NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
NYSE:NHI - New York Stock Exchange, Inc. - US63633D1046 - REIT - Currency: USD
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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 17.48 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.76
WACC7.73%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.88 | ||
| Fwd PE | 23.54 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.78 | ||
| EV/EBITDA | 17.93 |
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%
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 Rank | Sector 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
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%
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)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
Yearly Dividend3.51
Dividend Growth(5Y)-3.12%
DP113.52%
Div Incr Years0
Div Non Decr Years2
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%