National Instruments Corp ($NATI) Confident Investor Rating: Poor

Company name National Instruments Corp
Stock ticker NATI
Live stock price [stckqut]NATI[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Poor
EPS growth Good
P/E growth Good
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $40.44
Target stock price (averages with growth) $35.44
Target stock price (averages with no growth) $25.64
Target stock price (manual assumptions) $39.02

The following company description is from Google Finance: http://www.google.com/finance?q=nati

National Instruments Corporation (NI) is engaged in designing, manufacturing and selling tools to engineers and scientists. These industries consist of a diverse market for design, control and test applications. The Company provides graphical application software and modular hardware to create measurement, automation and embedded systems. Its segment is based on geographic regions, which include the Americas, Europe and Asia Pacific. It offers a line of measurement and automation products that provides engineers and scientists to create automated test, industrial control, and embedded design applications. The Company’s products consist of off-the-shelf application software and modular, hardware components together with related driver software. In May 2011, it acquired Phase Matrix, Inc. (PMI). In July 2011, the Company acquired AWR Corporation.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in National Instruments Corp.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of National Instruments Corp calculated?

For owners of my book, "The Confident Investor" I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.

2 Comments

  1. Interesting.

    I would watch their acquisitions. Some of them are emerging markets such as software radio. Do not discount this as a motor for future growth.

    Disclaimer, I use their products, but I am not a shareholder.

  2. Author

    Dennis –

    I appreciate your perspective but there is a difference between a well-run company and a company with good products. You need good products to be successful but too often it requires more than just a great product.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.