National Health Investors Inc. Common Stock (NHI)

FairStock Score: 57/100 — STEADY

Key Financials

Strengths

• Generates $195 million in annual free cash flow (5.2% yield on market cap)
• Revenue growth of 23.4% demonstrates strong top-line momentum
• Attractive 4.7% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($46) with negative 67% margin of safety—limited downside protection

AI Analysis

National Health Investors Inc. Common Stock is a small-cap real estate company valued at $3.7 billion. The business generates $379 million in annual revenue with a 10.0% net margin and $195 million in free cash flow. From a quality standpoint, National shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 3.3. On valuation, the stock is trading at a premium 25.7x earnings, with trades above its Graham Number with a negative 67% margin. Growth dynamics show revenue growing at 23.4% and profit growth of -11.8%. The 4.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 57/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

National's 23% revenue growth trajectory could accelerate as it captures additional market share in the real estate sector. With $195 million in annual free cash flow (5.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the real estate space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer