Breaking Down National Research Corporation (NRC) Financial Health: Key Insights for Investors

Are you an investor keeping a close watch on the healthcare sector? Do you want to understand the financial stability and growth potential of companies within this industry? Then, let's delve into National Research Corporation (NRC Health) and explore its financial health, considering that the company reported a revenue of $143.06 million for the year 2024, a 3.72% decrease compared to 2023. Also, the fourth quarter of 2024 saw a revenue of approximately $36.9 million, compared to $38.0 million in the same quarter of 2023. How do these figures impact the company's overall valuation and future prospects? Read on to find out.

National Research Corporation (NRC) Revenue Analysis

To understand National Research Corporation's financial health, a deep dive into its revenue streams is essential. This analysis covers the sources, growth, and segment contributions that drive NRC's financial performance.

National Research Corporation (NRC) primarily generates revenue through:

• Subscription-based services: These services provide ongoing access to NRC's data, analytics, and insights.
• Project-based services: NRC also undertakes specific projects for healthcare organizations, offering tailored research and consulting.

Analyzing the year-over-year revenue growth rate provides insights into NRC's performance and market position. While specific figures for 2024 aren't available, examining historical trends can offer a perspective. For instance, revenue increased 7% in 2023, reaching $164.2 million, and 11% in 2022, reaching $153.5 million. This growth indicates a positive trajectory driven by increased demand for NRC's services.

A breakdown of revenue by business segments reveals which areas are most critical to NRC's financial success. Here’s an overview based on the latest available data:

Understanding the contribution of each segment helps investors assess the stability and growth potential of NRC's revenue. Significant shifts in these contributions can indicate strategic changes or market trends affecting the company.

Analyzing changes in revenue streams involves identifying factors that boost or hinder growth. These factors might include:

• Market Trends: Changes in the healthcare industry, such as increased focus on patient experience and value-based care.
• Strategic Initiatives: New product launches, partnerships, or acquisitions.
• Economic Conditions: Overall economic factors affecting healthcare spending.

For more insights into the company's mission, vision, and core values, refer to Mission Statement, Vision, & Core Values of National Research Corporation (NRC).

National Research Corporation (NRC) Profitability Metrics

Understanding National Research Corporation's (NRC) profitability is crucial for investors. A close examination of key financial metrics provides insights into the company's financial health and operational efficiency. Here's a breakdown of NRC's profitability:

Gross Profit Margin:

• For the most recently reported fiscal quarter, ending September 30, 2024, National Research Corporation's gross profit was $20.51 million.
• The company's gross profit margin for 2024 stands at 60.20%.
• In 2024, the gross profit was $86 million, a decrease from $93 million in 2023.

Operating Profit Margin:

• National Research Corporation's operating margin was 22.28% for the most recent quarter.
• The operating margin in 2024 was 25.98%.
• However, it's important to note a warning sign: National Research Corporation's operating margin has been in a 5-year decline, with an average rate of decline of -5.9% per year.

Net Profit Margin:

• The net income margin for National Research Corporation is 17.32%.
• National Research Corp's Net Profit Margin (2023) XYZ -0.7% (2024 vs 2023).

Trends in Profitability Over Time:

• Revenue for 2024 was $143 million, a decrease from $149 million in 2023.
• The company's Q4 2024 revenue was $36.9 million, down from $38.0 million in the same quarter of 2023.
• Earnings per diluted share decreased to $0.28 in Q4 2024, from $0.36 year-over-year, a 22.2% decline.

Comparison with Industry Averages:

• National Research Corporation's decrease in total operating revenue was relatively lower than the industry average (approximately 3.71%), indicating pressure in the company's competition.

Analysis of Operational Efficiency:

• National Research Corporation maintains strong operational efficiency with a gross profit margin of 60.2%.

Additional Key Financial Data:

• EPS (TTM): $1.04
• Dividend Yield (FWD): 4.55%
• Cash from Operations (TTM): $34.63 million

Here is a summary of National Research Corporation's financial performance metrics:

For deeper insights into National Research Corporation's values and objectives, check out: Mission Statement, Vision, & Core Values of National Research Corporation (NRC).

National Research Corporation (NRC) Debt vs. Equity Structure

Understanding National Research Corporation's (NRC) approach to financing is crucial for investors. This involves analyzing its debt levels, debt-to-equity ratio, and recent financing activities to assess financial strategy and risk.

National Research Corporation (NRC) showcases a strategic approach to managing its debt and equity. An overview of the company's debt levels, debt-to-equity ratio, and recent financing activities is below:

As of December 31, 2024, National Research Corporation's financial health can be understood through the following key metrics:

• Cash and Cash Equivalents: $123.9 million
• Total Assets: $713.4 million
• Total Liabilities: $178.9 million
• Stockholders’ Equity: $534.5 million

National Research Corporation (NRC) primarily relies on equity funding, maintaining a relatively low debt level. On December 31, 2024, the company reported total liabilities of $178.9 million and stockholders’ equity of $534.5 million.

The debt-to-equity ratio, calculated by dividing total liabilities by stockholders' equity, provides insights into the company's financial leverage. For National Research Corporation (NRC), the debt-to-equity ratio as of December 31, 2024, is approximately 0.34. This indicates that NRC is primarily financed by equity rather than debt.

A lower debt-to-equity ratio can be seen as a sign of financial stability, suggesting that the company relies less on borrowing and more on its own equity to finance operations and growth. This can make the company less vulnerable to financial distress, especially during economic downturns, since it has lower debt obligations.

Recent financial activities, such as debt issuances or refinancing, can significantly impact a company's capital structure. However, specific details on recent debt issuances, credit ratings, or refinancing activities for National Research Corporation (NRC) were not available in the provided search results for the fiscal year 2024. For the most accurate and up-to-date information, consulting NRC's official financial statements and investor relations releases is recommended.

Balancing debt and equity is crucial for funding growth and maintaining financial health. National Research Corporation (NRC) strategically uses its cash reserves and equity to support its operations. The company’s substantial cash reserves, totaling $123.9 million as of December 31, 2024, enable it to invest in growth opportunities and manage operational needs without heavy reliance on debt.

Explore more about National Research Corporation (NRC) and its investors: Exploring National Research Corporation (NRC) Investor Profile: Who’s Buying and Why?

National Research Corporation (NRC) Liquidity and Solvency

When evaluating National Research Corporation (NRC)'s financial health, understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Here's a breakdown of key aspects to consider:

Assessing National Research Corporation (NRC)'s Liquidity:

• Current and Quick Ratios: These ratios provide insight into National Research Corporation (NRC)'s ability to cover its short-term liabilities with its short-term assets.
  • A current ratio of around 2.1 indicates that National Research Corporation (NRC) has $2.1 of current assets for every $1 of current liabilities.
  • The quick ratio, which excludes inventories, is approximately 2.1, suggesting strong liquidity.
• Analysis of Working Capital Trends: Monitoring the trend of National Research Corporation (NRC)'s working capital (current assets minus current liabilities) can reveal whether the company's short-term financial health is improving or deteriorating.
• Cash Flow Statements Overview: Examining National Research Corporation (NRC)'s cash flow statements provides a clear picture of how the company generates and uses cash.
  • Operating Cash Flow: This indicates the cash generated from National Research Corporation (NRC)'s core business operations.
  • Investing Cash Flow: This shows cash spent on investments, such as property, plant, and equipment (PP&E).
  • Financing Cash Flow: This reflects cash flow related to debt, equity, and dividends.

Key Cash Flow Trends for National Research Corporation (NRC) (Fiscal Year 2024):

• Net cash provided by operating activities: $33.4 million.
• Net cash used for investing activities: $2.5 million.
• Net cash used for financing activities: $21.9 million.

Potential Liquidity Concerns or Strengths:

Based on available data, National Research Corporation (NRC) exhibits strong liquidity. The high current and quick ratios suggest the company is well-positioned to meet its short-term obligations. Consistent positive operating cash flow further supports this assessment. Prudent management of investing and financing activities is also evident.

For additional insights into National Research Corporation (NRC)'s financial health, you can read more Breaking Down National Research Corporation (NRC) Financial Health: Key Insights for Investors.

National Research Corporation (NRC) Valuation Analysis

Assessing whether National Research Corporation (NRC) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance, and analyst sentiment. Let's delve into these critical areas to provide a clearer picture for investors. You might find further insights in our comprehensive analysis: Breaking Down National Research Corporation (NRC) Financial Health: Key Insights for Investors

To determine National Research Corporation's (NRC) valuation, consider the following:

• Price-to-earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of earnings. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers.
• Price-to-book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. It can help identify if the stock price is reasonable compared to the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio is used to assess a company's total value (including debt) against its earnings before interest, taxes, depreciation, and amortization. It provides a more comprehensive valuation measure than P/E, especially when comparing companies with different capital structures.

Analyzing stock price trends provides insight into market perception and investor confidence:

• Stock Price Trends: Reviewing National Research Corporation's (NRC) stock performance over the past 12 months, or longer, can reveal patterns and potential drivers behind price movements. Look for consistent growth, volatility, and any significant events that may have impacted the stock price.

If applicable, dividend metrics are crucial for income-focused investors:

• Dividend Yield and Payout Ratios: For companies that pay dividends, the dividend yield (annual dividend per share divided by stock price) indicates the return on investment through dividends. The payout ratio (dividends paid out as a percentage of earnings) shows the sustainability of dividend payments.

Analyst opinions can offer a consolidated view on stock valuation:

• Analyst Consensus: Check what analysts recommend (buy, hold, or sell) regarding National Research Corporation's (NRC) stock. Their collective insights can provide a balanced perspective, though it's essential to conduct your own due diligence.

For example, let's hypothetically examine some valuation metrics for National Research Corporation (NRC) based on approximated data from the fiscal year 2024:

These metrics, when considered together, can help investors form a well-rounded opinion on whether National Research Corporation (NRC) is currently overvalued or undervalued. Always consider these insights as part of a broader investment strategy.

National Research Corporation (NRC) Risk Factors

Understanding the risks National Research Corporation (NRC) faces is crucial for investors. These risks can be both internal and external, significantly impacting the company's financial health and future performance.

Industry Competition: The healthcare industry is highly competitive, with numerous firms vying for market share. This competition can put pressure on National Research Corporation's pricing and profitability. Competitors may offer similar services at lower costs or develop innovative solutions that could erode National Research Corporation's market position.

Regulatory Changes: The healthcare sector is heavily regulated, and changes in regulations can have a substantial impact on National Research Corporation. Changes in healthcare laws, reimbursement policies, or data privacy regulations can create compliance challenges and increase operational costs. For example, new regulations regarding patient data security could require significant investments in technology and training.

Market Conditions: Economic downturns or shifts in healthcare spending can affect National Research Corporation's revenue. During economic recessions, healthcare organizations may reduce discretionary spending, impacting the demand for National Research Corporation's services. Additionally, changes in government healthcare funding can alter the financial landscape for healthcare providers, influencing their ability to invest in National Research Corporation's offerings.

Operational Risks: These include challenges related to service delivery, technology, and human resources. Service delivery risks may involve maintaining the quality and reliability of National Research Corporation's solutions. Technological risks include keeping pace with rapid advancements in data analytics and healthcare technology. Human resource risks encompass attracting and retaining skilled employees in a competitive job market.

Financial Risks: These risks pertain to National Research Corporation's capital structure, liquidity, and financial performance. The company must manage its debt levels, maintain sufficient cash flow, and ensure profitability to meet its financial obligations and invest in future growth.

Strategic Risks: Strategic risks involve decisions related to market positioning, innovation, and partnerships. National Research Corporation must make informed choices about which markets to target, how to differentiate its offerings, and whether to pursue strategic alliances or acquisitions.

Mitigation strategies are essential for National Research Corporation to manage these risks effectively. These strategies may include:

• Diversifying its service offerings: Expanding into new areas of healthcare analytics can reduce reliance on specific market segments.
• Investing in technology: Continuously upgrading its technology infrastructure can help National Research Corporation maintain a competitive edge.
• Strengthening client relationships: Building strong, long-term relationships with clients can enhance customer retention and provide a stable revenue base.
• Implementing robust compliance programs: Ensuring adherence to all relevant regulations can minimize legal and financial risks.

For further insights into National Research Corporation and its investors, consider exploring this resource: Exploring National Research Corporation (NRC) Investor Profile: Who’s Buying and Why?

National Research Corporation (NRC) Growth Opportunities

National Research Corporation (NRC) stands to benefit from several key growth drivers. These include a commitment to product innovation, strategic market expansions, potential acquisitions, and the cultivation of competitive advantages. These factors collectively influence future revenue growth projections and earnings estimates.

Key Growth Drivers:

• Product Innovations: Continuous development and introduction of new solutions and technologies to meet evolving client needs.
• Market Expansions: Extending NRC's reach into new geographic areas or industry verticals to capture additional market share.
• Acquisitions: Strategic acquisitions of complementary businesses to expand NRC's service offerings and client base.

NRC's future growth is also influenced by strategic initiatives and partnerships. While specific details of these initiatives would provide a clearer picture, such collaborations typically aim to leverage synergies, expand market access, or enhance service capabilities.

Future Revenue Growth Projections and Earnings Estimates:

To assess NRC's financial trajectory, revenue growth projections and earnings estimates are essential. While specific figures would offer a concrete outlook, understanding the factors driving these projections is crucial. These factors may include:

• Market Demand: The overall demand for patient and resident experience measurement and improvement solutions.
• Sales Effectiveness: NRC's ability to effectively convert leads into new clients and expand relationships with existing clients.
• Pricing Strategies: The company's approach to pricing its services and maintaining profitability.

Competitive Advantages:

NRC possesses several competitive advantages that position it for sustained growth. These advantages typically include:

• Proprietary Technology: Unique technology or data analytics capabilities that differentiate NRC from competitors.
• Industry Expertise: Deep understanding of the healthcare industry and the specific needs of its clients.
• Client Relationships: Strong, long-standing relationships with healthcare organizations.

For more insights into National Research Corporation (NRC), consider reading: Exploring National Research Corporation (NRC) Investor Profile: Who’s Buying and Why?