NATIONAL HEALTHCARE CORP (NHC) Stock Fundamental Analysis
NYSEARCA:NHC - NYSE Arca - US6359061008 - Common Stock - Currency: USD
Taking everything into account, NHC scores 5 out of 10 in our fundamental rating. NHC was compared to 102 industry peers in the Health Care Providers & Services industry. NHC has an excellent profitability rating, but there are some minor concerns on its financial health. NHC has a valuation in line with the averages, but it does not seem to be growing. Finally NHC also has an excellent dividend rating. With these ratings, NHC could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
NHC had positive earnings in the past year.
In the past year NHC had a positive cash flow from operations.
Each year in the past 5 years NHC has been profitable.
Each year in the past 5 years NHC had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.69%, NHC belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
NHC's Return On Equity of 10.40% is fine compared to the rest of the industry. NHC outperforms 74.51% of its industry peers.
With a Return On Invested Capital value of 5.17%, NHC perfoms like the industry average, outperforming 57.84% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NHC is significantly below the industry average of 9.53%.
The 3 year average ROIC (3.68%) for NHC is below the current ROIC(5.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 10.4% | ||
| ROIC | 5.17% |
ROA(3y)4.51%
ROA(5y)5.3%
ROE(3y)6.77%
ROE(5y)8.19%
ROIC(3y)3.68%
ROIC(5y)4.6%
1.3 Margins
The Profit Margin of NHC (7.80%) is better than 88.24% of its industry peers.
NHC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.88%, NHC is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
In the last couple of years the Operating Margin of NHC has grown nicely.
With a decent Gross Margin value of 37.97%, NHC is doing good in the industry, outperforming 64.71% of the companies in the same industry.
In the last couple of years the Gross Margin of NHC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.88% | ||
| PM (TTM) | 7.8% | ||
| GM | 37.97% |
OM growth 3Y-3.24%
OM growth 5Y5.6%
PM growth 3Y-15.45%
PM growth 5Y2.63%
GM growth 3Y-3.62%
GM growth 5Y-1.28%
2. Health
2.1 Basic Checks
NHC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NHC has been increased compared to 1 year ago.
Compared to 5 years ago, NHC has more shares outstanding
Compared to 1 year ago, NHC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.69 indicates that NHC is not in any danger for bankruptcy at the moment.
NHC has a better Altman-Z score (3.69) than 74.51% of its industry peers.
The Debt to FCF ratio of NHC is 1.72, which is an excellent value as it means it would take NHC, only 1.72 years of fcf income to pay off all of its debts.
NHC's Debt to FCF ratio of 1.72 is amongst the best of the industry. NHC outperforms 83.33% of its industry peers.
NHC has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
NHC's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. NHC outperforms 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 3.69 |
ROIC/WACC0.58
WACC8.89%
2.3 Liquidity
A Current Ratio of 1.81 indicates that NHC should not have too much problems paying its short term obligations.
NHC has a Current ratio of 1.81. This is in the better half of the industry: NHC outperforms 66.67% of its industry peers.
NHC has a Quick Ratio of 1.77. This is a normal value and indicates that NHC is financially healthy and should not expect problems in meeting its short term obligations.
NHC's Quick ratio of 1.77 is fine compared to the rest of the industry. NHC outperforms 69.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
NHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.74%, which is quite impressive.
Measured over the past years, NHC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.03% on average per year.
NHC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.53%.
Measured over the past years, NHC shows a small growth in Revenue. The Revenue has been growing by 5.58% on average per year.
EPS 1Y (TTM)50.74%
EPS 3Y-10.09%
EPS 5Y8.03%
EPS Q2Q%-78.81%
Revenue 1Y (TTM)14.53%
Revenue growth 3Y6.76%
Revenue growth 5Y5.58%
Sales Q2Q%22.74%
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
With a Price/Earnings ratio of 15.79, NHC is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of NHC indicates a somewhat cheap valuation: NHC is cheaper than 76.47% of the companies listed in the same industry.
NHC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.79 | ||
| Fwd PE | N/A |
4.2 Price Multiples
NHC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NHC is cheaper than 67.65% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NHC is valued a bit cheaper than 65.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.03 | ||
| EV/EBITDA | 10.72 |
4.3 Compensation for Growth
NHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.97
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
NHC has a Yearly Dividend Yield of 2.40%.
NHC's Dividend Yield is rather good when compared to the industry average which is at 2.46. NHC pays more dividend than 93.14% of the companies in the same industry.
NHC's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of NHC has a limited annual growth rate of 3.30%.
NHC has been paying a dividend for at least 10 years, so it has a reliable track record.
NHC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.3%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
NHC pays out 36.27% of its income as dividend. This is a sustainable payout ratio.
The dividend of NHC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.27%
EPS Next 2YN/A
EPS Next 3YN/A
103.28
-2.37 (-2.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners61.29%
Inst Owner Change-1.03%
Ins Owners6.86%
Ins Owner Change-1.03%
Market Cap1.60B
Analysts60
Price TargetN/A
Short Float %2.07%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend2.4
Dividend Growth(5Y)3.3%
DP36.27%
Div Incr Years10
Div Non Decr Years10
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 | 15.79 | ||
| Fwd PE | N/A | ||
| P/S | 1.22 | ||
| P/FCF | 20.03 | ||
| P/OCF | 14.88 | ||
| P/B | 1.63 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 10.72 |
EPS(TTM)6.54
EY6.33%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)5.16
FCFY4.99%
OCF(TTM)6.94
OCFY6.72%
SpS84.57
BVpS63.4
TBVpS51.09
PEG (NY)N/A
PEG (5Y)1.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 10.4% | ||
| ROCE | 6.97% | ||
| ROIC | 5.17% | ||
| ROICexc | 6.21% | ||
| ROICexgc | 7.55% | ||
| OM | 6.88% | ||
| PM (TTM) | 7.8% | ||
| GM | 37.97% | ||
| FCFM | 6.1% |
ROA(3y)4.51%
ROA(5y)5.3%
ROE(3y)6.77%
ROE(5y)8.19%
ROIC(3y)3.68%
ROIC(5y)4.6%
ROICexc(3y)4.49%
ROICexc(5y)5.97%
ROICexgc(3y)5.54%
ROICexgc(5y)6.99%
ROCE(3y)4.96%
ROCE(5y)6.21%
ROICexcg growth 3Y-4%
ROICexcg growth 5Y11.11%
ROICexc growth 3Y-3.17%
ROICexc growth 5Y7.37%
OM growth 3Y-3.24%
OM growth 5Y5.6%
PM growth 3Y-15.45%
PM growth 5Y2.63%
GM growth 3Y-3.62%
GM growth 5Y-1.28%
F-Score5
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.72 | ||
| Debt/EBITDA | 0.98 | ||
| Cap/Depr | 65.74% | ||
| Cap/Sales | 2.11% | ||
| Interest Coverage | 26.32 | ||
| Cash Conversion | 81.36% | ||
| Profit Quality | 78.2% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 3.69 |
F-Score5
WACC8.89%
ROIC/WACC0.58
Cap/Depr(3y)68.9%
Cap/Depr(5y)71.13%
Cap/Sales(3y)2.45%
Cap/Sales(5y)2.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)50.74%
EPS 3Y-10.09%
EPS 5Y8.03%
EPS Q2Q%-78.81%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.53%
Revenue growth 3Y6.76%
Revenue growth 5Y5.58%
Sales Q2Q%22.74%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y56.45%
EBIT growth 3Y3.3%
EBIT growth 5Y11.5%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-4.34%
FCF growth 3Y51.34%
FCF growth 5Y1.58%
OCF growth 1Y-3.52%
OCF growth 3Y19.81%
OCF growth 5Y1.4%