NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
NYSE:NHI - New York Stock Exchange, Inc. - US63633D1046 - REIT - Currency: USD
Taking everything into account, NHI scores 6 out of 10 in our fundamental rating. NHI was compared to 130 industry peers in the Diversified REITs industry. While NHI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NHI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NHI had positive earnings in the past year.
NHI had a positive operating cash flow in the past year.
Each year in the past 5 years NHI has been profitable.
Each year in the past 5 years NHI had a positive operating cash flow.
1.2 Ratios
NHI has a better Return On Assets (5.07%) than 93.85% of its industry peers.
NHI has a better Return On Equity (9.89%) than 87.69% of its industry peers.
The Return On Invested Capital of NHI (5.56%) is better than 95.38% of its industry peers.
NHI had an Average Return On Invested Capital over the past 3 years of 5.45%. This is above the industry average of 3.15%.
The 3 year average ROIC (5.45%) for NHI is below the current ROIC(5.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 9.89% | ||
| ROIC | 5.56% |
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 better Profit Margin (41.13%) than 92.31% of its industry peers.
NHI's Profit Margin has declined in the last couple of years.
NHI's Operating Margin of 55.64% is amongst the best of the industry. NHI outperforms 95.38% of its industry peers.
In the last couple of years the Operating Margin of NHI has declined.
Looking at the Gross Margin, with a value of 84.22%, NHI belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
In the last couple of years the Gross Margin of NHI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 55.64% | ||
| PM (TTM) | 41.13% | ||
| GM | 84.22% |
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.
The number of shares outstanding for NHI has been increased compared to 1 year ago.
Compared to 5 years ago, NHI has more shares outstanding
The debt/assets ratio for NHI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that NHI is in the distress zone and has some risk of bankruptcy.
NHI's Altman-Z score of 1.77 is amongst the best of the industry. NHI outperforms 94.62% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that NHI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, NHI is in the better half of the industry, outperforming 68.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.77 |
ROIC/WACC0.73
WACC7.62%
2.3 Liquidity
A Current Ratio of 3.23 indicates that NHI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.23, NHI belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
NHI has a Quick Ratio of 3.23. This indicates that NHI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.23, NHI belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.33% over the past year.
NHI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.49% yearly.
The Revenue has been growing slightly by 4.80% in the past year.
The Revenue has been growing slightly by 1.05% on average over the past years.
EPS 1Y (TTM)16.33%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%50.62%
Revenue 1Y (TTM)4.8%
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 19.50% yearly.
EPS Next Y4.86%
EPS Next 2Y6.01%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue Next Year10.91%
Revenue Next 2Y11.46%
Revenue Next 3Y10.95%
Revenue Next 5Y19.5%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.90 indicates a rather expensive valuation of NHI.
Compared to the rest of the industry, the Price/Earnings ratio of NHI indicates a somewhat cheap valuation: NHI is cheaper than 75.38% of the companies listed in the same industry.
NHI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.54.
Based on the Price/Forward Earnings ratio of 22.37, the valuation of NHI can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NHI indicates a rather cheap valuation: NHI is cheaper than 86.15% of the companies listed in the same industry.
NHI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 22.37 |
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 75.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of NHI may justify a higher PE ratio.
PEG (NY)4.5
PEG (5Y)N/A
EPS Next 2Y6.01%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.06%, NHI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.79, NHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, NHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
5.2 History
The dividend of NHI decreases each year by -3.12%.
NHI has paid a dividend for at least 10 years, which is 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 112.40% of its income as dividend. This is not a sustainable payout ratio.
DP112.4%
EPS Next 2Y6.01%
EPS Next 3Y4.84%
NYSE:NHI (8/8/2025, 11:56:36 AM)
74.91
+0.37 (+0.5%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners69.75%
Inst Owner Change0.61%
Ins Owners1.98%
Ins Owner Change4.36%
Market Cap3.50B
Analysts76.36
Price Target81.89 (9.32%)
Short Float %4.33%
Short Ratio6.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
Yearly Dividend3.51
Dividend Growth(5Y)-3.12%
DP112.4%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.28%
Min EPS beat(2)-0.09%
Max EPS beat(2)6.65%
EPS beat(4)2
Avg EPS beat(4)0.9%
Min EPS beat(4)-12.08%
Max EPS beat(4)9.11%
EPS beat(8)5
Avg EPS beat(8)5.07%
EPS beat(12)6
Avg EPS beat(12)-8.12%
EPS beat(16)6
Avg EPS beat(16)-19.11%
Revenue beat(2)2
Avg Revenue beat(2)3.92%
Min Revenue beat(2)3.52%
Max Revenue beat(2)4.31%
Revenue beat(4)4
Avg Revenue beat(4)3.85%
Min Revenue beat(4)3.42%
Max Revenue beat(4)4.31%
Revenue beat(8)7
Avg Revenue beat(8)2.47%
Revenue beat(12)9
Avg Revenue beat(12)-0.28%
Revenue beat(16)10
Avg Revenue beat(16)-0.58%
PT rev (1m)0.02%
PT rev (3m)0.02%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)-4.66%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 22.37 | ||
| P/S | 10.2 | ||
| P/FCF | N/A | ||
| P/OCF | 16.39 | ||
| P/B | 2.45 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 17.46 |
EPS(TTM)3.42
EY4.57%
EPS(NY)3.35
Fwd EY4.47%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)4.57
OCFY6.1%
SpS7.35
BVpS30.55
TBVpS30.55
PEG (NY)4.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 9.89% | ||
| ROCE | 7.04% | ||
| ROIC | 5.56% | ||
| ROICexc | 5.85% | ||
| ROICexgc | 5.9% | ||
| OM | 55.64% | ||
| PM (TTM) | 41.13% | ||
| GM | 84.22% | ||
| 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-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.79 | ||
| Cap/Depr | 295.5% | ||
| Cap/Sales | 62.98% | ||
| Interest Coverage | 3.45 | ||
| Cash Conversion | 80.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.23 | ||
| Altman-Z | 1.77 |
F-Score6
WACC7.62%
ROIC/WACC0.73
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)16.33%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%50.62%
EPS Next Y4.86%
EPS Next 2Y6.01%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue 1Y (TTM)4.8%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%6.7%
Revenue Next Year10.91%
Revenue Next 2Y11.46%
Revenue Next 3Y10.95%
Revenue Next 5Y19.5%
EBIT growth 1Y7.59%
EBIT growth 3Y0.41%
EBIT growth 5Y-3.04%
EBIT Next Year56.72%
EBIT Next 3Y20.4%
EBIT Next 5Y12.05%
FCF growth 1Y-101.94%
FCF growth 3Y-26.33%
FCF growth 5Y24.64%
OCF growth 1Y20.17%
OCF growth 3Y-0.5%
OCF growth 5Y-2.92%