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 5 out of 10 in our fundamental rating. NHI was compared to 129 industry peers in the Diversified REITs industry. NHI has an excellent profitability rating, 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
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.
In the past 5 years NHI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.07%, NHI belongs to the best of the industry, outperforming 93.80% of the companies in the same industry.
NHI's Return On Equity of 9.89% is amongst the best of the industry. NHI outperforms 87.60% of its industry peers.
The Return On Invested Capital of NHI (5.56%) is better than 93.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NHI is above the industry average of 3.15%.
The last Return On Invested Capital (5.56%) for NHI is above the 3 year average (5.45%), which is a sign of increasing profitability.
| 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 Profit Margin of 41.13%. This is amongst the best in the industry. NHI outperforms 91.47% of its industry peers.
NHI's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 55.64%, NHI belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
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 86.05% 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.
Compared to 1 year ago, NHI has more shares outstanding
NHI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NHI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that NHI is in the distress zone and has some risk of bankruptcy.
NHI has a Altman-Z score of 1.74. This is amongst the best in the industry. NHI outperforms 94.57% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that NHI is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.89, NHI is doing good in the industry, outperforming 65.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.74 |
ROIC/WACC0.71
WACC7.82%
2.3 Liquidity
NHI has a Current Ratio of 3.23. This indicates that NHI is financially healthy and has no problem in meeting its short term obligations.
NHI has a Current ratio of 3.23. This is amongst the best in the industry. NHI outperforms 90.70% of its industry peers.
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 90.70% 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 for NHI have decreased by -1.31% in the last year.
The Earnings Per Share has been decreasing by -4.49% on average over the past years.
The Revenue has been growing slightly by 7.52% in the past year.
The Revenue has been growing slightly by 1.05% on average over the past years.
EPS 1Y (TTM)-1.31%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%4.23%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%9.55%
3.2 Future
NHI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.12% yearly.
NHI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.04% yearly.
EPS Next Y4.9%
EPS Next 2Y5.4%
EPS Next 3Y4.12%
EPS Next 5YN/A
Revenue Next Year10.95%
Revenue Next 2Y11.35%
Revenue Next 3Y10.66%
Revenue Next 5Y19.04%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 24.15, the valuation of NHI can be described as rather expensive.
75.19% 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 26.35, NHI is valued at the same level.
The Price/Forward Earnings ratio is 21.96, which indicates a rather expensive current valuation of NHI.
Based on the Price/Forward Earnings ratio, NHI is valued cheaply inside the industry as 86.05% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NHI to the average of the S&P500 Index (22.20), we can say NHI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 21.96 |
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 78.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.93
PEG (5Y)N/A
EPS Next 2Y5.4%
EPS Next 3Y4.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.93%, NHI is a good candidate for dividend investing.
NHI's Dividend Yield is comparable with the industry average which is at 6.93.
NHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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
112.40% of the earnings are spent on dividend by NHI. This is not a sustainable payout ratio.
DP112.4%
EPS Next 2Y5.4%
EPS Next 3Y4.12%
NYSE:NHI (5/28/2025, 3:47:59 PM)
72.685
-0.75 (-1.03%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners71%
Inst Owner Change2.5%
Ins Owners1.94%
Ins Owner Change4.36%
Market Cap3.39B
Analysts76.67
Price Target82.47 (13.46%)
Short Float %3.2%
Short Ratio5.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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)-1.57%
PT rev (3m)0%
EPS NQ rev (1m)-3.07%
EPS NQ rev (3m)-3.48%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-1.37%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 21.96 | ||
| P/S | 9.9 | ||
| P/FCF | N/A | ||
| P/OCF | 15.9 | ||
| P/B | 2.38 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 17.27 |
EPS(TTM)3.01
EY4.14%
EPS(NY)3.31
Fwd EY4.55%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)4.57
OCFY6.29%
SpS7.35
BVpS30.55
TBVpS30.55
PEG (NY)4.93
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 | 1.74 |
F-Score6
WACC7.82%
ROIC/WACC0.71
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)-1.31%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%4.23%
EPS Next Y4.9%
EPS Next 2Y5.4%
EPS Next 3Y4.12%
EPS Next 5YN/A
Revenue 1Y (TTM)7.52%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%9.55%
Revenue Next Year10.95%
Revenue Next 2Y11.35%
Revenue Next 3Y10.66%
Revenue Next 5Y19.04%
EBIT growth 1Y7.59%
EBIT growth 3Y0.41%
EBIT growth 5Y-3.04%
EBIT Next Year55.52%
EBIT Next 3Y18.19%
EBIT Next 5Y11.78%
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%