National Health Investors, Inc. Fundamental Analysis (NYSE: NHI)
National Health Investors, Inc. Fundamental Analysis (NYSE: NHI)
National Health Investors, Inc. (NYSE: NHI) shows strong financial fundamentals with a PE ratio of 4.67, profit margin of 1.53%, and ROE of 41.65%. The company generates $0.5B in annual revenue with strong year-over-year growth of 12.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.3/100 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 NHI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNHI demonstrates superior asset utilization.
Valuation Score
ExcellentNHI trades at attractive valuation levels.
Growth Score
ModerateNHI shows steady but slowing expansion.
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 4.67 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NHI's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values National Health Investors, Inc. at 1.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.67 times EBITDA. This is generally considered low.
How Well Does NHI Make Money?
Net Profit Margin
For every $100 in sales, National Health Investors, Inc. keeps $1.53 as profit after all expenses.
Operating Margin
Core operations generate 39.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $41.65 in profit for every $100 of shareholder equity.
ROA
National Health Investors, Inc. generates $21.50 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 $236.59M, reflecting robust business health.
Free Cash Flow
National Health Investors, Inc. generates strong free cash flow of $208.41M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.24 in free cash annually.
FCF Yield
NHI converts 6.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.42
vs 25 benchmark
ROA
Return on assets percentage
0.22
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How NHI Stacks Against Its Sector Peers
| Metric | NHI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.67 | 25.26 | Better (Cheaper) |
| ROE | 41.65% | 722.00% | Weak |
| Net Margin | 152.55% | 2077.00% | Weak |
| Debt/Equity | 0.50 | -37.25 (disorted) | Distorted |
| Current Ratio | 3.08 | 91.70 | Strong Liquidity |
| ROA | 21.50% | 270.00% | Weak |
NHI outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
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
8.45%
Industry Style: Income, Inflation Hedge, REIT
GrowingEPS CAGR
-26.77%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-1.33%
Industry Style: Income, Inflation Hedge, REIT
Declining