NasdaqGS:NRC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

National Research Corporation provides analytics and insights that facilitate measurement and enhancement of the patient and employee experience in the United States and Canada.


Snowflake Analysis

Outstanding track record with imperfect balance sheet.

Share Price & News

How has National Research's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NRC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.9%

NRC

3.4%

US Healthcare

1.9%

US Market


1 Year Return

3.3%

NRC

13.7%

US Healthcare

4.3%

US Market

Return vs Industry: NRC underperformed the US Healthcare industry which returned 13.7% over the past year.

Return vs Market: NRC underperformed the US Market which returned 4.3% over the past year.


Shareholder returns

NRCIndustryMarket
7 Day6.9%3.4%1.9%
30 Day4.8%-2.9%2.7%
90 Day29.0%22.4%26.4%
1 Year4.4%3.3%15.2%13.7%6.5%4.3%
3 Year123.5%111.4%28.1%22.3%35.1%26.2%
5 Year362.2%310.7%42.3%32.5%67.0%48.4%

Price Volatility Vs. Market

How volatile is National Research's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is National Research undervalued compared to its fair value and its price relative to the market?

40.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NRC ($57.82) is trading above our estimate of fair value ($27.3)

Significantly Below Fair Value: NRC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NRC is poor value based on its PE Ratio (40.1x) compared to the Healthcare industry average (23.4x).

PE vs Market: NRC is poor value based on its PE Ratio (40.1x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NRC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NRC is overvalued based on its PB Ratio (38.9x) compared to the US Healthcare industry average (2.7x).


Next Steps

Future Growth

How is National Research forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.6%

Forecasted Healthcare industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as National Research has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has National Research performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NRC has high quality earnings.

Growing Profit Margin: NRC's current net profit margins (27.5%) are higher than last year (25.7%).


Past Earnings Growth Analysis

Earnings Trend: NRC's earnings have grown by 15.8% per year over the past 5 years.

Accelerating Growth: NRC's earnings growth over the past year (16.3%) exceeds its 5-year average (15.8% per year).

Earnings vs Industry: NRC earnings growth over the past year (16.3%) exceeded the Healthcare industry 10.1%.


Return on Equity

High ROE: NRC's Return on Equity (96.4%) is considered outstanding.


Next Steps

Financial Health

How is National Research's financial position?


Financial Position Analysis

Short Term Liabilities: NRC's short term assets ($34.9M) do not cover its short term liabilities ($39.9M).

Long Term Liabilities: NRC's short term assets ($34.9M) do not cover its long term liabilities ($38.7M).


Debt to Equity History and Analysis

Debt Level: NRC's debt to equity ratio (89.1%) is considered high.

Reducing Debt: NRC's debt to equity ratio has increased from 8.5% to 89.1% over the past 5 years.

Debt Coverage: NRC's debt is well covered by operating cash flow (117.8%).

Interest Coverage: NRC's interest payments on its debt are well covered by EBIT (22.4x coverage).


Balance Sheet


Next Steps

Dividend

What is National Research current dividend yield, its reliability and sustainability?

1.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NRC's dividend (1.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: NRC's dividend (1.45%) is low compared to the top 25% of dividend payers in the US market (4.49%).


Stability and Growth of Payments

Stable Dividend: NRC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NRC has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.5%), NRC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.8yrs

Average management tenure


CEO

Mike Hays (65yo)

39.5yrs

Tenure

US$233,878

Compensation

Mr. Michael D. Hays, also known as Mike, serves as an Advisor of Picker Institute Inc. Mr. Hays founded National Research Corp. in 1981 and has been its Chief Executive Officer since 1981. Mr. Hays served  ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD233.88K) is below average for companies of similar size in the US market ($USD4.72M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Hays
Founder39.5yrsUS$233.88k26.22% $381.0m
Steven Jackson
President4.75yrsUS$545.64k0.34% $4.9m
Kevin Karas
Senior VP of Finance8.83yrsUS$520.05k0.057% $831.7k
Linda Stacy
Vice President of Financeno datano datano data

8.8yrs

Average Tenure

62yo

Average Age

Experienced Management: NRC's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Hays
Founder39.5yrsUS$233.88k26.22% $381.0m
John Nunnelly
Lead Independent Director8.17yrsUS$175.00k0.11% $1.6m
JoAnn Martin
Independent Director19.08yrsUS$150.00k1.09% $15.9m
Donald Berwick
Independent Director4.75yrsUS$150.00kno data

13.6yrs

Average Tenure

66yo

Average Age

Experienced Board: NRC's board of directors are seasoned and experienced ( 13.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NRC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

National Research Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: National Research Corporation
  • Ticker: NRC
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$1.453b
  • Shares outstanding: 25.13m
  • Website: https://nrchealth.com

Number of Employees


Location

  • National Research Corporation
  • 1245 Q Street
  • Lincoln
  • Nebraska
  • 68508
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NRCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2013
NR1ABST (Boerse-Stuttgart)YesCommon StockDEEURMay 2013

Biography

National Research Corporation provides analytics and insights that facilitate measurement and enhancement of the patient and employee experience in the United States and Canada. Its portfolio of subscription-based solutions provide actionable information and analysis to healthcare organizations across a range of mission-critical, constituent-related elements, including patient experience, service recovery, care transitions, health risk assessments, employee engagement, reputation management, and brand loyalty. The company also offers market insights solutions that allow the tracking of awareness, perception, and consistency of healthcare brands; assessment of competitive differentiators; and enhanced segmentation tools to evaluate needs, wants, and behaviors of communities through real-time competitive assessments and enhanced segmentation tools. In addition, it provides experience solutions, such as patient and resident experience, workforce engagement, health risk assessments, transitions, and improvement tools. Further, the company offers transitions solutions, which enable organizations to identify and manage high-risk patients to reduce readmissions, enhance patient satisfaction and support safe care transitions; and health risk assessment solutions that enable clients to segment populations and manage care for those who are most at risk, engage individuals, enhance preventative care, and manage wellness programs. Additionally, it provides transparency solutions that allow healthcare organizations to share picture of their organization and ensure content informs in consumer decision-making; and governance solutions for not-for-profit hospital and health system boards of directors, executives, and physician leadership. The company serves integrated health systems, post-acute providers, and payer organizations. National Research Corporation was founded in 1981 and is headquartered in Lincoln, Nebraska. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/01 23:59
End of Day Share Price2020/07/01 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.