NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
USA - NYSE:NHI - US63633D1046 - REIT
78.28 USD
-0.23 (-0.29%)
78.28 USD
0 (0%)
Taking everything into account, NHI scores 5 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. While showing a medium growth rate, NHI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
NHI had positive earnings in the past year.
In the past year NHI had a positive cash flow from operations.
NHI had positive earnings in each of the past 5 years.
NHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NHI's Return On Assets of 5.30% is amongst the best of the industry. NHI outperforms 96.92% of its industry peers.
The Return On Equity of NHI (9.65%) is better than 87.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.74%, NHI belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
NHI had an Average Return On Invested Capital over the past 3 years of 5.45%. This is above the industry average of 3.05%.
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 better Profit Margin (40.95%) than 93.08% of its industry peers.
In the last couple of years the Profit Margin of NHI has declined.
The Operating Margin of NHI (54.59%) is better than 95.38% of its industry peers.
NHI's Operating Margin has declined in the last couple of years.
NHI has a better Gross Margin (84.46%) than 85.38% of its industry peers.
NHI's Gross Margin has declined in the last couple of years.
| 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
NHI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NHI has more shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.02 indicates that NHI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NHI (2.02) is better than 94.62% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that NHI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, NHI is in the better half of the industry, outperforming 74.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.02 |
ROIC/WACC0.75
WACC7.62%
2.3 Liquidity
A Current Ratio of 1.49 indicates that NHI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.49, NHI is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
NHI has a Quick Ratio of 1.49. This is a normal value and indicates that NHI is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.49, NHI is doing good in the industry, outperforming 65.38% 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.
Measured over the past years, NHI shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.49% on average per year.
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
Based on estimates for the next years, NHI will show a small growth in Earnings Per Share. The EPS will grow by 4.84% on average per year.
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 Year9.76%
Revenue Next 2Y10.05%
Revenue Next 3Y9.68%
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
The Price/Earnings ratio is 26.18, which means the current valuation is very expensive for NHI.
71.54% of the companies in the same industry are more expensive than NHI, based on the Price/Earnings ratio.
NHI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 23.59, which indicates a rather expensive current valuation of NHI.
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.
When comparing the Price/Forward Earnings ratio of NHI to the average of the S&P500 Index (22.87), we can say NHI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.18 | ||
| Fwd PE | 23.59 |
4.2 Price Multiples
NHI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NHI is more expensive than 78.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.16 |
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.
NHI has an outstanding profitability rating, which 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 4.64%, NHI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.58, NHI has a dividend in line with its industry peers.
NHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
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
113.12% of the earnings are spent on dividend by NHI. This is not a sustainable payout ratio.
DP113.12%
EPS Next 2Y5.52%
EPS Next 3Y4.84%
78.28
-0.23 (-0.29%)
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 Change-0.1%
Market Cap3.72B
Analysts78.18
Price Target83.64 (6.85%)
Short Float %3.93%
Short Ratio8.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
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)3.62%
Revenue beat(12)10
Avg Revenue beat(12)1.94%
Revenue beat(16)11
Avg Revenue beat(16)-0.14%
PT rev (1m)2.14%
PT rev (3m)1.41%
EPS NQ rev (1m)1.27%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)0%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-3.89%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.18 | ||
| Fwd PE | 23.59 | ||
| P/S | 10.66 | ||
| P/FCF | N/A | ||
| P/OCF | 17.49 | ||
| P/B | 2.51 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 18.16 |
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 | 2.02 |
F-Score7
WACC7.62%
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 Year9.76%
Revenue Next 2Y10.05%
Revenue Next 3Y9.68%
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 5Y14.14%
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%