NATL HEALTH INVESTORS INC (NHI)
US63633D1046 - REIT
We assign a fundamental rating of 6 out of 10 to NHI. NHI was compared to 130 industry peers in the Diversified REITs industry. NHI has an excellent profitability rating, but there are some minor concerns on its financial health. NHI has a decent growth rate and is not valued too expensively.
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.
In the past 5 years NHI has always been profitable.
NHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.15%, NHI belongs to the top of the industry, outperforming 92.97% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.31%, NHI belongs to the top of the industry, outperforming 88.28% of the companies in the same industry.
The Return On Invested Capital of NHI (6.13%) is better than 96.88% of its industry peers.
NHI had an Average Return On Invested Capital over the past 3 years of 5.26%. This is above the industry average of 3.08%.
The 3 year average ROIC (5.26%) for NHI is below the current ROIC(6.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 10.31% | ||
| ROIC | 6.13% |
ROA(3y)4.01%
ROA(5y)4.65%
ROE(3y)7.82%
ROE(5y)9.28%
ROIC(3y)5.26%
ROIC(5y)5.5%
1.3 Margins
NHI's Profit Margin of 38.52% is amongst the best of the industry. NHI outperforms 90.63% of its industry peers.
In the last couple of years the Profit Margin of NHI has declined.
With an excellent Operating Margin value of 56.37%, NHI belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
In the last couple of years the Operating Margin of NHI has declined.
Looking at the Gross Margin, with a value of 83.99%, NHI belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
In the last couple of years the Gross Margin of NHI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 56.37% | ||
| PM (TTM) | 38.52% | ||
| GM | 83.99% |
OM growth 3Y-6.18%
OM growth 5Y-4.71%
PM growth 3Y-8.65%
PM growth 5Y-4.14%
GM growth 3Y-4.71%
GM growth 5YN/A
2. Health
2.1 Basic Checks
NHI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NHI remains at a similar level 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
NHI has an Altman-Z score of 1.72. This is a bad value and indicates that NHI is not financially healthy and even has some risk of bankruptcy.
NHI has a Altman-Z score of 1.72. This is amongst the best in the industry. NHI outperforms 93.75% of its industry peers.
NHI has a debt to FCF ratio of 6.02. This is a slightly negative value and a sign of low solvency as NHI would need 6.02 years to pay back of all of its debts.
NHI has a Debt to FCF ratio of 6.02. This is amongst the best in the industry. NHI outperforms 96.09% of its industry peers.
A Debt/Equity ratio of 0.92 indicates that NHI is somewhat dependend on debt financing.
NHI's Debt to Equity ratio of 0.92 is fine compared to the rest of the industry. NHI outperforms 63.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.8
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.51 indicates that NHI should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.51, NHI is doing good in the industry, outperforming 62.50% of the companies in the same industry.
NHI has a Quick Ratio of 1.51. This is a normal value and indicates that NHI is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NHI (1.51) is better than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.75% over the past year.
Measured over the past years, NHI shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.34% on average per year.
NHI shows a small growth in Revenue. In the last year, the Revenue has grown by 5.74%.
Measured over the past years, NHI shows a small growth in Revenue. The Revenue has been growing by 1.66% on average per year.
EPS 1Y (TTM)19.75%
EPS 3Y-8.83%
EPS 5Y-3.34%
EPS Q2Q%-4.41%
Revenue 1Y (TTM)5.74%
Revenue growth 3Y-1.32%
Revenue growth 5Y1.66%
Sales Q2Q%3.54%
3.2 Future
The Earnings Per Share is expected to grow by 2.01% on average over the next years.
The Revenue is expected to grow by 17.65% on average over the next years. This is quite good.
EPS Next Y-4.74%
EPS Next 2Y0.47%
EPS Next 3Y2.01%
EPS Next 5YN/A
Revenue Next Year2.82%
Revenue Next 2Y7.77%
Revenue Next 3Y10.49%
Revenue Next 5Y17.65%
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 23.84 indicates a rather expensive valuation of NHI.
Based on the Price/Earnings ratio, NHI is valued a bit cheaper than the industry average as 77.34% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.54, NHI is valued at the same level.
With a Price/Forward Earnings ratio of 21.96, NHI is valued on the expensive side.
88.28% of the companies in the same industry are more expensive than NHI, based on the Price/Forward Earnings ratio.
NHI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.84 | ||
| Fwd PE | 21.96 |
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 71.09% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NHI is valued a bit cheaper than 78.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.68 | ||
| EV/EBITDA | 16.74 |
4.3 Compensation for Growth
The excellent profitability rating of NHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.47%
EPS Next 3Y2.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.23%, NHI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 16.05, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
5.2 History
The dividend of NHI decreases each year by -1.74%.
NHI has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of NHI decreased in the last 3 years.
Dividend Growth(5Y)-1.74%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
123.37% of the earnings are spent on dividend by NHI. This is not a sustainable payout ratio.
DP123.37%
EPS Next 2Y0.47%
EPS Next 3Y2.01%
NATL HEALTH INVESTORS INC
NYSE:NHI (12/24/2024, 7:28:02 PM)
After market: 69.38 0 (0%)69.38
+0.32 (+0.46%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners62.01%
Inst Owner Change8.76%
Ins Owners2.15%
Ins Owner Change17.9%
Market Cap3.15B
Analysts76.67
Price Target86.7 (24.96%)
Short Float %5.14%
Short Ratio8.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
Dividend Growth(5Y)-1.74%
DP123.37%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.48%
Min EPS beat(2)-12.08%
Max EPS beat(2)9.11%
EPS beat(4)3
Avg EPS beat(4)2.12%
Min EPS beat(4)-12.08%
Max EPS beat(4)9.11%
EPS beat(8)4
Avg EPS beat(8)-8.67%
EPS beat(12)5
Avg EPS beat(12)-21.73%
EPS beat(16)5
Avg EPS beat(16)-21.59%
Revenue beat(2)2
Avg Revenue beat(2)3.55%
Min Revenue beat(2)3.42%
Max Revenue beat(2)3.68%
Revenue beat(4)4
Avg Revenue beat(4)3.1%
Min Revenue beat(4)0.3%
Max Revenue beat(4)5.02%
Revenue beat(8)6
Avg Revenue beat(8)0.96%
Revenue beat(12)8
Avg Revenue beat(12)-1.2%
Revenue beat(16)8
Avg Revenue beat(16)-1.43%
PT rev (1m)-1%
PT rev (3m)14.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.24%
EPS NY rev (1m)-0.81%
EPS NY rev (3m)-2.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.42%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.84 | ||
| Fwd PE | 21.96 | ||
| P/S | 9.58 | ||
| P/FCF | 16.68 | ||
| P/OCF | 15.49 | ||
| P/B | 2.56 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 16.74 |
EPS(TTM)2.91
EY4.19%
EPS(NY)3.16
Fwd EY4.55%
FCF(TTM)4.16
FCFY5.99%
OCF(TTM)4.48
OCFY6.46%
SpS7.24
BVpS27.06
TBVpS27.06
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 10.31% | ||
| ROCE | 7.76% | ||
| ROIC | 6.13% | ||
| ROICexc | 6.17% | ||
| ROICexgc | 6.21% | ||
| OM | 56.37% | ||
| PM (TTM) | 38.52% | ||
| GM | 83.99% | ||
| FCFM | 57.44% |
ROA(3y)4.01%
ROA(5y)4.65%
ROE(3y)7.82%
ROE(5y)9.28%
ROIC(3y)5.26%
ROIC(5y)5.5%
ROICexc(3y)5.32%
ROICexc(5y)5.56%
ROICexgc(3y)5.35%
ROICexgc(5y)5.59%
ROCE(3y)6.66%
ROCE(5y)6.97%
ROICexcg growth 3Y-0.2%
ROICexcg growth 5Y-0.94%
ROICexc growth 3Y-0.26%
ROICexc growth 5Y-0.97%
OM growth 3Y-6.18%
OM growth 5Y-4.71%
PM growth 3Y-8.65%
PM growth 5Y-4.14%
GM growth 3Y-4.71%
GM growth 5YN/A
F-Score6
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 6.02 | ||
| Debt/EBITDA | 4.45 | ||
| Cap/Depr | 20.82% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 3.31 | ||
| Cash Conversion | 79.71% | ||
| Profit Quality | 149.12% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 1.72 |
F-Score6
WACC7.68%
ROIC/WACC0.8
Cap/Depr(3y)42.28%
Cap/Depr(5y)107.19%
Cap/Sales(3y)10.36%
Cap/Sales(5y)26.18%
Profit Quality(3y)173.77%
Profit Quality(5y)120.94%
High Growth Momentum
Growth
EPS 1Y (TTM)19.75%
EPS 3Y-8.83%
EPS 5Y-3.34%
EPS Q2Q%-4.41%
EPS Next Y-4.74%
EPS Next 2Y0.47%
EPS Next 3Y2.01%
EPS Next 5YN/A
Revenue 1Y (TTM)5.74%
Revenue growth 3Y-1.32%
Revenue growth 5Y1.66%
Sales Q2Q%3.54%
Revenue Next Year2.82%
Revenue Next 2Y7.77%
Revenue Next 3Y10.49%
Revenue Next 5Y17.65%
EBIT growth 1Y9.04%
EBIT growth 3Y-7.41%
EBIT growth 5Y-3.13%
EBIT Next Year64.34%
EBIT Next 3Y21.09%
EBIT Next 5Y13.95%
FCF growth 1Y1.02%
FCF growth 3Y3.35%
FCF growth 5Y13.39%
OCF growth 1Y5.74%
OCF growth 3Y-7.37%
OCF growth 5Y-2.37%