AMEX:NHC

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


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

2.4%

NHC

0.006%

US Healthcare

-0.8%

US Market


1 Year Return

-18.7%

NHC

21.6%

US Healthcare

18.0%

US Market

Return vs Industry: NHC underperformed the US Healthcare industry which returned 20% over the past year.

Return vs Market: NHC underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

NHCIndustryMarket
7 Day2.4%0.006%-0.8%
30 Day10.0%12.0%6.8%
90 Day8.8%5.4%8.9%
1 Year-16.2%-18.7%23.2%21.6%20.7%18.0%
3 Year9.5%0.5%35.2%29.5%41.5%32.1%
5 Year14.7%-0.2%64.4%52.4%84.6%63.8%

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 ($65.13) is trading below our estimate of fair value ($645.57)

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


Price To Earnings Ratio

PE vs Industry: NHC is poor value based on its PE Ratio (28.7x) compared to the US Healthcare industry average (23.3x).

PE vs Market: NHC is poor value based on its PE Ratio (28.7x) compared to the US market (18.9x).


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 (1.3x) compared to the US Healthcare industry average (3x).


Next Steps

Future Growth

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

13.7%

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.


Next Steps

Past Performance

How has National HealthCare performed over the past 5 years?

3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NHC has a large one-off loss of $46.4M impacting its June 30 2020 financial results.

Growing Profit Margin: NHC's current net profit margins (3.5%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: NHC's earnings have grown by 3.9% per year over the past 5 years.

Accelerating Growth: NHC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NHC had negative earnings growth (-53.3%) over the past year, making it difficult to compare to the Healthcare industry average (28%).


Return on Equity

High ROE: NHC's Return on Equity (4.5%) is considered low.


Next Steps

Financial Health

How is National HealthCare's financial position?


Financial Position Analysis

Short Term Liabilities: NHC's short term assets ($390.2M) exceed its short term liabilities ($262.1M).

Long Term Liabilities: NHC's short term assets ($390.2M) exceed its long term liabilities ($303.8M).


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 1.3%.

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


Next Steps

Dividend

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

3.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NHC's dividend (3.19%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: NHC's dividend (3.19%) is low compared to the top 25% of dividend payers in the US market (4.67%).


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 high payout ratio (91.6%), NHC's dividend payments are not 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?

3.7yrs

Average management tenure


CEO

Steve Flatt (64 yo)

3.75yrs

Tenure

US$1,417,124

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 ($USD1.42M) is below average for companies of similar size in the US market ($USD2.90M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Flatt
CEO & Director3.75yrsUS$1.42m0.32%
$ 3.2m
R. Ussery
President & COO3.75yrsUS$1.29m0.95%
$ 9.5m
Brian Kidd
Senior VP3.75yrsUS$589.94k0.11%
$ 1.1m
B. Flatt
Senior VP & Chief Information Officer3.67yrsUS$640.05k0.023%
$ 229.0k
Jeffrey Smith
Senior VP & Treasurer3.75yrsUS$700.03k0.018%
$ 175.9k
Carl Adams
no datano datano data
Josh McCreary
Senior VP1.5yrsno data0.0030%
$ 30.4k
Leroy McIntosh
Senior Vice President of Ancillary Services & Service Line Strategy3.5yrsno data0.018%
$ 182.5k
Vicki Dodson
Senior Vice President of Patient Services1.33yrsno data0.0073%
$ 73.0k

3.7yrs

Average Tenure

58yo

Average Age

Experienced Management: NHC's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Flatt
CEO & Director3.75yrsUS$1.42m0.32%
$ 3.2m
W. Adams
Director46.75yrsUS$186.59k4.19%
$ 41.9m
Robert Adams
Chairman of the Board11.75yrsUS$186.59k2.78%
$ 27.8m
Richard LaRoche
Independent Director18.75yrsUS$198.59k2.21%
$ 22.1m
Ernest Burgess
Independent Director28.75yrsUS$186.59k0.61%
$ 6.1m
Emil Hassan
Independent Director16.5yrsUS$190.59k0.43%
$ 4.3m
James Abernathy
Independent Director17.75yrsUS$190.59k0.16%
$ 1.6m

17.8yrs

Average Tenure

74yo

Average Age

Experienced Board: NHC's board of directors are seasoned and experienced ( 17.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NHC 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: AMEX
  • Founded: 1971
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$1.000b
  • Shares outstanding: 15.36m
  • 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
HTWMUN (Boerse Muenchen)YesCommon StockDEEURJul 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 Analysis2020/10/23 00:44
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
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.