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NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis

NYSE:NHI - New York Stock Exchange, Inc. - US63633D1046 - REIT - Currency: USD

74.1301  -1.64 (-2.16%)

Fundamental Rating

5

NHI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. While NHI has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, NHI is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

8

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.
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.
NHI Yearly Net Income VS EBIT VS OCF VS FCFNHI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M -200M

1.2 Ratios

NHI has a better Return On Assets (5.27%) than 93.85% of its industry peers.
NHI's Return On Equity of 10.09% is amongst the best of the industry. NHI outperforms 87.69% of its industry peers.
The Return On Invested Capital of NHI (5.87%) is better than 93.85% 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 3.19%.
The last Return On Invested Capital (5.87%) for NHI is above the 3 year average (5.45%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.27%
ROE 10.09%
ROIC 5.87%
ROA(3y)4.46%
ROA(5y)4.65%
ROE(3y)8.71%
ROE(5y)9.16%
ROIC(3y)5.45%
ROIC(5y)5.5%
NHI Yearly ROA, ROE, ROICNHI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

NHI has a better Profit Margin (41.13%) than 90.77% of its industry peers.
NHI's Profit Margin has declined in the last couple of years.
NHI has a Operating Margin of 56.24%. This is amongst the best in the industry. NHI outperforms 95.38% of its industry peers.
NHI's Operating Margin has declined in the last couple of years.
NHI has a better Gross Margin (84.06%) than 85.38% of its industry peers.
NHI's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 56.24%
PM (TTM) 41.13%
GM 84.06%
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%
NHI Yearly Profit, Operating, Gross MarginsNHI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NHI is destroying value.
The number of shares outstanding for NHI has been increased compared to 1 year ago.
NHI has more shares outstanding than it did 5 years ago.
NHI has a better debt/assets ratio than last year.
NHI Yearly Shares OutstandingNHI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
NHI Yearly Total Debt VS Total AssetsNHI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

NHI has an Altman-Z score of 1.89. 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.
NHI has a Altman-Z score of 1.89. This is amongst the best in the industry. NHI outperforms 95.38% of its industry peers.
NHI has a debt to FCF ratio of 17.48. This is a negative value and a sign of low solvency as NHI would need 17.48 years to pay back of all of its debts.
The Debt to FCF ratio of NHI (17.48) is better than 79.23% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that NHI is somewhat dependend on debt financing.
NHI has a better Debt to Equity ratio (0.84) than 68.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.84
Debt/FCF 17.48
Altman-Z 1.89
ROIC/WACC0.76
WACC7.73%
NHI Yearly LT Debt VS Equity VS FCFNHI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

NHI has a Current 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.
NHI has a better Current ratio (1.49) than 64.62% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.49, NHI is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.49
Quick Ratio 1.49
NHI Yearly Current Assets VS Current LiabilitesNHI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M

4

3. Growth

3.1 Past

The earnings per share for NHI have decreased by -4.79% 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.
Looking at the last year, NHI shows a small growth in Revenue. The Revenue has grown by 4.80% in the last year.
The Revenue has been growing slightly by 1.05% on average over the past years.
EPS 1Y (TTM)-4.79%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%9.46%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%7.91%

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 4.12% 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 19.04% on average per year.
EPS Next Y5.68%
EPS Next 2Y5.6%
EPS Next 3Y4.12%
EPS Next 5YN/A
Revenue Next Year10.27%
Revenue Next 2Y11.35%
Revenue Next 3Y10.66%
Revenue Next 5Y19.04%

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.
NHI Yearly Revenue VS EstimatesNHI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200M 400M 600M 800M
NHI Yearly EPS VS EstimatesNHI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24.88 indicates a rather expensive valuation of NHI.
NHI's Price/Earnings ratio is a bit cheaper when compared to the industry. NHI is cheaper than 70.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, NHI is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.54, 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 83.85% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, NHI is valued at the same level.
Industry RankSector Rank
PE 24.88
Fwd PE 23.54
NHI Price Earnings VS Forward Price EarningsNHI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

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 78.46% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NHI is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 52.78
EV/EBITDA 17.93
NHI Per share dataNHI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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)4.38
PEG (5Y)N/A
EPS Next 2Y5.6%
EPS Next 3Y4.12%

4

5. Dividend

5.1 Amount

NHI has a Yearly Dividend Yield of 4.75%, which is a nice return.
Compared to an average industry Dividend Yield of 16.87, 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 2.51.
Industry RankSector Rank
Dividend Yield 4.75%

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.
The dividend of NHI decreased in the last 3 years.
Dividend Growth(5Y)-3.12%
Div Incr Years0
Div Non Decr Years2
NHI Yearly Dividends per shareNHI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

NHI pays out 113.52% of its income as dividend. This is not a sustainable payout ratio.
DP113.52%
EPS Next 2Y5.6%
EPS Next 3Y4.12%
NHI Yearly Income VS Free CF VS DividendNHI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M -200M
NHI Dividend Payout.NHI Dividend Payout, showing the Payout Ratio.NHI Dividend Payout.PayoutRetained Earnings

NATL HEALTH INVESTORS INC

NYSE:NHI (4/21/2025, 12:12:26 PM)

74.1301

-1.64 (-2.16%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)02-25 2025-02-25/amc
Earnings (Next)05-05 2025-05-05/amc
Inst Owners71%
Inst Owner Change0.04%
Ins Owners1.94%
Ins Owner Change4.46%
Market Cap3.46B
Analysts76.67
Price Target83.79 (13.03%)
Short Float %4.75%
Short Ratio9.56
Dividend
Industry RankSector Rank
Dividend Yield 4.75%
Yearly Dividend3.51
Dividend Growth(5Y)-3.12%
DP113.52%
Div Incr Years0
Div Non Decr Years2
Ex-Date03-31 2025-03-31 (0.9)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.72%
Min EPS beat(2)-12.08%
Max EPS beat(2)6.65%
EPS beat(4)3
Avg EPS beat(4)1.84%
Min EPS beat(4)-12.08%
Max EPS beat(4)9.11%
EPS beat(8)5
Avg EPS beat(8)4.14%
EPS beat(12)6
Avg EPS beat(12)-14.09%
EPS beat(16)6
Avg EPS beat(16)-19.94%
Revenue beat(2)2
Avg Revenue beat(2)3.84%
Min Revenue beat(2)3.52%
Max Revenue beat(2)4.16%
Revenue beat(4)4
Avg Revenue beat(4)4.03%
Min Revenue beat(4)3.42%
Max Revenue beat(4)5.02%
Revenue beat(8)7
Avg Revenue beat(8)2.59%
Revenue beat(12)8
Avg Revenue beat(12)-0.91%
Revenue beat(16)9
Avg Revenue beat(16)-0.9%
PT rev (1m)3.6%
PT rev (3m)-1.54%
EPS NQ rev (1m)-2.23%
EPS NQ rev (3m)-2.23%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)-1.38%
Revenue NQ rev (3m)-2.63%
Revenue NY rev (1m)-4.03%
Revenue NY rev (3m)-4.03%
Valuation
Industry RankSector Rank
PE 24.88
Fwd PE 23.54
P/S 10.33
P/FCF 52.78
P/OCF 16.66
P/B 2.53
P/tB 2.53
EV/EBITDA 17.93
EPS(TTM)2.98
EY4.02%
EPS(NY)3.15
Fwd EY4.25%
FCF(TTM)1.4
FCFY1.89%
OCF(TTM)4.45
OCFY6%
SpS7.18
BVpS29.27
TBVpS29.27
PEG (NY)4.38
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 5.27%
ROE 10.09%
ROCE 7.43%
ROIC 5.87%
ROICexc 5.93%
ROICexgc 5.96%
OM 56.24%
PM (TTM) 41.13%
GM 84.06%
FCFM 19.56%
ROA(3y)4.46%
ROA(5y)4.65%
ROE(3y)8.71%
ROE(5y)9.16%
ROIC(3y)5.45%
ROIC(5y)5.5%
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-Score5
Asset Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 0.84
Debt/FCF 17.48
Debt/EBITDA 4.41
Cap/Depr 199.04%
Cap/Sales 42.42%
Interest Coverage 3.4
Cash Conversion 79.93%
Profit Quality 47.56%
Current Ratio 1.49
Quick Ratio 1.49
Altman-Z 1.89
F-Score5
WACC7.73%
ROIC/WACC0.76
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)-4.79%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%9.46%
EPS Next Y5.68%
EPS Next 2Y5.6%
EPS Next 3Y4.12%
EPS Next 5YN/A
Revenue 1Y (TTM)4.8%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%7.91%
Revenue Next Year10.27%
Revenue Next 2Y11.35%
Revenue Next 3Y10.66%
Revenue Next 5Y19.04%
EBIT growth 1Y5.6%
EBIT growth 3Y0.41%
EBIT growth 5Y-3.04%
EBIT Next Year55.91%
EBIT Next 3Y17.97%
EBIT Next 5Y11.78%
FCF growth 1Y-54.03%
FCF growth 3Y-26.33%
FCF growth 5Y24.64%
OCF growth 1Y12.64%
OCF growth 3Y-0.5%
OCF growth 5Y-2.92%