NasdaqGS:NATI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

0.5%

NATI

2.4%

US Electronic

0.07%

US Market


1 Year Return

-6.0%

NATI

16.3%

US Electronic

8.9%

US Market

Return vs Industry: NATI underperformed the US Electronic industry which returned 16.3% over the past year.

Return vs Market: NATI underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

NATIIndustryMarket
7 Day0.5%2.4%0.07%
30 Day-4.4%3.7%-0.3%
90 Day-9.1%2.3%-1.6%
1 Year-3.9%-6.0%17.5%16.3%11.3%8.9%
3 Year59.0%48.6%55.8%51.4%46.3%36.8%
5 Year49.1%32.3%83.7%74.7%62.1%44.3%

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

Valuation

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

35.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NATI ($40.86) is trading above our estimate of fair value ($28.99)

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 (35.7x) compared to the Electronic industry average (19.6x).

PE vs Market: NATI is poor value based on its PE Ratio (35.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: NATI is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: NATI is overvalued based on its PB Ratio (4.6x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

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

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NATI's forecast earnings growth (7.1% per year) is above the savings rate (2.7%).

Earnings vs Market: NATI's earnings (7.1% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: NATI's earnings are forecast to grow, but not significantly.

Revenue vs Market: NATI's revenue (5.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: NATI's revenue (5.6% 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?

0.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NATI's earnings have grown by 0.9% per year over the past 5 years.

Accelerating Growth: NATI's earnings growth over the past year (135.4%) exceeds its 5-year average (0.9% per year).

Earnings vs Industry: NATI earnings growth over the past year (135.4%) exceeded the Electronic industry 58.6%.


Return on Equity

High ROE: NATI's Return on Equity (12.9%) is considered low.


Return on Assets

ROA vs Industry: NATI has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: NATI has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is National Instruments's financial position?


Financial Position Analysis

Short Term Liabilities: NATI's short term assets ($935.1M) exceeds its short term liabilities ($285.3M)

Long Term Liabilities: NATI's short term assets (935.1M) exceeds its long term liabilities (179.6M)


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

Inventory Level: NATI has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if NATI's debt is covered by short term assets.


Next Steps

Dividend

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

2.45%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NATI's dividend (2.45%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NATI's dividend (2.45%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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: At its current payout ratio (83.8%), NATI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of National Instruments's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Alex Davern (52yo)

2.8yrs

Tenure

US$3,548,896

Compensation

Mr. Alexander M. Davern, also known as Alex, CPA, has been its Chief Executive Officer at National Instruments Corporation since January 01, 2017 and served as its Chairman until 2019. He was President of  ...


CEO Compensation Analysis

Compensation vs. Market: Alex's total compensation ($USD3.55M) is below average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Alex's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.2yrs

Average Tenure

52yo

Average Age

Experienced Management: NATI's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

61yo

Average Age

Experienced Board: NATI's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$123,73520 May 19
Scott Rust
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Product Research & Development
Shares3,027
Max PriceUS$40.88
BuyUS$88,56502 May 19
Duy-Loan Le
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,028
Max PriceUS$43.67
SellUS$215,13519 Nov 18
Scott Rust
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Product Research & Development
Shares4,432
Max PriceUS$49.23
SellUS$56,42907 Nov 18
John Roiko
EntityIndividual
Role
Chief Accounting Officer
VP of Finance & Chief Accounting Officer
Shares1,145
Max PriceUS$49.28
SellUS$122,95031 Oct 18
Eric Starkloff
EntityIndividual
Role
President
President & COO
Shares2,500
Max PriceUS$49.18

Ownership Breakdown


Management Team

  • Alex Davern (52yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$3.55m
  • Jeff Kodosky (69yo)

    Co-Founder & Director

    • Tenure: 43.8yrs
  • John Roiko (61yo)

    VP of Finance & Chief Accounting Officer

    • Tenure: 1.9yrs
    • Compensation: US$508.73k
  • Eric Starkloff (44yo)

    President & COO

    • Tenure: 1yrs
    • Compensation: US$2.84m
  • Scott Rust (52yo)

    Senior Vice President of Global Product Research & Development

    • Tenure: 5.8yrs
    • Compensation: US$1.35m
  • Carla Piñeyro Sublett

    First Chief Marketing Officer

    • Tenure: 0.7yrs
  • Kevin Ilcisin

    Vice President of Strategy & Corporate Development

    • Tenure: 0yrs
  • Karen Rapp (51yo)

    Executive VP

    • Tenure: 2.4yrs
    • Compensation: US$1.56m
  • Marissa Vidaurri

    Head of Strategic Communications & Investor Relations

    • Tenure: 0yrs
  • R. Dixon

    VP, General Counsel & Secretary

    • Tenure: 0.8yrs

Board Members

  • Jim Cashman (65yo)

    Independent Director

    • Tenure: 0.6yrs
  • Charles Roesslein (70yo)

    Independent Director

    • Tenure: 19.3yrs
    • Compensation: US$265.13k
  • Alex Davern (52yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$3.55m
  • Jeff Kodosky (69yo)

    Co-Founder & Director

    • Tenure: 43.8yrs
  • Gerhard Fettweis (57yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$247.63k
  • Liam Griffin (52yo)

    Independent Director

    • Tenure: 0.6yrs
  • Duy-Loan Le (56yo)

    Independent Director

    • Tenure: 17.1yrs
    • Compensation: US$266.54k
  • Michael McGrath (69yo)

    Independent Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$303.83k

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$5.389b
  • Shares outstanding: 131.88m
  • Website: https://www.ni.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NATINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1995
NI1DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1995

Biography

National Instruments Corporation provides a software-centric platform and systems to engineers and scientists worldwide. Its programming environments software includes LabVIEW, a graphical application soft ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:39
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.