National Healthcare (NHC) AI Stock Analysis

• Market Cap: $1.62B
• Dividend Yield: 2.33%
• Average Volume (3M): 42.04K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.64
• Revenue Growth: 19.16%
• EPS Growth: 31.92%
• Country: US
• Employees: 14,962
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Care Facilities
• EPS (TTM): 2.07
• Shares Outstanding: 15,470,989
• 10 Day Avg. Volume: 49,405
• 30 Day Avg. Volume: 42,044
• PEG Ratio: -0.49
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -42.73
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 1.90
• Enterprise Value/Ebitda: 1.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $119.00 ▲(13.81%Upside)

National Healthcare's stock score reflects its strong financial performance marked by consistent revenue and profit growth, supported by a stable balance sheet and robust cash flow generation. While technical analysis shows positive momentum, overbought indicators suggest caution. The valuation remains attractive with a reasonable P/E ratio and a solid dividend yield. Overall, the company is well-positioned for future growth, but investors should monitor potential regulatory changes in the healthcare sector.

National Healthcare Business Overview & Revenue Model

Company Description

National HealthCare Corporation operates, manages, and provides services to skilled nursing facilities, assisted living facilities, independent living facilities, homecare and hospice agencies, and a behavioral health hospital. Its skilled nursing facilities offer licensed therapy services, nutrition services, social services, activities, and housekeeping and laundry services, as well as medical services prescribed by physicians; and rehabilitative services, such as physical, speech, respiratory, and occupational therapy for patients recovering from strokes, heart attacks, orthopedic conditions, neurological illnesses, or other illnesses, injuries, or disabilities. The company's medical specialty units comprise memory care units and sub-cute nursing units that provide specialized care and programs for persons with Alzheimer's or related disorders; and assisted living centers offer personal care services and assistance with general activities of daily living, such as dressing, bathing, meal preparation, and medication management. It also offers behavioral health services to both adults and geriatric patients with psychiatric, emotional, and addictive disorders. In addition, it provides health care programs that offer skilled services, such as infusion, wound care and physical, occupational, and speech therapies; hospice care services; operates pharmacies; offers management, accounting, financial, and insurance services; and leases its properties to third party operators. As of February 18, 2022, the company operated 75 skilled nursing facilities with 9,473 beds, 24 assisted living facilities, five independent living facilities, one behavioral health hospital, 34 homecare agencies, and 28 hospice agencies. National HealthCare Corporation was founded in 1971 and is based in Murfreesboro, Tennessee.

How the Company Makes Money

National Healthcare (NHC) generates revenue primarily through the provision of its healthcare services to patients. Key revenue streams include payments from private pay clients, reimbursements from government programs such as Medicare and Medicaid, and agreements with private insurance companies. The company benefits from its strategic partnerships with healthcare providers and insurance firms, which help to secure a steady flow of patients and reimbursements. Moreover, NHC's investment in quality care and facility management contributes to its ability to maintain a competitive edge in the healthcare market, further enhancing its earnings potential.

National Healthcare Financial Statement Overview

Summary

National Healthcare demonstrates a strong financial position with consistent revenue growth, robust profitability, low leverage, and strong cash flows. The company is well-positioned for future expansion, and its financial stability is evident across all financial statements. The income statement reflects solid growth, the balance sheet shows stability with low leverage, and the cash flow statement highlights strong cash generation.

Income Statement

National Healthcare has shown consistent revenue growth with a 6% increase in the latest TTM, indicating strong demand for its services. The gross profit margin has remained robust at around 37.7%, and the net profit margin is solid at 7.9% for TTM. EBIT and EBITDA margins are stable, reflecting effective cost management. Overall, the company's income statement reflects a healthy financial performance with a positive growth trajectory.

Balance Sheet

The balance sheet exhibits a strong equity base with an equity ratio of approximately 64.9%, indicating stability. The debt-to-equity ratio is low at 0.20, signaling conservative leverage practices. Return on equity is decent at 10.7%, showcasing effective utilization of equity to generate profits. The financial structure is stable, with low risk of leverage-related issues.

Cash Flow

The cash flow statement shows impressive free cash flow growth of 36.9% TTM over the previous year, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 1.26, indicating efficient cash management. The free cash flow to net income ratio is 1.01, reflecting a good conversion of earnings into cash. National Healthcare's cash flow position is solid, supporting future growth and investment.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.37B	1.30B	1.14B	1.07B	1.01B	980.71M
	Gross Profit
518.54M	487.01M	429.20M	388.11M	344.88M	371.41M
	EBIT
100.90M	85.76M	57.13M	31.90M	50.92M	48.16M
	EBITDA
165.83M	182.53M	131.10M	68.28M	191.56M	95.84M
	Net Income Common Stockholders
107.92M	101.93M	66.80M	22.45M	138.59M	41.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
243.17M	216.19M	223.62M	182.59M	256.02M	323.44M
	Total Assets
1.55B	1.52B	1.31B	1.28B	1.40B	1.36B
	Total Debt
202.92M	214.77M	93.39M	125.94M	166.66M	194.02M
	Net Debt
112.53M	138.65M	-13.69M	67.27M	59.05M	46.92M
	Total Liabilities
540.84M	541.27M	400.32M	397.94M	500.39M	566.96M
	Stockholders Equity
1.00B	980.16M	908.75M	874.28M	903.00M	795.18M
Cash Flow		Free Cash Flow
109.13M	79.70M	83.31M	-21.46M	23.00M	181.39M
	Operating Cash Flow
136.91M	107.30M	111.22M	8.74M	62.39M	203.26M
	Investing Cash Flow
-241.60M	-236.69M	-17.57M	-5.98M	-65.89M	-63.88M
	Financing Cash Flow
99.72M	100.34M	-42.55M	-47.64M	-35.26M	-41.89M

National Healthcare Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 104.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NHC, the sentiment is Neutral. The current price of 104.56 is below the 20-day moving average (MA) of 104.70, above the 50-day MA of 98.77, and below the 200-day MA of 108.19, indicating a neutral trend. The MACD of 1.52 indicates Positive momentum. The RSI at 56.37 is Neutral, neither overbought nor oversold. The STOCH value of 40.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NHC.

National Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	76 Outperform	$1.62B	15.15	11.19%	2.33%	19.16%	31.92%
ARDT	72 Outperform	$1.91B	8.59	23.97%	―	8.91%	193.92%
ASTH	70 Outperform	$1.32B	36.34	5.00%	―	54.81%	-45.07%
MD	63 Neutral	$1.22B	―	-10.01%	―	-1.13%	-17.77%
BKD	56 Neutral	$1.66B	―	-91.17%	―	3.88%	-34.30%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
AGL	45 Neutral	$943.81M	―	-42.95%	―	19.18%	-6.14%

National Healthcare Corporate Events

National Healthcare Holds Annual Shareholders Meeting

On May 8, 2025, National HealthCare Corporation held its Annual Meeting of Shareholders, where 12,996,474 shares were represented, establishing a quorum. During the meeting, shareholders voted to re-elect Stephen F. Flatt, Richard F. LaRoche, and Sandra Y. Trail as directors for three-year terms, and approved an advisory vote on the compensation of the company’s Named Executive Officers.

National Healthcare Announces Dividend Increase for Q2 2025

On May 8, 2025, National HealthCare Corporation announced a 4.9% increase in its quarterly common dividend, setting it at 64 cents per share, payable on August 1, 2025, to shareholders of record on June 30, 2025. This announcement reflects NHC’s ongoing commitment to returning value to its shareholders and may positively impact its market positioning by demonstrating financial stability and growth potential.