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Relative valuation derived from Industrials 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: 50GRADE 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
110.7%
Sector: 8.9%
Dividend Analysis audit
INCOME
3.76%
Trailing Yield
$3.76
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
95%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, NATIONAL RESEARCH CORP (NRC) receives a "Hold" rating with a composite score of 44.3/100, ranked #883 out of 4446 stocks. Key factor scores: Quality 50/100, Value 62/100, Momentum 39/100. This is quantitative analysis only — not investment advice.
NATIONAL RESEARCH CORP (NRC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does NATIONAL RESEARCH CORP Do?
National Research Corporation provides analytics and insights that facilitate measurement and enhancement of the patient and employee experience in the United States and Canada. Its portfolio of subscription-based solutions provides actionable information and analysis to healthcare organizations across a range of mission-critical, constituent-related elements, including patient experience, service recovery, care transitions, health risk assessments, employee engagement, reputation management, and brand loyalty. The company also offers market insights solutions that allow the tracking of awareness, perception, and consistency of healthcare brands; assessment of competitive differentiators; and enhanced segmentation tools to evaluate needs, wants, and behaviors of communities through real-time competitive assessments and enhanced segmentation tools. In addition, it provides experience solutions, such as patient and resident experience, workforce engagement, health risk assessments, transitions, and improvement tools. Further, the company offers health risk assessment solutions that enable clients to segment populations and manage care for those who are most at risk, engage individuals, enhance preventative care, and manage wellness programs; and transitions solutions, which enable organizations to identify and manage high-risk patients to reduce readmissions, enhance patient satisfaction and support safe care transitions. Additionally, it provides transparency solutions that allow healthcare organizations to share picture of their organization and ensure content informs in consumer decision-making; and governance solutions for not-for-profit hospital and health system boards of directors, executives, and physician leadership. The company serves integrated health systems, post-acute providers, and payer organizations. National Research Corporation was founded in 1981 and is headquartered in Lincoln, Nebraska. NATIONAL RESEARCH CORP (NRC) is classified as a small-cap stock in the Industrials sector, specifically within the Business Services industry. The company is led by CEO Michael D. Hays and employs approximately 490 people, headquartered in Lincoln, Nebraska. With a market capitalization of $394M, NRC is one of the notable companies in the Industrials sector.
NATIONAL RESEARCH CORP (NRC) Stock Rating — Hold (April 2026)
As of April 2026, NATIONAL RESEARCH CORP receives a Hold rating with a composite score of 44.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.NRC ranks #883 out of 4,446 stocks in our coverage universe. Within the Industrials sector, NATIONAL RESEARCH CORP ranks #149 of 752 stocks, placing it in the top quartile of its Industrials 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%).
NRC Stock Price and 52-Week Range
NATIONAL RESEARCH CORP (NRC) currently trades at $16.48. The stock lost $0.57 (3.3%) in the most recent trading session. The 52-week high for NRC is $22.79, which means the stock is currently trading -27.7% from its annual peak. The 52-week low is $9.76, putting the stock 68.9% above its annual trough. Recent trading volume was 73K shares, suggesting relatively thin trading activity.
Is NRC Overvalued or Undervalued? — Valuation Analysis
NATIONAL RESEARCH CORP (NRC) carries a value factor score of 62/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 25.34x, compared to the Industrials sector average of 28.33x — a discount of 11%. The price-to-book ratio stands at 28.06x, versus the sector average of 2.23x. The price-to-sales ratio is 2.84x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, NRC trades at 11.92x EV/EBITDA, versus 5.70x for the sector.
Overall, NRC'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 RESEARCH CORP Profitability — ROE, Margins, and Quality Score
NATIONAL RESEARCH CORP (NRC) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 110.7%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 11.5% versus the sector average of 3.3%.
On a margin basis, NATIONAL RESEARCH CORP reports gross margins of 61.1%, compared to 35.8% for the sector. The operating margin is 18.7% (sector: 6.2%). Net profit margin stands at 11.2%, versus 3.9% for the average Industrials stock. Revenue growth is running at -1.2% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
NRC Debt, Balance Sheet, and Financial Health
NATIONAL RESEARCH CORP has a debt-to-equity ratio of 864.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.55x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $80M. Cash and equivalents stand at $2M.
NRC has a beta of 0.76, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for NATIONAL RESEARCH CORP is 46/100, reflecting average volatility within the normal range for its sector.
NATIONAL RESEARCH CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, NATIONAL RESEARCH CORP reported revenue of $138M and earnings per share (EPS) of $50.00. Net income for the quarter was $15M. Gross margin was 61.1%. Operating income came in at $26M.
In FY 2025, NATIONAL RESEARCH CORP reported revenue of $137M and earnings per share (EPS) of $50.00. Net income for the quarter was $12M. Gross margin was 61.9%. Revenue grew -4.0% year-over-year compared to FY 2024. Operating income came in at $23M.
In Q3 2025, NATIONAL RESEARCH CORP reported revenue of $35M and earnings per share (EPS) of $0.18. Net income for the quarter was $4M. Gross margin was 64.2%. Revenue grew -3.4% year-over-year compared to Q3 2024. Operating income came in at $8M.
In Q2 2025, NATIONAL RESEARCH CORP reported revenue of $34M and earnings per share (EPS) of $-0.01. Net income for the quarter was $-106,000. Gross margin was 61.9%. Revenue grew -2.8% year-over-year compared to Q2 2024. Operating income came in at $2M.
Over the past 8 quarters, NATIONAL RESEARCH CORP has demonstrated a growth trajectory, with revenue expanding from $35M to $138M. Investors analyzing NRC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
NRC Dividend Yield and Income Analysis
NATIONAL RESEARCH CORP (NRC) currently pays a dividend yield of 3.8%. At this yield, a $10,000 investment in NRC stock would generate approximately $$376.00 in annual dividend income. The net margin of 11.2% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
NRC Momentum and Technical Analysis Profile
NATIONAL RESEARCH CORP (NRC) has a momentum factor score of 39/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 21/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
NRC vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing NRC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NRC vs S&P 500 (SPY) comparison to assess how NATIONAL RESEARCH CORP stacks up against the broader market across all factor dimensions.
NRC Next Earnings Date
No upcoming earnings date has been announced for NATIONAL RESEARCH CORP (NRC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy NRC? — Investment Thesis Summary
NATIONAL RESEARCH CORP presents a balanced picture with arguments on both sides. The value score of 62/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 39/100, a headwind for near-term performance.
In summary, NATIONAL RESEARCH CORP (NRC) earns a Hold rating with a composite score of 44.3/100 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 NRC stock.
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Institutional Research Dossier
NATIONAL RESEARCH CORP (NRC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
National Research Corporation (NRC) currently holds a BCR Action Rating of Hold, a position we believe is justified given the company's mixed financial performance and uncertain growth prospects. While NRC exhibits strong profitability metrics compared to its sector, its recent revenue decline and negative free cash flow raise concerns about its long-term sustainability and ability to generate shareholder value. The company's high debt levels further compound these concerns, suggesting limited financial flexibility for future investments or acquisitions.
Despite its attractive valuation multiples relative to the industrials sector, NRC's lack of consistent growth and the potential for increased competition in the patient and employee experience analytics market warrant a cautious approach. The Hold rating reflects a balanced view of NRC's strengths and weaknesses, acknowledging its profitability while highlighting the need for improved revenue growth and cash flow generation to justify a more bullish outlook.
Business Strategy & Overview
National Research Corporation operates within the healthcare business services industry, providing analytics and insights to healthcare organizations across the United States and Canada. The company's core business revolves around subscription-based solutions that measure and enhance patient and employee experiences. These solutions cover a broad spectrum of areas, including patient experience, service recovery, care transitions, health risk assessments, employee engagement, reputation management, and brand loyalty. By offering a comprehensive suite of services, NRC aims to become an indispensable partner for healthcare providers seeking to improve their operational efficiency and patient outcomes.
NRC's strategic positioning centers on providing actionable information and analysis to its clients. The company's solutions are designed to help healthcare organizations identify areas for improvement, implement targeted interventions, and track their progress over time. This data-driven approach allows clients to make informed decisions and optimize their resource allocation. Furthermore, NRC offers market insights solutions that enable healthcare organizations to track brand awareness, assess competitive differentiators, and segment their target markets. These solutions provide valuable intelligence for strategic planning and marketing initiatives.
The company's product pipeline appears to be focused on expanding its existing suite of solutions and developing new offerings that address emerging needs in the healthcare industry. This includes a focus on health risk assessment solutions, which enable clients to segment populations, manage care for high-risk individuals, and enhance preventative care programs. NRC also provides transitions solutions that help organizations identify and manage high-risk patients to reduce readmissions and improve patient satisfaction. These solutions are particularly relevant in the current healthcare environment, where there is increasing emphasis on value-based care and population health management.
The healthcare business services industry is characterized by intense competition, with numerous players offering similar analytics and insights solutions. NRC competes with both large, established companies and smaller, niche providers. To differentiate itself, NRC emphasizes its comprehensive suite of solutions, its data-driven approach, and its deep understanding of the healthcare industry. The company also focuses on building strong relationships with its clients and providing exceptional customer service. However, the industry is also subject to regulatory changes and evolving reimbursement models, which could impact NRC's business and financial performance.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-1.2%
Sector: 6.4%
-119% VS SCTR
Economic Moat Analysis
National Research Corporation's economic moat is likely narrow, stemming primarily from switching costs and intangible assets. While not insurmountable, these factors provide some degree of competitive advantage. The company's subscription-based model fosters customer stickiness, as healthcare organizations become reliant on NRC's data and insights for their operational decision-making. Switching to a competitor would require significant investment in time and resources, including data migration, system integration, and employee training. This creates a barrier to entry for new competitors and reduces the likelihood of existing customers defecting to alternative providers.
The intangible assets associated with NRC's brand reputation and proprietary data also contribute to its narrow moat. The company has established a strong reputation for providing reliable and actionable insights to healthcare organizations. This reputation is built on years of experience and a track record of delivering positive outcomes for its clients. Furthermore, NRC's proprietary data, which is collected through its various surveys and assessments, provides a unique and valuable resource for its clients. This data is difficult to replicate and gives NRC a competitive edge in the market.
However, the moat is not wide due to the relatively low barriers to entry in the broader healthcare analytics market. While NRC possesses specific expertise in patient and employee experience, numerous other companies offer similar analytics solutions. The industry is also characterized by rapid technological advancements, which could erode NRC's competitive advantage over time. Furthermore, the increasing availability of open-source data and analytics tools could reduce the reliance on proprietary data sources, making it easier for new competitors to enter the market.
The absence of network effects further limits NRC's moat. The value of NRC's solutions does not increase as more healthcare organizations adopt them. This contrasts with companies that benefit from network effects, such as social media platforms or online marketplaces, where the value of the platform increases exponentially as more users join. Without network effects, NRC's ability to scale its business and maintain its competitive advantage is limited.
In conclusion, while NRC possesses some degree of competitive advantage due to switching costs and intangible assets, its economic moat is likely narrow. The relatively low barriers to entry in the healthcare analytics market, the rapid pace of technological change, and the absence of network effects limit the company's ability to sustain its competitive position over the long term. Therefore, a close monitoring of the competitive landscape and NRC's ability to innovate and adapt to changing market conditions is warranted.
Financial Health & Profitability
National Research Corporation's financial health presents a mixed picture. While the company exhibits strong profitability metrics compared to its sector, its recent revenue decline and negative free cash flow raise concerns about its long-term sustainability. The company's high debt levels further compound these concerns, suggesting limited financial flexibility for future investments or acquisitions.
NRC's revenue has declined over the past year, with revenue decreasing from $148.58 million in FY2023 to $137.39 million in FY2025. This represents a revenue decline of approximately -1.2% year-over-year. This contrasts with the industrials sector, which has experienced revenue growth of 6.6% over the same period. The revenue decline is a cause for concern, as it suggests that NRC is losing market share or facing increased competition.
Despite the revenue decline, NRC's profitability metrics remain strong. The company's gross margin of 61.1% is significantly higher than the sector average of 35.8%. Similarly, its operating margin of 18.7% and net margin of 11.2% are also substantially higher than the sector averages of 6.2% and 3.7%, respectively. This indicates that NRC is able to generate significant profits from its revenue, which is a positive sign.
However, NRC's free cash flow is negative, with a free cash flow of -$1.63 million. This indicates that the company is not generating enough cash from its operations to cover its capital expenditures and other cash outflows. This is a cause for concern, as it suggests that NRC may need to raise additional capital in the future to fund its operations. The quarterly financial history does not provide FCF data, making it difficult to assess trends.
NRC's balance sheet is highly leveraged, with a debt-to-equity ratio of 864.00. This is significantly higher than the sector average of 70.00. The high debt levels increase the company's financial risk and limit its flexibility to pursue growth opportunities. The current ratio of 0.55 indicates that the company may have difficulty meeting its short-term obligations.
In summary, NRC's financial health is a mixed bag. While the company exhibits strong profitability metrics, its recent revenue decline, negative free cash flow, and high debt levels raise concerns about its long-term sustainability. The company needs to improve its revenue growth and cash flow generation to justify a more bullish outlook.
Valuation Assessment
National Research Corporation's valuation presents a complex picture. While certain multiples suggest the company is undervalued compared to its sector, other factors, such as declining revenue and negative free cash flow, warrant caution. A comprehensive valuation assessment requires a nuanced understanding of these competing signals.
The company's P/E ratio of 0.4x is significantly lower than the industrials sector average of 27.7x. This suggests that NRC is undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 3.3x is also lower than the sector average of 5.7x, further indicating potential undervaluation. These multiples might attract value investors seeking companies trading at a discount to their intrinsic worth.
However, the low valuation multiples may be justified by NRC's recent financial performance. The company's revenue has declined over the past year, and its free cash flow is negative. These factors could be weighing on investor sentiment and depressing the company's valuation. Furthermore, the company's high debt levels may also be contributing to its low valuation multiples.
A discounted cash flow (DCF) analysis would be necessary to determine the intrinsic value of NRC. However, given the lack of historical FCF data and the recent negative FCF, projecting future cash flows with confidence is challenging. A conservative approach would be warranted, taking into account the company's declining revenue and high debt levels.
Relative valuation, comparing NRC to its peers in the healthcare business services industry, could provide additional insights. However, identifying truly comparable companies is difficult, as each company has its own unique business model and financial characteristics. A thorough analysis of the competitive landscape and the specific factors driving each company's valuation would be required.
In conclusion, while NRC's valuation multiples appear attractive compared to the industrials sector, a more detailed analysis is needed to determine whether the stock is truly undervalued. The company's declining revenue, negative free cash flow, and high debt levels warrant caution. A DCF analysis and a relative valuation analysis, comparing NRC to its peers, would be necessary to arrive at a more informed valuation assessment.
Risk & Uncertainty
National Research Corporation faces several specific risks that could negatively impact its business and financial performance. These risks include increased competition, regulatory changes, customer concentration, and high leverage.
The healthcare business services industry is highly competitive, with numerous players offering similar analytics and insights solutions. Increased competition could lead to price wars, reduced market share, and lower profitability for NRC. The company needs to differentiate itself from its competitors by offering innovative solutions, providing exceptional customer service, and building strong relationships with its clients.
The healthcare industry is subject to frequent regulatory changes, which could impact NRC's business and financial performance. Changes in reimbursement models, data privacy regulations, or other healthcare policies could create new challenges for the company. NRC needs to stay abreast of these changes and adapt its business practices accordingly.
NRC's customer base is relatively concentrated, with a small number of large clients accounting for a significant portion of its revenue. The loss of one or more of these key clients could have a material adverse effect on the company's financial performance. NRC needs to diversify its customer base to reduce its reliance on a few large clients.
The company's high debt levels increase its financial risk and limit its flexibility to pursue growth opportunities. A significant increase in interest rates or a decline in the company's financial performance could make it difficult to service its debt obligations. NRC needs to manage its debt levels prudently and improve its cash flow generation.
Bulls Say / Bears Say
The Bull Case
BULL VIEWNRC's strong profitability metrics, including high gross and operating margins, demonstrate its ability to generate significant profits from its revenue.
BULL VIEWThe company's low valuation multiples, such as P/E and EV/EBITDA, suggest that the stock is undervalued relative to its earnings and assets.
BULL VIEWNRC's subscription-based model provides recurring revenue and fosters customer stickiness, creating a stable and predictable revenue stream.
The Bear Case
BEAR VIEWNRC's recent revenue decline indicates a loss of market share or increased competition, raising concerns about its long-term growth prospects.
BEAR VIEWThe company's negative free cash flow suggests that it is not generating enough cash from its operations to cover its capital expenditures and other cash outflows.
BEAR VIEWNRC's high debt levels increase its financial risk and limit its flexibility to pursue growth opportunities or weather economic downturns.
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 NRC and 4,400+ other equities.
NATIONAL RESEARCH CORP exhibits a 431% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
11.5%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
61.1%
Sector: 35.8%
Operating Margin
Core business profitability
18.7%
Sector: 6.2%
Net Margin
Bottom-line profitability
11.2%
Sector: 3.9%
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 $376 annually in dividends at the current trailing rate.
