NATL HEALTH INVESTORS INC (NHI)
US63633D1046 - REIT
Taking everything into account, NHI scores 6 out of 10 in our fundamental rating. NHI was compared to 126 industry peers in the Diversified REITs industry. While NHI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NHI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year NHI was profitable.
In the past year NHI had a positive cash flow from operations.
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 better Return On Assets (5.45%) than 91.06% of its industry peers.
The Return On Equity of NHI (10.81%) is better than 89.43% of its industry peers.
The Return On Invested Capital of NHI (5.84%) is better than 95.94% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NHI is above the industry average of 2.95%.
The 3 year average ROIC (5.26%) for NHI is below the current ROIC(5.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 10.81% | ||
| ROIC | 5.84% |
ROA(3y)4.01%
ROA(5y)4.65%
ROE(3y)7.82%
ROE(5y)9.28%
ROIC(3y)5.26%
ROIC(5y)5.5%
1.3 Margins
NHI has a Profit Margin of 42.39%. This is amongst the best in the industry. NHI outperforms 90.24% of its industry peers.
NHI's Profit Margin has declined in the last couple of years.
NHI has a better Operating Margin (55.81%) than 95.12% of its industry peers.
NHI's Operating Margin has declined in the last couple of years.
NHI has a better Gross Margin (84.02%) than 85.37% of its industry peers.
In the last couple of years the Gross Margin of NHI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 55.81% | ||
| PM (TTM) | 42.39% | ||
| GM | 84.02% |
OM growth 3Y-6.18%
OM growth 5Y-4.71%
PM growth 3Y-8.65%
PM growth 5Y-4.14%
GM growth 3Y-4.71%
GM growth 5YN/A
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.
The number of shares outstanding for NHI remains at a similar level compared to 1 year ago.
The number of shares outstanding for NHI has been increased compared to 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 1.46, we must say that NHI is in the distress zone and has some risk of bankruptcy.
NHI has a Altman-Z score of 1.46. This is amongst the best in the industry. NHI outperforms 88.62% of its industry peers.
The Debt to FCF ratio of NHI is 7.96, which is on the high side as it means it would take NHI, 7.96 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 7.96, NHI belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that NHI is somewhat dependend on debt financing.
NHI has a Debt to Equity ratio of 0.91. This is in the better half of the industry: NHI outperforms 62.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 7.96 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.77
WACC7.56%
2.3 Liquidity
A Current Ratio of 1.53 indicates that NHI should not have too much problems paying its short term obligations.
NHI's Current ratio of 1.53 is fine compared to the rest of the industry. NHI outperforms 64.23% of its industry peers.
A Quick Ratio of 1.53 indicates that NHI should not have too much problems paying its short term obligations.
NHI has a Quick ratio of 1.53. This is in the better half of the industry: NHI outperforms 67.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 111.49% over the past year.
The Earnings Per Share has been decreasing by -3.34% on average over the past years.
Looking at the last year, NHI shows a quite strong growth in Revenue. The Revenue has grown by 14.97% in the last year.
The Revenue has been growing slightly by 1.66% on average over the past years.
EPS 1Y (TTM)111.49%
EPS 3Y-8.83%
EPS 5Y-3.34%
EPS growth Q2Q1750%
Revenue 1Y (TTM)14.97%
Revenue growth 3Y-1.32%
Revenue growth 5Y1.66%
Revenue growth Q2Q12.45%
3.2 Future
The Earnings Per Share is expected to decrease by -0.37% on average over the next years.
Based on estimates for the next years, NHI will show a quite strong growth in Revenue. The Revenue will grow by 9.50% on average per year.
EPS Next Y-9.07%
EPS Next 2Y-1.41%
EPS Next 3Y-0.37%
EPS Next 5YN/A
Revenue Next Year1.71%
Revenue Next 2Y5.74%
Revenue Next 3Y10.39%
Revenue Next 5Y9.5%
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
With a Price/Earnings ratio of 19.65, NHI is valued on the expensive side.
NHI's Price/Earnings ratio is a bit cheaper when compared to the industry. NHI is cheaper than 79.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.80, NHI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 21.61, the valuation of NHI can be described as rather expensive.
NHI's Price/Forward Earnings ratio is rather cheap when compared to the industry. NHI is cheaper than 88.62% of the companies in the same industry.
NHI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.65 | ||
| Fwd PE | 21.61 |
4.2 Price Multiples
NHI's Enterprise Value to EBITDA ratio is in line with the industry average.
NHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NHI is cheaper than 72.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.72 | ||
| EV/EBITDA | 15.04 |
4.3 Compensation for Growth
NHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.41%
EPS Next 3Y-0.37%
5. Dividend
5.1 Amount
NHI has a Yearly Dividend Yield of 6.11%, which is a nice return.
Compared to an average industry Dividend Yield of 5.97, NHI pays a bit more dividend than its industry peers.
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 | 6.11% |
5.2 History
The dividend of NHI decreases each year by -1.74%.
NHI has been paying a dividend for at least 10 years, so it has a reliable track record.
NHI has decreased its dividend recently.
Dividend Growth(5Y)-1.74%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
NHI pays out 115.22% of its income as dividend. This is not a sustainable payout ratio.
NHI's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP115.22%
EPS Next 2Y-1.41%
EPS Next 3Y-0.37%
NATL HEALTH INVESTORS INC
NYSE:NHI (4/19/2024, 3:03:47 PM)
After market: 61.52 0 (0%)61.52
+1.08 (+1.79%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.65 | ||
| Fwd PE | 21.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 10.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 55.81% | ||
| PM (TTM) | 42.39% | ||
| GM | 84.02% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)111.49%
EPS 3Y-8.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y-9.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.97%
Revenue growth 3Y-1.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y