National HealthCare Corporation Fundamental Analysis (AMEX: NHC)
National HealthCare Corporation Fundamental Analysis (AMEX: NHC)
National HealthCare Corporation (AMEX: NHC) shows moderate financial fundamentals with a PE ratio of 28.27, profit margin of 7.24%, and ROE of 10.41%. The company generates $1.6B in annual revenue with strong year-over-year growth of 16.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NHC's fundamental strength across five key dimensions:
Efficiency Score
WeakNHC struggles to generate sufficient returns from assets.
Valuation Score
WeakNHC trades at a premium to fair value.
Growth Score
ExcellentNHC delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNHC maintains a strong and stable balance sheet.
Profitability Score
WeakNHC struggles to sustain strong margins.
Key Financial Metrics
Is NHC Expensive or Cheap?
P/E Ratio
NHC trades at 28.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NHC's PEG of 2.23 indicates potential overvaluation.
Price to Book
The market values National HealthCare Corporation at 2.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.53 times EBITDA. This signals the market has high growth expectations.
How Well Does NHC Make Money?
Net Profit Margin
For every $100 in sales, National HealthCare Corporation keeps $7.24 as profit after all expenses.
Operating Margin
Core operations generate 9.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.41 in profit for every $100 of shareholder equity.
ROA
National HealthCare Corporation generates $5.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
National HealthCare Corporation produces operating cash flow of $222.08M, showing steady but balanced cash generation.
Free Cash Flow
National HealthCare Corporation generates strong free cash flow of $175.96M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.24 in free cash annually.
FCF Yield
NHC converts 5.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How NHC Stacks Against Its Sector Peers
| Metric | NHC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.27 | 31.47 | Better (Cheaper) |
| ROE | 10.41% | 507.00% | Weak |
| Net Margin | 7.24% | -4103644.00% (disorted) | Weak |
| Debt/Equity | 0.46 | 0.00 | Distorted |
| Current Ratio | 1.48 | 5.79 | Neutral |
| ROA | 5.54% | -262.00% (disorted) | Weak |
NHC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews National HealthCare Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.10%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
183.55%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-9.92%
Industry Style: Defensive, Growth, Innovation
Declining