National Healthcare (NHC) AI Stock Analysis

• Market Cap: $1.94B
• Dividend Yield: 1.97%
• Average Volume (3M): 67.56K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.74
• Revenue Growth: 25.19%
• EPS Growth: 13.44%
• Country: US
• Employees: 14,962
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 2.50
• Shares Outstanding: 15,500,911
• 10 Day Avg. Volume: 61,592
• 30 Day Avg. Volume: 67,560
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 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: 73 Outperform
• Price Target: $135.00 ▲(9.37% Upside)

National Healthcare's strong financial performance and solid technical indicators are the primary drivers of its stock score. The company's robust balance sheet and improving cash flow position it well within the medical care facilities industry. The fair valuation and reasonable dividend yield further support a positive outlook.

National Healthcare Business Overview & Revenue Model

Company Description

National Healthcare (NHC) is a leading provider of healthcare services in the United States, specializing in skilled nursing, rehabilitation, and long-term care. The company operates a network of healthcare facilities that focus on delivering high-quality patient care while also providing ancillary services such as home health and hospice care. NHC is dedicated to enhancing the quality of life for its patients through a comprehensive range of medical and therapeutic services tailored to meet individual needs.

How the Company Makes Money

National Healthcare generates revenue primarily through its skilled nursing and rehabilitation services, receiving payment from government programs such as Medicare and Medicaid, as well as private insurance plans. The company also earns income from ancillary services, including home health and hospice care, which are billed separately. Key revenue streams include daily patient care fees, therapy services, and long-term care contracts. Significant partnerships with healthcare payers and networks enhance NHC's reach and profitability, while a focus on quality metrics and patient satisfaction helps secure ongoing funding from public and private sources.

National Healthcare Financial Statement Overview

Summary

National Healthcare demonstrates strong financial health with consistent revenue growth and efficient cost management. The balance sheet is robust, with low leverage and solid equity financing. Cash flow generation is improving, though there is potential to enhance cash flow efficiency further.

Income Statement

National Healthcare shows a strong revenue growth trajectory with a 5.96% increase in TTM. The gross profit margin improved to 46.46% in TTM, indicating efficient cost management. However, the net profit margin slightly decreased to 7.20% from 7.85% in the previous year, suggesting some pressure on net profitability. The EBIT and EBITDA margins have improved, reflecting better operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.17 in TTM, indicating prudent financial leverage. Return on equity is stable at 10.50%, showing effective use of equity capital. The equity ratio is strong, reflecting a robust capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow performance is improving, with a 20.51% growth in free cash flow in TTM. The operating cash flow to net income ratio is healthy at 0.55, indicating good cash conversion. However, the free cash flow to net income ratio is slightly below optimal at 0.88, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.49B	1.30B	1.14B	1.07B	1.01B	980.71M
Gross Profit	428.97M	487.01M	429.20M	388.11M	344.88M	371.41M
EBITDA	151.42M	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	0.00	1.52B	1.31B	1.28B	1.40B	1.36B
Cash, Cash Equivalents and Short-Term Investments	0.00	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	566.96M
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: 123.43
• 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 123.43 is above the 20-day moving average (MA) of 122.26, above the 50-day MA of 119.61, and above the 200-day MA of 103.70, indicating a bullish trend. The MACD of 1.46 indicates Negative momentum. The RSI at 63.66 is Neutral, neither overbought nor oversold. The STOCH value of 78.94 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
ADUS	79 Outperform	$2.22B	24.44	8.58%	―	18.77%	6.88%
NHC	73 Outperform	$1.94B	18.63	10.65%	1.97%	25.19%	13.44%
SEM	67 Neutral	$1.66B	15.35	5.57%	1.79%	-22.96%	-59.35%
BKD	60 Neutral	$2.20B	―	-108.91%	―	3.99%	-14.74%
ACHC	58 Neutral	$1.91B	17.19	3.49%	―	4.58%	-61.50%
AVAH	54 Neutral	$1.92B	114.76	―	―	15.48%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

National Healthcare Corporate Events

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.

The most recent analyst rating on (NHC) stock is a Hold with a $119.00 price target. To see the full list of analyst forecasts on National Healthcare stock, see the NHC Stock Forecast page.

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.

The most recent analyst rating on (NHC) stock is a Hold with a $119.00 price target. To see the full list of analyst forecasts on National Healthcare stock, see the NHC Stock Forecast page.

National Healthcare Declares Quarterly Dividend Announcement

On August 7, 2025, National HealthCare Corporation announced a quarterly dividend of 64 cents per common share, payable to shareholders on October 31, 2025. This announcement underscores NHC’s commitment to returning value to its shareholders while navigating the complexities of the healthcare industry, including regulatory changes and economic conditions.