NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
USA - NYSE:NHI - US63633D1046 - REIT
77.85 USD
+0.7 (+0.91%)
77.7 USD
-0.15 (-0.19%)
Taking everything into account, NHI scores 5 out of 10 in our fundamental rating. NHI was compared to 128 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. 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.
In the past 5 years NHI has always been profitable.
In the past 5 years NHI always reported a positive cash flow from operatings.
1.2 Ratios
NHI has a Return On Assets of 5.30%. This is amongst the best in the industry. NHI outperforms 95.31% of its industry peers.
With an excellent Return On Equity value of 9.65%, NHI belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.74%, NHI belongs to the top of the industry, outperforming 97.66% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NHI is above the industry average of 3.04%.
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 has a Profit Margin of 40.95%. This is amongst the best in the industry. NHI outperforms 92.19% of its industry peers.
In the last couple of years the Profit Margin of NHI has declined.
NHI has a better Operating Margin (54.59%) than 96.09% of its industry peers.
NHI's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 84.46%, NHI belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
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
NHI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NHI has more shares outstanding
The number of shares outstanding for NHI has been increased compared to 5 years ago.
NHI has a better debt/assets ratio than last year.
2.2 Solvency
NHI has an Altman-Z score of 1.99. 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.
The Altman-Z score of NHI (1.99) is better than 94.53% of its industry peers.
NHI has a Debt/Equity ratio of 0.76. This is a neutral value indicating NHI is somewhat dependend on debt financing.
NHI has a better Debt to Equity ratio (0.76) than 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.99 |
ROIC/WACC0.75
WACC7.61%
2.3 Liquidity
A Current Ratio of 1.49 indicates that NHI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.49, NHI is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.49, NHI is in the better half of the industry, outperforming 69.53% of the companies in the same industry.
| 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 4.12% over the past year.
The Earnings Per Share has been decreasing by -4.49% on average over the past years.
The Revenue has been growing slightly by 4.80% in the past year.
The Revenue has been growing slightly by 1.05% on average over the past years.
EPS 1Y (TTM)4.12%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%6.15%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%8.32%
3.2 Future
Based on estimates for the next years, NHI will show a small growth in Earnings Per Share. The EPS will grow by 4.81% on average per year.
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 25.69.
NHI's Price/Earnings ratio is a bit cheaper when compared to the industry. NHI is cheaper than 74.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.56. NHI is around the same levels.
The Price/Forward Earnings ratio is 23.52, which indicates a rather expensive current valuation of NHI.
87.50% of the companies in the same industry are more expensive than NHI, based on the Price/Forward Earnings ratio.
NHI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.69 | ||
| Fwd PE | 23.52 |
4.2 Price Multiples
77.34% 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 | 17.91 |
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)7.81
PEG (5Y)N/A
EPS Next 2Y5.4%
EPS Next 3Y4.81%
5. Dividend
5.1 Amount
NHI has a Yearly Dividend Yield of 4.79%, which is a nice return.
Compared to an average industry Dividend Yield of 6.49, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
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
113.12% of the earnings are spent on dividend by NHI. This is not a sustainable payout ratio.
DP113.12%
EPS Next 2Y5.4%
EPS Next 3Y4.81%
77.85
+0.7 (+0.91%)
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-1.15%
Ins Owners1.94%
Ins Owner Change0.43%
Market Cap3.70B
Revenue(TTM)335.18M
Net Income(TTM)142.78M
Analysts78.18
Price Target85.24 (9.49%)
Short Float %3.8%
Short Ratio8.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
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)4.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.7%
EPS NY rev (1m)-1.69%
EPS NY rev (3m)-1.5%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-6.25%
Revenue NY rev (1m)-0.89%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.69 | ||
| Fwd PE | 23.52 | ||
| P/S | 10.6 | ||
| P/FCF | N/A | ||
| P/OCF | 17.39 | ||
| P/B | 2.5 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 17.91 |
EPS(TTM)3.03
EY3.89%
EPS(NY)3.31
Fwd EY4.25%
FCF(TTM)-1.04
FCFYN/A
OCF(TTM)4.48
OCFY5.75%
SpS7.34
BVpS31.17
TBVpS31.17
PEG (NY)7.81
PEG (5Y)N/A
Graham Number46.1
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 | 1.99 |
F-Score7
WACC7.61%
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)4.8%
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 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%.