National Research Corporation (NRC), a prominent player in the healthcare sector, is a U.S.-based company specializing in health information services. With a market capitalization of $398.31 million, NRC is a noteworthy entity for investors interested in the intersection of healthcare and data analytics. As the company continues to provide critical insights into patient and employee experiences in healthcare, we explore its investment viability based on current financial and market metrics.
**Current Market Position and Price Data**
NRC’s stock is currently trading at $17.27, reflecting a slight decrease of -0.75% from the previous trading session. The stock’s 52-week range spans from $10.13 to $19.77, indicating its capacity for significant price movements. This volatility could present both risks and opportunities for investors. Notably, the company’s share price is well above its 50-day and 200-day moving averages of $13.74 and $14.28, respectively, suggesting a positive trend that might attract momentum investors.
**Valuation and Performance Metrics**
Analyzing NRC’s financial health, several key metrics are absent, such as the P/E ratio, PEG ratio, and other traditional valuation measures. This lack of data could be a concern for some investors seeking a straightforward valuation framework. However, NRC does report an impressive return on equity (ROE) of 66.87%, a strong indicator of the company’s efficiency in generating profits from its equity base. Additionally, the company has an EPS of 0.71 and a free cash flow of $7.57 million, providing a degree of financial solidity amidst its revenue growth challenges, which currently show a decline of -3.40%.
**Dividend Yield and Payout Ratio**
For income-focused investors, NRC offers a dividend yield of 3.01%, coupled with a payout ratio of 67.61%. This payout ratio suggests that the company is distributing a substantial portion of its earnings back to shareholders, which could be appealing to those seeking regular income streams from their investments. However, it also indicates the need for sustainable profit generation to maintain these payouts.
**Analyst Ratings and Technical Indicators**
Interestingly, NRC has not garnered any buy, hold, or sell ratings from analysts, leaving a gap in professional guidance for potential investors. This absence of coverage might imply that the company is flying under the radar, potentially leading to undiscovered opportunities. Technical indicators, such as a Relative Strength Index (RSI) of 29.86, suggest that the stock is currently in oversold territory, possibly hinting at a rebound opportunity. The MACD of 1.16, above the signal line of 0.92, further supports a positive momentum outlook.
**Strategic Business Insights**
Founded in 1981 and headquartered in Lincoln, Nebraska, NRC has carved out a niche by providing analytics and insights that enhance patient and employee experiences in healthcare. Its subscription-based solutions, including patient experience, service recovery, and employee engagement tools, play a crucial role in helping healthcare organizations optimize their operations and reputations. The introduction of Huey AI, an AI engine for Human Understanding, underscores NRC’s innovative edge in healthcare experience management.
For investors, NRC represents a blend of stable dividend returns and potential growth within a critical sector. As healthcare organizations increasingly rely on data-driven insights to improve outcomes and efficiencies, NRC’s offerings will likely remain in demand. While the lack of certain valuation metrics poses a challenge, the company’s strong ROE and strategic positioning in the healthcare information services industry make it a compelling consideration for investors seeking exposure to healthcare analytics. As always, potential investors should weigh these factors alongside their risk tolerance and investment objectives.
