National Healthcare (NHC) AI Stock Analysis

• Market Cap: $1.82B
• Dividend Yield: 2.13%
• Average Volume (3M): 78.03K
• Price to Earnings (P/E): 17.5
• 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): 1.52
• Shares Outstanding: 15,500,911
• 10 Day Avg. Volume: 68,661
• 30 Day Avg. Volume: 78,026
• 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: 0.85
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 2.77
• Enterprise Value/Ebitda: 8.26
• 1Y Price Target: $119.00
• Price Target Upside: 1.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $119.00 ▲(1.34% Upside)

National Healthcare's strong financial performance and reasonable valuation are the primary drivers of its score. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The dividend announcement supports the valuation but does not significantly alter the overall score.

National Healthcare Business Overview & Revenue Model

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.

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	1.46B	1.30B	1.14B	1.07B	1.01B	980.71M
Gross Profit	555.77M	487.01M	429.20M	388.11M	344.88M	371.41M
EBITDA	186.28M	182.53M	131.10M	68.28M	191.56M	95.84M
Net Income	104.80M	101.93M	66.80M	22.45M	138.59M	41.87M
Balance Sheet
Total Assets	1.56B	1.52B	1.31B	1.28B	1.40B	1.36B
Cash, Cash Equivalents and Short-Term Investments	257.63M	216.19M	223.62M	182.59M	256.02M	323.44M
Total Debt	172.61M	214.77M	93.39M	125.94M	166.66M	194.02M
Total Liabilities	536.84M	541.27M	400.32M	397.94M	494.94M	566.96M
Stockholders Equity	1.02B	980.16M	908.75M	874.28M	903.00M	795.18M
Cash Flow
Free Cash Flow	118.92M	79.70M	83.31M	-21.46M	23.00M	181.39M
Operating Cash Flow	149.07M	107.30M	111.22M	8.74M	62.39M	203.26M
Investing Cash Flow	-258.61M	-236.69M	-17.57M	-5.98M	-65.89M	-63.88M
Financing Cash Flow	74.29M	100.34M	-42.55M	-47.64M	-35.26M	-41.89M

National Healthcare Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 117.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NHC, the sentiment is Neutral. The current price of 117.43 is below the 20-day moving average (MA) of 119.95, above the 50-day MA of 112.75, and above the 200-day MA of 101.57, indicating a neutral trend. The MACD of 1.66 indicates Positive momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 21.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$2.08B	24.90	8.54%	―	14.29%	7.85%
SEM	74 Outperform	$1.65B	12.48	8.15%	1.93%	-16.10%	-48.97%
NHC	69 Neutral	$1.82B	17.51	10.65%	2.13%	25.19%	13.44%
ACHC	69 Neutral	$2.24B	16.00	4.62%	―	5.64%	―
AVAH	59 Neutral	$1.81B	117.29	42.49%	―	11.53%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BKD	46 Neutral	$2.04B	―	-108.91%	―	3.99%	-14.74%

National Healthcare Corporate Events

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.