NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NHI - US63633D1046 - REIT
78.62 USD
-0.22 (-0.28%)
NHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 125 industry peers in the Diversified REITs industry. While NHI belongs to the best of the industry regarding profitability, 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
- In the past year NHI was profitable.
- In the past year NHI had a positive cash flow from operations.
- Each year in the past 5 years NHI has been profitable.
- NHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- NHI has a better Return On Assets (5.47%) than 96.80% of its industry peers.
- Looking at the Return On Equity, with a value of 9.93%, NHI belongs to the top of the industry, outperforming 84.80% of the companies in the same industry.
- The Return On Invested Capital of NHI (5.68%) is better than 97.60% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NHI is above the industry average of 3.07%.
- 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 92.80% of the companies in the same industry.
- In the last couple of years the Profit Margin of NHI has declined.
- NHI has a Operating Margin of 52.85%. This is amongst the best in the industry. NHI outperforms 94.40% of its industry peers.
- NHI's Operating Margin has declined in the last couple of years.
- The Gross Margin of NHI (83.26%) is better than 83.20% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
- NHI has an Altman-Z score of 2.06. This is not the best score and indicates that NHI is in the grey zone with still only limited risk for bankruptcy at the moment.
- NHI's Altman-Z score of 2.06 is amongst the best of the industry. NHI outperforms 95.20% of its industry peers.
- A Debt/Equity ratio of 0.75 indicates that NHI is somewhat dependend on debt financing.
- NHI's Debt to Equity ratio of 0.75 is fine compared to the rest of the industry. NHI outperforms 77.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.06 |
ROIC/WACC0.74
WACC7.72%
2.3 Liquidity
- NHI has a Current Ratio of 2.12. This indicates that NHI is financially healthy and has no problem in meeting its short term obligations.
- NHI's Current ratio of 2.12 is amongst the best of the industry. NHI outperforms 84.00% 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.
- The Quick ratio of NHI (2.12) is better than 84.00% 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.
- 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.
- Looking at the last year, NHI shows a quite strong growth in Revenue. The Revenue has grown by 8.11% in the last year.
- 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
- NHI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.81% yearly.
- NHI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.29% yearly.
EPS Next Y3.29%
EPS Next 2Y5.4%
EPS Next 3Y4.81%
EPS Next 5YN/A
Revenue Next Year9.62%
Revenue Next 2Y11.85%
Revenue Next 3Y11.26%
Revenue Next 5Y13.29%
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.
- 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 25.95, the valuation of NHI can be described as expensive.
- NHI's Price/Earnings ratio is a bit cheaper when compared to the industry. NHI is cheaper than 71.20% of the companies in the same industry.
- When comparing the Price/Earnings ratio of NHI to the average of the S&P500 Index (27.30), we can say NHI is valued inline with the index average.
- A Price/Forward Earnings ratio of 23.75 indicates a rather expensive valuation of NHI.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NHI indicates a rather cheap valuation: NHI is cheaper than 86.40% of the companies listed in the same industry.
- NHI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.95 | ||
| Fwd PE | 23.75 |
4.2 Price Multiples
- NHI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NHI is more expensive than 73.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.99 |
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)7.89
PEG (5Y)N/A
EPS Next 2Y5.4%
EPS Next 3Y4.81%
5. Dividend
5.1 Amount
- NHI has a Yearly Dividend Yield of 4.58%, which is a nice return.
- 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
5.2 History
- The dividend of NHI decreases each year by -3.12%.
- NHI has been paying a dividend for at least 10 years, so it has 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 112.27% of its income as dividend. This is not a sustainable payout ratio.
DP112.27%
EPS Next 2Y5.4%
EPS Next 3Y4.81%
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 for NHI stock?
ChartMill assigns a valuation rating of 3 / 10 to NATL HEALTH INVESTORS INC (NHI). This can be considered as Overvalued.
How profitable is NATL HEALTH INVESTORS INC (NHI) stock?
NATL HEALTH INVESTORS INC (NHI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of NATL HEALTH INVESTORS INC (NHI) stock?
The Price/Earnings (PE) ratio for NATL HEALTH INVESTORS INC (NHI) is 25.95 and the Price/Book (PB) ratio is 2.53.
Is the dividend of NATL HEALTH INVESTORS INC sustainable?
The dividend rating of NATL HEALTH INVESTORS INC (NHI) is 4 / 10 and the dividend payout ratio is 112.27%.