NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
USA - NYSE:NHI - US63633D1046 - REIT
79.23 USD
+0.97 (+1.24%)
79.23 USD
0 (0%)
NHI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 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
In the past year NHI was profitable.
NHI had a positive operating cash flow in the past year.
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
NHI has a Return On Assets of 5.30%. This is amongst the best in the industry. NHI outperforms 96.92% of its industry peers.
NHI has a Return On Equity of 9.65%. This is amongst the best in the industry. NHI outperforms 87.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.74%, NHI belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
NHI had an Average Return On Invested Capital over the past 3 years of 5.45%. This is above the industry average of 3.05%.
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 93.08% of its industry peers.
NHI's Profit Margin has declined in the last couple of years.
The Operating Margin of NHI (54.59%) is better than 95.38% of its industry peers.
NHI's Operating Margin has declined in the last couple of years.
The Gross Margin of NHI (84.46%) is better than 85.38% of its industry peers.
NHI's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NHI is destroying value.
Compared to 1 year ago, NHI has more shares outstanding
Compared to 5 years ago, NHI has more shares outstanding
The debt/assets ratio for NHI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.03 indicates that NHI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.03, NHI belongs to the best of the industry, outperforming 94.62% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that NHI is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.76, NHI is doing good in the industry, outperforming 74.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.03 |
ROIC/WACC0.76
WACC7.57%
2.3 Liquidity
NHI has a Current Ratio of 1.49. This is a normal value and indicates that NHI is financially healthy and should not expect problems in meeting its short term obligations.
NHI's Current ratio of 1.49 is fine compared to the rest of the industry. NHI outperforms 65.38% of its industry peers.
NHI has a Quick Ratio of 1.49. This is a normal value and indicates that NHI is financially healthy and should not expect problems in meeting its short term obligations.
NHI has a Quick ratio of 1.49. This is in the better half of the industry: NHI outperforms 66.15% 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.
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.
NHI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.93%.
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)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 4.84% yearly.
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 Y4.56%
EPS Next 2Y5.52%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue Next Year9.76%
Revenue Next 2Y10.05%
Revenue Next 3Y9.68%
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
The Price/Earnings ratio is 26.50, which means the current valuation is very expensive for NHI.
Based on the Price/Earnings ratio, NHI is valued a bit cheaper than the industry average as 71.54% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NHI to the average of the S&P500 Index (27.41), we can say NHI is valued inline with the index average.
A Price/Forward Earnings ratio of 23.88 indicates a rather expensive valuation of NHI.
Based on the Price/Forward Earnings ratio, NHI is valued cheaply inside the industry as 86.92% of the companies are valued more expensively.
NHI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.5 | ||
| Fwd PE | 23.88 |
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 78.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.28 |
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)5.81
PEG (5Y)N/A
EPS Next 2Y5.52%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
NHI has a Yearly Dividend Yield of 4.65%, which is a nice return.
NHI's Dividend Yield is comparable with the industry average which is at 6.66.
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 | 4.65% |
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.
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
NHI pays out 113.12% of its income as dividend. This is not a sustainable payout ratio.
DP113.12%
EPS Next 2Y5.52%
EPS Next 3Y4.84%
79.23
+0.97 (+1.24%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners70.27%
Inst Owner Change9.22%
Ins Owners1.98%
Ins Owner Change-0.1%
Market Cap3.76B
Analysts78.18
Price Target83.64 (5.57%)
Short Float %3.93%
Short Ratio8.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
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)2.14%
PT rev (3m)1.59%
EPS NQ rev (1m)1.27%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)-3.52%
Revenue NQ rev (3m)-3.89%
Revenue NY rev (1m)-1.04%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.5 | ||
| Fwd PE | 23.88 | ||
| P/S | 10.79 | ||
| P/FCF | N/A | ||
| P/OCF | 17.7 | ||
| P/B | 2.54 | ||
| P/tB | 2.54 | ||
| EV/EBITDA | 18.28 |
EPS(TTM)2.99
EY3.77%
EPS(NY)3.32
Fwd EY4.19%
FCF(TTM)-1.04
FCFYN/A
OCF(TTM)4.48
OCFY5.65%
SpS7.34
BVpS31.17
TBVpS31.17
PEG (NY)5.81
PEG (5Y)N/A
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%
ROICexcg growth 3Y3.22%
ROICexcg 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 | 2.03 |
F-Score7
WACC7.57%
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 Y4.56%
EPS Next 2Y5.52%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue 1Y (TTM)6.93%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%6.7%
Revenue Next Year9.76%
Revenue Next 2Y10.05%
Revenue Next 3Y9.68%
Revenue Next 5Y11.22%
EBIT growth 1Y3.44%
EBIT growth 3Y0.41%
EBIT growth 5Y-3.04%
EBIT Next Year56.72%
EBIT Next 3Y20.4%
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%