National Instruments Corporation
National Instruments Corporation Fundamental Analysis
National Instruments Corporation (NATI) shows weak financial fundamentals with a PE ratio of 56.59, profit margin of 8.43%, and ROE of 11.74%. The company generates $1.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NATI's fundamental strength across five key dimensions:
Efficiency Score
WeakNATI struggles to generate sufficient returns from assets.
Valuation Score
ModerateNATI shows balanced valuation metrics.
Growth Score
ModerateNATI shows steady but slowing expansion.
Financial Health Score
ExcellentNATI maintains a strong and stable balance sheet.
Profitability Score
WeakNATI struggles to sustain strong margins.
Key Financial Metrics
Is NATI Expensive or Cheap?
P/E Ratio
NATI trades at 56.59 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NATI's PEG of 0.57 indicates potential undervaluation.
Price to Book
The market values National Instruments Corporation at 6.84 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 34.90 times EBITDA. This signals the market has high growth expectations.
How Well Does NATI Make Money?
Net Profit Margin
For every $100 in sales, National Instruments Corporation keeps $8.43 as profit after all expenses.
Operating Margin
Core operations generate 7.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.74 in profit for every $100 of shareholder equity.
ROA
National Instruments Corporation generates $5.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
National Instruments Corporation generates limited operating cash flow of $43.31M, signaling weaker underlying cash strength.
Free Cash Flow
National Instruments Corporation generates weak or negative free cash flow of $-9.25M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.07 in free cash annually.
FCF Yield
NATI converts -0.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
56.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.84
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How NATI Stacks Against Its Sector Peers
| Metric | NATI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 56.59 | 34.79 | Worse (Expensive) |
| ROE | 11.74% | 1185.00% | Weak |
| Net Margin | 8.43% | -131296.00% (disorted) | Weak |
| Debt/Equity | 0.51 | 0.43 | Neutral |
| Current Ratio | 2.08 | 4.90 | Strong Liquidity |
| ROA | 5.92% | -325472.00% (disorted) | Weak |
NATI outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews National Instruments Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta