NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NHI - US63633D1046 - REIT
79.41 USD
+0.64 (+0.81%)
79.41 USD
0 (0%)
Taking everything into account, NHI scores 6 out of 10 in our fundamental rating. NHI was compared to 128 industry peers in the Diversified REITs industry. NHI scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, NHI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
NHI had positive earnings in the past year.
In the past year NHI had a positive cash flow from operations.
NHI had positive earnings in each of the past 5 years.
In the past 5 years NHI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.47%, NHI belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
With an excellent Return On Equity value of 9.93%, NHI belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
NHI has a Return On Invested Capital of 5.68%. This is amongst the best in the industry. NHI outperforms 97.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NHI is above the industry average of 3.06%.
The last Return On Invested Capital (5.68%) for NHI is above the 3 year average (5.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 9.93% | ||
| ROIC | 5.68% |
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
Looking at the Profit Margin, with a value of 41.36%, NHI belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
NHI's Profit Margin has declined in the last couple of years.
NHI has a Operating Margin of 52.85%. This is amongst the best in the industry. NHI outperforms 93.75% of its industry peers.
NHI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 83.26%, NHI belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
NHI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.85% | ||
| PM (TTM) | 41.36% | ||
| GM | 83.26% |
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.
The number of shares outstanding for NHI has been increased compared to 5 years ago.
The debt/assets ratio for NHI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.05 indicates that NHI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.05, NHI belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
A Debt/Equity ratio of 0.75 indicates that NHI is somewhat dependend on debt financing.
The Debt to Equity ratio of NHI (0.75) is better than 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.05 |
ROIC/WACC0.75
WACC7.56%
2.3 Liquidity
A Current Ratio of 2.12 indicates that NHI has no problem at all paying its short term obligations.
The Current ratio of NHI (2.12) is better than 82.81% of its industry peers.
NHI has a Quick Ratio of 2.12. This indicates that NHI is financially healthy and has no problem in meeting its short term obligations.
NHI's Quick ratio of 2.12 is amongst the best of the industry. NHI outperforms 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.12% over the past year.
The Earnings Per Share has been decreasing by -4.49% on average over the past years.
The Revenue has grown by 8.11% in the past year. This is quite good.
Measured over the past years, NHI shows a small growth in Revenue. The Revenue has been growing by 1.05% on average per year.
EPS 1Y (TTM)4.12%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%6.15%
Revenue 1Y (TTM)8.11%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%8.32%
3.2 Future
The Earnings Per Share is expected to grow by 4.81% on average over the next years.
Based on estimates for the next years, NHI will show a quite strong growth in Revenue. The Revenue will grow by 11.22% on average per year.
EPS Next Y3.29%
EPS Next 2Y5.4%
EPS Next 3Y4.81%
EPS Next 5YN/A
Revenue Next Year8.78%
Revenue Next 2Y9.68%
Revenue Next 3Y9.31%
Revenue Next 5Y11.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.21, the valuation of NHI can be described as expensive.
Based on the Price/Earnings ratio, NHI is valued a bit cheaper than the industry average as 72.66% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NHI to the average of the S&P500 Index (25.98), we can say NHI is valued inline with the index average.
NHI is valuated rather expensively with a Price/Forward Earnings ratio of 23.99.
NHI's Price/Forward Earnings ratio is rather cheap when compared to the industry. NHI is cheaper than 85.94% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.79. NHI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 23.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NHI indicates a slightly more expensive valuation: NHI is more expensive than 76.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of NHI may justify a higher PE ratio.
PEG (NY)7.97
PEG (5Y)N/A
EPS Next 2Y5.4%
EPS Next 3Y4.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.71%, NHI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.59, NHI has a dividend in line with its industry peers.
NHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
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.
The dividend of NHI decreased in the last 3 years.
Dividend Growth(5Y)-3.12%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
112.27% of the earnings are spent on dividend by NHI. This is not a sustainable payout ratio.
DP112.27%
EPS Next 2Y5.4%
EPS Next 3Y4.81%
79.41
+0.64 (+0.81%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners75.16%
Inst Owner Change-1.12%
Ins Owners1.94%
Ins Owner Change0.34%
Market Cap3.77B
Revenue(TTM)355.56M
Net Income(TTM)147.08M
Analysts78.18
Price Target85.81 (8.06%)
Short Float %3.93%
Short Ratio8.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
Yearly Dividend3.51
Dividend Growth(5Y)-3.12%
DP112.27%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2%
Min EPS beat(2)-8.3%
Max EPS beat(2)4.29%
EPS beat(4)2
Avg EPS beat(4)0.64%
Min EPS beat(4)-8.3%
Max EPS beat(4)6.65%
EPS beat(8)5
Avg EPS beat(8)1.38%
EPS beat(12)6
Avg EPS beat(12)-5.57%
EPS beat(16)7
Avg EPS beat(16)-16.14%
Revenue beat(2)2
Avg Revenue beat(2)4.52%
Min Revenue beat(2)3.26%
Max Revenue beat(2)5.78%
Revenue beat(4)4
Avg Revenue beat(4)4.22%
Min Revenue beat(4)3.26%
Max Revenue beat(4)5.78%
Revenue beat(8)8
Avg Revenue beat(8)4.08%
Revenue beat(12)10
Avg Revenue beat(12)2.33%
Revenue beat(16)12
Avg Revenue beat(16)0.37%
PT rev (1m)2.59%
PT rev (3m)2.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 23.99 | ||
| P/S | 10.6 | ||
| P/FCF | N/A | ||
| P/OCF | 16.65 | ||
| P/B | 2.55 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 17.93 |
EPS(TTM)3.03
EY3.82%
EPS(NY)3.31
Fwd EY4.17%
FCF(TTM)-0.7
FCFYN/A
OCF(TTM)4.77
OCFY6.01%
SpS7.49
BVpS31.2
TBVpS31.2
PEG (NY)7.97
PEG (5Y)N/A
Graham Number46.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 9.93% | ||
| ROCE | 7.2% | ||
| ROIC | 5.68% | ||
| ROICexc | 5.87% | ||
| ROICexgc | 5.9% | ||
| OM | 52.85% | ||
| PM (TTM) | 41.36% | ||
| GM | 83.26% | ||
| 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%
ROICexgc growth 3Y3.22%
ROICexgc 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 Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.17 | ||
| Cap/Depr | 333.16% | ||
| Cap/Sales | 73.06% | ||
| Interest Coverage | 3.47 | ||
| Cash Conversion | 85.15% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 2.05 |
F-Score6
WACC7.56%
ROIC/WACC0.75
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)4.12%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%6.15%
EPS Next Y3.29%
EPS Next 2Y5.4%
EPS Next 3Y4.81%
EPS Next 5YN/A
Revenue 1Y (TTM)8.11%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%8.32%
Revenue Next Year8.78%
Revenue Next 2Y9.68%
Revenue Next 3Y9.31%
Revenue Next 5Y11.22%
EBIT growth 1Y1.36%
EBIT growth 3Y0.41%
EBIT growth 5Y-3.04%
EBIT Next Year56.93%
EBIT Next 3Y21.36%
EBIT Next 5Y14.14%
FCF growth 1Y-124.57%
FCF growth 3Y-26.33%
FCF growth 5Y24.64%
OCF growth 1Y27.55%
OCF growth 3Y-0.5%
OCF growth 5Y-2.92%
NATL HEALTH INVESTORS INC / NHI FAQ
What is the ChartMill fundamental rating of NATL HEALTH INVESTORS INC (NHI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NHI.
What is the valuation status of NATL HEALTH INVESTORS INC (NHI) stock?
ChartMill assigns a valuation rating of 3 / 10 to NATL HEALTH INVESTORS INC (NHI). This can be considered as Overvalued.
Can you provide the profitability details for NATL HEALTH INVESTORS INC?
NATL HEALTH INVESTORS INC (NHI) has a profitability rating of 8 / 10.
What is the financial health of NATL HEALTH INVESTORS INC (NHI) stock?
The financial health rating of NATL HEALTH INVESTORS INC (NHI) is 5 / 10.
How sustainable is the dividend of NATL HEALTH INVESTORS INC (NHI) stock?
The dividend rating of NATL HEALTH INVESTORS INC (NHI) is 4 / 10 and the dividend payout ratio is 112.27%.