NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
NYSE:NHI - New York Stock Exchange, Inc. - US63633D1046 - REIT - Currency: USD
Overall NHI gets a fundamental rating of 6 out of 10. We evaluated NHI against 129 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 has a correct valuation and a medium 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.
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 better Return On Assets (5.15%) than 92.86% of its industry peers.
NHI has a Return On Equity of 10.31%. This is amongst the best in the industry. NHI outperforms 88.10% of its industry peers.
NHI has a Return On Invested Capital of 6.13%. This is amongst the best in the industry. NHI outperforms 96.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NHI is above the industry average of 3.11%.
The last Return On Invested Capital (6.13%) for NHI is above the 3 year average (5.26%), which is a sign of increasing profitability.
| 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
The Profit Margin of NHI (38.52%) is better than 90.48% of its industry peers.
NHI's Profit Margin has declined in the last couple of years.
NHI has a better Operating Margin (56.37%) than 95.24% of its industry peers.
In the last couple of years the Operating Margin of NHI has declined.
NHI has a Gross Margin of 83.99%. This is amongst the best in the industry. NHI outperforms 85.71% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NHI is destroying value.
Compared to 1 year ago, NHI has about the same amount of shares outstanding.
The number of shares outstanding for NHI has been increased compared to 5 years ago.
The debt/assets ratio for NHI has been reduced compared to a year ago.
2.2 Solvency
NHI has an Altman-Z score of 1.73. This is a bad value and indicates that NHI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.73, NHI belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
NHI has a debt to FCF ratio of 6.02. This is a slightly negative value and a sign of low solvency as NHI would need 6.02 years to pay back of all of its debts.
NHI has a better Debt to FCF ratio (6.02) than 96.03% of its industry peers.
A Debt/Equity ratio of 0.92 indicates that NHI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, NHI is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.79
WACC7.76%
2.3 Liquidity
A Current Ratio of 1.51 indicates that NHI should not have too much problems paying its short term obligations.
NHI has a better Current ratio (1.51) than 61.90% 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.
The Quick ratio of NHI (1.51) is better than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
NHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.75%, which is quite good.
The Earnings Per Share has been decreasing by -3.34% on average over the past years.
NHI shows a small growth in Revenue. In the last year, the Revenue has grown by 5.74%.
The Revenue has been growing slightly by 1.66% on average over the past years.
EPS 1Y (TTM)19.75%
EPS 3Y-8.83%
EPS 5Y-3.34%
EPS Q2Q%-4.41%
Revenue 1Y (TTM)5.74%
Revenue growth 3Y-1.32%
Revenue growth 5Y1.66%
Sales Q2Q%3.54%
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 2.01% on average per year.
The Revenue is expected to grow by 17.70% on average over the next years. This is quite good.
EPS Next Y-4.74%
EPS Next 2Y0.47%
EPS Next 3Y2.01%
EPS Next 5YN/A
Revenue Next Year2.26%
Revenue Next 2Y8.03%
Revenue Next 3Y10.66%
Revenue Next 5Y17.7%
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 rather expensively with a Price/Earnings ratio of 23.92.
Based on the Price/Earnings ratio, NHI is valued a bit cheaper than 76.98% of the companies in the same industry.
NHI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.04 indicates a rather expensive valuation of NHI.
NHI's Price/Forward Earnings ratio is rather cheap when compared to the industry. NHI is cheaper than 88.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.47. NHI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.92 | ||
| Fwd PE | 22.04 |
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 73.02% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NHI is valued a bit cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.74 | ||
| EV/EBITDA | 16.78 |
4.3 Compensation for Growth
NHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.47%
EPS Next 3Y2.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.22%, NHI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 18.24, 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 | 5.22% |
5.2 History
The dividend of NHI decreases each year by -1.74%.
NHI has been paying a dividend for at least 10 years, so it has 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 2Y0.47%
EPS Next 3Y2.01%
NATL HEALTH INVESTORS INC
NYSE:NHI (1/24/2025, 8:04:00 PM)
After market: 69.62 0 (0%)69.62
+0.64 (+0.93%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners62.01%
Inst Owner Change-0.03%
Ins Owners2.15%
Ins Owner Change17.9%
Market Cap3.16B
Analysts76.67
Price Target85.1 (22.23%)
Short Float %4.72%
Short Ratio7.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.22% |
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)-1.85%
PT rev (3m)-2.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.42%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.92 | ||
| Fwd PE | 22.04 | ||
| P/S | 9.61 | ||
| P/FCF | 16.74 | ||
| P/OCF | 15.54 | ||
| P/B | 2.57 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 16.78 |
EPS(TTM)2.91
EY4.18%
EPS(NY)3.16
Fwd EY4.54%
FCF(TTM)4.16
FCFY5.97%
OCF(TTM)4.48
OCFY6.43%
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 | 1.73 |
F-Score6
WACC7.76%
ROIC/WACC0.79
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)19.75%
EPS 3Y-8.83%
EPS 5Y-3.34%
EPS Q2Q%-4.41%
EPS Next Y-4.74%
EPS Next 2Y0.47%
EPS Next 3Y2.01%
EPS Next 5YN/A
Revenue 1Y (TTM)5.74%
Revenue growth 3Y-1.32%
Revenue growth 5Y1.66%
Sales Q2Q%3.54%
Revenue Next Year2.26%
Revenue Next 2Y8.03%
Revenue Next 3Y10.66%
Revenue Next 5Y17.7%
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%