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.
Discounted Cash Flow Valuation of National Instruments Corp
In the chart Earnings are multiplied by this value.
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 average Net Margin over the past 5 years is +8.85%.
The trend of Net Margin over the past 5 years is +0.14%.
The average ROA over the past 5 years is +9.2%.
The trend of ROA over the past 5 years is -0.6%.
The average ROE over the past 5 years is +10.34%.
The trend of ROE over the past 5 years is +0.56%.
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 Debt/FCF trailing twelve month is 5.69.
The trend of Debt/FCF over the past 5 years is -30.86.
Graham’s Stability measure stands at 0.52.
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.
The Revenue CAGR over the past 5 years is +5.14%.
The trend of Revenue growth rate over the past 5 years is +0.97%.
The Earnings CAGR over the past 5 years is +21.65%.
The trend of Earnings growth rate over the past 5 years is +0.05%.
The Equity CAGR over the past 5 years is +0.49%.
The trend of Equity growth rate over the past 5 years is -0.89%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is -6.05%.