NasdaqGS:NATI

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet established 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.0%

NATI

3.7%

US Electronic

5.3%

US Market


1 Year Return

-27.4%

NATI

-20.4%

US Electronic

-10.7%

US Market

Return vs Industry: NATI underperformed the US Electronic industry which returned -20.6% over the past year.

Return vs Market: NATI underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

NATIIndustryMarket
7 Day13.0%3.7%5.3%
30 Day-17.9%-16.7%-13.6%
90 Day-22.5%-27.9%-19.8%
1 Year-25.7%-27.4%-19.6%-20.4%-8.9%-10.7%
3 Year10.5%3.6%3.0%0.1%15.5%8.0%
5 Year13.9%0.9%26.2%19.9%35.2%20.4%

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?

26.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NATI ($33.58) is trading above our estimate of fair value ($31.88)

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 (27.3x) compared to the Electronic industry average (14.7x).

PE vs Market: NATI is poor value based on its PE Ratio (27.3x) compared to the US market (13.1x).


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 (3.7x) compared to the US Electronic industry average (1.5x).


Next Steps

Future Growth

How is National Instruments forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-7.1%

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 (-7.1% per year).

Earnings vs Market: NATI's earnings are forecast to decline over the next 3 years (-7.1% per year).

High Growth Earnings: NATI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NATI's revenue (4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: NATI's revenue (4% 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?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NATI has high quality earnings.

Growing Profit Margin: NATI's current net profit margins (12%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: NATI's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: NATI's earnings growth over the past year (4.6%) is below its 5-year average (6.5% per year).

Earnings vs Industry: NATI earnings growth over the past year (4.6%) exceeded the Electronic industry 3.2%.


Return on Equity

High ROE: NATI's Return on Equity (13.8%) 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 ($947.4M) exceed its short term liabilities ($306.1M).

Long Term Liabilities: NATI's short term assets ($947.4M) exceed its long term liabilities ($169.4M).


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: NATI's debt is covered by short term assets (assets are 1.3332878549333E+17x debt).


Next Steps

Dividend

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

3.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NATI's dividend (3.1%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: NATI's dividend (3.1%) is low compared to the top 25% of dividend payers in the US market (5.4%).


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: At its current payout ratio (81.2%), NATI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NATI's dividends in 3 years are forecast to be covered by earnings (71.6% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Eric Starkloff (44yo)

0.17

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 ($USD2.45M) is below average for companies of similar size in the US market ($USD5.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Eric Starkloff
President0.17yrUS$2.45m0.028% $1.2m
Karen Rapp
Executive VP2.92yrsUS$1.86m0.011% $476.2k
John Roiko
VP of Finance & Chief Accounting Officer2.42yrsUS$509.46k0.014% $606.9k
Alexander Davern
Strategic Advisor & Director3.25yrsUS$8.49m0.20% $8.6m
Scott Rust
Senior Vice President of Global Product Research & Development6.25yrsUS$1.33m0.010% $450.3k
Jeffrey Kodosky
Co-Founder & Director44.25yrsno data1.28% $55.6m
Marissa Vidaurri
Director of Investor Relationsno datano datano data
R. Dixon
VP, General Counsel & Secretary1.25yrsno datano data
Kevin Ilcisin
Vice President of Strategy & Corporate Developmentno datano datano data
Carla Sublett
Senior VP & First Chief Marketing Officer1.17yrsno data0.030% $1.3m

1.8yrs

Average Tenure

52yo

Average Age

Experienced Management: NATI's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Starkloff
President0.17yrUS$2.45m0.028% $1.2m
Alexander Davern
Strategic Advisor & Director3.25yrsUS$8.49m0.20% $8.6m
Jeffrey Kodosky
Co-Founder & Director44.25yrsno data1.28% $55.6m
James Cashman
Independent Director1.08yrsUS$409.68kno data
Charles Roesslein
Independent Director19.75yrsUS$266.61k0.078% $3.4m
Gerhard Fettweis
Independent Director4.08yrsUS$250.68k0.0088% $381.9k
Gayla Delly
Independent Director0.083yrno datano data
Liam Griffin
Independent Director1.08yrsUS$408.11kno data
Duy-Loan Le
Independent Director17.58yrsUS$263.75k0.077% $3.3m
Michael McGrath
Independent Chairman of the Board1.25yrsUS$359.11k0.018% $782.9k

2.3yrs

Average Tenure

58yo

Average Age

Experienced Board: NATI's board of directors are considered experienced (3.6 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 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$4.326b
  • Shares outstanding: 130.76m
  • Website: https://www.ni.com

Number of Employees


Location

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 07:35
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.