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

Donald Bartholomew

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of National Instruments Corporation (NASDAQ:NATI), it is a highly-regarded dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on National Instruments here.

Flawless balance sheet average dividend payer

NATI’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. NATI currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is rather impressive for a US$5.73b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

NasdaqGS:NATI Historical Debt June 21st 18

NATI rewards its shareholders with attractive dividend yield, higher than the low-risk savings rate, which is what investors expect when they take on the risk of investing in the stock market.

NasdaqGS:NATI Historical Dividend Yield June 21st 18

Next Steps:

For National Instruments, there are three essential factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for NATI’s future growth? Take a look at our free research report of analyst consensus for NATI’s outlook.
  2. 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.
  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 pass 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.