National Instruments
Market Cap
US$5.1b
Last Updated
2020/05/29 02:15 UTC
Data Sources
Company Financials +
Executive Summary
National Instruments Corporation provides a software-centric platform and systems to engineers and scientists worldwide.
Rewards
PE ratio (18.7x) is below the Electronic industry average (19.2x)
Risk Analysis
Earnings are forecast to decline by an average of -16.1% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet with solid track record and pays a dividend.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
2.9%
NATI
3.8%
US Electronic
2.7%
US Market
1 Year Return
0.3%
NATI
9.1%
US Electronic
9.1%
US Market
Return vs Industry: NATI underperformed the US Electronic industry which returned 9% over the past year.
Return vs Market: NATI underperformed the US Market which returned 8.4% over the past year.
Shareholder returns
| NATI | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.9% | 3.8% | 2.7% |
| 30 Day | -3.2% | 4.9% | 4.5% |
| 90 Day | -3.9% | 2.2% | 2.3% |
| 1 Year | 2.8%0.3% | 10.3%9.1% | 11.5%9.1% |
| 3 Year | 6.5%-0.4% | 17.7%14.4% | 30.6%22.0% |
| 5 Year | 41.2%25.1% | 55.8%48.2% | 57.2%39.5% |
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
4 weeks ago | Simply Wall St
Results: National Instruments Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates1 month ago | Simply Wall St
Is Now The Time To Look At Buying National Instruments Corporation (NASDAQ:NATI)?1 month ago | Simply Wall St
How Does National Instruments's (NASDAQ:NATI) P/E Compare To Its Industry, After Its Big Share Price Gain?Valuation
Is National Instruments undervalued compared to its fair value and its price relative to the market?
18.72x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NATI ($38.71) is trading above our estimate of fair value ($21.52)
Significantly Below Fair Value: NATI is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NATI is good value based on its PE Ratio (18.7x) compared to the Electronic industry average (19.2x).
PE vs Market: NATI is poor value based on its PE Ratio (18.7x) compared to the US market (16x).
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 (3.9x) compared to the US Electronic industry average (1.8x).
Next Steps
Future Growth
How is National Instruments forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-16.1%
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 (-16.1% per year).
Earnings vs Market: NATI's earnings are forecast to decline over the next 3 years (-16.1% per year).
High Growth Earnings: NATI's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NATI's revenue (6.1% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: NATI's revenue (6.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if NATI's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has National Instruments performed over the past 5 years?
14.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NATI has a large one-off gain of $150.5M impacting its March 31 2020 financial results.
Growing Profit Margin: NATI's current net profit margins (20.1%) are higher than last year (11.3%).
Past Earnings Growth Analysis
Earnings Trend: NATI's earnings have grown by 14.6% per year over the past 5 years.
Accelerating Growth: NATI's earnings growth over the past year (76.4%) exceeds its 5-year average (14.6% per year).
Earnings vs Industry: NATI earnings growth over the past year (76.4%) exceeded the Electronic industry -9.4%.
Return on Equity
High ROE: NATI's Return on Equity (21.2%) is considered high.
Next Steps
Financial Health
How is National Instruments's financial position?
Financial Position Analysis
Short Term Liabilities: NATI's short term assets ($1.1B) exceed its short term liabilities ($313.7M).
Long Term Liabilities: NATI's short term assets ($1.1B) exceed its long term liabilities ($169.0M).
Debt to Equity History and Analysis
Debt Level: NATI is debt free.
Reducing Debt: NATI had no debt 5 years ago.
Debt Coverage: NATI has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: NATI has no debt, therefore 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?
2.69%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NATI's dividend (2.69%) is higher than the bottom 25% of dividend payers in the US market (1.69%).
High Dividend: NATI's dividend (2.69%) is low compared to the top 25% of dividend payers in the US market (4.45%).
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 reasonably low payout ratio (48.8%), NATI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NATI's dividends in 3 years are forecast to be covered by earnings (67.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Eric Starkloff (44yo)
0.25
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 ($USD7.31M).
Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.25yr | US$2.45m | 0.15% $7.7m | |
| Executive VP | 3yrs | US$1.86m | 0.045% $2.3m | |
| VP of Finance & Chief Accounting Officer | 2.5yrs | US$509.46k | 0.014% $709.8k | |
| Senior Vice President of Global Product Research & Development | 6.33yrs | US$1.33m | 0.038% $1.9m | |
| Director of Investor Relations | no data | no data | no data | |
| VP, General Counsel & Secretary | 1.33yrs | no data | no data | |
| Vice President of Strategy & Corporate Development | no data | no data | no data | |
| Senior VP & First Chief Marketing Officer | 1.17yrs | no data | 0.028% $1.4m | |
| Vice President of Global Human Resources | 3.33yrs | no data | no data | |
| Senior Vice President of Business Development | no data | US$454.90k | no data |
2.5yrs
Average Tenure
51.5yo
Average Age
Experienced Management: NATI's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.25yr | US$2.45m | 0.15% $7.7m | |
| Independent Director | 1.17yrs | US$409.68k | 0.0091% $459.0k | |
| Independent Director | 19.83yrs | US$266.61k | 0.088% $4.4m | |
| Director | 3.33yrs | US$8.49m | 0.21% $10.6m | |
| Independent Director | 4.17yrs | US$250.68k | 0.017% $877.6k | |
| Independent Director | 0.17yr | no data | 0.0068% $345.3k | |
| Independent Director | 1.17yrs | US$408.11k | 0.0091% $459.0k | |
| Independent Director | 17.67yrs | US$263.75k | 0.082% $4.1m | |
| Independent Chairman of the Board | 1.33yrs | US$359.11k | 0.027% $1.4m |
1.3yrs
Average Tenure
57yo
Average Age
Experienced Board: NATI's board of directors are not considered experienced ( 1.3 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$5.055b
- Shares outstanding: 130.60m
- 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 platform to visualize hardware configuration, measurement data, and debugging of application; NI LabWindows/CVI, an ANSI C integrated development environment and engineering toolbox with built-in libraries for measurement, analysis, and engineering UI design; and NI Measurement Studio, a suite of .NET tools designed for building engineering applications in Microsoft Visual Studio to acquire, analyze, and display measurement data. The company’s application software comprises NI TestStand that is used for automated test and measurement applications in a manufacturing environment; NI VeriStand, a ready-to-use software environment for configuring real-time testing applications; Flexlogger for quick sensor configuration and data logging of mixed signals to verify electromechanical systems; and NI InsightCM Enterprise, a software solution with integrated hardware options for monitoring ancillary rotating equipment. Its systems and data management software include NI DIAdem, which is configuration-based technical data management, analysis, and report generation tools to mine and analyze engineering and measurement data; and NI SystemLink, a systems management software that enables the mass coordination of connected devices, software deployments, and data communications throughout a distributed system. The company also offers PXI hardware form factor that combines PC software and PCI hardware with advanced instrumentation capabilities; NI C-series data acquisition and control products; and NI semiconductor test systems, as well as software and hardware maintenance, and training and certification services. It serves semiconductor, transportation, aerospace, and defense industries; and government agencies. The company was founded in 1976 and is headquartered in Austin, Texas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/29 02:15 |
| End of Day Share Price | 2020/05/28 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.