National HealthCare Corporation (NHC) | Investment Case

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on NHC

National HealthCare Corporation's recent performance is driven by robust fundamentals, including strong earnings, revenue, and margin growth. The company's operating margins have expanded significantly, supported by favorable industry trends. A potential concern regarding the 2027 NHI lease expiration appears overblown, given NHC's low debt and rising cash, enabling it to absorb rent increases or purchase properties outright. With a healthy financial position, NHC is well-equipped to navigate its lease negotiation with National Health Investors.

1.c. Company Highlights

Last Price	134.73
Change Percentage	-1.36%
Open	138.72
Previous Close	136.59
Market Cap ( Millions)	2090
Volume	41529
Year High	140.41
Year Low	89.14
M A 50	125.69
M A 200	107.6

FCF Yield	5.69%
Dividend Yield	1.86%
ROE	10.50%
Debt / Equity	16.89%
Net Debt / EBIDTA	33.08%
Price To Book	2.04
Price Earnings Ratio	19.88
Price To FCF	17.58
Price To sales	1.44
EV / EBITDA	11.55

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Bank of New York Mellon Corp Has $12.99 Million Stock Holdings in National HealthCare Co. $NHC

Nov -19

Source: defenseworld.net

National HealthCare Does Not Flinch During Lease Negotiations

Oct -29

Source: seekingalpha.com

Cwm LLC Lowers Stock Position in National HealthCare Co. $NHC

Oct -23

Source: defenseworld.net

National HealthCare Is Thriving And Will Shrug Off NHI Lease Expiration

Aug -12

Source: seekingalpha.com

PokerGO® and PokerStars® Announce Return of the National Heads-Up Poker Championship

Jul -28

Source: prnewswire.com

SHAREHOLDER NOTICE: Kaskela Law LLC Announces Shareholder Investigation of National HealthCare Corporation (NYSE: NHC) and Encourages Long-Term NHC Investors to Contact the Firm

Jul -10

Source: prnewswire.com

7 Upcoming Dividend Increases Including Two Kings

Jun -30

Source: seekingalpha.com

Land & Buildings Details Why National Healthcare Corp. Could Lose Big as Lease Negotiation with National Health Investors Progresses

Jun -17

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.05%)

6. Segments

Inpatient Services

Expected Growth: 4.8%

Growing demand for post-acute care, increasing geriatric population, and advancements in medical technology drive the growth of inpatient services. National HealthCare Corporation's focus on providing high-quality medical and rehabilitation care to patients requiring 24/7 supervision and treatment positions it for success in this growing market.

Homecare and Hospice

Expected Growth: 7.1%

Growing demand for home-based care, increasing geriatric population, and government initiatives to promote home healthcare are driving the growth of the homecare and hospice segment.

All Other

Expected Growth: 4.5%

The growth of All Other segment from National HealthCare Corporation is driven by increasing demand for management contracts, strategic investments in real estate, and diversification of revenue streams.

7. Detailed Products

Nursing Centers

National HealthCare Corporation provides skilled nursing and rehabilitation services in their nursing centers, offering a range of care options including short-term rehabilitation, long-term care, and memory care.

Assisted Living Centers

NHC's assisted living centers offer a supportive environment for individuals who require assistance with daily living activities, providing a range of services including medication management, meals, and transportation.

HomeCare

NHC's HomeCare services provide medical and non-medical care in the comfort of the patient's own home, including skilled nursing, physical therapy, and personal care services.

Hospice Care

NHC's Hospice Care provides compassionate care and support to individuals with terminal illnesses, focusing on pain management, symptom control, and emotional and spiritual support.

Rehabilitation Services

NHC's Rehabilitation Services provide physical, occupational, and speech therapy services to help individuals recover from illness or injury, including stroke, orthopedic, and neurological rehabilitation.

8. National HealthCare Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes in the healthcare industry is moderate, as patients have limited alternatives to traditional healthcare services. However, the rise of telemedicine and online health platforms may pose a threat to traditional healthcare providers.

Bargaining Power Of Customers

The bargaining power of customers in the healthcare industry is relatively low, as patients often rely on healthcare providers for critical services and may not have the expertise to negotiate prices or services.

Bargaining Power Of Suppliers

The bargaining power of suppliers in the healthcare industry is moderate, as healthcare providers rely on suppliers for medical equipment, pharmaceuticals, and other essential supplies. However, suppliers may not have significant bargaining power due to the fragmented nature of the supplier market.

Threat Of New Entrants

The threat of new entrants in the healthcare industry is relatively low, as significant barriers to entry exist, including high capital requirements, regulatory hurdles, and the need for specialized expertise.

Intensity Of Rivalry

The intensity of rivalry in the healthcare industry is high, as healthcare providers compete for patients, staff, and market share. The industry is highly competitive, with many players vying for market dominance.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	9.32%
Debt Cost	3.95%
Equity Weight	90.68%
Equity Cost	5.86%
WACC	5.68%
Leverage	10.28%

11. Quality Control: National HealthCare Corporation passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

NHC

A-Score: 5.9/10

Value: 5.4

Growth: 4.8

Quality: 6.5

Yield: 5.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

Cryo-Cell International

A-Score: 4.8/10

Value: 6.4

Growth: 3.7

Quality: 6.4

Yield: 8.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

Addus HomeCare

A-Score: 4.7/10

Value: 3.6

Growth: 7.8

Quality: 6.6

Yield: 0.0

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

Cross Country Healthcare

A-Score: 4.7/10

Value: 6.6

Growth: 6.2

Quality: 4.6

Yield: 0.0

Momentum: 7.5

Volatility: 3.3

1-Year Total Return ->

ASHS

A-Score: 3.8/10

Value: 9.6

Growth: 4.6

Quality: 3.5

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

Astrana Health

A-Score: 3.3/10

Value: 4.5

Growth: 7.3

Quality: 5.2

Yield: 0.0

Momentum: 0.0

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.53%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.68%

National HealthCare Corporation - US6359061008

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on NHC

1.c. Company Highlights

Higher Yield

Less Volatile

Strong Momentum

Stable Momentum

Average Quality

Better Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.05%)

6. Segments

Inpatient Services

Expected Growth: 4.8%

Homecare and Hospice

Expected Growth: 7.1%

All Other

Expected Growth: 4.5%

7. Detailed Products

Nursing Centers

Assisted Living Centers

HomeCare

Hospice Care

Rehabilitation Services

8. National HealthCare Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: National HealthCare Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

134.73$

Current Price

134.73$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA