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. While NHI has a great profitability rating, there are some minor concerns on its financial health. NHI is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years NHI has been profitable.
Each year in the past 5 years NHI had a positive operating cash flow.
1.2 Ratios
NHI's Return On Assets of 5.07% is amongst the best of the industry. NHI outperforms 93.80% of its industry peers.
The Return On Equity of NHI (9.89%) is better than 87.60% of its industry peers.
With an excellent Return On Invested Capital value of 5.56%, NHI belongs to the best of the industry, outperforming 93.80% of the companies in the same industry.
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
Looking at the Profit Margin, with a value of 41.13%, NHI belongs to the top of the industry, outperforming 91.47% of the companies in the same industry.
NHI's Profit Margin has declined in the last couple of years.
NHI's Operating Margin of 55.64% is amongst the best of the industry. NHI outperforms 95.35% of its industry peers.
NHI's Operating Margin has declined in the last couple of years.
NHI has a Gross Margin of 84.22%. This is amongst the best in the industry. NHI outperforms 86.05% of its industry peers.
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.
Compared to 1 year ago, NHI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that NHI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NHI (1.72) is better than 94.57% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that NHI is somewhat dependend on debt financing.
NHI's Debt to Equity ratio of 0.89 is fine compared to the rest of the industry. NHI outperforms 65.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.72 |
ROIC/WACC0.71
WACC7.81%
2.3 Liquidity
A Current Ratio of 3.23 indicates that NHI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.23, NHI belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
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.
The Quick ratio of NHI (3.23) is better than 90.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.23 |
3. Growth
3.1 Past
NHI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.31%.
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 4.12% on average per year.
The Revenue is expected to grow by 19.04% on average over the next years. This is quite good.
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
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
Based on the Price/Earnings ratio of 24.52, the valuation of NHI can be described as rather expensive.
NHI's Price/Earnings ratio is a bit cheaper when compared to the industry. NHI is cheaper than 74.42% of the companies in the same industry.
NHI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.91.
With a Price/Forward Earnings ratio of 22.30, NHI is valued on the expensive side.
NHI's Price/Forward Earnings ratio is rather cheap when compared to the industry. NHI is cheaper than 86.05% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NHI to the average of the S&P500 Index (21.77), we can say NHI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.52 | ||
| Fwd PE | 22.3 |
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 77.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of NHI may justify a higher PE ratio.
PEG (NY)5.01
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.
Compared to an average S&P500 Dividend Yield of 2.40, NHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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
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 (5/27/2025, 3:18:13 PM)
73.82
+1.35 (+1.86%)
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 Cap3.45B
Analysts76.67
Price Target82.47 (11.72%)
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 | 24.52 | ||
| Fwd PE | 22.3 | ||
| P/S | 10.05 | ||
| P/FCF | N/A | ||
| P/OCF | 16.15 | ||
| P/B | 2.42 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 17.09 |
EPS(TTM)3.01
EY4.08%
EPS(NY)3.31
Fwd EY4.48%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)4.57
OCFY6.19%
SpS7.35
BVpS30.55
TBVpS30.55
PEG (NY)5.01
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 | 1.72 |
F-Score6
WACC7.81%
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%