Every cloud has a silver lining, and for investors eyeing National Research Corp (NRC), the current financial landscape might just offer one. As a key player in the healthcare sector, NRC is navigating a complex market environment. With a market capitalization of $291 million, the company has a solid footprint in the Health Care Providers & Services category. Despite facing a net interest income loss of 2.5 million, NRC's cash flow from operations remains robust at 34.62 million, indicating strong operational efficiency.
The company's revenue stands at 143.06 million, but with a profit margin of just 0.17%, there's room for improvement in profitability. However, the payout ratio of 0.6166 suggests that NRC is committed to returning value to its shareholders, even amidst financial challenges. With 13.8 million shares floating in the market, investors have ample opportunity to engage with this stock. As NRC maneuvers through its current hurdles, the question remains: is this a temporary setback or a strategic buying opportunity for savvy investors? National Research's Days Sales Outstanding is expected to drop significantly, reflecting improvements in how quickly the company collects payments. Meanwhile, Average Payables are anticipated to rise to approximately $9.7 million, while the Market Cap is projected to decrease to around $770.9 million. If you're considering adding this stock to your portfolio, it's crucial to evaluate key financial indicators thoroughly. This discussion will explore National Research's potential as a consistent growth stock, particularly looking ahead to June. As the company closely aligns with market trends, it presents an intriguing investment opportunity. Let's delve into whether National Research could be a valuable addition to your investment strategy.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include National Research income statement, its balance sheet, and the statement of cash flows. Potential National Research investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although National Research investors may use each financial statement separately, they are all related. The changes in National Research's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on National Research's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of National Research
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of National Research performance into the future periods or doing a reasonable stock valuation. The intrinsic value of National Research shares is the value that is considered the true value of the share. If
the intrinsic value of National is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares National Research. Please read more on our
fundamental analysis page.
And What about dividends?
A dividend is the distribution of a portion of National Research earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. National Research dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. National one year expected dividend income is about USD0.37 per share.
Investing in dividend-paying stocks, such as National Research Corp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in National Research must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for National Research. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is National Research's Liquidity
National Research
financial leverage refers to using borrowed capital as a funding source to finance National Research Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. National Research financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to National Research's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of National Research's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between National Research's total debt and its cash.
A Deeper Perspective
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of National Research is not uncomon. Institutional investors typically avoid acquiring a high percentage of National Research stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of National is distributed among investors.
Ownership Allocation
National Research Corp maintains a total of 22.79 Million
outstanding shares. Over half of National Research's outstanding shares are owned by
institutional investors. These institutional investors are typically referred to as corporate investors that shop for positions in a given instrument to benefit from reduced trade commissions. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.
| Insiders44.76% | Institutions52.63% |
| Retail Investors | 2.61 |
| Insiders | 44.76 |
| Institutions | 52.63 |
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence National Research's decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over National Research's decisions due to their larger holdings.
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. National Research has an asset utilization ratio of 107.94 percent. This indicates that the Company is making $1.08 for each dollar of assets. An increasing asset utilization means that National Research Corp is more efficient with each dollar of assets it utilizes for everyday operations.
| Non Current Assets Total61 M | | | Total Current Assets30.4 M | | |
| Other Assets | (7.23 Million) | -6.47 |
| Non Current Assets Total | 61.01 Million | 54.55 |
| Non Currrent Assets Other | 9.75 Million | 8.72 |
| Other Current Assets | 3.9 Million | 3.49 |
| Total Current Assets | 30.36 Million | 27.14 |
| Intangible Assets | 4.43 Million | 3.96 |
| Net Tangible Assets | 9.62 Million | 8.6 |
They say, "Buy when there's blood in the streets," and for National Research Corp (NRC), the current financial landscape might just be that opportunity. With a market capitalization of $290.97 million and a price-to-earnings ratio of 26.72x, NRC's valuation suggests that investors are paying a premium for its earnings, which could be justified by its strong operating income of $35.2 million. Despite a net interest income loss of 2.5 million, the company maintains a healthy cash flow from operations at $34.62 million, indicating robust operational efficiency. The healthcare provider's payout ratio of 61.66% reflects a commitment to returning value to shareholders, even as it navigates current challenges. With insiders holding 44.76% of shares, there's a significant vested interest in steering the company towards future growth, making this a potential strategic buying opportunity for those with a long-term perspective.
Our perspective of the latest National Research surge
National Research Corp's stock has recently seen an upswing, but the Information Ratio, now at -0.05, suggests this momentum might not last. This figure indicates that the returns aren't justifying the risk, hinting at possible future volatility. Investors should tread carefully, as the price could decline again due to underlying instability. Despite the recent rise, it's crucial to weigh these risk factors before making investment choices. As of May 8th, National Research has a Mean Deviation of 2.57, a standard deviation of 3.47, and a Risk Adjusted Performance of -0.12. The technical analysis model allows you to explore the current technical drivers of National Research Corp and their interconnections with fundamental indicators.
The Current Takeaway on National Research Investment
Although some firms in the health information services industry are either recovering or due for a correction, National Research may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current National valuation and our trade advice on National Research is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to National Research.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of National Research Corp. Please refer to our
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