NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
NYSE:NHI - New York Stock Exchange, Inc. - US63633D1046 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to NHI. NHI was compared to 129 industry peers in the Diversified REITs industry. NHI scores excellent on profitability, but there are some minor concerns on its financial health. NHI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NHI was profitable.
NHI had a positive operating cash flow in the past year.
Each year in the past 5 years NHI has been profitable.
In the past 5 years NHI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NHI (5.07%) is better than 93.80% of its industry peers.
NHI has a Return On Equity of 9.89%. This is amongst the best in the industry. NHI outperforms 87.60% of its industry peers.
NHI's Return On Invested Capital of 5.56% is amongst the best of the industry. NHI outperforms 93.80% of its industry peers.
NHI had an Average Return On Invested Capital over the past 3 years of 5.45%. This is above the industry average of 3.15%.
The 3 year average ROIC (5.45%) for NHI is below the current ROIC(5.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 9.89% | ||
| ROIC | 5.56% |
ROA(3y)4.46%
ROA(5y)4.65%
ROE(3y)8.71%
ROE(5y)9.16%
ROIC(3y)5.45%
ROIC(5y)5.5%
1.3 Margins
NHI's Profit Margin of 41.13% is amongst the best of the industry. NHI outperforms 91.47% of its industry peers.
NHI's Profit Margin has declined in the last couple of years.
NHI has a Operating Margin of 55.64%. This is amongst the best in the industry. NHI outperforms 95.35% of its industry peers.
In the last couple of years the Operating Margin of NHI has declined.
NHI has a better Gross Margin (84.22%) than 86.05% of its industry peers.
NHI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 55.64% | ||
| PM (TTM) | 41.13% | ||
| GM | 84.22% |
OM growth 3Y-3.37%
OM growth 5Y-4.05%
PM growth 3Y3.19%
PM growth 5Y-4%
GM growth 3Y-4.37%
GM growth 5Y-3.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NHI is destroying value.
The number of shares outstanding for NHI has been increased compared to 1 year ago.
Compared to 5 years ago, NHI has more shares outstanding
NHI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that NHI is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.70, NHI belongs to the best of the industry, outperforming 93.80% of the companies in the same industry.
NHI has a Debt/Equity ratio of 0.89. This is a neutral value indicating NHI is somewhat dependend on debt financing.
NHI's Debt to Equity ratio of 0.89 is fine compared to the rest of the industry. NHI outperforms 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.7 |
ROIC/WACC0.72
WACC7.73%
2.3 Liquidity
NHI has a Current Ratio of 3.23. This indicates that NHI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NHI (3.23) is better than 90.70% of its industry peers.
A Quick Ratio of 3.23 indicates that NHI has no problem at all paying its short term obligations.
NHI has a Quick ratio of 3.23. This is amongst the best in the industry. NHI outperforms 90.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.23 |
3. Growth
3.1 Past
NHI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.31%.
Measured over the past years, NHI shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.49% on average per year.
The Revenue has been growing slightly by 7.52% in the past year.
The Revenue has been growing slightly by 1.05% on average over the past years.
EPS 1Y (TTM)-1.31%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%4.23%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%9.55%
3.2 Future
Based on estimates for the next years, NHI will show a small growth in Earnings Per Share. The EPS will grow by 4.84% on average per year.
Based on estimates for the next years, NHI will show a quite strong growth in Revenue. The Revenue will grow by 19.50% on average per year.
EPS Next Y4.86%
EPS Next 2Y6.01%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue Next Year10.91%
Revenue Next 2Y11.46%
Revenue Next 3Y10.95%
Revenue Next 5Y19.5%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.65 indicates a rather expensive valuation of NHI.
77.52% of the companies in the same industry are more expensive than NHI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. NHI is around the same levels.
The Price/Forward Earnings ratio is 21.26, which indicates a rather expensive current valuation of NHI.
Based on the Price/Forward Earnings ratio, NHI is valued cheaper than 87.60% of the companies in the same industry.
NHI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.65 | ||
| Fwd PE | 21.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NHI is valued a bit more expensive than 70.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NHI does not grow enough to justify the current Price/Earnings ratio.
NHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.86
PEG (5Y)N/A
EPS Next 2Y6.01%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
NHI has a Yearly Dividend Yield of 5.06%, which is a nice return.
NHI's Dividend Yield is comparable with the industry average which is at 6.45.
NHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
5.2 History
The dividend of NHI decreases each year by -3.12%.
NHI has paid a dividend for at least 10 years, which is a reliable track record.
NHI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-3.12%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
NHI pays out 112.40% of its income as dividend. This is not a sustainable payout ratio.
DP112.4%
EPS Next 2Y6.01%
EPS Next 3Y4.84%
71.2
+0.11 (+0.15%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners69.75%
Inst Owner Change-0.01%
Ins Owners1.98%
Ins Owner Change4.36%
Market Cap3.32B
Analysts76.67
Price Target82.47 (15.83%)
Short Float %5.79%
Short Ratio9.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
Yearly Dividend3.51
Dividend Growth(5Y)-3.12%
DP112.4%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.28%
Min EPS beat(2)-0.09%
Max EPS beat(2)6.65%
EPS beat(4)2
Avg EPS beat(4)0.9%
Min EPS beat(4)-12.08%
Max EPS beat(4)9.11%
EPS beat(8)5
Avg EPS beat(8)5.07%
EPS beat(12)6
Avg EPS beat(12)-8.12%
EPS beat(16)6
Avg EPS beat(16)-19.11%
Revenue beat(2)2
Avg Revenue beat(2)3.92%
Min Revenue beat(2)3.52%
Max Revenue beat(2)4.31%
Revenue beat(4)4
Avg Revenue beat(4)3.85%
Min Revenue beat(4)3.42%
Max Revenue beat(4)4.31%
Revenue beat(8)7
Avg Revenue beat(8)2.47%
Revenue beat(12)9
Avg Revenue beat(12)-0.28%
Revenue beat(16)10
Avg Revenue beat(16)-0.58%
PT rev (1m)0.18%
PT rev (3m)-1.57%
EPS NQ rev (1m)-1.05%
EPS NQ rev (3m)-4.15%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-1.15%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.65 | ||
| Fwd PE | 21.26 | ||
| P/S | 9.69 | ||
| P/FCF | N/A | ||
| P/OCF | 15.58 | ||
| P/B | 2.33 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 16.87 |
EPS(TTM)3.01
EY4.23%
EPS(NY)3.35
Fwd EY4.7%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)4.57
OCFY6.42%
SpS7.35
BVpS30.55
TBVpS30.55
PEG (NY)4.86
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 9.89% | ||
| ROCE | 7.04% | ||
| ROIC | 5.56% | ||
| ROICexc | 5.85% | ||
| ROICexgc | 5.9% | ||
| OM | 55.64% | ||
| PM (TTM) | 41.13% | ||
| GM | 84.22% | ||
| FCFM | N/A |
ROA(3y)4.46%
ROA(5y)4.65%
ROE(3y)8.71%
ROE(5y)9.16%
ROIC(3y)5.45%
ROIC(5y)5.5%
ROICexc(3y)5.5%
ROICexc(5y)5.56%
ROICexgc(3y)5.53%
ROICexgc(5y)5.6%
ROCE(3y)6.9%
ROCE(5y)6.97%
ROICexcg growth 3Y3.22%
ROICexcg growth 5Y0.14%
ROICexc growth 3Y3.22%
ROICexc growth 5Y0.15%
OM growth 3Y-3.37%
OM growth 5Y-4.05%
PM growth 3Y3.19%
PM growth 5Y-4%
GM growth 3Y-4.37%
GM growth 5Y-3.06%
F-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.79 | ||
| Cap/Depr | 295.5% | ||
| Cap/Sales | 62.98% | ||
| Interest Coverage | 3.45 | ||
| Cash Conversion | 80.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.23 | ||
| Altman-Z | 1.7 |
F-Score6
WACC7.73%
ROIC/WACC0.72
Cap/Depr(3y)89.28%
Cap/Depr(5y)89.91%
Cap/Sales(3y)19.27%
Cap/Sales(5y)20.88%
Profit Quality(3y)140.72%
Profit Quality(5y)127.73%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.31%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%4.23%
EPS Next Y4.86%
EPS Next 2Y6.01%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue 1Y (TTM)7.52%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%9.55%
Revenue Next Year10.91%
Revenue Next 2Y11.46%
Revenue Next 3Y10.95%
Revenue Next 5Y19.5%
EBIT growth 1Y7.59%
EBIT growth 3Y0.41%
EBIT growth 5Y-3.04%
EBIT Next Year55.52%
EBIT Next 3Y18.19%
EBIT Next 5Y12.05%
FCF growth 1Y-101.94%
FCF growth 3Y-26.33%
FCF growth 5Y24.64%
OCF growth 1Y20.17%
OCF growth 3Y-0.5%
OCF growth 5Y-2.92%