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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on National HealthCare Corporation (NYSEMKT:NHC) due to its excellent fundamentals in more than one area. NHC is a financially-robust , dividend-paying company with a an impressive track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on National HealthCare here.
Proven track record with adequate balance sheet and pays a dividend
Over the past few years, NHC has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did NHC outperformed its past performance, its growth also surpassed the Healthcare industry expansion, which generated a 2.2% earnings growth. This paints a buoyant picture for the company. NHC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that NHC manages its cash and cost levels well, which is a key determinant of the company’s health. NHC appears to have made good use of debt, producing operating cash levels of 1.21x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
NHC is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For National HealthCare, I've compiled three important aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for NHC’s future growth? Take a look at our free research report of analyst consensus for NHC’s outlook.
- Valuation: What is NHC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NHC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NHC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.