share Price | 2021/03/04 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.