NRC Health Fundamental Analysis (NASDAQ: NRC)
NRC Health Fundamental Analysis (NASDAQ: NRC)
NRC Health (NASDAQ: NRC) shows weak financial fundamentals with a PE ratio of 81.16, profit margin of 4.18%, and ROE of 48.46%. The company generates $0.1B in annual revenue with weak year-over-year growth of -3.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NRC's fundamental strength across five key dimensions:
Efficiency Score
WeakNRC struggles to generate sufficient returns from assets.
Valuation Score
ModerateNRC shows balanced valuation metrics.
Growth Score
WeakNRC faces weak or negative growth trends.
Financial Health Score
WeakNRC carries high financial risk with limited liquidity.
Profitability Score
ModerateNRC maintains healthy but balanced margins.
Key Financial Metrics
Is NRC Expensive or Cheap?
P/E Ratio
NRC trades at 81.16 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NRC's PEG of -1.23 indicates potential undervaluation.
Price to Book
The market values NRC Health at 71.60 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.80 times EBITDA. This signals the market has high growth expectations.
How Well Does NRC Make Money?
Net Profit Margin
For every $100 in sales, NRC Health keeps $4.18 as profit after all expenses.
Operating Margin
Core operations generate 10.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $48.46 in profit for every $100 of shareholder equity.
ROA
NRC Health generates $4.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NRC Health produces operating cash flow of $30.22M, showing steady but balanced cash generation.
Free Cash Flow
NRC Health generates strong free cash flow of $22.16M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.98 in free cash annually.
FCF Yield
NRC converts 4.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
81.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
71.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
13.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.48
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How NRC Stacks Against Its Sector Peers
| Metric | NRC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 81.16 | 31.50 | Worse (Expensive) |
| ROE | 48.46% | 422.00% | Weak |
| Net Margin | 4.18% | 19867.00% | Weak |
| Debt/Equity | 13.75 | 0.53 | Weak (High Leverage) |
| Current Ratio | 0.65 | 5.56 | Weak Liquidity |
| ROA | 4.30% | 1571.00% | Weak |
NRC outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NRC Health's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
15.92%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-64.99%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-26.81%
Industry Style: Defensive, Growth, Innovation
Declining