National Research Corporation (NRC), a prominent player in the healthcare sector, is a company that delivers crucial insights and analytics to enhance patient and employee experiences. With a market capitalization of $321.05 million, NRC is focused on providing healthcare organizations with the tools necessary to gauge and improve various aspects of their services. Despite operating in the niche industry of health information services, investors might find NRC intriguing due to its robust performance metrics, specifically its impressive Return on Equity (ROE) of 72.69%.
**Current Market Position and Price Data**
NRC’s current stock price stands at $14.09, showing no change in value recently. The stock’s 52-week range of $10.13 to $27.23 suggests significant volatility, which could present opportunities for risk-tolerant investors. However, the company’s stock price is presently below its 200-day moving average of $17.07, indicating potential undervaluation in the eyes of some market participants.
**Valuation and Performance Metrics**
Interestingly, NRC does not have available P/E, PEG, Price/Book, or Price/Sales ratios, which might pose a challenge for traditional valuation analysis. However, the company’s ability to maintain a positive EPS of 1.02 despite a 5% decline in revenue growth is noteworthy, suggesting underlying business strengths. The substantial free cash flow of $9,853,750 highlights the company’s capacity to generate cash, which is crucial for ongoing operations and future investments.
The standout figure for NRC is its high ROE of 72.69%, an indicator of the company’s efficiency in generating profits from shareholders’ equity. This metric is a positive sign for investors looking for a company that effectively leverages its equity base to enhance shareholder value.
**Dividend Information**
NRC offers a dividend yield of 3.41%, with a payout ratio of 47.06%. This moderate payout ratio indicates a balanced approach to rewarding shareholders while retaining enough earnings to reinvest in the business. For income-focused investors, NRC’s dividend could be a reliable source of income, especially in the current low-interest-rate environment.
**Analyst Ratings and Technical Indicators**
Currently, NRC has no active buy, hold, or sell ratings, and lacks a target price range, which may suggest that analysts are taking a wait-and-see approach due to market uncertainties or company-specific factors. From a technical perspective, NRC’s RSI (14) of 8.93 suggests that the stock is heavily oversold, potentially signaling an upcoming price correction. The MACD indicator, slightly above the signal line, may also hint at a potential bullish trend reversal.
**Business Model and Strategic Offerings**
Founded in 1981 and based in Lincoln, Nebraska, National Research Corporation has carved out a niche in the healthcare information services industry with its comprehensive suite of solutions. Its offerings include experience solutions addressing patient experience, employee engagement, and care transitions, as well as marketing and reputation management tools. The integration of its AI engine, Huey AI, underscores NRC’s commitment to innovation, providing healthcare organizations with advanced capabilities in experience management and decision-making.
For investors, NRC represents a unique investment opportunity in the healthcare analytics space. Its high ROE and consistent dividend offerings make it an attractive consideration for those looking to diversify their portfolios with healthcare service companies that are positioned to leverage analytical insights for better healthcare outcomes. As healthcare organizations continue to prioritize patient and employee experiences, NRC’s strategic solutions are likely to remain in demand, potentially driving future growth and profitability.
