145.73 USD
+2.5 (+1.75%)
145.73 USD
0 (0%)
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 has an excellent profitability rating, but there are some minor concerns on its financial health. NHC has a valuation in line with the averages, but on the other hand it scores bad on growth. NHC also has an excellent dividend rating. These ratings could make NHC a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
- In the past year NHC was profitable.
- In the past year NHC had a positive cash flow from operations.
- NHC had positive earnings in each of the past 5 years.
- Each year in the past 5 years NHC had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of NHC (6.71%) is better than 86.41% of its industry peers.
- NHC's Return On Equity of 10.26% is fine compared to the rest of the industry. NHC outperforms 73.79% of its industry peers.
- NHC has a better Return On Invested Capital (6.69%) than 66.02% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NHC is significantly below the industry average of 9.21%.
- The 3 year average ROIC (3.68%) for NHC is below the current ROIC(6.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 10.26% | ||
| ROIC | 6.69% |
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 7.19%. This is amongst the best in the industry. NHC outperforms 86.41% 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 7.99%, NHC is doing good in the industry, outperforming 75.73% 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 (38.11%) than 67.96% of its industry peers.
- In the last couple of years the Gross Margin of NHC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.99% | ||
| PM (TTM) | 7.19% | ||
| GM | 38.11% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NHC is destroying value.
- NHC has more 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 is higher compared to a year ago.
2.2 Solvency
- NHC has an Altman-Z score of 4.55. This indicates that NHC is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.55, NHC belongs to the best of the industry, outperforming 80.58% of the companies in the same industry.
- The Debt to FCF ratio of NHC is 0.93, which is an excellent value as it means it would take NHC, only 0.93 years of fcf income to pay off all of its debts.
- NHC has a better Debt to FCF ratio (0.93) than 90.29% of its industry peers.
- NHC has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
- NHC's Debt to Equity ratio of 0.10 is fine compared to the rest of the industry. NHC outperforms 74.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | 4.55 |
ROIC/WACC0.76
WACC8.84%
2.3 Liquidity
- NHC has a Current Ratio of 1.72. 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 Current ratio (1.72) than 68.93% of its industry peers.
- A Quick Ratio of 1.69 indicates that NHC should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.69, NHC is doing good in the industry, outperforming 70.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
- NHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.19%, which is quite good.
- NHC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.03% yearly.
- Looking at the last year, NHC shows a very strong growth in Revenue. The Revenue has grown by 22.82%.
- NHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.58% yearly.
EPS 1Y (TTM)13.19%
EPS 3Y-10.09%
EPS 5Y8.03%
EPS Q2Q%-11.88%
Revenue 1Y (TTM)22.82%
Revenue growth 3Y6.76%
Revenue growth 5Y5.58%
Sales Q2Q%24.7%
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
- NHC is valuated rather expensively with a Price/Earnings ratio of 21.72.
- NHC's Price/Earnings ratio is a bit cheaper when compared to the industry. NHC is cheaper than 69.90% of the companies in the same industry.
- NHC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.72 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NHC indicates a somewhat cheap valuation: NHC is cheaper than 66.99% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, NHC is valued a bit cheaper than the industry average as 69.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.02 | ||
| EV/EBITDA | 12.25 |
4.3 Compensation for Growth
- NHC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.7
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.77%, NHC has a reasonable but not impressive dividend return.
- NHC's Dividend Yield is rather good when compared to the industry average which is at 0.45. NHC pays more dividend than 91.26% of the companies in the same industry.
- NHC's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.3%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- 35.96% of the earnings are spent on dividend by NHC. This is a low number and sustainable payout ratio.
- NHC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.96%
EPS Next 2YN/A
EPS Next 3YN/A
NATIONAL HEALTHCARE CORP / NHC FAQ
What is the fundamental rating for NHC stock?
ChartMill assigns a fundamental rating of 6 / 10 to NHC.
Can you provide the valuation status for NATIONAL HEALTHCARE CORP?
ChartMill assigns a valuation rating of 4 / 10 to NATIONAL HEALTHCARE CORP (NHC). This can be considered as Fairly Valued.
How profitable is NATIONAL HEALTHCARE CORP (NHC) stock?
NATIONAL HEALTHCARE CORP (NHC) has a profitability rating of 8 / 10.
How sustainable is the dividend of NATIONAL HEALTHCARE CORP (NHC) stock?
The dividend rating of NATIONAL HEALTHCARE CORP (NHC) is 7 / 10 and the dividend payout ratio is 35.96%.