NYSEAM:NHC

Stock Analysis Report

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Market Cap

US$1.2b

Last Updated

2021/08/03 00:31 UTC

Data Sources

Company Financials

Executive Summary

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


Snowflake Analysis

Flawless balance sheet, undervalued 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: NHC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.5%

NHC

0.5%

US Healthcare

-0.4%

US Market


1 Year Return

25.0%

NHC

33.8%

US Healthcare

34.4%

US Market

Return vs Industry: NHC underperformed the US Healthcare industry which returned 33.6% over the past year.

Return vs Market: NHC underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

NHCIndustryMarket
7 Day1.5%0.5%-0.4%
30 Day8.1%-0.4%-0.4%
90 Day6.2%-0.3%4.0%
1 Year28.8%25.0%35.4%33.8%36.5%34.4%
3 Year14.7%5.3%51.4%45.3%62.0%51.9%
5 Year36.4%18.4%102.8%87.6%121.8%97.2%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NHC ($76.01) is trading below our estimate of fair value ($759.75)

Significantly Below Fair Value: NHC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NHC is good value based on its PE Ratio (12.9x) compared to the US Healthcare industry average (22.4x).

PE vs Market: NHC is good value based on its PE Ratio (12.9x) compared to the US market (18.2x).


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 (1.4x) compared to the US Healthcare industry average (3.7x).


Future Growth

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

15.5%

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 HealthCare 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.


Past Performance

How has National HealthCare performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NHC has a large one-off gain of $77.5M impacting its March 31 2021 financial results.

Growing Profit Margin: NHC's current net profit margins (9.5%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: NHC's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: NHC's earnings growth over the past year (347.9%) exceeds its 5-year average (1.9% per year).

Earnings vs Industry: NHC earnings growth over the past year (347.9%) exceeded the Healthcare industry 43.9%.


Return on Equity

High ROE: NHC's Return on Equity (11.1%) is considered low.


Financial Health

How is National HealthCare's financial position?


Financial Position Analysis

Short Term Liabilities: NHC's short term assets ($464.6M) exceed its short term liabilities ($265.8M).

Long Term Liabilities: NHC's short term assets ($464.6M) exceed its long term liabilities ($279.3M).


Debt to Equity History and Analysis

Debt Level: NHC is debt free.

Reducing Debt: NHC has no debt compared to 5 years ago when its debt to equity ratio was 18.3%.

Debt Coverage: NHC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NHC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

2.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NHC's dividend (2.74%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: NHC's dividend (2.74%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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 (35.4%), 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

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

4.5yrs

Average management tenure


CEO

Steve Flatt (65 yo)

4.58yrs

Tenure

US$1,278,366

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 ($USD1.28M) is below average for companies of similar size in the US market ($USD2.44M).

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


Leadership Team

Experienced Management: NHC's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: NHC's board of directors are seasoned and experienced ( 18.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 HealthCare Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: National HealthCare Corporation
  • Ticker: NHC
  • Exchange: NYSEAM
  • Founded: 1971
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$1.169b
  • Shares outstanding: 15.38m
  • Website: https://www.nhccare.com

Number of Employees


Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 00:31
End of Day Share Price2021/08/02 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.