NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
NYSE:NHI - New York Stock Exchange, Inc. - US63633D1046 - REIT - Currency: USD
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. NHI has an excellent profitability rating, but there are some minor concerns on its financial health. NHI has a decent growth rate and is not valued too expensively.
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.
NHI had positive earnings in 4 of the past 5 years.
NHI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of NHI (5.15%) is better than 93.60% of its industry peers.
Looking at the Return On Equity, with a value of 10.31%, NHI belongs to the top of the industry, outperforming 88.80% of the companies in the same industry.
NHI has a Return On Invested Capital of 6.13%. This is amongst the best in the industry. NHI outperforms 96.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NHI is above the industry average of 3.13%.
The 3 year average ROIC (5.26%) for NHI is below the current ROIC(6.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 10.31% | ||
| ROIC | 6.13% |
ROA(3y)4.01%
ROA(5y)4.65%
ROE(3y)7.82%
ROE(5y)9.28%
ROIC(3y)5.26%
ROIC(5y)5.5%
1.3 Margins
With an excellent Profit Margin value of 38.52%, NHI belongs to the best of the industry, outperforming 89.60% of the companies in the same industry.
In the last couple of years the Profit Margin of NHI has declined.
NHI has a better Operating Margin (56.37%) than 95.20% of its industry peers.
NHI's Operating Margin has declined in the last couple of years.
NHI has a better Gross Margin (83.99%) than 84.80% of its industry peers.
NHI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 56.37% | ||
| PM (TTM) | 38.52% | ||
| GM | 83.99% |
OM growth 3Y-6.18%
OM growth 5Y-4.71%
PM growth 3Y-8.65%
PM growth 5Y-4.14%
GM growth 3Y-4.71%
GM growth 5YN/A
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.
There is no outstanding debt for NHI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that NHI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NHI (1.77) is better than 94.40% of its industry peers.
The Debt to FCF ratio of NHI is 6.02, which is on the high side as it means it would take NHI, 6.02 years of fcf income to pay off all of its debts.
NHI has a better Debt to FCF ratio (6.02) than 96.00% of its industry peers.
NHI has a Debt/Equity ratio of 0.92. This is a neutral value indicating NHI is somewhat dependend on debt financing.
NHI has a better Debt to Equity ratio (0.92) than 61.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.8
WACC7.62%
2.3 Liquidity
NHI has a Current Ratio of 1.51. This is a normal value and indicates that NHI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NHI (1.51) is better than 63.20% of its industry peers.
NHI has a Quick Ratio of 1.51. 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 Quick ratio of 1.51 is fine compared to the rest of the industry. NHI outperforms 65.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
NHI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.43%.
NHI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.52% yearly.
EPS 1Y (TTM)5.43%
EPS 3Y10.59%
EPS 5Y-2.52%
EPS Q2Q%52.7%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%7.91%
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 0.92% on average per year.
Based on estimates for the next years, NHI will show a very strong growth in Revenue. The Revenue will grow by 20.48% on average per year.
EPS Next Y-3.96%
EPS Next 2Y0.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.12%
Revenue Next 2Y15.11%
Revenue Next 3Y13.67%
Revenue Next 5Y20.48%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.29 indicates a rather expensive valuation of NHI.
Based on the Price/Earnings ratio, NHI is valued a bit cheaper than the industry average as 79.20% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.43, NHI is valued a bit cheaper.
A Price/Forward Earnings ratio of 22.17 indicates a rather expensive valuation of NHI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NHI indicates a rather cheap valuation: NHI is cheaper than 88.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.65. NHI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.29 | ||
| Fwd PE | 22.17 |
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 74.40% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NHI is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.89 | ||
| EV/EBITDA | 17.08 |
4.3 Compensation for Growth
NHI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.09%, NHI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 18.33, NHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, NHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
5.2 History
The dividend of NHI decreases each year by -1.74%.
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)-1.74%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
NHI pays out 123.37% of its income as dividend. This is not a sustainable payout ratio.
DP123.37%
EPS Next 2Y0.92%
EPS Next 3YN/A
NYSE:NHI (2/26/2025, 12:29:09 PM)
70.26
-1.03 (-1.44%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners71%
Inst Owner Change-88.86%
Ins Owners1.94%
Ins Owner Change8.06%
Market Cap3.19B
Analysts76.67
Price Target82.47 (17.38%)
Short Float %4.63%
Short Ratio9.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
Yearly Dividend3.6
Dividend Growth(5Y)-1.74%
DP123.37%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.48%
Min EPS beat(2)-12.08%
Max EPS beat(2)9.11%
EPS beat(4)3
Avg EPS beat(4)2.12%
Min EPS beat(4)-12.08%
Max EPS beat(4)9.11%
EPS beat(8)4
Avg EPS beat(8)-8.67%
EPS beat(12)5
Avg EPS beat(12)-21.73%
EPS beat(16)5
Avg EPS beat(16)-21.59%
Revenue beat(2)2
Avg Revenue beat(2)3.55%
Min Revenue beat(2)3.42%
Max Revenue beat(2)3.68%
Revenue beat(4)4
Avg Revenue beat(4)3.1%
Min Revenue beat(4)0.3%
Max Revenue beat(4)5.02%
Revenue beat(8)6
Avg Revenue beat(8)0.96%
Revenue beat(12)8
Avg Revenue beat(12)-1.2%
Revenue beat(16)8
Avg Revenue beat(16)-1.43%
PT rev (1m)-3.08%
PT rev (3m)-5.82%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)-0.81%
EPS NY rev (3m)-1.61%
Revenue NQ rev (1m)-1.36%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.29 | ||
| Fwd PE | 22.17 | ||
| P/S | 9.7 | ||
| P/FCF | 16.89 | ||
| P/OCF | 15.69 | ||
| P/B | 2.6 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 17.08 |
EPS(TTM)3.3
EY4.7%
EPS(NY)3.17
Fwd EY4.51%
FCF(TTM)4.16
FCFY5.92%
OCF(TTM)4.48
OCFY6.38%
SpS7.24
BVpS27.06
TBVpS27.06
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 10.31% | ||
| ROCE | 7.76% | ||
| ROIC | 6.13% | ||
| ROICexc | 6.17% | ||
| ROICexgc | 6.21% | ||
| OM | 56.37% | ||
| PM (TTM) | 38.52% | ||
| GM | 83.99% | ||
| FCFM | 57.44% |
ROA(3y)4.01%
ROA(5y)4.65%
ROE(3y)7.82%
ROE(5y)9.28%
ROIC(3y)5.26%
ROIC(5y)5.5%
ROICexc(3y)5.32%
ROICexc(5y)5.56%
ROICexgc(3y)5.35%
ROICexgc(5y)5.59%
ROCE(3y)6.66%
ROCE(5y)6.97%
ROICexcg growth 3Y-0.2%
ROICexcg growth 5Y-0.94%
ROICexc growth 3Y-0.26%
ROICexc growth 5Y-0.97%
OM growth 3Y-6.18%
OM growth 5Y-4.71%
PM growth 3Y-8.65%
PM growth 5Y-4.14%
GM growth 3Y-4.71%
GM growth 5YN/A
F-Score6
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 6.02 | ||
| Debt/EBITDA | 4.45 | ||
| Cap/Depr | 20.82% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 3.31 | ||
| Cash Conversion | 79.71% | ||
| Profit Quality | 149.12% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 1.77 |
F-Score6
WACC7.62%
ROIC/WACC0.8
Cap/Depr(3y)42.28%
Cap/Depr(5y)107.19%
Cap/Sales(3y)10.36%
Cap/Sales(5y)26.18%
Profit Quality(3y)173.77%
Profit Quality(5y)120.94%
High Growth Momentum
Growth
EPS 1Y (TTM)5.43%
EPS 3Y10.59%
EPS 5Y-2.52%
EPS Q2Q%52.7%
EPS Next Y-3.96%
EPS Next 2Y0.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%7.91%
Revenue Next Year14.12%
Revenue Next 2Y15.11%
Revenue Next 3Y13.67%
Revenue Next 5Y20.48%
EBIT growth 1Y9.04%
EBIT growth 3Y-7.41%
EBIT growth 5Y-3.13%
EBIT Next Year63.96%
EBIT Next 3Y23.74%
EBIT Next 5Y13.95%
FCF growth 1Y1.02%
FCF growth 3Y3.35%
FCF growth 5Y13.39%
OCF growth 1Y5.74%
OCF growth 3Y-7.37%
OCF growth 5Y-2.37%