NATIONAL HEALTHCARE CORP (NHC) Stock Fundamental Analysis
NYSEARCA:NHC - NYSE Arca - US6359061008 - Common Stock - Currency: USD
Overall NHC gets a fundamental rating of 6 out of 10. We evaluated NHC against 104 industry peers in the Health Care Providers & Services industry. While NHC has a great profitability rating, there are some minor concerns on its financial health. NHC is valued correctly, 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.
In the past 5 years NHC always reported a positive cash flow from operatings.
1.2 Ratios
NHC's Return On Assets of 6.97% is amongst the best of the industry. NHC outperforms 87.50% of its industry peers.
NHC has a Return On Equity of 10.74%. This is in the better half of the industry: NHC outperforms 75.00% of its industry peers.
NHC has a Return On Invested Capital of 5.95%. This is in the better half of the industry: NHC outperforms 63.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NHC is significantly below the industry average of 9.61%.
The last Return On Invested Capital (5.95%) for NHC is above the 3 year average (3.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 10.74% | ||
| ROIC | 5.95% |
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
NHC has a Profit Margin of 7.80%. This is amongst the best in the industry. NHC outperforms 88.46% of its industry peers.
In the last couple of years the Profit Margin of NHC has grown nicely.
Looking at the Operating Margin, with a value of 7.59%, NHC is in the better half of the industry, outperforming 74.04% of the companies in the same industry.
In the last couple of years the Operating Margin of NHC has grown nicely.
Looking at the Gross Margin, with a value of 38.15%, NHC is in the better half of the industry, outperforming 66.35% 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 | 7.59% | ||
| PM (TTM) | 7.8% | ||
| GM | 38.15% |
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.
NHC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NHC has more shares outstanding
NHC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.86 indicates that NHC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.86, NHC is doing good in the industry, outperforming 73.08% of the companies in the same industry.
NHC has a debt to FCF ratio of 1.23. This is a very positive value and a sign of high solvency as it would only need 1.23 years to pay back of all of its debts.
NHC has a Debt to FCF ratio of 1.23. This is amongst the best in the industry. NHC outperforms 87.50% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that NHC is not too dependend on debt financing.
The Debt to Equity ratio of NHC (0.13) is better than 72.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 3.86 |
ROIC/WACC0.68
WACC8.73%
2.3 Liquidity
A Current Ratio of 1.90 indicates that NHC should not have too much problems paying its short term obligations.
The Current ratio of NHC (1.90) is better than 71.15% of its industry peers.
NHC has a Quick Ratio of 1.87. This is a normal value and indicates that NHC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.87, NHC is in the better half of the industry, outperforming 72.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
NHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.34%, 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.
Looking at the last year, NHC shows a quite strong growth in Revenue. The Revenue has grown by 18.37% in the last year.
The Revenue has been growing slightly by 5.58% on average over the past years.
EPS 1Y (TTM)31.34%
EPS 3Y-10.09%
EPS 5Y8.03%
EPS Q2Q%22.3%
Revenue 1Y (TTM)18.37%
Revenue growth 3Y6.76%
Revenue growth 5Y5.58%
Sales Q2Q%25.75%
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
Based on the Price/Earnings ratio of 15.96, the valuation of NHC can be described as correct.
78.85% of the companies in the same industry are more expensive than NHC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.76, NHC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NHC is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NHC is valued a bit cheaper than 77.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.64 | ||
| EV/EBITDA | 9.76 |
4.3 Compensation for Growth
NHC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.99
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
NHC has a Yearly Dividend Yield of 2.41%.
Compared to an average industry Dividend Yield of 2.90, NHC pays a better dividend. On top of this NHC pays more dividend than 92.31% of the companies listed 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 | 2.41% |
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 Years11
Div Non Decr Years11
5.3 Sustainability
34.59% of the earnings are spent on dividend by NHC. This is a low number and sustainable payout ratio.
NHC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.59%
EPS Next 2YN/A
EPS Next 3YN/A
110.3
+0.42 (+0.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners59.73%
Inst Owner Change-0.58%
Ins Owners6.99%
Ins Owner Change1.58%
Market Cap1.71B
Analysts60
Price TargetN/A
Short Float %2.05%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend2.4
Dividend Growth(5Y)3.3%
DP34.59%
Div Incr Years11
Div Non Decr Years11
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 | 15.96 | ||
| Fwd PE | N/A | ||
| P/S | 1.23 | ||
| P/FCF | 15.64 | ||
| P/OCF | 12.46 | ||
| P/B | 1.7 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 9.76 |
EPS(TTM)6.91
EY6.26%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)7.05
FCFY6.4%
OCF(TTM)8.85
OCFY8.02%
SpS89.46
BVpS64.96
TBVpS52.65
PEG (NY)N/A
PEG (5Y)1.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 10.74% | ||
| ROCE | 8.02% | ||
| ROIC | 5.95% | ||
| ROICexc | 7.31% | ||
| ROICexgc | 8.89% | ||
| OM | 7.59% | ||
| PM (TTM) | 7.8% | ||
| GM | 38.15% | ||
| FCFM | 7.89% |
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-Score6
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.23 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 65.56% | ||
| Cap/Sales | 2.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.91% | ||
| Profit Quality | 101.12% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | 3.86 |
F-Score6
WACC8.73%
ROIC/WACC0.68
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)31.34%
EPS 3Y-10.09%
EPS 5Y8.03%
EPS Q2Q%22.3%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.37%
Revenue growth 3Y6.76%
Revenue growth 5Y5.58%
Sales Q2Q%25.75%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y66.59%
EBIT growth 3Y3.3%
EBIT growth 5Y11.5%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y392.06%
FCF growth 3Y51.34%
FCF growth 5Y1.58%
OCF growth 1Y173.52%
OCF growth 3Y19.81%
OCF growth 5Y1.4%