NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
NYSE:NHI - US63633D1046 - REIT
78.29 USD
+0.64 (+0.82%)
78.29 USD
0 (0%)
Taking everything into account, NHI scores 5 out of 10 in our fundamental rating. NHI was compared to 129 industry peers in the Diversified REITs industry. NHI scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, NHI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year NHI was profitable.
NHI had a positive operating cash flow in the past year.
In the past 5 years NHI has always been profitable.
NHI 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 5.30%, NHI belongs to the top of the industry, outperforming 96.90% of the companies in the same industry.
NHI has a Return On Equity of 9.65%. This is amongst the best in the industry. NHI outperforms 87.60% of its industry peers.
NHI's Return On Invested Capital of 5.74% is amongst the best of the industry. NHI outperforms 96.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NHI is above the industry average of 3.06%.
The 3 year average ROIC (5.45%) for NHI is below the current ROIC(5.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 9.65% | ||
| ROIC | 5.74% |
ROA(3y)4.46%
ROA(5y)4.65%
ROE(3y)8.71%
ROE(5y)9.16%
ROIC(3y)5.45%
ROIC(5y)5.5%
1.3 Margins
NHI has a Profit Margin of 40.95%. This is amongst the best in the industry. NHI outperforms 93.02% of its industry peers.
In the last couple of years the Profit Margin of NHI has declined.
NHI has a better Operating Margin (54.59%) than 95.35% of its industry peers.
NHI's Operating Margin has declined in the last couple of years.
The Gross Margin of NHI (84.46%) is better than 85.27% of its industry peers.
In the last couple of years the Gross Margin of NHI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 54.59% | ||
| PM (TTM) | 40.95% | ||
| GM | 84.46% |
OM growth 3Y-3.37%
OM growth 5Y-4.05%
PM growth 3Y3.19%
PM growth 5Y-4%
GM growth 3Y-4.37%
GM growth 5Y-3.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NHI is destroying value.
Compared to 1 year ago, NHI has more shares outstanding
NHI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NHI has an improved debt to assets ratio.
2.2 Solvency
NHI has an Altman-Z score of 2.00. This is not the best score and indicates that NHI is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.00, NHI belongs to the best of the industry, outperforming 94.57% of the companies in the same industry.
NHI has a Debt/Equity ratio of 0.76. This is a neutral value indicating NHI is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.76, NHI is doing good in the industry, outperforming 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2 |
ROIC/WACC0.75
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.49 indicates that NHI should not have too much problems paying its short term obligations.
NHI's Current ratio of 1.49 is fine compared to the rest of the industry. NHI outperforms 64.34% of its industry peers.
A Quick Ratio of 1.49 indicates that NHI should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.49, NHI is doing good in the industry, outperforming 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.70% over the past year.
The Earnings Per Share has been decreasing by -4.49% on average over the past years.
NHI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.93%.
Measured over the past years, NHI shows a small growth in Revenue. The Revenue has been growing by 1.05% on average per year.
EPS 1Y (TTM)1.7%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%-2.47%
Revenue 1Y (TTM)6.93%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%6.7%
3.2 Future
The Earnings Per Share is expected to grow by 4.84% on average over the next years.
NHI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.22% yearly.
EPS Next Y4.56%
EPS Next 2Y5.52%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue Next Year8.92%
Revenue Next 2Y9.01%
Revenue Next 3Y8.16%
Revenue Next 5Y11.22%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NHI is valuated quite expensively with a Price/Earnings ratio of 26.18.
71.32% of the companies in the same industry are more expensive than NHI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.08, NHI is valued at the same level.
With a Price/Forward Earnings ratio of 23.60, NHI is valued on the expensive side.
86.82% of the companies in the same industry are more expensive than NHI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, NHI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.18 | ||
| Fwd PE | 23.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NHI indicates a slightly more expensive valuation: NHI is more expensive than 77.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NHI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of NHI may justify a higher PE ratio.
PEG (NY)5.74
PEG (5Y)N/A
EPS Next 2Y5.52%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.76%, NHI is a good candidate for dividend investing.
NHI's Dividend Yield is comparable with the industry average which is at 6.31.
NHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
5.2 History
The dividend of NHI decreases each year by -3.12%.
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)-3.12%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
NHI pays out 113.12% of its income as dividend. This is not a sustainable payout ratio.
DP113.12%
EPS Next 2Y5.52%
EPS Next 3Y4.84%
78.29
+0.64 (+0.82%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners70.27%
Inst Owner Change9.22%
Ins Owners1.98%
Ins Owner Change4.45%
Market Cap3.72B
Analysts76.36
Price Target83.93 (7.2%)
Short Float %4.09%
Short Ratio6.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
Yearly Dividend3.51
Dividend Growth(5Y)-3.12%
DP113.12%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.1%
Min EPS beat(2)-0.09%
Max EPS beat(2)4.29%
EPS beat(4)2
Avg EPS beat(4)-0.31%
Min EPS beat(4)-12.08%
Max EPS beat(4)6.65%
EPS beat(8)5
Avg EPS beat(8)1.6%
EPS beat(12)7
Avg EPS beat(12)-4.85%
EPS beat(16)7
Avg EPS beat(16)-18.44%
Revenue beat(2)2
Avg Revenue beat(2)3.79%
Min Revenue beat(2)3.26%
Max Revenue beat(2)4.31%
Revenue beat(4)4
Avg Revenue beat(4)3.81%
Min Revenue beat(4)3.26%
Max Revenue beat(4)4.31%
Revenue beat(8)8
Avg Revenue beat(8)3.26%
Revenue beat(12)10
Avg Revenue beat(12)1.7%
Revenue beat(16)11
Avg Revenue beat(16)-0.32%
PT rev (1m)1.74%
PT rev (3m)1.77%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)-1.66%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)-3.36%
Revenue NQ rev (3m)-7.45%
Revenue NY rev (1m)-1.8%
Revenue NY rev (3m)-1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.18 | ||
| Fwd PE | 23.6 | ||
| P/S | 10.66 | ||
| P/FCF | N/A | ||
| P/OCF | 17.49 | ||
| P/B | 2.51 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 18 |
EPS(TTM)2.99
EY3.82%
EPS(NY)3.32
Fwd EY4.24%
FCF(TTM)-1.04
FCFYN/A
OCF(TTM)4.48
OCFY5.72%
SpS7.34
BVpS31.17
TBVpS31.17
PEG (NY)5.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 9.65% | ||
| ROCE | 7.26% | ||
| ROIC | 5.74% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 5.81% | ||
| OM | 54.59% | ||
| PM (TTM) | 40.95% | ||
| GM | 84.46% | ||
| FCFM | N/A |
ROA(3y)4.46%
ROA(5y)4.65%
ROE(3y)8.71%
ROE(5y)9.16%
ROIC(3y)5.45%
ROIC(5y)5.5%
ROICexc(3y)5.5%
ROICexc(5y)5.56%
ROICexgc(3y)5.53%
ROICexgc(5y)5.6%
ROCE(3y)6.9%
ROCE(5y)6.97%
ROICexcg growth 3Y3.22%
ROICexcg growth 5Y0.14%
ROICexc growth 3Y3.22%
ROICexc growth 5Y0.15%
OM growth 3Y-3.37%
OM growth 5Y-4.05%
PM growth 3Y3.19%
PM growth 5Y-4%
GM growth 3Y-4.37%
GM growth 5Y-3.06%
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 346.64% | ||
| Cap/Sales | 75.09% | ||
| Interest Coverage | 3.52 | ||
| Cash Conversion | 79.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 2 |
F-Score7
WACC7.68%
ROIC/WACC0.75
Cap/Depr(3y)89.28%
Cap/Depr(5y)89.91%
Cap/Sales(3y)19.27%
Cap/Sales(5y)20.88%
Profit Quality(3y)140.72%
Profit Quality(5y)127.73%
High Growth Momentum
Growth
EPS 1Y (TTM)1.7%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%-2.47%
EPS Next Y4.56%
EPS Next 2Y5.52%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue 1Y (TTM)6.93%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%6.7%
Revenue Next Year8.92%
Revenue Next 2Y9.01%
Revenue Next 3Y8.16%
Revenue Next 5Y11.22%
EBIT growth 1Y3.44%
EBIT growth 3Y0.41%
EBIT growth 5Y-3.04%
EBIT Next Year56.72%
EBIT Next 3Y20.4%
EBIT Next 5Y12.05%
FCF growth 1Y-137.4%
FCF growth 3Y-26.33%
FCF growth 5Y24.64%
OCF growth 1Y23.98%
OCF growth 3Y-0.5%
OCF growth 5Y-2.92%