One-glance verdict
Undervalued
$298.89 our estimate vs market $206.14
31% below our estimate, below the bear case
Fundamentals snapshot
National HealthCare Corporation
NHC · ASE · Healthcare · Medical Care Facilities
Current price
$206.14
52-week range
$118.14 - $248.20
Market cap
$3.23B
Balance sheet
Healthy
20.15x Strong cushion
Net cash $178.78M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 2.7% last year.
- Reward Returns 13.3% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Forward P/E (479.4x) is higher than trailing (23.2x) - earnings are expected to drop.
What this company does
National HealthCare Corporation
National HealthCare Corporation (NHC) runs places that help people who need ongoing care, like nursing homes, assisted living communities, and home health services. Most of its money comes from charging for these care services. This matters because it shows how NHC helps a growing group of people needing medical support and daily assistance.
How the company got here
National HealthCare Corporation (NHC) was founded in 1971 with a mission to provide quality healthcare services. Over the decades, it has grown by expanding its network of facilities and services. A key part of its history involves strategically acquiring and developing skilled nursing facilities, assisted living residences, and homecare agencies to meet the evolving needs of an aging population. This growth has positioned NHC as a significant player in the healthcare services sector, particularly in long-term care and post-acute rehabilitation.
What it actually does
NHC operates a variety of healthcare facilities and services designed to support individuals with different levels of medical and personal care needs. Think of it like a continuum of care, starting from more intensive medical support and extending to services that help people maintain independence in their own homes or in assisted living settings. They offer everything from skilled nursing care and rehabilitation services to help with daily activities and specialized programs for conditions like Alzheimer's disease.
Inpatient
The Inpatient segment focuses on providing care within NHC's facilities, primarily skilled nursing facilities and assisted living centers. These facilities offer a range of services, including medical care prescribed by doctors, rehabilitation therapies (like physical or speech therapy) to help patients recover from illness or injury, and assistance with daily living activities such as bathing and dressing. They also operate specialized units for memory care, catering to individuals with Alzheimer's or related disorders, and sub-acute nursing units for more intensive medical needs. This segment is a core part of NHC's business, providing a significant portion of its revenue.
Homecare and Hospice Services
This segment provides healthcare services directly to patients in their homes or in assisted living residences, allowing them to receive care without needing to move into a facility. Homecare agencies offer medical assistance and help with daily tasks, while hospice agencies provide specialized palliative and end-of-life care. NHC also operates pharmacies and offers managed care insurance solutions within this segment. This part of the business aims to support individuals who prefer to stay in familiar surroundings while still receiving necessary medical attention and support.
What management is betting on now
NHC's management is focused on continuing to provide high-quality care while adapting to the changing healthcare landscape. A key priority is likely the expansion and enhancement of their existing services, ensuring their facilities and programs meet the highest standards. They are also probably focused on operational efficiency to manage costs effectively, which is crucial in the healthcare industry where reimbursement rates can fluctuate. Furthermore, NHC may be looking at strategic growth opportunities, whether through acquisitions or by developing new service lines to meet the increasing demand for senior care and post-acute rehabilitation services.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$28.55M
FY2024 Q4
$4.63M
FY2025 Q1
$33.12M
FY2025 Q2
$52.62M
FY2025 Q3
$56.49M
FY2025 Q4
$6.41M
FY2026 Q1
$52.89M
FY2026 Q2
$30.74M
Revenue
$408.02M
Net income
$40.32M
Diluted EPS
2.54
Operating cash flow
$43.27M
Free cash flow
$30.74M
Fetching…
Sources
Revenue
$381.82M
Net income
$35.86M
Diluted EPS
2.27
Operating cash flow
$62.53M
Free cash flow
$52.89M
Fetching…
Sources
Revenue
$386.51M
Net income
$24.85M
Diluted EPS
1.58
Operating cash flow
$16.81M
Free cash flow
$6.41M
Fetching…
Sources
Revenue
$382.66M
Net income
$39.24M
Diluted EPS
2.50
Operating cash flow
$66.20M
Free cash flow
$56.49M
Fetching…
Sources
Revenue
$374.91M
Net income
$23.72M
Diluted EPS
1.52
Operating cash flow
$62.82M
Free cash flow
$52.62M
Fetching…
Sources
Revenue
$373.70M
Net income
$32.20M
Diluted EPS
2.07
Operating cash flow
$39.26M
Free cash flow
$33.12M
Fetching…
Sources
Revenue
$369.35M
Net income
$6.08M
Diluted EPS
0.38
Operating cash flow
$12.79M
Free cash flow
$4.63M
Fetching…
Sources
Revenue
$340.20M
Net income
$42.79M
Diluted EPS
2.73
Operating cash flow
$34.21M
Free cash flow
$28.55M
Fetching…
Sources
Is it cheap or expensive?
Fair value $298.89 vs current price $206.14
Our most-likely fair value is $298.89 a share — about 45.0% above today's price of $206.14, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $178.8M - more cash than debt. Interest coverage 20.1x.
Net debt
$-178.78M
Interest coverage
20.15x
National HealthCare Corporation's profit covers its interest bill about 20.1 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
NHC
BASELINE
National HealthCare Corporation
Total debt $31.41M Interest coverage 20.15x This is the baseline the peer rows are being compared against.
Total debt $2.29B Interest coverage 53.24x +164% vs NHC Carries about 2.6x more debt cushion than NHC.
Total debt $5.49B Interest coverage 0.36x -98% vs NHC Carries about 55.4x less debt cushion than NHC.
Total debt $3.40B Interest coverage 10.92x -46% vs NHC Carries about 1.8x less debt cushion than NHC.
Total debt $1.57B Interest coverage -0.35x -100% vs NHC This peer has almost no interest-payment cushion compared with NHC.
Total debt $495.55M Interest coverage 7.62x -62% vs NHC Carries about 2.6x less debt cushion than NHC.
What you should know
The case for and against NHC
3 Rewards
1 Risk
Rewards
-
Revenue grew 2.7% last year.
-
Returns 13.3% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Forward P/E (479.4x) is higher than trailing (23.2x) - earnings are expected to drop.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.19x
Forward P/E
479.40x
P/B
2.88x
P/S
2.07x
EV/EBITDA
16.05x
PEG ratio
0.82x
Profitability
How much profit each dollar creates
Gross margin
39.5%
Operating margin
12.0%
Net margin
9.0%
ROE
13.3%
ROA
5.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.03x
Current ratio
1.86x
Quick ratio
1.47x
Total debt
$31.41M
Total cash
$210.19M
Growth
How the business has been compounding
Revenue TTM
$1.56B
Revenue 5Y CAGR
9.0%
EPS TTM
8.89
EPS 5Y CAGR
74.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$188.81M
Free CF TTM
$148.63M
FCF margin
9.5%
Dividend
Shareholder payout
Yield
1.3%
Payout ratio
29.1%
Last ex-div date
2026-09-30