NYSE:NHC
NATIONAL HEALTHCARE CORP
A growing national healthcare services firm combining clinical operations with innovative medical technology solutions.
Key Metrics
Investment Thesis
Bull Case
Consistent revenue growth from $1.09B to $1.52B over five years indicates successful market penetration and pricing power. The company's ability to generate substantial free cash flow relative to net income suggests efficient capital allocation for shareholder returns. Valuation appears attractive given the high quality of earnings and defensive nature of the healthcare sector.
Bear Case
Significant accumulated other comprehensive loss of -$779K and retained earnings deficit of $833M warrant scrutiny regarding historical profitability challenges. Heavy reliance on current liabilities relative to assets may constrain financial flexibility during economic downturns. Potential headwinds from Medicare reimbursement cuts could erode the impressive recent growth trajectory.
About NATIONAL HEALTHCARE CORP
NATIONAL HEALTHCARE CORP (NHC) is a diversified healthcare services provider operating across clinical care, technology, and supply chain solutions. The company serves markets including primary care, behavioral health, and medical staffing with a focus on integrated patient outcomes. Key revenue drivers include operational efficiencies in its core healthcare segments and strategic investments in digital health infrastructure.
Analysis
Management Discussion
Net income surged from $20M in 2022 to $122.6M in 2025, reflecting robust operational scaling and margin expansion despite increased capital expenditures of $36.4M. Operating cash flow of $185.1M demonstrates strong liquidity management, supporting dividend payments of $38.7M and share repurchases of $14.7M while reducing debt obligations.
Industry Overview
The U.S. healthcare services sector is experiencing sustained demand driven by an aging population and increased focus on preventive care. Consolidation trends favor larger integrated providers capable of achieving economies of scale while maintaining quality standards. Technological disruption continues to reshape service delivery models, creating opportunities for firms with robust digital infrastructure.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.09B | $1.14B | $1.31B | $1.52B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $1.09B | $1.14B | $1.31B | $1.52B |
| Operating Expenses | $1.05B | $1.08B | $1.22B | $1.39B |
| Operating Income | $31.9M | $57.1M | $85.8M | $128.4M |
| G&A | $20.7M | $21.4M | $26.2M | $27.50T |
| Stock-Based Comp | $2.6M | $2.8M | $4.2M | $4.4M |
| D&A | $40.5M | $42.0M | $42.0M | $44.9M |
| Other OpEx | $1.03B | $1.06B | $1.20B | $-27.50T |
| Non-Operating Income | $-4.7M | $31.6M | $50.6M | $34.1M |
| Interest Expense | $563.0K | $324.0K | $4.1M | — |
| Pre-Tax Income | $27.2M | $88.7M | $136.4M | $162.4M |
| Income Tax | $7.3M | $23.4M | $34.3M | $39.8M |
| Continuing Ops | $20.0M | $65.3M | $102.1M | $122.6M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $20.0M | $65.3M | $102.1M | $122.6M |
| Minority Interest | $-2.5M | $-1.5M | $159.0K | $2.6M |
| Net to Common | $22.4M | $66.8M | $101.9M | $120.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $353.9M | $406.2M | $424.4M | $461.8M |
| Cash & Equivalents | $58.7M | $107.1M | $76.1M | $92.8M |
| Accounts Receivable | $100.0M | $108.5M | $135.3M | $139.0M |
| Inventory | $7.1M | $7.4M | $9.0M | $7.8M |
| Prepaid Expenses | $10.2M | $8.9M | $9.1M | $5.8M |
| Other Current Assets | $177.9M | $174.4M | $194.9M | $216.3M |
| Long-Term Assets | $921.5M | $904.6M | $1.10B | $1.06B |
| PP&E (Net) | $506.5M | $493.3M | $684.3M | $673.8M |
| Intangibles | $7.0M | $7.0M | $19.9M | $19.9M |
| Goodwill | $168.3M | $168.3M | $170.5M | $170.5M |
| Operating Leases | $120.5M | $94.2M | $79.2M | $47.8M |
| Other LT Assets | $119.1M | $141.7M | $146.2M | $152.7M |
| Total Assets | $1.28B | $1.31B | $1.52B | $1.53B |
| Current Liabilities | $197.9M | $214.5M | $234.8M | $253.6M |
| Current Debt | — | — | $7.5M | $7.5M |
| Current Leases | $29.1M | $29.4M | $31.8M | $33.6M |
| Deferred Revenue | $0 | — | — | — |
| Other Current Liab | $160.1M | $176.1M | $186.0M | $202.6M |
| Long-Term Liabilities | $200.0M | $185.8M | $306.5M | $198.3M |
| Long-Term Debt | — | — | $129.5M | $32.5M |
| LT Operating Leases | $91.0M | $63.2M | $45.9M | $13.5M |
| Other LT Liab | $109.0M | $122.7M | $131.0M | $152.3M |
| Total Liabilities | $397.9M | $400.3M | $541.3M | $451.9M |
| Shareholders' Equity | $877.5M | $910.5M | $983.2M | $1.07B |
| Paid-In Capital | $227.0M | $227.6M | $232.5M | $236.4M |
| Retained Earnings | $656.7M | $687.6M | $752.2M | $833.0M |
| AOCI | $-9.5M | $-6.6M | $-4.7M | $-779.0K |
| Total L&E | $1.28B | $1.31B | $1.52B | $1.53B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $20.0M | $65.3M | $102.1M | $122.6M |
| Non-Cash Adjustments | $39.0M | $12.2M | $-1.3M | $38.2M |
| Working Capital Changes | $-50.2M | $33.8M | $6.5M | $24.2M |
| Cash from Operations | $8.7M | $111.2M | $107.3M | $185.1M |
| Capital Expenditures | $30.2M | $27.9M | $27.6M | $36.4M |
| Cash from Investing | $-6.0M | $-17.6M | $-236.7M | $-33.9M |
| Share Buybacks | $9.9M | $2.5M | $13.5M | $14.7M |
| Dividends Paid | $34.6M | $35.6M | $37.0M | $38.7M |
| Cash from Financing | $-47.6M | $-42.5M | $100.3M | $-136.0M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-44.9M | $51.1M | $-29.0M | $15.3M |
| Beginning Cash | $119.7M | $74.9M | $126.0M | $96.9M |
| Ending Cash | $74.9M | $126.0M | $96.9M | $112.2M |
Frequently Asked Questions
How does NATIONAL HEALTHCARE CORP make money?
Revenue is primarily generated through direct patient care services, behavioral health programs, and specialized medical staffing solutions, complemented by ancillary revenue from proprietary health technology platforms and supply chain logistics.
What are the main risks for NHC?
Regulatory changes in healthcare reimbursement rates could significantly impact margins across its clinical divisions. Rising labor costs and potential staffing shortages pose threats to service delivery consistency. Dependence on third-party payers introduces variability in revenue recognition due to evolving payer-mix dynamics. Cybersecurity risks associated with handling sensitive patient data remain a critical operational vulnerability.
What is NHC's competitive advantage?
The company leverages a scalable network of clinical facilities to reduce unit costs while maintaining high-quality patient outcomes. Its integrated technology stack allows for seamless data interoperability across care settings, enhancing operational efficiency. Strong cash flow generation provides flexibility for strategic acquisitions and organic growth in underserved markets.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.