National Health Investors, Inc.
National Health Investors, Inc. Fundamental Analysis
National Health Investors, Inc. (NHI) shows moderate financial fundamentals with a PE ratio of 28.15, profit margin of 37.78%, and ROE of 9.63%. The company generates $0.4B in annual revenue with moderate year-over-year growth of 4.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NHI's fundamental strength across five key dimensions:
Efficiency Score
WeakNHI struggles to generate sufficient returns from assets.
Valuation Score
ModerateNHI shows balanced valuation metrics.
Growth Score
WeakNHI faces weak or negative growth trends.
Financial Health Score
ExcellentNHI maintains a strong and stable balance sheet.
Profitability Score
ModerateNHI maintains healthy but balanced margins.
Key Financial Metrics
Is NHI Expensive or Cheap?
P/E Ratio
NHI trades at 28.15 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NHI's PEG of -5.61 indicates potential undervaluation.
Price to Book
The market values National Health Investors, Inc. at 2.63 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.81 times EBITDA. This signals the market has high growth expectations.
How Well Does NHI Make Money?
Net Profit Margin
For every $100 in sales, National Health Investors, Inc. keeps $37.78 as profit after all expenses.
Operating Margin
Core operations generate 50.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.63 in profit for every $100 of shareholder equity.
ROA
National Health Investors, Inc. generates $5.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
National Health Investors, Inc. generates strong operating cash flow of $247.58M, reflecting robust business health.
Free Cash Flow
National Health Investors, Inc. generates strong free cash flow of $229.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.74 in free cash annually.
FCF Yield
NHI converts 5.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How NHI Stacks Against Its Sector Peers
| Metric | NHI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.15 | 23.18 | Worse (Expensive) |
| ROE | 9.63% | 709.00% | Weak |
| Net Margin | 37.78% | -21241.00% (disorted) | Strong |
| Debt/Equity | 0.76 | -21.97 (disorted) | Distorted |
| Current Ratio | 2.48 | 26.77 | Strong Liquidity |
| ROA | 5.08% | 176.00% | Weak |
NHI outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews National Health Investors, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
4.35%
Industry Style: Income, Inflation Hedge, REIT
GrowingEPS CAGR
31.19%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-14.61%
Industry Style: Income, Inflation Hedge, REIT
Declining