NATIONAL RESEARCH CORP (NRC) Stock Fundamental Analysis
NASDAQ:NRC - Nasdaq - US6373722023 - Common Stock - Currency: USD
NRC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 industry peers in the Health Care Providers & Services industry. While NRC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NRC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NRC was profitable.
In the past year NRC had a positive cash flow from operations.
In the past 5 years NRC has always been profitable.
In the past 5 years NRC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.70%, NRC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NRC has a better Return On Equity (79.21%) than 98.04% of its industry peers.
With an excellent Return On Invested Capital value of 28.29%, NRC belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
NRC had an Average Return On Invested Capital over the past 3 years of 37.15%. This is significantly above the industry average of 9.13%.
The 3 year average ROIC (37.15%) for NRC is well above the current ROIC(28.29%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.7% | ||
| ROE | 79.21% | ||
| ROIC | 28.29% |
ROA(3y)22.78%
ROA(5y)24%
ROE(3y)62.21%
ROE(5y)57.67%
ROIC(3y)37.15%
ROIC(5y)35.26%
1.3 Margins
NRC's Profit Margin of 17.32% is amongst the best of the industry. NRC outperforms 98.04% of its industry peers.
NRC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 24.94%, NRC belongs to the best of the industry, outperforming 97.06% of the companies in the same industry.
In the last couple of years the Operating Margin of NRC has declined.
NRC's Gross Margin of 60.20% is amongst the best of the industry. NRC outperforms 81.37% of its industry peers.
NRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.94% | ||
| PM (TTM) | 17.32% | ||
| GM | 60.2% |
OM growth 3Y-10.18%
OM growth 5Y-5.95%
PM growth 3Y-11.83%
PM growth 5Y-7.25%
GM growth 3Y-2.32%
GM growth 5Y-1.11%
2. Health
2.1 Basic Checks
NRC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for NRC has been reduced compared to 1 year ago.
NRC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NRC has a worse debt to assets ratio.
2.2 Solvency
NRC has an Altman-Z score of 3.10. This indicates that NRC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NRC (3.10) is better than 68.63% of its industry peers.
The Debt to FCF ratio of NRC is 3.27, which is a good value as it means it would take NRC, 3.27 years of fcf income to pay off all of its debts.
NRC has a Debt to FCF ratio of 3.27. This is in the better half of the industry: NRC outperforms 77.45% of its industry peers.
A Debt/Equity ratio of 1.85 is on the high side and indicates that NRC has dependencies on debt financing.
NRC has a Debt to Equity ratio of 1.85. This is in the lower half of the industry: NRC underperforms 75.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 3.1 |
ROIC/WACC3.5
WACC8.08%
2.3 Liquidity
A Current Ratio of 0.55 indicates that NRC may have some problems paying its short term obligations.
NRC's Current ratio of 0.55 is on the low side compared to the rest of the industry. NRC is outperformed by 90.20% of its industry peers.
A Quick Ratio of 0.55 indicates that NRC may have some problems paying its short term obligations.
The Quick ratio of NRC (0.55) is worse than 85.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for NRC have decreased strongly by -16.54% in the last year.
The Earnings Per Share has been decreasing by -3.70% on average over the past years.
NRC shows a decrease in Revenue. In the last year, the revenue decreased by -3.72%.
The Revenue has been growing slightly by 2.25% on average over the past years.
EPS 1Y (TTM)-16.54%
EPS 3Y-10.59%
EPS 5Y-3.7%
EPS Q2Q%-22.18%
Revenue 1Y (TTM)-3.72%
Revenue growth 3Y-1.13%
Revenue growth 5Y2.25%
Sales Q2Q%-2.88%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.41 indicates a reasonable valuation of NRC.
Based on the Price/Earnings ratio, NRC is valued cheaper than 87.25% of the companies in the same industry.
NRC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | N/A |
4.2 Price Multiples
80.39% of the companies in the same industry are more expensive than NRC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NRC indicates a rather cheap valuation: NRC is cheaper than 81.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.11 | ||
| EV/EBITDA | 7.33 |
4.3 Compensation for Growth
NRC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.49%, NRC is a good candidate for dividend investing.
The stock price of NRC dropped by -28.79% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
NRC's Dividend Yield is rather good when compared to the industry average which is at 2.58. NRC pays more dividend than 98.04% of the companies in the same industry.
NRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
5.2 History
The dividend of NRC decreases each year by -17.40%.
NRC has paid a dividend for at least 10 years, which is a reliable track record.
NRC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-17.4%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
NRC pays out 46.22% of its income as dividend. This is a bit on the high side, but may be sustainable.
NRC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP46.22%
EPS Next 2YN/A
EPS Next 3YN/A
11.87
+1.03 (+9.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners52.14%
Inst Owner Change0.28%
Ins Owners0.69%
Ins Owner Change3.36%
Market Cap270.52M
Analysts45
Price TargetN/A
Short Float %2.78%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
Yearly Dividend0.48
Dividend Growth(5Y)-17.4%
DP46.22%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | N/A | ||
| P/S | 1.89 | ||
| P/FCF | 14.11 | ||
| P/OCF | 7.81 | ||
| P/B | 8.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.33 |
EPS(TTM)1.04
EY8.76%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.84
FCFY7.09%
OCF(TTM)1.52
OCFY12.8%
SpS6.28
BVpS1.37
TBVpS-1.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.7% | ||
| ROE | 79.21% | ||
| ROCE | 36.9% | ||
| ROIC | 28.29% | ||
| ROICexc | 29.58% | ||
| ROICexgc | 115.49% | ||
| OM | 24.94% | ||
| PM (TTM) | 17.32% | ||
| GM | 60.2% | ||
| FCFM | 13.41% |
ROA(3y)22.78%
ROA(5y)24%
ROE(3y)62.21%
ROE(5y)57.67%
ROIC(3y)37.15%
ROIC(5y)35.26%
ROICexc(3y)44.09%
ROICexc(5y)48.46%
ROICexgc(3y)273.96%
ROICexgc(5y)N/A
ROCE(3y)48.46%
ROCE(5y)46%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-21.97%
ROICexc growth 5Y-12.09%
OM growth 3Y-10.18%
OM growth 5Y-5.95%
PM growth 3Y-11.83%
PM growth 5Y-7.25%
GM growth 3Y-2.32%
GM growth 5Y-1.11%
F-Score4
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 3.27 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 256.53% | ||
| Cap/Sales | 10.8% | ||
| Interest Coverage | 14.62 | ||
| Cash Conversion | 83.04% | ||
| Profit Quality | 77.39% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 3.1 |
F-Score4
WACC8.08%
ROIC/WACC3.5
Cap/Depr(3y)236.79%
Cap/Depr(5y)169.97%
Cap/Sales(3y)9.3%
Cap/Sales(5y)6.92%
Profit Quality(3y)77.54%
Profit Quality(5y)88.07%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.54%
EPS 3Y-10.59%
EPS 5Y-3.7%
EPS Q2Q%-22.18%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.72%
Revenue growth 3Y-1.13%
Revenue growth 5Y2.25%
Sales Q2Q%-2.88%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-11.05%
EBIT growth 3Y-11.19%
EBIT growth 5Y-3.83%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-14.14%
FCF growth 3Y-22.27%
FCF growth 5Y-11.96%
OCF growth 1Y-9.15%
OCF growth 3Y-9.26%
OCF growth 5Y-3.29%