National Instruments Corp

NATI

Services-Prepackaged Software

Mkt Cap

$7.908B

PE

44.08

Debt

$589.4M

Cash

$139.2M

EV

$8.358B

FCF

$103.6M

Market Cap

$7.908B

P/E Ratio

44.08

Debt

$589.4M

Cash

$139.2M

EV

$8.358B

FCF

$103.6M

National Instruments Corporation provides a software-centric platform to engineers and scientists worldwide. Its programming environments software includes NI LabVIEW, a graphical software platform to visualize hardware configuration, measurement data, and debugging; NI LabWindows/CVI, an ANSI C integrated development environment and engineering toolbox; and NI Measurement Studio, a suite of .NET tools for building engineering applications in Microsoft Visual Studio. The company's application software comprises NI TestStand that is used for automated test and measurement applications in manufacturing environment; NI VeriStand, a software environment for configuring real-time testing applications; Flexlogger for sensor configuration and data logging of mixed signals. Its operations management and analytic enterprise software include NI DIAdem, which is configuration-based technical data management, analysis, and report generation tools to mine and analyze engineering and measurement data; NI SystemLink, a systems management and data collection software that enables the mass coordination of connected devices, software deployments, and data communications throughout a distributed system; and NI Optimal Plus. The company also offers PXI and NI C-series hardware; NI PXI modular instrument platform; and NI semiconductor test systems, as well as software and hardware maintenance, and training and certification services. It serves semiconductor and electronics, transportation, aerospace, and defense industries; and government agencies. The company sells its products through direct sales, independent distributors, original equipment manufacturers, resellers, and system integrators and consultants. National Instruments Corporation was incorporated in 1976 and is headquartered in Austin, Texas.

Sector

10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of National Instruments Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$103.6M	$98.19M	$93.08M	$88.24M	$83.64M	$79.29M	$75.17M	$71.25M	$67.55M	$64.03M	$60.7M	$607M
DCF		$85.38M	$70.38M	$58.02M	$47.82M	$39.42M	$32.5M	$26.79M	$22.08M	$18.2M	$15M	$150M
Value	$565.6M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 1.6%

Earnings Stability 0.5%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2014	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	TTM
Net Margin	10%	7.8%	6.7%	4.1%	11%	12%	11%	6.1%	8.4%	10%
ROA	10%	9.4%	8%	9.3%	11%	11%	11%	5.6%	8.1%	10%
ROE	11%	8.8%	7.4%	4.6%	13%	14%	12%	7.3%	12%	15%

What is the average Net Margin?

The average Net Margin over the past 5 years is +8.85%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.14%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +9.2%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.6%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +10.34%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.56%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2014	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	TTM
Debt FCF	-	-	-	-	-	0.00	0.79	2.93	-103.58	5.69
Debt Equity	-	-	-	-	-	0.00	0.08	0.25	0.47	0.48
MIN
Graham Stability	-	-	82%	52%	100%	100%	100%	58%	100%	52%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 5.69.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -30.86.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.52.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2015	12-2017	12-2019	12-2021	Trend
Revenue	4.4%	5.1%	7%	13%	0.97%
Net Income	5.6%	22%	-4.9%	56%	0.046%
Stockholders Equity	0.95%	0.49%	-0.58%	-5.5%	-0.89%
FCF	-	-	-	-	-6%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +5.14%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.97%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +21.65%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +0.05%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +0.49%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.89%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -6.05%.