National Health Investors Stock Beneish M Score

NHI Stock  USD 77.00  0.71  0.91%   
This module uses fundamental data of National Health to approximate the value of its Beneish M Score. National Health M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out National Health Piotroski F Score and National Health Altman Z Score analysis.
  
The National Health's current Net Debt is estimated to increase to about 1.2 B, while Short and Long Term Debt Total is projected to decrease to under 618.4 M. As of now, National Health's Inventory Turnover is increasing as compared to previous years. The National Health's current Days Of Inventory On Hand is estimated to increase to 0.00003, while Price To Sales Ratio is projected to decrease to 7.26.
At this time, it appears that National Health Investors is a possible manipulator. The earnings manipulation may begin if National Health's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by National Health executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of National Health's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-1.59
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.35

Focus
Asset Quality

4.48

Focus
Expense Coverage

1.97

Focus
Gross Margin Strengs

1.12

Focus
Accruals Factor

1.97

Focus
Depreciation Resistance

1.46

Focus
Net Sales Growth

0.53

Focus
Financial Leverage Condition

1.94

Focus

National Health Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if National Health's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables238.6 M330 M
Way Down
Slightly volatile
Total Revenue170.8 M319.8 M
Way Down
Slightly volatile
Total Assets1.3 B2.5 B
Way Down
Slightly volatile
Total Current Assets256.7 M352.3 M
Way Down
Slightly volatile
Non Current Assets Total1.2 B2.1 B
Way Down
Slightly volatile
Property Plant Equipment1.9 B2.5 B
Significantly Down
Slightly volatile
Depreciation And Amortization36.5 M70 M
Way Down
Slightly volatile
Selling General Administrative20.7 M19.7 M
Sufficiently Up
Slightly volatile
Total Current Liabilities5.7 MM
Notably Down
Pretty Stable
Non Current Liabilities Total553.5 M890.1 M
Way Down
Slightly volatile
Net Debt1.2 B1.1 B
Sufficiently Up
Slightly volatile
Short Term Debt63.4 M75.4 M
Fairly Down
Slightly volatile
Long Term Debt663.6 M1.1 B
Way Down
Slightly volatile
Operating Income96.8 M178.8 M
Way Down
Slightly volatile
Total Cash From Operating Activities113.1 M184.4 M
Way Down
Slightly volatile
Long Term Investments187 M344.9 M
Way Down
Slightly volatile
Gross Profit Margin1.080.964
Moderately Up
Pretty Stable

National Health Investors Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between National Health's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards National Health in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find National Health's degree of accounting gimmicks and manipulations.

About National Health Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

73.08 Million

As of now, National Health's Other Operating Expenses is increasing as compared to previous years.

National Health Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as National Health. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables429.4M390.7M399.4M315.0M330.0M238.6M
Total Revenue318.1M332.8M298.7M278.2M319.8M170.8M
Total Assets3.0B3.1B2.8B2.5B2.5B1.3B
Total Current Assets463.5M437.1M505.2M379.8M352.3M256.7M
Net Debt1.4B1.5B1.2B1.1B1.1B1.2B
Short Term Debt1.2M458.4M75.4M415.4M75.4M63.4M
Long Term Debt1.4B1.5B1.2B1.1B1.1B663.6M
Operating Income220.0M220.8M132.2M81.1M178.8M96.8M
Investments(342.5M)(12.6M)1.2M40.0M(11.6M)(12.2M)

National Health ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, National Health's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to National Health's managers, analysts, and investors.
Environmental
Governance
Social

About National Health Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze National Health Investors's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of National Health using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of National Health Investors based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Currently Active Assets on Macroaxis

When determining whether National Health Investors offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of National Health's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of National Health Investors Stock. Outlined below are crucial reports that will aid in making a well-informed decision on National Health Investors Stock:
Check out National Health Piotroski F Score and National Health Altman Z Score analysis.
You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Diversified REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of National Health. If investors know National will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about National Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.14)
Dividend Share
3.6
Earnings Share
2.91
Revenue Per Share
7.598
Quarterly Revenue Growth
(0.12)
The market value of National Health Investors is measured differently than its book value, which is the value of National that is recorded on the company's balance sheet. Investors also form their own opinion of National Health's value that differs from its market value or its book value, called intrinsic value, which is National Health's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because National Health's market value can be influenced by many factors that don't directly affect National Health's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between National Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if National Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, National Health's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.