NATIONAL HEALTHCARE CORP (NHC) Stock Fundamental Analysis
NYSEARCA:NHC - NYSE Arca - US6359061008 - Common Stock - Currency: USD
Taking everything into account, NHC scores 6 out of 10 in our fundamental rating. NHC was compared to 108 industry peers in the Health Care Providers & Services industry. While NHC has a great health rating, its profitability is only average at the moment. NHC is valued correctly, but it does not seem to be growing.
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.
In the past 5 years NHC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.95%, NHC belongs to the top of the industry, outperforming 91.59% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.63%, NHC is in the better half of the industry, outperforming 79.44% of the companies in the same industry.
NHC has a Return On Invested Capital of 4.54%. This is comparable to the rest of the industry: NHC outperforms 55.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NHC is below the industry average of 8.14%.
The 3 year average ROIC (3.69%) for NHC is below the current ROIC(4.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 12.63% | ||
| ROIC | 4.54% |
ROA(3y)5.58%
ROA(5y)5.02%
ROE(3y)8.42%
ROE(5y)7.86%
ROIC(3y)3.69%
ROIC(5y)4.24%
1.3 Margins
NHC has a Profit Margin of 10.03%. This is amongst the best in the industry. NHC outperforms 94.39% of its industry peers.
NHC's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 6.55%, NHC is in the better half of the industry, outperforming 70.09% of the companies in the same industry.
In the last couple of years the Operating Margin of NHC has declined.
The Gross Margin of NHC (38.40%) is better than 65.42% of its industry peers.
NHC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.55% | ||
| PM (TTM) | 10.03% | ||
| GM | 38.4% |
OM growth 3Y-18.96%
OM growth 5Y-4.08%
PM growth 3Y12.84%
PM growth 5Y-0.55%
GM growth 3Y-3.79%
GM growth 5Y-1.51%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NHC is destroying value.
NHC has about the same amout of shares outstanding than it did 1 year ago.
NHC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NHC has been reduced compared to a year ago.
2.2 Solvency
NHC has an Altman-Z score of 3.33. This indicates that NHC is financially healthy and has little risk of bankruptcy at the moment.
NHC has a Altman-Z score of 3.33. This is in the better half of the industry: NHC outperforms 71.03% of its industry peers.
NHC has a debt to FCF ratio of 1.59. This is a very positive value and a sign of high solvency as it would only need 1.59 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.59, NHC belongs to the top of the industry, outperforming 86.92% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that NHC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.14, NHC is doing good in the industry, outperforming 70.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | 3.33 |
ROIC/WACC0.5
WACC9.13%
2.3 Liquidity
A Current Ratio of 1.80 indicates that NHC should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.80, NHC is doing good in the industry, outperforming 65.42% of the companies in the same industry.
NHC has a Quick Ratio of 1.77. This is a normal value and indicates that NHC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.77, NHC is in the better half of the industry, outperforming 64.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
NHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 173.50%, which is quite impressive.
NHC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.39% yearly.
Looking at the last year, NHC shows a quite strong growth in Revenue. The Revenue has grown by 12.10% in the last year.
The Revenue has been growing slightly by 3.09% on average over the past years.
EPS 1Y (TTM)173.5%
EPS 3Y16.83%
EPS 5Y2.39%
EPS Q2Q%302.89%
Revenue 1Y (TTM)12.1%
Revenue growth 3Y3.55%
Revenue growth 5Y3.09%
Sales Q2Q%17.93%
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
Based on the Price/Earnings ratio of 11.74, the valuation of NHC can be described as reasonable.
Based on the Price/Earnings ratio, NHC is valued cheaply inside the industry as 86.92% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. NHC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| 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 76.64% of the companies in the same industry.
80.37% 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 | 15.69 | ||
| EV/EBITDA | 9.89 |
4.3 Compensation for Growth
NHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.91
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.42%, NHC has a reasonable but not impressive dividend return.
The stock price of NHC dropped by -25.92% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
NHC's Dividend Yield is rather good when compared to the industry average which is at 2.95. NHC pays more dividend than 90.65% of the companies in the same industry.
NHC's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
The dividend of NHC has a limited annual growth rate of 3.42%.
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)3.42%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
29.44% of the earnings are spent on dividend by NHC. This is a low number and sustainable payout ratio.
NHC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.44%
EPS Next 2YN/A
EPS Next 3YN/A
93.7
-2.67 (-2.77%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners57.11%
Inst Owner Change-0.11%
Ins Owners11.43%
Ins Owner Change-2.61%
Market Cap1.45B
Analysts60
Price TargetN/A
Short Float %2.84%
Short Ratio6.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend2.32
Dividend Growth(5Y)3.42%
DP29.44%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
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 | 11.74 | ||
| Fwd PE | N/A | ||
| P/S | 1.17 | ||
| P/FCF | 15.69 | ||
| P/OCF | 12.03 | ||
| P/B | 1.47 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 9.89 |
EPS(TTM)7.98
EY8.52%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)5.97
FCFY6.37%
OCF(TTM)7.79
OCFY8.31%
SpS80.24
BVpS63.7
TBVpS51.42
PEG (NY)N/A
PEG (5Y)4.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 12.63% | ||
| ROCE | 6.17% | ||
| ROIC | 4.54% | ||
| ROICexc | 5.6% | ||
| ROICexgc | 6.81% | ||
| OM | 6.55% | ||
| PM (TTM) | 10.03% | ||
| GM | 38.4% | ||
| FCFM | 7.44% |
ROA(3y)5.58%
ROA(5y)5.02%
ROE(3y)8.42%
ROE(5y)7.86%
ROIC(3y)3.69%
ROIC(5y)4.24%
ROICexc(3y)4.66%
ROICexc(5y)5.54%
ROICexgc(3y)5.81%
ROICexgc(5y)6.31%
ROCE(3y)5.02%
ROCE(5y)5.77%
ROICexcg growth 3Y-14.56%
ROICexcg growth 5Y-0.52%
ROICexc growth 3Y-19.95%
ROICexc growth 5Y-4.34%
OM growth 3Y-18.96%
OM growth 5Y-4.08%
PM growth 3Y12.84%
PM growth 5Y-0.55%
GM growth 3Y-3.79%
GM growth 5Y-1.51%
F-Score4
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.59 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | 66.28% | ||
| Cap/Sales | 2.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.39% | ||
| Profit Quality | 74.21% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 3.33 |
F-Score4
WACC9.13%
ROIC/WACC0.5
Cap/Depr(3y)79.28%
Cap/Depr(5y)70.43%
Cap/Sales(3y)2.96%
Cap/Sales(5y)2.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)173.5%
EPS 3Y16.83%
EPS 5Y2.39%
EPS Q2Q%302.89%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.1%
Revenue growth 3Y3.55%
Revenue growth 5Y3.09%
Sales Q2Q%17.93%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y90%
EBIT growth 3Y-16.08%
EBIT growth 5Y-1.12%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y456.58%
FCF growth 3Y-22.84%
FCF growth 5Y3.94%
OCF growth 1Y875.16%
OCF growth 3Y-18.21%
OCF growth 5Y2.47%