NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NHI - US63633D1046 - REIT
77.38 USD
-0.26 (-0.33%)
77.38 USD
0 (0%)
Taking everything into account, NHI scores 6 out of 10 in our fundamental rating. 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 valied quite expensively at the moment, while 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.
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
With an excellent Return On Assets value of 5.47%, NHI belongs to the best of the industry, outperforming 96.85% of the companies in the same industry.
NHI's Return On Equity of 9.93% is amongst the best of the industry. NHI outperforms 85.04% of its industry peers.
NHI's Return On Invested Capital of 5.68% is amongst the best of the industry. NHI outperforms 97.64% 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 last Return On Invested Capital (5.68%) for NHI is above the 3 year average (5.45%), which is a sign of increasing profitability.
| 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
NHI's Profit Margin of 41.36% is amongst the best of the industry. NHI outperforms 92.13% of its industry peers.
In the last couple of years the Profit Margin of NHI has declined.
With an excellent Operating Margin value of 52.85%, NHI belongs to the best of the industry, outperforming 93.70% of the companies in the same industry.
NHI's Operating Margin has declined in the last couple of years.
NHI has a better Gross Margin (83.26%) than 83.46% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NHI is destroying value.
The number of shares outstanding for NHI has been increased compared to 1 year ago.
Compared to 5 years ago, NHI has more shares outstanding
Compared to 1 year ago, NHI has an improved debt to assets ratio.
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 95.28% of the companies in the same industry.
A Debt/Equity ratio of 0.75 indicates that NHI is somewhat dependend on debt financing.
NHI has a Debt to Equity ratio of 0.75. This is in the better half of the industry: NHI outperforms 76.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.03 |
ROIC/WACC0.74
WACC7.65%
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.
NHI has a Current ratio of 2.12. This is amongst the best in the industry. NHI outperforms 84.25% of its industry peers.
NHI has a Quick Ratio of 2.12. This indicates that NHI is financially healthy and has no problem in meeting its short term obligations.
NHI has a Quick ratio of 2.12. This is amongst the best in the industry. NHI outperforms 84.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
NHI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.12%.
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.
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
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 Year11.07%
Revenue Next 2Y11.42%
Revenue Next 3Y10.38%
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
A Price/Earnings ratio of 25.54 indicates a quite expensive valuation of NHI.
Compared to the rest of the industry, the Price/Earnings ratio of NHI indicates a somewhat cheap valuation: NHI is cheaper than 71.65% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. NHI is around the same levels.
Based on the Price/Forward Earnings ratio of 23.38, the valuation of NHI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, NHI is valued cheaper than 88.19% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, NHI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.54 | ||
| Fwd PE | 23.38 |
4.2 Price Multiples
NHI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NHI is more expensive than 74.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.78 |
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.
NHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.77
PEG (5Y)N/A
EPS Next 2Y5.4%
EPS Next 3Y4.81%
5. Dividend
5.1 Amount
NHI has a Yearly Dividend Yield of 4.82%, which is a nice return.
NHI's Dividend Yield is comparable with the industry average which is at 6.83.
NHI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
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%
77.38
-0.26 (-0.33%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners74.99%
Inst Owner Change0%
Ins Owners0.77%
Ins Owner Change0.75%
Market Cap3.69B
Revenue(TTM)355.56M
Net Income(TTM)147.08M
Analysts78.18
Price Target87.98 (13.7%)
Short Float %4.24%
Short Ratio9.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
Yearly Dividend3.51
Dividend Growth(5Y)-3.12%
DP112.27%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
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)4.2%
Revenue beat(12)10
Avg Revenue beat(12)2.41%
Revenue beat(16)12
Avg Revenue beat(16)0.43%
PT rev (1m)2.53%
PT rev (3m)5.18%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.69%
Revenue NQ rev (1m)1.65%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.54 | ||
| Fwd PE | 23.38 | ||
| P/S | 10.37 | ||
| P/FCF | N/A | ||
| P/OCF | 16.28 | ||
| P/B | 2.49 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | 17.78 |
EPS(TTM)3.03
EY3.92%
EPS(NY)3.31
Fwd EY4.28%
FCF(TTM)-0.91
FCFYN/A
OCF(TTM)4.75
OCFY6.14%
SpS7.46
BVpS31.09
TBVpS31.09
PEG (NY)7.77
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 | 345.79% | ||
| Cap/Sales | 75.83% | ||
| Interest Coverage | 3.47 | ||
| Cash Conversion | 85.15% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 2.03 |
F-Score6
WACC7.65%
ROIC/WACC0.74
Cap/Depr(3y)100.3%
Cap/Depr(5y)96.53%
Cap/Sales(3y)21.64%
Cap/Sales(5y)22.31%
Profit Quality(3y)135.02%
Profit Quality(5y)124.31%
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 Year11.07%
Revenue Next 2Y11.42%
Revenue Next 3Y10.38%
Revenue Next 5Y11.22%
EBIT growth 1Y1.36%
EBIT growth 3Y0.41%
EBIT growth 5Y-3.04%
EBIT Next Year55.44%
EBIT Next 3Y22.24%
EBIT Next 5Y16.68%
FCF growth 1Y-131.82%
FCF growth 3Y-32.77%
FCF growth 5Y17.98%
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 for NHI stock?
ChartMill assigns a valuation rating of 3 / 10 to NATL HEALTH INVESTORS INC (NHI). This can be considered as Overvalued.
How profitable is NATL HEALTH INVESTORS INC (NHI) stock?
NATL HEALTH INVESTORS INC (NHI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of NATL HEALTH INVESTORS INC (NHI) stock?
The Price/Earnings (PE) ratio for NATL HEALTH INVESTORS INC (NHI) is 25.54 and the Price/Book (PB) ratio is 2.49.
Is the dividend of NATL HEALTH INVESTORS INC sustainable?
The dividend rating of NATL HEALTH INVESTORS INC (NHI) is 4 / 10 and the dividend payout ratio is 112.27%.