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National Instruments Corporation (NASDAQ:NATI): Commentary On Fundamentals

Tammie Asher

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on National Instruments Corporation (NASDAQ:NATI) due to its excellent fundamentals in more than one area. NATI is a financially-sound company with a a great history of dividend payments and a buoyant future outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on National Instruments here.

Flawless balance sheet with reasonable growth potential and pays a dividend

NATI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. Investors should not worry about NATI’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is rather impressive for a US$5.9b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

NASDAQGS:NATI Future Profit January 31st 19

NATI dishes out decent dividend payments over time, higher than the low-risk savings rate, which is what investors want in order to compensate them for the risk of holding a stock. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile.

NASDAQGS:NATI Historical Dividend Yield January 31st 19

Next Steps:

For National Instruments, I’ve put together three fundamental factors you should further examine:

  1. Historical Performance: What has NATI’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Valuation: What is NATI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NATI is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NATI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.