NATIONAL HEALTHCARE CORP (NHC) Stock Fundamental Analysis
NYSEARCA:NHC - NYSE Arca - US6359061008 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to NHC. NHC was compared to 103 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 has a valuation in line with the averages, but it does not seem to be growing. Finally NHC also has an excellent dividend rating. These ratings would make NHC suitable for dividend investing!
1. Profitability
1.1 Basic Checks
NHC had positive earnings in the past year.
NHC had a positive operating cash flow in the past year.
NHC had positive earnings in each of the past 5 years.
NHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.97%, NHC belongs to the top of the industry, outperforming 86.41% of the companies in the same industry.
NHC's Return On Equity of 10.74% is fine compared to the rest of the industry. NHC outperforms 74.76% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.95%, NHC is in the better half of the industry, outperforming 62.14% of the companies in the same industry.
NHC had an Average Return On Invested Capital over the past 3 years of 3.68%. This is significantly below the industry average of 9.71%.
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 88.35% of its industry peers.
In the last couple of years the Profit Margin of NHC has grown nicely.
NHC has a better Operating Margin (7.59%) than 72.82% of its industry peers.
NHC's Operating Margin has improved in the last couple of years.
NHC has a Gross Margin of 38.15%. This is in the better half of the industry: NHC outperforms 65.05% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NHC is destroying value.
The number of shares outstanding for NHC has been increased compared to 1 year ago.
NHC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NHC has a worse debt to assets ratio.
2.2 Solvency
NHC has an Altman-Z score of 3.84. This indicates that NHC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NHC (3.84) is better than 71.84% of its industry peers.
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.
The Debt to FCF ratio of NHC (1.23) is better than 85.44% 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.
Looking at the Debt to Equity ratio, with a value of 0.13, NHC is in the better half of the industry, outperforming 71.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 3.84 |
ROIC/WACC0.68
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.90 indicates that NHC should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.90, NHC is doing good in the industry, outperforming 72.82% of the companies in the same industry.
A Quick Ratio of 1.87 indicates that NHC should not have too much problems paying its short term obligations.
NHC has a Quick ratio of 1.87. This is in the better half of the industry: NHC outperforms 70.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.34% over the past year.
NHC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.03% yearly.
Looking at the last year, NHC shows a quite strong growth in Revenue. The Revenue has grown by 18.37% in the last year.
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)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
The Price/Earnings ratio is 15.69, which indicates a correct valuation of NHC.
Compared to the rest of the industry, the Price/Earnings ratio of NHC indicates a somewhat cheap valuation: NHC is cheaper than 77.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. NHC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.69 | ||
| Fwd PE | N/A |
4.2 Price Multiples
69.90% of the companies in the same industry are more expensive than NHC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NHC is valued a bit cheaper than the industry average as 74.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.37 | ||
| EV/EBITDA | 9.61 |
4.3 Compensation for Growth
The excellent profitability rating of NHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.95
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.35%, NHC has a reasonable but not impressive dividend return.
NHC's Dividend Yield is rather good when compared to the industry average which is at 2.37. NHC pays more dividend than 93.20% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, NHC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.3%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
NHC pays out 34.59% 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.
DP34.59%
EPS Next 2YN/A
EPS Next 3YN/A
108.44
-0.32 (-0.29%)
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-1.03%
Ins Owners6.99%
Ins Owner Change0.16%
Market Cap1.68B
Analysts60
Price TargetN/A
Short Float %2.08%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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 | 15.69 | ||
| Fwd PE | N/A | ||
| P/S | 1.21 | ||
| P/FCF | 15.37 | ||
| P/OCF | 12.25 | ||
| P/B | 1.67 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 9.61 |
EPS(TTM)6.91
EY6.37%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)7.05
FCFY6.51%
OCF(TTM)8.85
OCFY8.16%
SpS89.46
BVpS64.96
TBVpS52.65
PEG (NY)N/A
PEG (5Y)1.95
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 | 3.84 |
F-Score6
WACC8.78%
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%