NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
USA - NYSE:NHI - US63633D1046 - REIT
74.72 USD
+0.21 (+0.28%)
74.72 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NHI. NHI was compared to 127 industry peers in the Diversified REITs industry. While NHI has a great profitability rating, there are some minor concerns on its financial health. NHI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NHI had positive earnings in the past year.
NHI had a positive operating cash flow in the past year.
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 Return On Assets of 5.30%. This is amongst the best in the industry. NHI outperforms 96.85% of its industry peers.
NHI has a better Return On Equity (9.65%) than 87.40% of its industry peers.
The Return On Invested Capital of NHI (5.74%) is better than 96.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NHI is above the industry average of 3.06%.
The last Return On Invested Capital (5.74%) for NHI is above the 3 year average (5.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 9.65% | ||
| ROIC | 5.74% |
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 40.95% is amongst the best of the industry. NHI outperforms 92.91% of its industry peers.
In the last couple of years the Profit Margin of NHI has declined.
Looking at the Operating Margin, with a value of 54.59%, NHI belongs to the top of the industry, outperforming 95.28% 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 84.46%, NHI belongs to the top of the industry, outperforming 85.04% 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 | 54.59% | ||
| PM (TTM) | 40.95% | ||
| GM | 84.46% |
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.
NHI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NHI has been increased compared to 5 years ago.
Compared to 1 year ago, NHI has an improved debt to assets ratio.
2.2 Solvency
NHI has an Altman-Z score of 1.93. 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.
With an excellent Altman-Z score value of 1.93, NHI belongs to the best of the industry, outperforming 94.49% of the companies in the same industry.
NHI has a Debt/Equity ratio of 0.76. This is a neutral value indicating NHI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, NHI is in the better half of the industry, outperforming 75.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.93 |
ROIC/WACC0.76
WACC7.56%
2.3 Liquidity
A Current Ratio of 1.49 indicates that NHI should not have too much problems paying its short term obligations.
NHI has a Current ratio of 1.49. This is in the better half of the industry: NHI outperforms 66.93% of its industry peers.
A Quick Ratio of 1.49 indicates that NHI should not have too much problems paying its short term obligations.
NHI has a better Quick ratio (1.49) than 67.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.70% over the past year.
The Earnings Per Share has been decreasing by -4.49% on average over the past years.
Looking at the last year, NHI shows a small growth in Revenue. The Revenue has grown by 6.93% in the last year.
The Revenue has been growing slightly by 1.05% on average over the past years.
EPS 1Y (TTM)1.7%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%-2.47%
Revenue 1Y (TTM)6.93%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%6.7%
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 11.22% yearly.
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
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
With a Price/Earnings ratio of 24.99, NHI is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of NHI indicates a somewhat cheap valuation: NHI is cheaper than 70.08% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NHI to the average of the S&P500 Index (26.51), we can say NHI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.57, the valuation of NHI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, NHI is valued cheaply inside the industry as 87.40% of the companies are valued more expensively.
NHI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.99 | ||
| Fwd PE | 22.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NHI is valued a bit more expensive than the industry average as 74.80% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.48 |
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)7.6
PEG (5Y)N/A
EPS Next 2Y5.4%
EPS Next 3Y4.81%
5. Dividend
5.1 Amount
NHI has a Yearly Dividend Yield of 4.89%, which is a nice return.
Compared to an average industry Dividend Yield of 6.40, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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 113.12% of its income as dividend. This is not a sustainable payout ratio.
DP113.12%
EPS Next 2Y5.4%
EPS Next 3Y4.81%
74.72
+0.21 (+0.28%)
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-1.38%
Ins Owners1.94%
Ins Owner Change0.24%
Market Cap3.55B
Revenue(TTM)348.66M
Net Income(TTM)142.78M
Analysts78.18
Price Target85.24 (14.08%)
Short Float %3.8%
Short Ratio8.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
Yearly Dividend3.51
Dividend Growth(5Y)-3.12%
DP113.12%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.1%
Min EPS beat(2)-0.09%
Max EPS beat(2)4.29%
EPS beat(4)2
Avg EPS beat(4)-0.31%
Min EPS beat(4)-12.08%
Max EPS beat(4)6.65%
EPS beat(8)5
Avg EPS beat(8)1.6%
EPS beat(12)7
Avg EPS beat(12)-4.85%
EPS beat(16)7
Avg EPS beat(16)-18.44%
Revenue beat(2)2
Avg Revenue beat(2)3.79%
Min Revenue beat(2)3.26%
Max Revenue beat(2)4.31%
Revenue beat(4)4
Avg Revenue beat(4)3.81%
Min Revenue beat(4)3.26%
Max Revenue beat(4)4.31%
Revenue beat(8)8
Avg Revenue beat(8)3.62%
Revenue beat(12)10
Avg Revenue beat(12)1.94%
Revenue beat(16)11
Avg Revenue beat(16)-0.14%
PT rev (1m)1.92%
PT rev (3m)3.33%
EPS NQ rev (1m)-6.87%
EPS NQ rev (3m)-5.7%
EPS NY rev (1m)-1.69%
EPS NY rev (3m)-1.5%
Revenue NQ rev (1m)-2.83%
Revenue NQ rev (3m)-6.25%
Revenue NY rev (1m)-0.89%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.99 | ||
| Fwd PE | 22.57 | ||
| P/S | 10.17 | ||
| P/FCF | N/A | ||
| P/OCF | 16.69 | ||
| P/B | 2.4 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 17.48 |
EPS(TTM)2.99
EY4%
EPS(NY)3.31
Fwd EY4.43%
FCF(TTM)-1.04
FCFYN/A
OCF(TTM)4.48
OCFY5.99%
SpS7.34
BVpS31.17
TBVpS31.17
PEG (NY)7.6
PEG (5Y)N/A
Graham Number45.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 9.65% | ||
| ROCE | 7.26% | ||
| ROIC | 5.74% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 5.81% | ||
| OM | 54.59% | ||
| PM (TTM) | 40.95% | ||
| GM | 84.46% | ||
| 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-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 346.64% | ||
| Cap/Sales | 75.09% | ||
| Interest Coverage | 3.52 | ||
| Cash Conversion | 79.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 1.93 |
F-Score7
WACC7.56%
ROIC/WACC0.76
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)1.7%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%-2.47%
EPS Next Y3.29%
EPS Next 2Y5.4%
EPS Next 3Y4.81%
EPS Next 5YN/A
Revenue 1Y (TTM)6.93%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%6.7%
Revenue Next Year8.78%
Revenue Next 2Y9.68%
Revenue Next 3Y9.31%
Revenue Next 5Y11.22%
EBIT growth 1Y3.44%
EBIT growth 3Y0.41%
EBIT growth 5Y-3.04%
EBIT Next Year56.93%
EBIT Next 3Y21.36%
EBIT Next 5Y14.14%
FCF growth 1Y-137.4%
FCF growth 3Y-26.33%
FCF growth 5Y24.64%
OCF growth 1Y23.98%
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 5 / 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 4 / 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 113.12%.