📊 NHI Key Takeaways
Is National Health Investors Inc. (NHI) a Good Investment?
NHI demonstrates fundamental weaknesses despite headline growth, with negative free cash flow of -$56M unsustainable without external capital raises. The company's 369% revenue growth fails to translate into proportional net income growth, and extremely poor returns (ROE 2.6%, ROA 1.4%) suggest operational challenges. While strong interest coverage (10.7x) provides near-term stability, the severe cash generation deficit and low equity returns indicate deteriorating financial quality.
NHI exhibits solid profitability with high operating and net margins and moderate leverage, but cash conversion is pressured by heavy investment spending that drives negative free cash flow and a modest 2.8x interest coverage. The outsized revenue surge did not translate into per‑share growth (EPS down) and net income was flat, raising questions about growth quality and sustainability. A neutral stance is warranted until free cash flow and coverage improve.
Why Buy National Health Investors Inc. Stock? NHI Key Strengths
- Strong interest coverage ratio of 10.7x provides substantial debt service cushion
- Moderate leverage at 0.85x debt-to-equity is acceptable for REIT sector
- High net profit margin of 34.8% indicates pricing power and cost control in core operations
- Strong operating and net margins (42.9%/37.9%)
- Moderate leverage (0.77x D/E) with sizable equity base
- Healthy operating cash flow ($236.6M) supporting earnings quality
NHI Stock Risks: National Health Investors Inc. Investment Risks
- Critical negative free cash flow of -$56M; capital expenditures of $109.4M far exceed operating cash generation of $53.4M, indicating reliance on external financing and unsustainable cash burn
- Extremely poor returns with ROE of only 2.6% and ROA of 1.4% despite high margins suggest inefficient capital deployment and value destruction
- Abnormal disconnect: 369% revenue growth coupled with only 0.1% net income growth and operating income exceeding revenue signals potential one-time asset sale gains masking operational deterioration
- Low cash position of $24.9M inadequate relative to $109.4M annual capex and $1.3B debt obligations
- Negative free cash flow (-15.3% margin) due to high capex
- Tight interest coverage (2.8x) increases rate and tenant stress sensitivity
- Revenue spike (+369% YoY) with flat net income and lower EPS suggests low-quality or nonrecurring growth
Key Metrics to Watch
- Free cash flow trend and capital expenditure sustainability
- Return on equity and return on assets progression toward normalized levels
- Operating cash flow versus capex ratio for evidence of financial health stabilization
- Interest coverage ratio
- Free cash flow margin
National Health Investors Inc. (NHI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
NHI Profit Margin, ROE & Profitability Analysis
NHI vs Real Estate Sector: How National Health Investors Inc. Compares
How National Health Investors Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is National Health Investors Inc. Stock Overvalued? NHI Valuation Analysis 2026
Based on fundamental analysis, National Health Investors Inc. has mixed fundamental signals relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
National Health Investors Inc. Balance Sheet: NHI Debt, Cash & Liquidity
NHI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: National Health Investors Inc.'s revenue has grown significantly by 124% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.13 reflects profitable operations.
NHI Revenue Growth, EPS Growth & YoY Performance
NHI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $13.9M | $34.2M | $0.74 |
| Q3 2025 | $13.8M | $28.5M | $0.65 |
| Q2 2025 | $13.4M | $35.3M | $0.79 |
| Q1 2025 | $13.3M | $30.9M | $0.71 |
| Q3 2024 | $12.4M | $28.5M | $0.65 |
| Q2 2024 | $11.8M | $35.3M | $0.81 |
| Q1 2024 | $11.7M | $30.9M | $0.71 |
| Q3 2023 | $12.0M | $29.3M | $0.68 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
National Health Investors Inc. Dividends, Buybacks & Capital Allocation
NHI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for National Health Investors Inc. (CIK: 0000877860)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NHI
What is the AI rating for NHI?
National Health Investors Inc. (NHI) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NHI's key strengths?
Claude: Strong interest coverage ratio of 10.7x provides substantial debt service cushion. Moderate leverage at 0.85x debt-to-equity is acceptable for REIT sector. ChatGPT: Strong operating and net margins (42.9%/37.9%). Moderate leverage (0.77x D/E) with sizable equity base.
What are the risks of investing in NHI?
Claude: Critical negative free cash flow of -$56M; capital expenditures of $109.4M far exceed operating cash generation of $53.4M, indicating reliance on external financing and unsustainable cash burn. Extremely poor returns with ROE of only 2.6% and ROA of 1.4% despite high margins suggest inefficient capital deployment and value destruction. ChatGPT: Negative free cash flow (-15.3% margin) due to high capex. Tight interest coverage (2.8x) increases rate and tenant stress sensitivity.
What is NHI's revenue and growth?
National Health Investors Inc. reported revenue of $115.1M.
Does NHI pay dividends?
National Health Investors Inc. pays dividends, with $44.4M distributed to shareholders in the trailing twelve months.
Where can I find NHI SEC filings?
Official SEC filings for National Health Investors Inc. (CIK: 0000877860) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NHI's EPS?
National Health Investors Inc. has a diluted EPS of $0.82.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NHI a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, National Health Investors Inc. has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NHI stock overvalued or undervalued?
Valuation metrics for NHI: ROE of 2.6% (sector avg: 8%), net margin of 34.8% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy NHI stock in 2026?
Our dual AI analysis gives National Health Investors Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NHI's free cash flow?
National Health Investors Inc.'s operating cash flow is $53.4M, with capital expenditures of $109.4M. FCF margin is -48.6%.
How does NHI compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 34.8% (avg: 20%), ROE 2.6% (avg: 8%), current ratio N/A (avg: 1.5).