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Why National Instruments Corporation (NASDAQ:NATI) Is An Attractive Investment To Consider

Simply Wall St

Attractive stocks have exceptional fundamentals. In the case of National Instruments Corporation (NASDAQ:NATI), there's is a financially-healthy , dividend-paying company with a great history of performance. Below, I've touched on some key aspects you should know on a high level. 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.

Excellent balance sheet with proven track record and pays a dividend

NATI delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, NATI also outperformed its industry, which delivered a growth of 55%. This is what investors like to see! NATI's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that NATI has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Looking at NATI's capital structure, the company 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$5.9b 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 Income Statement, July 24th 2019

Income investors would also be happy to know that NATI is a great dividend company, with a current yield standing at 2.2%. NATI has also been regularly increasing its dividend payments to shareholders over the past decade.

NasdaqGS:NATI Historical Dividend Yield, July 24th 2019

Next Steps:

For National Instruments, I've compiled three key factors you should further examine:

  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. 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!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.