NATIONAL HEALTHCARE CORP (NHC) Stock Fundamental Analysis
NYSEARCA:NHC - NYSE Arca - US6359061008 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to NHC. NHC was compared to 103 industry peers in the Health Care Providers & Services industry. NHC scores excellent on profitability, but there are some minor concerns on its financial health. NHC has a valuation in line with the averages, but it does not seem to be growing. NHC also has an excellent dividend rating. These ratings would make NHC suitable for dividend investing!
1. Profitability
1.1 Basic Checks
NHC had positive earnings in the past year.
NHC had a positive operating cash flow in the past year.
Each year in the past 5 years NHC has been profitable.
Each year in the past 5 years NHC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NHC (6.97%) is better than 86.41% of its industry peers.
NHC has a better Return On Equity (10.74%) than 74.76% of its industry peers.
The Return On Invested Capital of NHC (5.95%) is better than 62.14% of its industry peers.
NHC had an Average Return On Invested Capital over the past 3 years of 3.68%. This is significantly below the industry average of 9.71%.
The 3 year average ROIC (3.68%) for NHC is below the current ROIC(5.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 10.74% | ||
| ROIC | 5.95% |
ROA(3y)4.51%
ROA(5y)5.3%
ROE(3y)6.77%
ROE(5y)8.19%
ROIC(3y)3.68%
ROIC(5y)4.6%
1.3 Margins
NHC has a Profit Margin of 7.80%. This is amongst the best in the industry. NHC outperforms 88.35% of its industry peers.
In the last couple of years the Profit Margin of NHC has grown nicely.
With a decent Operating Margin value of 7.59%, NHC is doing good in the industry, outperforming 72.82% of the companies in the same industry.
In the last couple of years the Operating Margin of NHC has grown nicely.
NHC has a better Gross Margin (38.15%) than 65.05% of its industry peers.
NHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.59% | ||
| PM (TTM) | 7.8% | ||
| GM | 38.15% |
OM growth 3Y-3.24%
OM growth 5Y5.6%
PM growth 3Y-15.45%
PM growth 5Y2.63%
GM growth 3Y-3.62%
GM growth 5Y-1.28%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NHC is destroying value.
NHC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NHC has more shares outstanding
The debt/assets ratio for NHC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.75 indicates that NHC is not in any danger for bankruptcy at the moment.
The Altman-Z score of NHC (3.75) is better than 71.84% of its industry peers.
The Debt to FCF ratio of NHC is 1.23, which is an excellent value as it means it would take NHC, only 1.23 years of fcf income to pay off all of its debts.
NHC has a Debt to FCF ratio of 1.23. This is amongst the best in the industry. NHC outperforms 85.44% of its industry peers.
NHC has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NHC (0.13) is better than 71.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 3.75 |
ROIC/WACC0.67
WACC8.85%
2.3 Liquidity
A Current Ratio of 1.90 indicates that NHC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.90, NHC is in the better half of the industry, outperforming 72.82% of the companies in the same industry.
NHC has a Quick Ratio of 1.87. This is a normal value and indicates that NHC is financially healthy and should not expect problems in meeting its short term obligations.
NHC has a better Quick ratio (1.87) than 70.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.34% over the past year.
NHC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.03% yearly.
NHC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.37%.
NHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.58% yearly.
EPS 1Y (TTM)31.34%
EPS 3Y-10.09%
EPS 5Y8.03%
EPS Q2Q%22.3%
Revenue 1Y (TTM)18.37%
Revenue growth 3Y6.76%
Revenue growth 5Y5.58%
Sales Q2Q%25.75%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.94 indicates a correct valuation of NHC.
79.61% of the companies in the same industry are more expensive than NHC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. NHC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.94 | ||
| Fwd PE | N/A |
4.2 Price Multiples
NHC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NHC is cheaper than 71.84% of the companies in the same industry.
74.76% of the companies in the same industry are more expensive than NHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.64 | ||
| EV/EBITDA | 9.06 |
4.3 Compensation for Growth
The excellent profitability rating of NHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.86
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.46%, NHC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.50, NHC pays a better dividend. On top of this NHC pays more dividend than 93.20% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, NHC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
5.2 History
The dividend of NHC has a limited annual growth rate of 3.30%.
NHC has paid a dividend for at least 10 years, which is a reliable track record.
NHC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.3%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
34.59% of the earnings are spent on dividend by NHC. This is a low number and sustainable payout ratio.
The dividend of NHC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.59%
EPS Next 2YN/A
EPS Next 3YN/A
103.26
-0.77 (-0.74%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners59.73%
Inst Owner Change0%
Ins Owners6.99%
Ins Owner Change1.48%
Market Cap1.60B
Analysts60
Price TargetN/A
Short Float %2.08%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend2.4
Dividend Growth(5Y)3.3%
DP34.59%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.94 | ||
| Fwd PE | N/A | ||
| P/S | 1.15 | ||
| P/FCF | 14.64 | ||
| P/OCF | 11.67 | ||
| P/B | 1.59 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 9.06 |
EPS(TTM)6.91
EY6.69%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)7.05
FCFY6.83%
OCF(TTM)8.85
OCFY8.57%
SpS89.46
BVpS64.96
TBVpS52.65
PEG (NY)N/A
PEG (5Y)1.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 10.74% | ||
| ROCE | 8.02% | ||
| ROIC | 5.95% | ||
| ROICexc | 7.31% | ||
| ROICexgc | 8.89% | ||
| OM | 7.59% | ||
| PM (TTM) | 7.8% | ||
| GM | 38.15% | ||
| FCFM | 7.89% |
ROA(3y)4.51%
ROA(5y)5.3%
ROE(3y)6.77%
ROE(5y)8.19%
ROIC(3y)3.68%
ROIC(5y)4.6%
ROICexc(3y)4.49%
ROICexc(5y)5.97%
ROICexgc(3y)5.54%
ROICexgc(5y)6.99%
ROCE(3y)4.96%
ROCE(5y)6.21%
ROICexcg growth 3Y-4%
ROICexcg growth 5Y11.11%
ROICexc growth 3Y-3.17%
ROICexc growth 5Y7.37%
OM growth 3Y-3.24%
OM growth 5Y5.6%
PM growth 3Y-15.45%
PM growth 5Y2.63%
GM growth 3Y-3.62%
GM growth 5Y-1.28%
F-Score6
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.23 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 65.56% | ||
| Cap/Sales | 2.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.91% | ||
| Profit Quality | 101.12% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | 3.75 |
F-Score6
WACC8.85%
ROIC/WACC0.67
Cap/Depr(3y)68.9%
Cap/Depr(5y)71.13%
Cap/Sales(3y)2.45%
Cap/Sales(5y)2.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.34%
EPS 3Y-10.09%
EPS 5Y8.03%
EPS Q2Q%22.3%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.37%
Revenue growth 3Y6.76%
Revenue growth 5Y5.58%
Sales Q2Q%25.75%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y66.59%
EBIT growth 3Y3.3%
EBIT growth 5Y11.5%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y392.06%
FCF growth 3Y51.34%
FCF growth 5Y1.58%
OCF growth 1Y173.52%
OCF growth 3Y19.81%
OCF growth 5Y1.4%