National Healthcare (NHC) AI Stock Analysis

• Market Cap: $2.20B
• Dividend Yield: 1.77%
• Average Volume (3M): 69.31K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.67
• Revenue Growth: 23.74%
• EPS Growth: -18.99%
• Country: US
• Employees: 14,962
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 2.50
• Shares Outstanding: 15,515,253
• 10 Day Avg. Volume: 76,812
• 30 Day Avg. Volume: 69,308
• PEG Ratio: 0.31
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 1.28
• P/FCF Ratio: 20.77
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 2.92
• Enterprise Value/Ebitda: 8.95
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $151.00 ▲(10.07% Upside)

National Healthcare's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's stable financial foundation and growth potential are reinforced by its commitment to shareholder returns through dividends. However, the valuation is moderate, and the ongoing lease dispute introduces some risk, slightly impacting the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial health.

Leadership Changes

Leadership changes with experienced executives can drive strategic initiatives and enhance operational efficiency, benefiting long-term growth.

Cash Flow Generation

Strong cash flow generation provides financial flexibility for investments and resilience against economic fluctuations.

Negative Factors

Lease Dispute

Ongoing lease disputes pose a risk to operational continuity and financial stability, potentially affecting long-term performance.

Net Profit Margin Decline

A declining net profit margin suggests rising costs or inefficiencies, which could hinder profitability and long-term growth.

Earnings Decline

A decline in earnings per share reflects challenges in maintaining profitability, impacting investor confidence and future growth potential.

National Healthcare Business Overview & Revenue Model

Company Description

National Healthcare (NHC) is a leading provider of healthcare services in the United States, specializing in long-term care and rehabilitation services. With a focus on delivering high-quality patient care, NHC operates a network of skilled nursing facilities, assisted living communities, and outpatient rehabilitation centers. The company is committed to enhancing the quality of life for its residents and patients through personalized healthcare solutions and a dedicated workforce of healthcare professionals.

How the Company Makes Money

NHC generates revenue primarily through the provision of healthcare services, which are funded by government programs such as Medicare and Medicaid, as well as private pay sources. The company earns money through daily service fees charged to patients and residents in its facilities, which cover various aspects of care, including room and board, medical treatment, and rehabilitation services. Additionally, NHC may engage in partnerships with hospitals and healthcare organizations to facilitate patient referrals, thereby creating additional revenue streams through shared care agreements. The company also benefits from long-term contracts and relationships with state and federal healthcare programs, which provide a stable source of income.

National Healthcare Financial Statement Overview

Summary

National Healthcare demonstrates solid financial health with consistent revenue growth and strong balance sheet metrics. The company has improved operational efficiency, as reflected in its EBIT and EBITDA margins. While cash flow generation is strong, the conversion of net income to free cash flow could be improved. Overall, the company is well-positioned in the medical care facilities industry, with a stable financial foundation and growth potential.

Income Statement

National Healthcare has shown consistent revenue growth with a TTM revenue growth rate of 2.91%. The gross profit margin has improved slightly to 38.16% in TTM, indicating efficient cost management. However, the net profit margin has decreased to 7.20% from 7.85% in the previous year, suggesting increased expenses or other financial pressures. The EBIT and EBITDA margins have shown improvement, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.17 in TTM, indicating conservative leverage. The return on equity has slightly improved to 10.50%, showcasing effective use of equity to generate profits. The equity ratio remains robust, reflecting a solid financial position with a significant portion of assets financed by equity.

Cash Flow

Cash flow from operations has increased, with a TTM operating cash flow to net income ratio of 0.55, indicating good cash generation relative to net income. Free cash flow has grown significantly by 23.49%, enhancing financial flexibility. However, the free cash flow to net income ratio of 0.80 suggests that not all net income is translating into free cash flow, which could be a point of concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.50B	1.30B	1.14B	1.07B	1.01B	980.71M
Gross Profit	578.46M	487.01M	429.20M	388.11M	344.88M	371.41M
EBITDA	188.85M	182.53M	131.10M	68.28M	191.56M	95.84M
Net Income	101.25M	101.93M	66.80M	22.45M	138.59M	41.87M
Balance Sheet
Total Assets	1.57B	1.52B	1.31B	1.28B	1.40B	1.36B
Cash, Cash Equivalents and Short-Term Investments	297.38M	216.19M	223.62M	182.59M	256.02M	323.44M
Total Debt	128.07M	214.77M	93.39M	125.94M	166.66M	194.02M
Total Liabilities	513.91M	541.27M	400.32M	397.94M	494.94M	563.87M
Stockholders Equity	1.05B	980.16M	908.75M	874.28M	903.00M	795.18M
Cash Flow
Free Cash Flow	146.85M	79.70M	83.31M	-21.46M	23.00M	181.39M
Operating Cash Flow	181.06M	107.30M	111.22M	8.74M	62.39M	203.26M
Investing Cash Flow	-32.57M	-236.69M	-17.57M	-5.98M	-65.89M	-63.88M
Financing Cash Flow	-112.03M	100.34M	-42.55M	-47.64M	-35.26M	-41.89M

National Healthcare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 137.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NHC, the sentiment is Positive. The current price of 137.18 is above the 20-day moving average (MA) of 136.87, above the 50-day MA of 129.03, and above the 200-day MA of 109.20, indicating a bullish trend. The MACD of 3.39 indicates Negative momentum. The RSI at 68.38 is Neutral, neither overbought nor oversold. The STOCH value of 76.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NHC.

National Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	74 Outperform	$2.20B	21.85	9.94%	1.77%	23.74%	-18.99%
ADUS	74 Outperform	$2.09B	24.15	8.58%	―	18.77%	6.88%
SEM	69 Neutral	$1.86B	17.23	5.57%	1.67%	-22.96%	-59.35%
ACHC	61 Neutral	$1.33B	12.22	3.49%	―	4.58%	-61.50%
BKD	61 Neutral	$2.56B	―	-214.33%	―	3.93%	-42.22%
AVAH	58 Neutral	$1.90B	25.25	―	―	15.48%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

National Healthcare Corporate Events

National Healthcare Appoints Dr. Lisa Piercey to Board

On November 6, 2025, National HealthCare Corporation appointed Dr. Lisa Piercey to its Board of Directors, recognizing her extensive experience in healthcare operations and public policy. Dr. Piercey, who has a strong background in improving healthcare access for rural and underserved populations, will serve as a Class 1 Director and join the Audit Committee. Concurrently, the company announced leadership changes with Stephen F. Flatt assuming the role of both CEO and President following the retirement of R. Michael Ussery on December 31, 2025, and Timothy J. Shelly becoming the principal operating officer.

National Healthcare Declares Quarterly Dividend for Shareholders

On November 6, 2025, National HealthCare Corporation announced a quarterly dividend of 64 cents per common share, payable on January 30, 2026, to shareholders of record as of December 31, 2025. This announcement underscores NHC’s ongoing commitment to returning value to its shareholders, reflecting its stable financial position and confidence in future operations despite the inherent risks and uncertainties in the healthcare industry.

National Healthcare Announces President’s Retirement

On September 26, 2025, National HealthCare Corporation announced the retirement of R. Michael Ussery, its President and Chief Operating Officer, effective December 31, 2025. Ussery, who has been with the company since 1980, has played a crucial role in its growth and success, serving in various leadership positions and contributing significantly to the company’s culture of high-quality patient care. His retirement marks the end of a distinguished 45-year career, during which he was recognized for his dedication and leadership, including being named Administrator of the Year in 1989.

National Healthcare Disputes Lease Default Allegations

On July 29, 2025, NHC’s subsidiary received a notification from its landlord, National Health Investors, Inc., alleging non-compliance with four non-monetary provisions of their Master Lease. Despite the tenant’s belief in compliance, the landlord formally alleged default on September 8, 2025, initiating a 30-day cure period. NHC is actively disputing these claims and negotiating with the landlord, as unresolved disputes could significantly impact NHC’s financial standing and operational continuity.