📊 NRC Key Takeaways
Is NRC a Good Investment? Thesis Analysis
NRC demonstrates solid operational profitability with 16.4% operating margins and strong free cash flow generation of $15.7M (11.5% FCF margin), but financial stability is constrained by aggressive leverage with 5.36x debt-to-equity ratio and deteriorating liquidity (0.55x current ratio). The company must balance capital deployment and debt reduction while navigating a 4.0% revenue decline.
Why Buy NRC? Key Strengths
- Exceptional ROE of 80.7% indicates efficient capital utilization despite leverage
- Strong free cash flow generation of $15.7M provides flexibility for debt reduction
- Solid operating margins of 16.4% demonstrate profitable core business operations
- Adequate interest coverage of 6.7x suggests manageable debt servicing capability
NRC Investment Risks to Consider
- Dangerously high leverage at 5.36x debt-to-equity with $75M long-term debt against $14M equity creates financial distress risk
- Critical liquidity squeeze with 0.55x current ratio indicates potential near-term cash flow stress
- Revenue contraction of 4.0% YoY signals market headwinds or competitive pressures in research services
- Low stockholders' equity base of $14M relative to $134.9M total assets increases vulnerability to adverse events
Key Metrics to Watch
- Revenue stabilization and return to growth trajectory
- Debt reduction progress and improvement in debt-to-equity ratio toward <3.0x
- Cash conversion and free cash flow sustainability above $15M annually
- Current ratio improvement toward minimum 1.0x threshold for operational safety
NRC Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
NRC Profitability Ratios
NRC vs Healthcare Sector
How NATIONAL RESEARCH CORP compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NRC Overvalued or Undervalued?
Based on fundamental analysis, NATIONAL RESEARCH CORP has mixed fundamental signals relative to the Healthcare 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.
NRC Balance Sheet & Liquidity
NRC 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: NATIONAL RESEARCH CORP's revenue has shown modest growth of 0% over the 5-year period. The most recent EPS of $1.25 reflects profitable operations.
NRC Growth Metrics (YoY)
NRC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $34.6M | -$106.0K | $0.18 |
| Q2 2025 | $34.0M | -$106.0K | $-0.01 |
| Q1 2025 | $33.6M | $5.8M | $0.25 |
| Q3 2024 | $35.8M | $5.7M | $0.24 |
| Q2 2024 | $35.0M | $6.2M | $0.26 |
| Q1 2024 | $35.3M | $6.4M | $0.27 |
| Q3 2023 | $37.7M | $7.0M | $0.32 |
| Q2 2023 | $36.2M | $7.0M | $0.29 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NRC Capital Allocation
NRC SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for NATIONAL RESEARCH CORP (CIK: 0000070487)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NRC
What is the AI rating for NRC?
NATIONAL RESEARCH CORP (NRC) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NRC's key strengths?
Claude: Exceptional ROE of 80.7% indicates efficient capital utilization despite leverage. Strong free cash flow generation of $15.7M provides flexibility for debt reduction.
What are the risks of investing in NRC?
Claude: Dangerously high leverage at 5.36x debt-to-equity with $75M long-term debt against $14M equity creates financial distress risk. Critical liquidity squeeze with 0.55x current ratio indicates potential near-term cash flow stress.
What is NRC's revenue and growth?
NATIONAL RESEARCH CORP reported revenue of $137.4M.
Does NRC pay dividends?
NATIONAL RESEARCH CORP pays dividends, with $11.0M distributed to shareholders in the trailing twelve months.
Where can I find NRC SEC filings?
Official SEC filings for NATIONAL RESEARCH CORP (CIK: 0000070487) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NRC's EPS?
NATIONAL RESEARCH CORP has a diluted EPS of $50.00.
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 NRC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NATIONAL RESEARCH CORP has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NRC stock overvalued or undervalued?
Valuation metrics for NRC: ROE of 80.7% (sector avg: 15%), net margin of 8.2% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy NRC stock in 2026?
Our dual AI analysis gives NATIONAL RESEARCH CORP a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NRC's free cash flow?
NATIONAL RESEARCH CORP's operating cash flow is $26.5M, with capital expenditures of $10.7M. FCF margin is 11.5%.
How does NRC compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 8.2% (avg: 12%), ROE 80.7% (avg: 15%), current ratio 0.55 (avg: 2).