National Research Corporation (NASDAQ: NRC) stands as a pivotal player within the healthcare information services sector. With a market capitalization of $306.74 million, NRC is renowned for providing analytics and insights that help healthcare organizations enhance patient and employee experiences. Headquartered in Lincoln, Nebraska, the company has been an industry cornerstone since 1981, offering a portfolio of subscription-based solutions that address critical healthcare dynamics.
Currently trading at $12.50, NRC’s stock has experienced a slight dip, with a price change of -0.28 (-0.02%). Over the past year, the stock has fluctuated between $10.13 and $21.29, indicating significant volatility and potential opportunities for risk-tolerant investors.
Despite the absence of traditional valuation metrics such as P/E, PEG, and Price/Sales ratios, NRC’s standout performance metric is its Return on Equity (ROE), which is an impressive 58.28%. This figure suggests that the company is exceptionally efficient at generating profits from its shareholders’ equity, a promising sign for investors seeking robust returns. Additionally, NRC boasts a solid free cash flow of approximately $9.87 million, further underscoring its financial health.
However, the company faces challenges, including a revenue growth decline of 2.80%, which may raise concerns about its ability to sustain long-term growth. The earnings per share (EPS) stand at $0.75, which, coupled with a dividend yield of 3.75%, makes NRC an attractive option for income-focused investors. The payout ratio of 62.34% indicates a sustainable dividend policy, which is crucial for those seeking steady returns.
From a technical analysis perspective, NRC’s stock is currently trading below both its 50-day and 200-day moving averages of $14.74 and $15.01, respectively. With a Relative Strength Index (RSI) of 25.66, the stock appears to be oversold, potentially signaling a buying opportunity for investors who believe in the company’s long-term value proposition. The negative MACD of -0.61 suggests a bearish trend, which investors should monitor closely.
Interestingly, there are no current buy, hold, or sell ratings from analysts, and no target price range has been provided. This lack of coverage may indicate that NRC is flying under the radar, presenting an opportunity for those willing to conduct their own due diligence.
NRC’s comprehensive suite of services, including patient and employee experience solutions, marketing insights, and AI-powered tools like Huey AI, positions the company as a forward-thinking leader in healthcare analytics. By focusing on improving healthcare experiences and outcomes, NRC is well-positioned to capitalize on the increasing demand for data-driven insights in the healthcare industry.
Investors with an eye on the healthcare sector should consider NRC’s potential for both income and growth, balanced by the inherent risks of revenue decline and market volatility. As the company continues to innovate and expand its offerings, NRC may offer significant long-term value for those willing to weather short-term fluctuations.
