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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. National Health Investors's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 7.54%.
As of today (2026-07-25), National Health Investors's WACC % is 5.39%. National Health Investors's ROIC % is 7.21% (calculated using TTM income statement data).
National Health Investors generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
National Health Investors (STU:WX6) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, National Health Investors's WACC % is 5.39%. National Health Investors's ROIC % is 7.21% (calculated using TTM income statement data).
National Health Investors generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Healthcare Facilities subindustry, National Health Investors's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
National Health Investors ROIC % vs REITs Industry
For the REITs industry and Real Estate sector, National Health Investors's ROIC % distribution charts can be found below:
* The bar in red indicates where National Health Investors's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
National Health Investors (STU:WX6) has a ROIC % of 7.54% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on National Health Investors and its competitors.
Is National Health Investors' ROIC % too high?
National Health Investors' current ROIC % is 7.54%. The REITs industry median ROIC % is 3.74. National Health Investors' value of 7.54% is 101.6% above this industry median. Overall, National Health Investors has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does National Health Investors' ROIC % compare to MPT and SBRA?
National Health Investors' ROIC % of 7.54% can be compared against companies in the REITs industry. The industry median ROIC % is 3.74. National Health Investors' value of 7.54% is 101.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a REITs company?
The median ROIC % among REITs companies is 3.74, based on 740 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. National Health Investors's current ROIC % of 7.54% is 101.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on National Health Investors and its competitors. For the REITs industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Health Investors's current ROIC % is 7.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Health Investors stock overvalued right now?
Based on GuruFocus' analysis, National Health Investors (STU:WX6) is currently considered Fairly Valued. The stock's GF Value™ is €71.38, compared to a current price of €70.50 — trading 1.2% below its estimated fair value. The current ROIC % is 7.54% and 101.6% above the REITs industry median of 3.74. National Health Investors' overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For National Health Investors (STU:WX6), the current ROIC % is 7.54% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is National Health Investors (STU:WX6) Overvalued in 2026?
Based on GuruFocus' analysis, National Health Investors stock appears to be undervalued.
The current stock price of €70.50 is trading 1.2% below its estimated GF Value™ of €71.38.
GuruFocus considers National Health Investors to be Fairly Valued.
Key valuation signals for STU:WX6:
ROIC %: 7.54%
GF Value™: €71.38 vs. price of €70.50 (1.2% below fair value)
No single metric tells the full story. See the STU:WX6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
National Health Investors Inc is a self-managed REIT that owns, leases, operates, and finances the development of senior housing communities and medical facilities. It operates through two segments: Real Estate Investments and Senior Housing Operating Portfolio (SHOP). The Real Estate Investments segment, which generates the majority of revenue, includes real estate leases, mortgages, and other notes receivable related to independent living facilities, assisted living facilities, entrance fee communities, senior living campuses, skilled nursing facilities, and a hospital. The SHOP segment consists of ventures that own and operate independent living facilities. The company's revenues are derived from rental income, interest and other income, and resident fees and services.
83GF Score
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