NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
NYSE:NHI - New York Stock Exchange, Inc. - US63633D1046 - REIT - Currency: USD
Overall NHI gets a fundamental rating of 5 out of 10. We evaluated NHI against 129 industry peers in the Diversified REITs industry. NHI has an excellent profitability rating, but there are some minor concerns on its financial health. NHI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NHI was profitable.
NHI had a positive operating cash flow in the past year.
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 has a Return On Assets of 5.07%. This is amongst the best in the industry. NHI outperforms 93.80% of its industry peers.
NHI's Return On Equity of 9.89% is amongst the best of the industry. NHI outperforms 87.60% of its industry peers.
NHI has a better Return On Invested Capital (5.56%) than 93.80% 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 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
With an excellent Profit Margin value of 41.13%, NHI belongs to the best of the industry, outperforming 91.47% of the companies in the same industry.
In the last couple of years the Profit Margin of NHI has declined.
The Operating Margin of NHI (55.64%) is better than 95.35% of its industry peers.
NHI's Operating Margin has declined in the last couple of years.
NHI's Gross Margin of 84.22% is amongst the best of the industry. NHI outperforms 86.05% of its industry peers.
NHI's Gross Margin has declined in the last couple of years.
| 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
NHI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NHI has more shares outstanding
Compared to 5 years ago, NHI has more shares outstanding
NHI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that NHI is in the distress zone and has some risk of bankruptcy.
NHI has a better Altman-Z score (1.70) than 93.80% 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 67.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.7 |
ROIC/WACC0.72
WACC7.73%
2.3 Liquidity
A Current Ratio of 3.23 indicates that NHI has no problem at all paying its short term obligations.
NHI's Current ratio of 3.23 is amongst the best of the industry. NHI outperforms 90.70% of its industry peers.
A Quick Ratio of 3.23 indicates that NHI has no problem at all paying 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.
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 7.52% in the past year.
NHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.05% yearly.
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
Based on estimates for the next years, NHI will show a small growth in Earnings Per Share. The EPS will grow by 4.36% on average per year.
Based on estimates for the next years, NHI will show a quite strong growth in Revenue. The Revenue will grow by 19.50% on average per year.
EPS Next Y4.52%
EPS Next 2Y5.63%
EPS Next 3Y4.36%
EPS Next 5YN/A
Revenue Next Year11.15%
Revenue Next 2Y10.93%
Revenue Next 3Y10.21%
Revenue Next 5Y19.5%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 23.65, which indicates a rather expensive current valuation of NHI.
77.52% 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 27.30, NHI is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.41, the valuation of NHI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, NHI is valued cheaply inside the industry as 88.37% of the companies are valued more expensively.
NHI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.65 | ||
| Fwd PE | 21.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NHI is valued a bit more expensive than 71.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.85 |
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)5.23
PEG (5Y)N/A
EPS Next 2Y5.63%
EPS Next 3Y4.36%
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 6.45, NHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, 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 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
112.40% of the earnings are spent on dividend by NHI. This is not a sustainable payout ratio.
DP112.4%
EPS Next 2Y5.63%
EPS Next 3Y4.36%
71.2
+0.11 (+0.15%)
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 Change-0.01%
Ins Owners1.98%
Ins Owner Change4.36%
Market Cap3.32B
Analysts76.67
Price Target82.47 (15.83%)
Short Float %5.79%
Short Ratio9.23
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%
PT rev (3m)-1.57%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)-3.49%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-1.47%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.65 | ||
| Fwd PE | 21.41 | ||
| P/S | 9.69 | ||
| P/FCF | N/A | ||
| P/OCF | 15.58 | ||
| P/B | 2.33 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 16.85 |
EPS(TTM)3.01
EY4.23%
EPS(NY)3.32
Fwd EY4.67%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)4.57
OCFY6.42%
SpS7.35
BVpS30.55
TBVpS30.55
PEG (NY)5.23
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 | 1.7 |
F-Score6
WACC7.73%
ROIC/WACC0.72
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 Y4.52%
EPS Next 2Y5.63%
EPS Next 3Y4.36%
EPS Next 5YN/A
Revenue 1Y (TTM)7.52%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%9.55%
Revenue Next Year11.15%
Revenue Next 2Y10.93%
Revenue Next 3Y10.21%
Revenue Next 5Y19.5%
EBIT growth 1Y7.59%
EBIT growth 3Y0.41%
EBIT growth 5Y-3.04%
EBIT Next Year55.52%
EBIT Next 3Y18.19%
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%