National Health Investors Inc (NYSE: NHI)

Sector: Real Estate Industry: REIT - Healthcare Facilities CIK: 0000877860
Market Cap 2.58 Bn
P/B 3.37
P/E 24.34
P/S 21.93
ROIC (Qtr) 7.17
Div Yield % 4.20
Rev 1y % (Qtr) 8.32
Total Debt (Qtr) 1.11 Bn
Debt/Equity (Qtr) 0.75
Add ratio to table...

About

Investment thesis

Bull case

  • Strong operating cash flow of 226.40M provides 9.08x coverage of SG&A expenses 24.95M, showing efficient operational cost management.
  • Tangible assets of 2.69B provide exceptional 669.17x coverage of deferred revenue 4.02M, showing strong service capability backing.
  • Operating cash flow of 226.40M provides strong 56.32x coverage of deferred revenue 4.02M, indicating service delivery capability.
  • Operating cash flow of 226.40M provides strong 2.35x coverage of operating expenses 96.36M, showing operational efficiency.
  • Cash position of 81.62M provides strong 20.30x coverage of deferred revenue 4.02M, ensuring service delivery capability.

Bear case

  • Operating cash flow of 226.40M barely covers its investment activities of (243.32M), with a coverage ratio of -0.93, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 226.40M provides thin coverage of dividend payments of (165.13M) with a -1.37 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • The company's operating cash flow of 226.40M shows concerning coverage of stock compensation expenses of (979000), with a -231.26 ratio indicating potential earnings quality issues.
  • Operating earnings of 205.60M show weak coverage of depreciation charges of 77.97M, with a 2.64 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 83.27M represents just -3.02x of debt issuance (27.57M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the REIT - Healthcare Facilities
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 WELL Welltower Inc. 143.17 Bn 152.82 13.21 21.38 Bn
2 VTR Ventas, Inc. 38.32 Bn 152.44 6.57 13.22 Bn
3 OHI Omega Healthcare Investors Inc 9.79 Bn 37.42 11.00 4.26 Bn
4 DOC Healthpeak Properties, Inc. 9.29 Bn 18.52 5.20 10.14 Bn
5 CTRE CareTrust REIT, Inc. 8.40 Bn 26.19 17.62 0.89 Bn
6 AHR American Healthcare REIT, Inc. 6.95 Bn -212.00 3.23 1.70 Bn
7 HR Healthcare Realty Trust Inc 6.42 Bn -26.10 5.44 4.15 Bn
8 NHI National Health Investors Inc 2.58 Bn 24.34 21.93 1.11 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.10 1.24
EV to Cash from Ops. EV/CFO 28.49 24.29
EV to Debt EV to Debt 2.68 3.18
EV to EBIT EV/EBIT 25.69 14.77
EV to EBITDA EV/EBITDA 27.97 19.20
EV to Free Cash Flow [EV/FCF] EV/FCF -5.61 1.78
EV to Market Cap EV to Market Cap 1.15 1.96
EV to Revenue EV/Rev 25.19 11.43
Price to Book Value [P/B] P/B 3.37 2.64
Price to Earnings [P/E] P/E 24.34 29.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.89 -1.90
Dividend Payout Ratio % Div Payout % (Qtr) 113.50 299.46
Dividend per Basic Share Div per Share (Qtr) 3.62 1.85
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 206.15 49.00
Interest Coverage Int. cover (Qtr) 3.52 2.08
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -2,087.80 -326.40
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 424.92 31.24
Dividend Growth (1y) % Div 1y % (Qtr) 0.56 12.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 10.36 35.66
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 5.87 12.40
EBIT Growth (1y) % EBIT 1y % (Qtr) 10.36 25.81
EBT Growth (1y) % EBT 1y % (Qtr) 16.14 71.96
EPS Growth (1y) % EPS 1y % (Qtr) 9.25 29.36
FCF Growth (1y) % FCF 1y % (Qtr) -57.70 -181.35
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.95 13.29
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.13 0.17
Cash Payout Ratio Cash Payout (Qtr) 0.45 0.07
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 0.75 4.36
Interest Cover Ratio Int Coverage (Qtr) 3.52 2.08
Times Interest Earned Times Interest Earned (Qtr) 3.52 2.08
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 79.80 55.93
EBIT Margin % EBIT Margin % (Qtr) 57.82 28.99
EBT Margin % EBT Margin % (Qtr) 41.42 13.55
Gross Margin % Gross Margin % (Qtr) 86.40 71.26
Net Profit Margin % Net Margin % (Qtr) 41.40 13.18