National HealthCare (NHC) closed FY 2025 with fourth quarter revenue of US$386.5 million and basic EPS of US$1.60, framing a year in which trailing twelve month revenue reached about US$1.5 billion and EPS came in at US$7.76, alongside reported earnings growth of 17.7% over the past year. Over recent periods the company has seen revenue move from US$1.30 billion on a trailing twelve month basis in Q4 2024 to US$1.52 billion in Q4 2025. EPS over the same span shifted from US$6.62 to US$7.76 and net profit margins were reported at 7.9% for the trailing 12 months, giving investors a clear read on how current profitability is feeding through the income statement.

See our full analysis for National HealthCare.

With the headline numbers on the table, the next step is to see how this earnings profile lines up against the widely followed narratives around growth, quality and consistency for National HealthCare.

7.9% margin and EPS swings across FY 2025

• Across FY 2025, quarterly basic EPS ranged from US$1.53 in Q2 to US$2.53 in Q3, while net income excluding extra items moved between US$23.7 million and US$39.2 million over roughly US$375 million to US$387 million of quarterly revenue, sitting within a trailing twelve month net profit margin of 7.9%.
• What stands out for a bullish narrative is that trailing twelve month earnings grew 17.7% year over year on US$1.52b of revenue, even though quarterly EPS and net income moved around during the year, which can raise questions on how consistently that growth shows up in each individual quarter.
  • On a trailing basis, basic EPS was US$7.76 at Q4 2025 versus US$6.62 at Q4 2024, while trailing net income excluding extra items went from US$101.9 million to US$120.0 million over the same periods.
  • Yet at the single quarter level, Q3 2025 basic EPS of US$2.53 and net income of US$39.2 million sit well above Q4 2025 basic EPS of US$1.60 and net income of US$24.8 million, so bulls need to consider how much of the trailing growth depends on stronger quarters earlier in the year.

P/E of 22.3x and big gap to DCF fair value

• The stock trades on a P/E of 22.3x, above the peer average of 18.1x and close to the US Healthcare industry average of 22.4x, while the provided DCF fair value is US$478.47 per share compared with a current share price of US$171.42.
• Bulls might point to the large gap between the current price and the DCF fair value as supportive of upside potential, but the combination of a higher P/E versus peers and a price well below that DCF figure creates a tension in how investors interpret the valuation signals.
  • On one side, the P/E that is above the 18.1x peer average suggests the stock is priced at a premium to similar companies based on recent earnings.
  • On the other, the DCF model value of US$478.47 is very large compared with the current US$171.42 share price, which could be read as implying that the market is applying a much more conservative view than the model.

Bulls who see the combination of 17.7% earnings growth, a 7.9% margin and a large DCF valuation gap as a starting point can get the fuller story in 🐂 National HealthCare Bull Case

Earnings growth and dividend together

• Over the last twelve months, earnings grew 17.7% while the company reported a 1.49% trailing dividend yield, all against a 7.9% net profit margin that is unchanged from the prior year.
• For investors weighing a more cautious angle, the steady 7.9% margin and modest 1.49% yield can be read alongside the 17.7% earnings growth and 22.3x P/E as a reminder that, while recent profit growth is stronger than the five year average of about 2% per year, the current valuation and income stream are being judged on a relatively slim margin profile.
  • The margin staying at 7.9% year over year means the 17.7% earnings growth sits on a similar profitability base, rather than on a step change in margin.
  • At the same time, the trailing yield of 1.49% offers income, yet it is small compared with stocks that focus primarily on dividends, so investors who put more weight on income may look more closely at how durable the earnings trend appears at this margin level.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for National HealthCare on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mix of earnings growth, margins and valuation signals still feels up for debate, consider acting while the information is current and weighing the details yourself. To see what optimists are focusing on, take a closer look at the 3 key rewards.

See What Else Is Out There

National HealthCare combines a 7.9% margin and 22.3x P/E with modest dividend yield and uneven quarterly EPS, which may lead some investors to seek stronger income support.

If you are questioning whether this earnings and dividend mix suits your goals, compare it with companies in the 12 dividend fortresses to quickly focus on stronger income profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.