NYSE:NHI

Stock Analysis Report

National Health Investors

Executive Summary

Incorporated in 1991, National Health Investors, Inc.

Rewards

Trading at 50.3% below its fair value

Earnings are forecast to grow 8.23% per year

Earnings have grown 6.8% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Medical Properties Trust

NYSE:MPW

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.7%

NHI

-3.0%

US REITs

0.7%

US Market


1 Year Return

-0.8%

NHI

11.0%

US REITs

21.1%

US Market

Return vs Industry: NHI underperformed the US REITs industry which returned 11% over the past year.

Return vs Market: NHI underperformed the US Market which returned 21.1% over the past year.


Shareholder returns

NHIIndustryMarket
7 Day-3.7%-3.0%0.7%
30 Day-1.4%-2.8%2.3%
90 Day-4.0%-2.2%5.0%
1 Year4.6%-0.8%15.7%11.0%23.7%21.1%
3 Year25.6%7.2%31.9%15.4%47.0%37.4%
5 Year48.4%14.4%49.0%18.1%65.7%47.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is National Health Investors 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: NHI ($78.66) is trading below our estimate of fair value ($158.24)

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


Price To Earnings Ratio

PE vs Industry: NHI is good value based on its PE Ratio (21.7x) compared to the REITs industry average (36.8x).

PE vs Market: NHI is poor value based on its PE Ratio (21.7x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: NHI is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: NHI is overvalued based on its PB Ratio (2.4x) compared to the US REITs industry average (1.9x).


Next Steps

Future Growth

How is National Health Investors forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NHI's forecast earnings growth (8.2% per year) is above the savings rate (1.7%).

Earnings vs Market: NHI's earnings (8.2% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: NHI's revenue (9.1% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: NHI's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has National Health Investors performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NHI has high quality earnings.

Growing Profit Margin: NHI's current net profit margins (50.2%) are lower than last year (53.2%).


Past Earnings Growth Analysis

Earnings Trend: NHI's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: NHI's earnings growth over the past year (0.3%) is below its 5-year average (6.8% per year).

Earnings vs Industry: NHI earnings growth over the past year (0.3%) underperformed the REITs industry 8.3%.


Return on Equity

High ROE: NHI's Return on Equity (10.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is National Health Investors's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: NHI's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: NHI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if NHI has a sufficient allowance for bad loans.

Low Risk Liabilities: NHI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if NHI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NHI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if NHI has an appropriate level of bad loans.


Next Steps

Dividend

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

5.34%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company5.3%marketbottom25%1.4%markettop25%3.7%industryaverage3.8%forecastin3Years5.6%

Current dividend yield vs market & industry

Notable Dividend: NHI's dividend (5.34%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: NHI's dividend (5.34%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: NHI's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.4%), NHI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NHI's dividends in 3 years are forecast to be thoroughly covered by earnings (1.6% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

D. Mendelsohn (57yo)

4.3yrs

Tenure

US$1,800,008

Compensation

Mr. D. Eric Mendelsohn serves as the Chief Executive Officer and President at National Health Investors Inc. since October 05, 2015. Previously, Mr. Mendelsohn served as an Interim Chief Executive Officer  ...


CEO Compensation Analysis

Compensation vs Market: D.'s total compensation ($USD1.80M) is below average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

3.3yrs

Average Tenure

57yo

Average Age

Experienced Management: NHI's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

23.9yrs

Average Tenure

70.5yo

Average Age

Experienced Board: NHI's board of directors are seasoned and experienced ( 23.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$74,91125 Sep 19
James Jobe
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares900
Max PriceUS$83.23
SellUS$164,29315 Aug 19
Kevin Pascoe
EntityIndividual
Role
Chief Investment Officer
Chief Investment Officer
Shares2,000
Max PriceUS$82.46
SellUS$92,16826 Feb 19
Robert McCabe
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,181
Max PriceUS$78.04

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Management Team

  • Kristi Gaines (47yo)

    Chief Credit Officer

    • Tenure: 9.8yrs
    • Compensation: US$787.95k
  • Kevin Pascoe (38yo)

    Chief Investment Officer

    • Tenure: 2.8yrs
    • Compensation: US$922.95k
  • Kimberly Ouimet

    Director of Compliance

    • Tenure: 4.9yrs
  • D. Mendelsohn (57yo)

    President & CEO

    • Tenure: 4.3yrs
    • Compensation: US$1.80m
  • Susan Sidwell

    Corporate Secretary

    • Tenure: 0yrs
  • John Spaid (59yo)

    Executive VP of Finance & Chief Financial Officer

    • Tenure: 3.8yrs
    • Compensation: US$647.34k
  • Michelle Kelly

    Senior Vice President of Investments

    • Tenure: 2.3yrs
  • Colleen Schaller

    Real Estate Transaction Manager

    • Tenure: 0.3yrs
  • Ron Reel (63yo)

    Chief Accounting Officer

    • Tenure: 0.08yrs

Board Members

  • Andy Adams (73yo)

    Chairman of the Board

    • Tenure: 28.9yrs
    • Compensation: US$154.02k
  • Rob McCabe (68yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$164.02k
  • Robert Webb (74yo)

    Independent Director

    • Tenure: 28.9yrs
    • Compensation: US$154.02k
  • Jimmy Jobe (58yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$154.02k

Company Information

National Health Investors, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: National Health Investors, Inc.
  • Ticker: NHI
  • Exchange: NYSE
  • Founded: 1991
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Market Cap: US$3.458b
  • Shares outstanding: 43.96m
  • Website: https://www.nhireit.com

Number of Employees


Location

  • National Health Investors, Inc.
  • 222 Robert Rose Drive
  • Murfreesboro
  • Tennessee
  • 37129
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NHINYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1991
WX6DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1991

Biography

Incorporated in 1991, National Health Investors, Inc. (NYSE: NHI) is a real estate investment trust specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discre ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 23:37
End of Day Share Price2019/12/13 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.