NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NHI - US63633D1046 - REIT
78.22 USD
-0.04 (-0.05%)
78.22 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. 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.
In the past year NHI had a positive cash flow from operations.
Each year in the past 5 years NHI has been profitable.
Each year in the past 5 years NHI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.47%, NHI belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.93%, NHI belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
NHI has a better Return On Invested Capital (5.68%) than 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 3 year average ROIC (5.45%) for NHI is below the current ROIC(5.68%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 41.36%, NHI belongs to the best 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 better Operating Margin (52.85%) than 93.75% of its industry peers.
In the last couple of years the Operating Margin of NHI has declined.
NHI has a Gross Margin of 83.26%. This is amongst the best in the industry. NHI outperforms 82.81% 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
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.
NHI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NHI has an improved debt to assets ratio.
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.
The Altman-Z score of NHI (2.05) is better than 94.53% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that NHI is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.75, NHI is doing good in the industry, outperforming 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.05 |
ROIC/WACC0.75
WACC7.58%
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.
The Current ratio of NHI (2.12) is better than 82.81% of its industry peers.
A Quick Ratio of 2.12 indicates that NHI has no problem at all paying its short term obligations.
The Quick ratio of NHI (2.12) is better than 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.
NHI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.49% yearly.
The Revenue has grown by 8.11% in the past year. This is quite good.
NHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.05% yearly.
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
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
NHI is valuated quite expensively with a Price/Earnings ratio of 25.82.
Compared to the rest of the industry, the Price/Earnings ratio of NHI indicates a somewhat cheap valuation: NHI is cheaper than 73.44% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.15. NHI is around the same levels.
Based on the Price/Forward Earnings ratio of 23.63, the valuation of NHI can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NHI indicates a rather cheap valuation: NHI is cheaper than 88.28% of the companies listed in the same industry.
NHI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.82 | ||
| Fwd PE | 23.63 |
4.2 Price Multiples
76.56% of the companies in the same industry are cheaper than NHI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.88 |
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.
The excellent profitability rating of NHI may justify a higher PE ratio.
PEG (NY)7.85
PEG (5Y)N/A
EPS Next 2Y5.4%
EPS Next 3Y4.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.62%, NHI is a good candidate for dividend investing.
NHI's Dividend Yield is comparable with the industry average which is at 6.34.
Compared to an average S&P500 Dividend Yield of 2.32, NHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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 112.27% of its income as dividend. This is not a sustainable payout ratio.
DP112.27%
EPS Next 2Y5.4%
EPS Next 3Y4.81%
78.22
-0.04 (-0.05%)
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 Change0.75%
Market Cap3.73B
Revenue(TTM)355.56M
Net Income(TTM)147.08M
Analysts78.18
Price Target85.81 (9.7%)
Short Float %3.93%
Short Ratio9.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.82 | ||
| Fwd PE | 23.63 | ||
| P/S | 10.48 | ||
| P/FCF | N/A | ||
| P/OCF | 16.46 | ||
| P/B | 2.52 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 17.88 |
EPS(TTM)3.03
EY3.87%
EPS(NY)3.31
Fwd EY4.23%
FCF(TTM)-0.7
FCFYN/A
OCF(TTM)4.75
OCFY6.08%
SpS7.46
BVpS31.09
TBVpS31.09
PEG (NY)7.85
PEG (5Y)N/A
Graham Number46.04
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
WACC7.58%
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 5Y16.68%
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%.