NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:NHI • US63633D1046
82.12 USD
+1.35 (+1.67%)
At close: Jan 30, 2026
81.9 USD
-0.22 (-0.27%)
After Hours: 1/30/2026, 8:09:06 PM
Taking everything into account, NHI scores 6 out of 10 in our fundamental rating. NHI was compared to 124 industry peers in the Diversified REITs industry. While NHI has a great profitability rating, 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.
- In the past year NHI had a positive cash flow from operations.
- In the past 5 years NHI has always been profitable.
- Each year in the past 5 years NHI had a positive operating cash flow.
1.2 Ratios
- NHI's Return On Assets of 5.47% is amongst the best of the industry. NHI outperforms 96.77% of its industry peers.
- NHI has a Return On Equity of 9.93%. This is amongst the best in the industry. NHI outperforms 85.48% of its industry peers.
- NHI's Return On Invested Capital of 5.68% is amongst the best of the industry. NHI outperforms 97.58% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NHI is above the industry average of 3.05%.
- 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
- The Profit Margin of NHI (41.36%) is better than 92.74% 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 94.35% of the companies in the same industry.
- NHI's Operating Margin has declined in the last couple of years.
- NHI has a Gross Margin of 83.26%. This is amongst the best in the industry. NHI outperforms 83.06% 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.
- 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 2.11. 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.
- Looking at the Altman-Z score, with a value of 2.11, NHI belongs to the top of the industry, outperforming 95.16% 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 better Debt to Equity ratio (0.75) than 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.11 |
ROIC/WACC0.73
WACC7.76%
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.
- Looking at the Current ratio, with a value of 2.12, NHI belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
- 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.
- The Quick ratio of NHI (2.12) is better than 83.87% 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.
- 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)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 4.48% on average over the next years.
- NHI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.29% yearly.
EPS Next Y3.54%
EPS Next 2Y6.48%
EPS Next 3Y4.48%
EPS Next 5YN/A
Revenue Next Year11.38%
Revenue Next 2Y13.11%
Revenue Next 3Y12.59%
Revenue Next 5Y13.29%
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
- With a Price/Earnings ratio of 27.10, NHI can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of NHI indicates a somewhat cheap valuation: NHI is cheaper than 70.16% of the companies listed in the same industry.
- NHI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.30.
- With a Price/Forward Earnings ratio of 24.31, NHI is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, NHI is valued cheaply inside the industry as 86.29% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of NHI to the average of the S&P500 Index (25.57), we can say NHI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.1 | ||
| Fwd PE | 24.31 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NHI is valued a bit more expensive than 77.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.34 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- NHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.65
PEG (5Y)N/A
EPS Next 2Y6.48%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.67%, NHI is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.82, 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
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
- 112.27% of the earnings are spent on dividend by NHI. This is not a sustainable payout ratio.
DP112.27%
EPS Next 2Y6.48%
EPS Next 3Y4.48%
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 27.1 and the Price/Book (PB) ratio is 2.64.
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%.