NATL HEALTH INVESTORS INC (NHI) Stock Fundamental Analysis
USA - NYSE:NHI - US63633D1046 - REIT
75.21 USD
-0.88 (-1.16%)
We assign a fundamental rating of 5 out of 10 to NHI. NHI was compared to 127 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
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.
NHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.30%, NHI belongs to the best of the industry, outperforming 96.85% of the companies in the same industry.
NHI has a better Return On Equity (9.65%) than 87.40% of its industry peers.
With an excellent Return On Invested Capital value of 5.74%, NHI belongs to the best of the industry, outperforming 96.85% 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 3.04%.
The 3 year average ROIC (5.45%) for NHI is below the current ROIC(5.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 9.65% | ||
| ROIC | 5.74% |
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 (40.95%) than 92.91% of its industry peers.
In the last couple of years the Profit Margin of NHI has declined.
Looking at the Operating Margin, with a value of 54.59%, NHI belongs to the top of the industry, outperforming 95.28% of the companies in the same industry.
NHI's Operating Margin has declined in the last couple of years.
NHI's Gross Margin of 84.46% is amongst the best of the industry. NHI outperforms 85.04% of its industry peers.
NHI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 54.59% | ||
| PM (TTM) | 40.95% | ||
| GM | 84.46% |
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.
The number of shares outstanding for NHI has been increased compared to 1 year ago.
Compared to 5 years ago, NHI has more shares outstanding
The debt/assets ratio for NHI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.96 indicates that NHI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.96, NHI belongs to the top of the industry, outperforming 94.49% of the companies in the same industry.
NHI has a Debt/Equity ratio of 0.76. This is a neutral value indicating NHI is somewhat dependend on debt financing.
The Debt to Equity ratio of NHI (0.76) is better than 74.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.96 |
ROIC/WACC0.77
WACC7.5%
2.3 Liquidity
A Current Ratio of 1.49 indicates that NHI should not have too much problems paying its short term obligations.
NHI has a Current ratio of 1.49. This is in the better half of the industry: NHI outperforms 66.14% 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.
The Quick ratio of NHI (1.49) is better than 66.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
NHI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.70%.
Measured over the past years, NHI shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.49% on average per year.
Looking at the last year, NHI shows a small growth in Revenue. The Revenue has grown by 6.93% in the last 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)1.7%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%-2.47%
Revenue 1Y (TTM)6.93%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%6.7%
3.2 Future
NHI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.01% yearly.
NHI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.22% yearly.
EPS Next Y5.07%
EPS Next 2Y5.48%
EPS Next 3Y5.01%
EPS Next 5YN/A
Revenue Next Year9.76%
Revenue Next 2Y10.05%
Revenue Next 3Y9.68%
Revenue Next 5Y11.22%
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
The Price/Earnings ratio is 25.15, which means the current valuation is very expensive for NHI.
Compared to the rest of the industry, the Price/Earnings ratio of NHI indicates a somewhat cheap valuation: NHI is cheaper than 71.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, NHI is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.69, the valuation of NHI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, NHI is valued cheaper than 86.61% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, NHI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 22.69 |
4.2 Price Multiples
77.17% of the companies in the same industry are cheaper than NHI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.72 |
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)4.96
PEG (5Y)N/A
EPS Next 2Y5.48%
EPS Next 3Y5.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.01%, NHI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.21, NHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, NHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
5.2 History
The dividend of NHI decreases each year by -3.12%.
NHI has paid a dividend for at least 10 years, which is 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 113.12% of its income as dividend. This is not a sustainable payout ratio.
DP113.12%
EPS Next 2Y5.48%
EPS Next 3Y5.01%
NYSE:NHI (10/21/2025, 12:46:54 PM)
75.21
-0.88 (-1.16%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners75.16%
Inst Owner Change0.02%
Ins Owners1.94%
Ins Owner Change0.24%
Market Cap3.57B
Analysts78.18
Price Target83.64 (11.21%)
Short Float %4%
Short Ratio8.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
Yearly Dividend3.51
Dividend Growth(5Y)-3.12%
DP113.12%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.1%
Min EPS beat(2)-0.09%
Max EPS beat(2)4.29%
EPS beat(4)2
Avg EPS beat(4)-0.31%
Min EPS beat(4)-12.08%
Max EPS beat(4)6.65%
EPS beat(8)5
Avg EPS beat(8)1.6%
EPS beat(12)7
Avg EPS beat(12)-4.85%
EPS beat(16)7
Avg EPS beat(16)-18.44%
Revenue beat(2)2
Avg Revenue beat(2)3.79%
Min Revenue beat(2)3.26%
Max Revenue beat(2)4.31%
Revenue beat(4)4
Avg Revenue beat(4)3.81%
Min Revenue beat(4)3.26%
Max Revenue beat(4)4.31%
Revenue beat(8)8
Avg Revenue beat(8)3.62%
Revenue beat(12)10
Avg Revenue beat(12)1.94%
Revenue beat(16)11
Avg Revenue beat(16)-0.14%
PT rev (1m)0%
PT rev (3m)1.39%
EPS NQ rev (1m)-6.87%
EPS NQ rev (3m)-5.93%
EPS NY rev (1m)0.49%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)-2.86%
Revenue NQ rev (3m)-6.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 22.69 | ||
| P/S | 10.24 | ||
| P/FCF | N/A | ||
| P/OCF | 16.8 | ||
| P/B | 2.41 | ||
| P/tB | 2.41 | ||
| EV/EBITDA | 17.72 |
EPS(TTM)2.99
EY3.98%
EPS(NY)3.32
Fwd EY4.41%
FCF(TTM)-1.04
FCFYN/A
OCF(TTM)4.48
OCFY5.95%
SpS7.34
BVpS31.17
TBVpS31.17
PEG (NY)4.96
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 9.65% | ||
| ROCE | 7.26% | ||
| ROIC | 5.74% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 5.81% | ||
| OM | 54.59% | ||
| PM (TTM) | 40.95% | ||
| GM | 84.46% | ||
| 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-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 346.64% | ||
| Cap/Sales | 75.09% | ||
| Interest Coverage | 3.52 | ||
| Cash Conversion | 79.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 1.96 |
F-Score7
WACC7.5%
ROIC/WACC0.77
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)1.7%
EPS 3Y6.89%
EPS 5Y-4.49%
EPS Q2Q%-2.47%
EPS Next Y5.07%
EPS Next 2Y5.48%
EPS Next 3Y5.01%
EPS Next 5YN/A
Revenue 1Y (TTM)6.93%
Revenue growth 3Y3.92%
Revenue growth 5Y1.05%
Sales Q2Q%6.7%
Revenue Next Year9.76%
Revenue Next 2Y10.05%
Revenue Next 3Y9.68%
Revenue Next 5Y11.22%
EBIT growth 1Y3.44%
EBIT growth 3Y0.41%
EBIT growth 5Y-3.04%
EBIT Next Year56.93%
EBIT Next 3Y21.36%
EBIT Next 5Y14.14%
FCF growth 1Y-137.4%
FCF growth 3Y-26.33%
FCF growth 5Y24.64%
OCF growth 1Y23.98%
OCF growth 3Y-0.5%
OCF growth 5Y-2.92%