AMEX:NHC

Stock Analysis Report

Executive Summary

National HealthCare Corporation operates, manages, and provides services to skilled nursing facilities, assisted living facilities, independent living facilities, and home health care programs.

Snowflake

Fundamentals

Proven track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NHC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.06%

NHC

2.3%

US Healthcare

0.3%

US Market


1 Year Return

2.9%

NHC

-5.9%

US Healthcare

12.5%

US Market

Return vs Industry: NHC exceeded the US Healthcare industry which returned -5.9% over the past year.

Return vs Market: NHC underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

NHCIndustryMarket
7 Day0.06%2.3%0.3%
30 Day3.2%13.4%4.1%
90 Day-1.7%4.6%5.6%
1 Year5.6%2.9%-4.3%-5.9%15.0%12.5%
3 Year31.6%21.2%43.6%37.1%49.1%39.4%
5 Year56.4%37.1%61.7%50.6%62.8%44.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NHC ($83.09) is trading above our estimate of fair value ($81.94)

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


Price To Earnings Ratio

PE vs Industry: NHC is good value based on its PE Ratio (17.5x) compared to the Healthcare industry average (21.1x).

PE vs Market: NHC is good value based on its PE Ratio (17.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NHC is good value based on its PB Ratio (1.6x) compared to the US Healthcare industry average (2.7x).


Next Steps

Future Growth

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

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NHC's forecast earnings growth (12.8% per year) is above the savings rate (2.7%).

Earnings vs Market: NHC's earnings (12.8% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: NHC's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if NHC's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if NHC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NHC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has National HealthCare performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NHC has large one-off items impacting its financial results.

Growing Profit Margin: NHC's current net profit margins (7.3%) are higher than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: NHC's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: NHC's earnings growth over the past year (16.6%) exceeds its 5-year average (10.2% per year).

Earnings vs Industry: NHC earnings growth over the past year (16.6%) exceeded the Healthcare industry 6.2%.


Return on Equity

High ROE: NHC's Return on Equity (9.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is National HealthCare's financial position?


Financial Position Analysis

Short Term Liabilities: NHC's short term assets ($351.2M) exceeds its short term liabilities ($181.1M)

Long Term Liabilities: NHC's short term assets (351.2M) do not cover its long term liabilities (354.1M)


Debt to Equity History and Analysis

Debt Level: NHC's debt to equity ratio (3.9%) is considered satisfactory

Reducing Debt: NHC's debt to equity ratio has increased from 1.4% to 3.9% over the past 5 years.

Debt Coverage: NHC's debt is well covered by operating cash flow (320.8%).

Interest Coverage: NHC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NHC has a high level of physical assets or inventory.

Debt Coverage by Assets: NHC's debt is covered by short term assets (assets are 11.7x debt).


Next Steps

Dividend

What is National HealthCare's current dividend yield, its reliability and sustainability?

2.50%

Current Dividend Yield


Upcoming Dividend Payment

Purchase National HealthCare before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: NHC's dividend (2.5%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: NHC's dividend (2.5%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: NHC's dividends per share have been stable in the past 10 years.

Growing Dividend: NHC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.9%), NHC's dividend payments are well 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

What is the CEO of National HealthCare's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Steve Flatt (63yo)

2.8yrs

Tenure

US$1,345,834

Compensation

Dr. Stephen F. Flatt, also known as Steve, has been the Chief Executive Officer of National HealthCare Corporation since January 1, 2017. Dr. Flatt served as the President of National Healthcare Corp. from ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD1.35M) is below average for companies of similar size in the US market ($USD4.02M).

Compensation vs Earnings: Steve's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.8yrs

Average Tenure

57.5yo

Average Age

Experienced Management: NHC's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

16.8yrs

Average Tenure

73yo

Average Age

Experienced Board: NHC's board of directors are seasoned and experienced ( 16.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$496,25012 Sep 19
Ernest Burgess
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$83.25
SellUS$145,31314 Aug 19
James Abernathy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,714
Max PriceUS$84.78
SellUS$73,06110 Jun 19
James Abernathy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares919
Max PriceUS$79.50
SellUS$118,50001 Apr 19
Ernest Burgess
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$79.00
SellUS$156,64003 Jan 19
Ernest Burgess
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$78.32
SellUS$150,16019 Nov 18
James Abernathy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,877
Max PriceUS$80.00
SellUS$1,95414 Nov 18
James Abernathy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares24
Max PriceUS$81.40
SellUS$426,31814 Nov 18
R. Ussery
EntityIndividual
Role
President
President & COO
Shares5,257
Max PriceUS$81.11

Ownership Breakdown

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


Management Team

  • Mike Ussery (60yo)

    President & COO

    • Tenure: 2.8yrs
    • Compensation: US$1.25m
  • Steve Flatt (63yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$1.35m
  • Carl Adams

    • Tenure: 0yrs
  • Brian Kidd (44yo)

    Senior VP

    • Tenure: 2.8yrs
    • Compensation: US$563.28k
  • Jeff Smith (56yo)

    Senior VP & Treasurer

    • Tenure: 2.8yrs
    • Compensation: US$677.26k
  • Andy Flatt (57yo)

    Senior VP & Chief Information Officer

    • Tenure: 2.8yrs
  • Bubba McIntosh (58yo)

    Senior Vice President of Ancillary Services & Service Line Strategy

    • Tenure: 2.6yrs
  • Josh McCreary

    Senior VP

    • Tenure: 0.6yrs
  • Kristina Hulsey

    Secretary

    • Tenure: 0yrs
  • Vicki Dodson

    Senior Vice President of Patient Services

    • Tenure: 0.4yrs

Board Members

  • Andy Adams (73yo)

    Director

    • Tenure: 45.8yrs
    • Compensation: US$186.59k
  • Robert Adams (72yo)

    Chairman of the Board

    • Tenure: 10.8yrs
    • Compensation: US$186.59k
  • Richard LaRoche (73yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$198.59k
  • Ernest Burgess (79yo)

    Independent Director

    • Tenure: 27.8yrs
    • Compensation: US$186.59k
  • Emil Hassan (72yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$190.59k
  • James Abernathy (83yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$190.59k
  • Steve Flatt (63yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$1.35m

Company Information

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


Key Information

  • Name: National HealthCare Corporation
  • Ticker: NHC
  • Exchange: AMEX
  • Founded: 1971
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$1.273b
  • Shares outstanding: 15.32m
  • Website: https://www.nhccare.com

Number of Employees


Location

  • National HealthCare Corporation
  • 100 East Vine Street
  • Murfreesboro
  • Tennessee
  • 37130
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NHCAMEX (NYSE MKT LLC)YesCommon StockUSUSDJul 1983

Biography

National HealthCare Corporation operates, manages, and provides services to skilled nursing facilities, assisted living facilities, independent living facilities, and home health care programs. Its skilled ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:40
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.