MURFREESBORO, Tenn. - National HealthCare Corporation (NYSE American: NHC), a prominent provider of senior care services, has announced its expansion with the acquisition of White Oak Senior Living's portfolio. The transaction, which includes skilled nursing facilities and a long-term care pharmacy across North Carolina and South Carolina, is set to enhance NHC's presence in the region.
The deal, finalized on May 31, 2024, will see NHC acquiring a total of fifteen skilled nursing facilities, with six located in North Carolina and nine in South Carolina. This acquisition marks NHC's entry into North Carolina and strengthens its existing operations in South Carolina. The White Oak portfolio adds 1,928 skilled nursing beds, 48 assisted living units, and 302 independent living units to NHC's growing network.
Steve Flatt, CEO of NHC, expressed pride in continuing the legacy of White Oak, a family-owned company since 1964, emphasizing the cultural alignment between the two entities and the expected operational efficiencies and synergies. Doug Cecil, President of White Oak, also highlighted the cultural fit as a crucial factor in the sale, ensuring continuity of care for residents and job security for employees.
The acquisition is anticipated to be accretive to NHC's earnings, suggesting a positive impact on future profits. NHC, which already operates a diverse range of healthcare services, including skilled nursing facilities, assisted and independent living communities, behavioral health hospitals, and homecare agencies, views this expansion as a strategic advancement.
InvestingPro Insights
As National HealthCare Corporation (NHC) embarks on its strategic acquisition of White Oak Senior Living's portfolio, the company's financial health and stock performance metrics provide investors with a clearer picture of its market position. According to InvestingPro data, NHC boasts a Price/Earnings (P/E) Ratio of 28.38 and a Price/Book (P/B) Ratio of 1.57 as of the last twelve months ending Q1 2024. These figures suggest a valuation that may be appealing to investors looking for companies with reasonable market pricing relative to their earnings and book value.
In terms of operational performance, NHC reported a robust Revenue Growth of 8.13% over the last twelve months as of Q1 2024, with a Gross Profit Margin of 37.43%, indicating a strong ability to translate sales into profit. The company's Operating Income Margin stands at 4.88%, underscoring its operational efficiency.
Investors interested in dividend-paying stocks might find NHC particularly attractive, considering that the company has not only maintained its dividend payments for 21 consecutive years but has also raised them for the past 10 years. With a Dividend Yield of 2.31% as of the date provided in 2024, NHC demonstrates its commitment to returning value to shareholders.
The InvestingPro Tips for NHC highlight the company's low price volatility and its capability to sufficiently cover interest payments with cash flows, which can be reassuring for investors looking for stable returns. Furthermore, NHC's stock has experienced a high return over the last year, with a 1 Year Price Total Return of 75.52%. For investors looking to delve deeper into NHC's performance and potential, there are additional InvestingPro Tips available, offering insights into aspects such as the company's debt levels and profitability.
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