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Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 49.1GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
13.0%
Sector: -43.5%
Dividend Analysis audit
INCOME
2.06%
Trailing Yield
$2.06
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
38%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, NATIONAL HEALTHCARE CORP (NHC) receives a "Hold" rating with a composite score of 52.5/100, ranked #444 out of 4446 stocks. Key factor scores: Quality 49/100, Value 63/100, Momentum 68/100. This is quantitative analysis only — not investment advice.
NATIONAL HEALTHCARE CORP (NHC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does NATIONAL HEALTHCARE CORP Do?
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. NATIONAL HEALTHCARE CORP (NHC) is classified as a mid-cap stock in the Healthcare sector. The company is led by CEO Stephen F. Flatt and employs approximately 12,400 people, headquartered in MURFREESBORO, Tennessee. With a market capitalization of $2.5B, NHC is one of the notable companies in the Healthcare sector.
NATIONAL HEALTHCARE CORP (NHC) Stock Rating — Hold (April 2026)
As of April 2026, NATIONAL HEALTHCARE CORP receives a Hold rating with a composite score of 52.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.NHC ranks #444 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, NATIONAL HEALTHCARE CORP ranks #23 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
NHC Stock Price and 52-Week Range
NATIONAL HEALTHCARE CORP (NHC) currently trades at $171.68. The stock lost $5.13 (2.9%) in the most recent trading session. The 52-week high for NHC is $174.54, which means the stock is currently trading -1.6% from its annual peak. The 52-week low is $89.14, putting the stock 92.6% above its annual trough. Recent trading volume was 12K shares, suggesting relatively thin trading activity.
Is NHC Overvalued or Undervalued? — Valuation Analysis
NATIONAL HEALTHCARE CORP (NHC) carries a value factor score of 63/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 18.53x, compared to the Healthcare sector average of 23.63x — a discount of 22%. The price-to-book ratio stands at 2.42x, versus the sector average of 2.75x. The price-to-sales ratio is 1.76x, compared to 1.66x for the average Healthcare stock. On an enterprise value basis, NHC trades at 16.47x EV/EBITDA, versus 6.34x for the sector.
Overall, NHC's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
NATIONAL HEALTHCARE CORP Profitability — ROE, Margins, and Quality Score
NATIONAL HEALTHCARE CORP (NHC) earns a quality factor score of 49/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 13.0%, compared to the Healthcare sector average of -43.5%, which is within a healthy range. Return on assets (ROA) comes in at 9.2% versus the sector average of -33.1%.
On a margin basis, NATIONAL HEALTHCARE CORP reports gross margins of 39.0%, compared to 71.5% for the sector. The operating margin is 7.9% (sector: -66.1%). Net profit margin stands at 9.6%, versus -58.7% for the average Healthcare stock. Revenue growth is running at 27.3% on a trailing basis, compared to 10.6% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
NHC Debt, Balance Sheet, and Financial Health
NATIONAL HEALTHCARE CORP has a debt-to-equity ratio of 4.0%, compared to the Healthcare sector average of 32.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.82x, suggesting adequate working capital coverage. Total debt on the balance sheet is $40M. Cash and equivalents stand at $131M.
NHC has a beta of 0.41, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for NATIONAL HEALTHCARE CORP is 81/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
NATIONAL HEALTHCARE CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, NATIONAL HEALTHCARE CORP reported revenue of $1.47B and earnings per share (EPS) of $7.76. Net income for the quarter was $140M. Gross margin was 39.0%. Operating income came in at $116M.
In FY 2025, NATIONAL HEALTHCARE CORP reported revenue of $1.52B and earnings per share (EPS) of $7.76. Net income for the quarter was $123M. Revenue grew 16.1% year-over-year compared to FY 2024. Operating income came in at $128M.
In Q3 2025, NATIONAL HEALTHCARE CORP reported revenue of $383M and earnings per share (EPS) of $2.53. Net income for the quarter was $41M. Revenue grew 12.5% year-over-year compared to Q3 2024. Operating income came in at $30M.
In Q2 2025, NATIONAL HEALTHCARE CORP reported revenue of $375M and earnings per share (EPS) of $1.53. Net income for the quarter was $24M. Revenue grew 24.7% year-over-year compared to Q2 2024. Operating income came in at $34M.
Over the past 8 quarters, NATIONAL HEALTHCARE CORP has demonstrated a growth trajectory, with revenue expanding from $301M to $1.47B. Investors analyzing NHC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
NHC Dividend Yield and Income Analysis
NATIONAL HEALTHCARE CORP (NHC) currently pays a dividend yield of 2.1%. At this yield, a $10,000 investment in NHC stock would generate approximately $$206.00 in annual dividend income. The net margin of 9.6% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
NHC Momentum and Technical Analysis Profile
NATIONAL HEALTHCARE CORP (NHC) has a momentum factor score of 68/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 8/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
NHC vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing NHC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NHC vs S&P 500 (SPY) comparison to assess how NATIONAL HEALTHCARE CORP stacks up against the broader market across all factor dimensions.
NHC Next Earnings Date
No upcoming earnings date has been announced for NATIONAL HEALTHCARE CORP (NHC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy NHC? — Investment Thesis Summary
NATIONAL HEALTHCARE CORP presents a balanced picture with arguments on both sides. The value score of 63/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 68/100, suggesting the trend favors buyers. Low volatility (stability score 81/100) reduces downside risk.
In summary, NATIONAL HEALTHCARE CORP (NHC) earns a Hold rating with a composite score of 52.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on NHC stock.
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Institutional Research Dossier
NATIONAL HEALTHCARE CORP (NHC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
National HealthCare Corporation (NHC) currently holds a 'Hold' rating, reflecting a balanced view of its financial performance and future prospects. While NHC demonstrates strong profitability metrics compared to the broader healthcare sector and exhibits a reasonable valuation, concerns regarding its capital allocation strategy and relatively low investment score temper enthusiasm. The company's stability, as indicated by its high stability score, provides a buffer against market volatility, but a more aggressive approach to growth and investment is needed to warrant a more bullish outlook.
The primary takeaway is that NHC represents a stable, value-oriented investment within the healthcare sector, particularly attractive to investors seeking downside protection. However, its limited investment in future growth initiatives and a lack of clear capital allocation strategy prevent it from achieving a higher rating. Investors should closely monitor NHC's future investment decisions and its ability to sustain its competitive position in the evolving healthcare landscape.
Business Strategy & Overview
National HealthCare Corporation operates a diversified portfolio of healthcare services, including skilled nursing facilities, assisted living facilities, independent living facilities, homecare and hospice agencies, and a behavioral health hospital. This diversification allows NHC to cater to a wide range of patient needs and capture revenue streams across the continuum of care. The company's core business revolves around providing long-term care and rehabilitative services, primarily through its skilled nursing facilities, which constitute the largest segment of its operations. These facilities offer a comprehensive suite of services, including medical care, therapy, nutrition, and social activities, catering to patients recovering from various medical conditions.
NHC's strategic positioning focuses on providing high-quality care and maintaining strong relationships with healthcare providers and payers. The company emphasizes compliance with regulatory requirements and strives to achieve high patient satisfaction scores. Furthermore, NHC actively manages its facility portfolio, selectively acquiring new facilities and divesting underperforming assets to optimize its geographic footprint and improve operational efficiency. The company also focuses on developing specialized programs, such as memory care units and sub-acute nursing units, to cater to specific patient populations and differentiate itself from competitors.
The healthcare industry is characterized by increasing demand for long-term care services, driven by the aging population and the rising prevalence of chronic diseases. However, the industry also faces significant challenges, including rising labor costs, increasing regulatory scrutiny, and evolving reimbursement models. NHC's ability to navigate these challenges and adapt to changing market dynamics will be crucial to its long-term success. The company's diversification strategy and focus on quality care position it favorably to capitalize on the growing demand for healthcare services, but effective cost management and strategic investments are essential to maintain profitability and competitiveness.
NHC's revenue generation is primarily driven by occupancy rates at its facilities and reimbursement rates from government payers (Medicare and Medicaid) and private insurance companies. The company's ability to maintain high occupancy rates and negotiate favorable reimbursement rates is critical to its financial performance. Furthermore, NHC's ancillary services, such as homecare and hospice agencies, contribute to its overall revenue stream and provide opportunities for cross-selling and integrated care delivery. The company's strategic focus on expanding its service offerings and geographic reach is aimed at diversifying its revenue base and reducing its reliance on any single payer or service line.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
27.3%
Sector: 10.6%
+156% VS SCTR
Economic Moat Analysis
National HealthCare Corporation's economic moat can be classified as Narrow. While the company possesses certain competitive advantages, they are not substantial enough to create a wide and sustainable moat. The primary source of NHC's moat stems from its established reputation and brand recognition within the communities it serves. This intangible asset provides a degree of customer loyalty and referral business, particularly in the skilled nursing and assisted living segments.
However, the healthcare industry is highly regulated, and the quality of care provided is subject to stringent oversight. This regulatory environment creates a level playing field, limiting the ability of any single provider to establish a dominant market position. Furthermore, the skilled nursing and assisted living segments are characterized by relatively low switching costs, as patients and their families can easily transfer to alternative facilities if they are dissatisfied with the quality of care or the cost of services.
NHC's diversification across various healthcare service lines, including homecare and hospice agencies, provides a degree of competitive advantage by allowing it to offer a more comprehensive suite of services to its patients. This integrated care delivery model can enhance patient satisfaction and improve outcomes, potentially leading to increased referrals and customer retention. However, these advantages are not unique to NHC, as many other healthcare providers offer similar integrated care models.
The company's cost structure is also a factor in its competitive positioning. While NHC strives to manage its operating expenses efficiently, it faces significant cost pressures from rising labor costs and increasing regulatory compliance requirements. These cost pressures can erode its profitability and limit its ability to invest in growth initiatives. Furthermore, the company's reliance on government payers (Medicare and Medicaid) exposes it to the risk of reimbursement rate cuts, which can negatively impact its revenue and earnings.
In conclusion, while NHC possesses certain competitive advantages, such as its established reputation and diversified service offerings, these advantages are not substantial enough to create a wide and sustainable moat. The company's narrow moat is primarily based on intangible assets and a degree of customer loyalty, but it is vulnerable to competitive pressures from other healthcare providers and regulatory changes. To strengthen its moat, NHC needs to focus on differentiating its services, improving its cost efficiency, and building stronger relationships with healthcare providers and payers.
Financial Health & Profitability
National HealthCare Corporation demonstrates a solid financial health profile, characterized by consistent revenue growth, strong profitability metrics, and a conservative balance sheet. The company's revenue has steadily increased over the past few years, driven by organic growth and strategic acquisitions. The TTM revenue of $1.52 billion represents a significant increase compared to $1.31 billion in FY2024 and $1.14 billion in FY2023, indicating a robust growth trajectory. This growth is further evidenced by the impressive 27.3% revenue growth compared to the sector average of 10.7%.
NHC's profitability metrics are also strong, with a TTM net income of $122.61 million and an operating margin of 7.9%. These figures compare favorably to the healthcare sector averages, which are significantly negative. The company's ROE of 13.0% is also substantially higher than the sector average of -42.5%, indicating efficient utilization of equity capital. The quarterly financial history reveals a consistent trend of profitability, with net income and EPS showing steady improvement over the past few quarters. However, gross margin at 39.0% is significantly lower than the sector average of 71.9%, which warrants further investigation to understand the underlying drivers.
NHC's balance sheet is conservatively managed, with a strong current ratio of 1.82 and a low debt-to-equity ratio of 4.00, significantly lower than the sector average of 30.00. The company's total cash of $130.63 million provides a comfortable cushion to meet its short-term obligations and fund future growth initiatives. The low debt level provides financial flexibility and reduces the company's exposure to interest rate risk. The company's free cash flow generation of $71.34 million further strengthens its financial position and provides resources for capital expenditures, acquisitions, and dividend payments.
However, the lack of free cash flow data in the quarterly history is a notable omission. While the TTM figure is positive, understanding the quarterly trend would provide a more comprehensive view of the company's cash flow generation capabilities. Furthermore, the company's investment score of 24/100 suggests a relatively conservative approach to capital allocation, which may limit its long-term growth potential. While stability is a positive attribute, a more aggressive investment strategy may be necessary to capitalize on growth opportunities in the healthcare sector.
Valuation Assessment
National HealthCare Corporation's valuation appears reasonable based on several key metrics. The company's P/E ratio of 20.5x is lower than the healthcare sector average of 24.3x, suggesting that the stock may be undervalued relative to its peers. Similarly, the EV/EBITDA ratio of 3.6x is significantly lower than the sector average of 6.4x, further supporting the notion that NHC is attractively valued. These valuation metrics indicate that investors may be undervaluing NHC's earnings and cash flow generation capabilities.
However, it is important to consider NHC's growth prospects when assessing its valuation. While the company has demonstrated strong revenue growth in recent years, its investment score of 24/100 suggests a relatively conservative approach to capital allocation, which may limit its future growth potential. If NHC's growth rate slows down, its current valuation may not be as attractive. Furthermore, the company's reliance on government payers (Medicare and Medicaid) exposes it to the risk of reimbursement rate cuts, which could negatively impact its earnings and cash flow.
The company's free cash flow yield, calculated as free cash flow divided by market capitalization, is approximately 2.9%. This yield is relatively modest, but it is still higher than the yield on many other investments in the current low-interest-rate environment. The free cash flow yield provides a measure of the company's ability to generate cash for its shareholders, and it is an important factor to consider when assessing its valuation.
Overall, NHC's valuation appears reasonable based on its P/E ratio, EV/EBITDA ratio, and free cash flow yield. However, investors should carefully consider the company's growth prospects and the risks associated with its reliance on government payers. A more aggressive approach to capital allocation and a focus on diversifying its revenue streams could enhance NHC's long-term growth potential and justify a higher valuation. The current 'Hold' rating reflects a balanced view of the company's valuation, taking into account its strengths and weaknesses.
Risk & Uncertainty
National HealthCare Corporation faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is regulatory compliance. The healthcare industry is heavily regulated, and NHC is subject to numerous federal and state regulations, including those related to Medicare and Medicaid reimbursement, patient privacy, and quality of care. Failure to comply with these regulations could result in fines, penalties, and even the loss of licenses, which would have a material adverse effect on the company's operations.
Another significant risk is competition. The skilled nursing and assisted living segments are highly competitive, with numerous providers vying for patients. NHC faces competition from both for-profit and non-profit organizations, as well as from alternative care settings, such as home healthcare and independent living facilities. Increased competition could lead to lower occupancy rates, reduced reimbursement rates, and increased marketing expenses, which would negatively impact the company's profitability.
Reimbursement risk is also a major concern. NHC derives a significant portion of its revenue from Medicare and Medicaid, which are government-funded programs. These programs are subject to political and budgetary pressures, which could lead to reimbursement rate cuts. Furthermore, changes in reimbursement policies, such as the shift towards value-based care, could negatively impact NHC's revenue and earnings. The company's ability to adapt to these changes and maintain its profitability will be crucial to its long-term success.
Labor costs represent another significant risk. The healthcare industry is facing a shortage of qualified nurses and other healthcare professionals, which is driving up labor costs. NHC's ability to attract and retain qualified employees is essential to providing high-quality care and maintaining its competitive position. Failure to manage labor costs effectively could erode its profitability and negatively impact its financial performance.
Bulls Say / Bears Say
The Bull Case
BULL VIEWNHC's consistent profitability and strong balance sheet provide a solid foundation for future growth and shareholder returns, making it an attractive investment in a defensive sector.
BULL VIEWThe company's undervaluation relative to its peers, as evidenced by its lower P/E and EV/EBITDA ratios, presents an opportunity for capital appreciation as the market recognizes its intrinsic value.
BULL VIEWNHC's diversified service offerings and strategic acquisitions position it favorably to capitalize on the growing demand for long-term care services, driving revenue growth and profitability.
The Bear Case
BEAR VIEWNHC's reliance on government payers exposes it to the risk of reimbursement rate cuts, which could significantly impact its revenue and earnings, making it a risky investment.
BEAR VIEWThe company's conservative capital allocation strategy and low investment score suggest a lack of growth opportunities and potential for stagnation, limiting its long-term upside potential.
BEAR VIEWIncreased competition in the skilled nursing and assisted living segments could lead to lower occupancy rates and reduced profitability, eroding NHC's competitive advantage and financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score NHC and 4,400+ other equities.
NATIONAL HEALTHCARE CORP exhibits a 33% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
9.2%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
39.0%
Sector: 71.5%
Operating Margin
Core business profitability
7.9%
Sector: -66.1%
Net Margin
Bottom-line profitability
9.6%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $206 annually in dividends at the current trailing rate.
