National Research Corporation (NRC)

National Research Corporation (NRC) Healthcare & Pipeline Overview

National Research Corporation delivers subscription-based analytics and insights to healthcare organizations in the U.S. and Canada, focusing on enhancing patient and employee experiences. Their solutions cover patient experience, employee engagement, and brand loyalty, providing actionable data for informed decision-making in a competitive healthcare landscape.

What Is the Investment Thesis for NRC?

National Research Corporation presents a compelling investment case driven by its established position in the healthcare analytics market. The company's subscription-based model provides recurring revenue and a degree of stability, evidenced by a gross margin of 55.9%. Growth catalysts include the increasing demand for patient experience data and employee engagement solutions within the healthcare industry. With a P/E ratio of 44.7 and a dividend yield of 2.87%, NRC offers a blend of growth and income potential. However, investors should be mindful of the company's relatively small market capitalization of $507.98M and the potential impact of competition within the healthcare information services sector.

Based on FMP financials and quantitative analysis

NRC Key Highlights

• Market Cap of $507.98M reflects its position as a smaller player in the healthcare analytics space.
• P/E ratio of 44.7 indicates a premium valuation, suggesting investor expectations of future growth.
• Gross Margin of 55.9% demonstrates efficient cost management and strong pricing power.
• Dividend Yield of 2.87% provides a steady income stream for investors.
• Beta of 0.34 suggests lower volatility compared to the overall market, potentially appealing to risk-averse investors.

Who Are NRC's Competitors?

NRC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are NRC's Key Strengths?

• Established presence in the healthcare analytics market.
• Subscription-based revenue model provides stability.
• Focus on patient and employee experience is a growing area of importance.
• Diverse portfolio of solutions addressing various healthcare needs.

What Are NRC's Weaknesses?

• Relatively small market capitalization compared to larger competitors.
• High P/E ratio may indicate overvaluation.
• Dependence on the healthcare industry makes it susceptible to regulatory changes.
• Limited geographic diversification, primarily operating in the U.S. and Canada.

What Could Drive NRC Stock Higher?

• Increasing demand for patient experience data due to value-based care models.
• Growing emphasis on employee engagement within healthcare organizations.
• Potential partnerships with healthcare IT vendors to expand market reach.

What Are the Key Risks for NRC?

• Rich valuation — a P/E of 44.7 runs well above the Healthcare sector’s ~23x, leaving little room for a miss.
• Intense competition from larger and more established players in the healthcare analytics market.
• Changes in healthcare regulations and reimbursement models could impact demand for NRC's solutions.
• Economic downturn may reduce healthcare spending and affect client budgets.
• Rapid technological advancements may render existing solutions obsolete.

What Are the Growth Opportunities for NRC?

• Expansion of Health Risk Assessment Solutions: The market for health risk assessment solutions is growing as healthcare organizations focus on preventative care and population health management. NRC can capitalize on this trend by expanding its health risk assessment solutions to help clients segment populations, manage care for at-risk individuals, and enhance wellness programs. This expansion can drive revenue growth and strengthen NRC's position in the market. The timeline for realizing significant gains from this opportunity is estimated to be within the next 2-3 years.
• Increased Focus on Telehealth Analytics: As telehealth adoption continues to rise, there is a growing need for analytics solutions that can provide insights into telehealth patient experiences and outcomes. NRC can leverage its expertise in patient experience measurement to develop specialized analytics solutions for telehealth providers. This would allow healthcare organizations to optimize their telehealth services and improve patient satisfaction. The market size for telehealth analytics is projected to grow significantly over the next 5 years.
• Penetration into the Canadian Market: While NRC already operates in Canada, there is still significant room for growth in this market. By increasing its sales and marketing efforts in Canada, NRC can attract new clients and expand its market share. The Canadian healthcare system presents unique opportunities for NRC's solutions, particularly in the areas of patient experience and employee engagement. This expansion could yield positive results within the next 1-2 years.
• Development of AI-Powered Analytics: Integrating artificial intelligence (AI) into its analytics solutions can provide NRC with a competitive edge. AI can be used to automate data analysis, identify patterns and trends, and provide more personalized insights to healthcare organizations. By investing in AI development, NRC can enhance the value of its solutions and attract clients seeking advanced analytics capabilities. This initiative could start showing results in the next 3-4 years.
• Strategic Partnerships with Healthcare IT Vendors: Collaborating with other healthcare IT vendors can expand NRC's reach and integrate its solutions into existing healthcare workflows. By partnering with electronic health record (EHR) vendors, revenue cycle management companies, and other healthcare technology providers, NRC can offer its analytics solutions to a wider audience. These partnerships can create synergies and drive revenue growth for both NRC and its partners. Partnerships can be formed and implemented within the next year.

What Opportunities Does NRC Have?

• Expansion into new geographic markets.
• Development of new analytics solutions for emerging healthcare trends.
• Strategic partnerships with other healthcare IT vendors.
• Increased adoption of telehealth and remote patient monitoring.

What Threats Does NRC Face?

• Intense competition from larger and more established players.
• Rapid technological advancements may render existing solutions obsolete.
• Changes in healthcare regulations and reimbursement models.
• Economic downturn may reduce healthcare spending.

What Are NRC's Competitive Advantages?

• Established relationships with healthcare organizations.
• Proprietary data and analytics expertise.
• Subscription-based revenue model provides recurring income.
• Focus on specialized solutions for patient and employee experience.

What Does NRC Do?

Founded in 1981 and headquartered in Lincoln, Nebraska, National Research Corporation (NRC) provides analytics and insights to healthcare organizations, facilitating the measurement and enhancement of patient and employee experiences. The company operates primarily in the United States and Canada, offering a portfolio of subscription-based solutions that deliver actionable information and analysis. These solutions address mission-critical areas such as patient experience, service recovery, care transitions, health risk assessments, employee engagement, reputation management, and brand loyalty. NRC's offerings include market insights solutions, which track healthcare brand awareness, perception, and consistency. These solutions assess competitive differentiators and provide enhanced segmentation tools to evaluate community needs and behaviors through real-time competitive assessments. The company's experience solutions cover patient and resident experience, workforce engagement, health risk assessments, transitions, and improvement tools. Furthermore, NRC provides health risk assessment solutions that enable clients to segment populations, manage care for at-risk individuals, enhance preventative care, and manage wellness programs. Transitions solutions help organizations identify and manage high-risk patients to reduce readmissions, enhance patient satisfaction, and support safe care transitions. Additionally, NRC offers transparency solutions that allow healthcare organizations to share information and ensure content informs consumer decision-making, along with governance solutions for not-for-profit hospital and health system boards of directors, executives, and physician leadership. NRC serves integrated health systems, post-acute providers, and payer organizations.

What Products and Services Does NRC Offer?

• Provide analytics and insights to healthcare organizations.
• Offer subscription-based solutions for measuring and enhancing patient experience.
• Offer subscription-based solutions for measuring and enhancing employee experience.
• Provide market insights solutions to track healthcare brand awareness and perception.
• Offer health risk assessment solutions to manage care for at-risk individuals.
• Provide transitions solutions to reduce readmissions and enhance patient satisfaction.
• Offer transparency solutions for healthcare organizations to share information.
• Offer governance solutions for not-for-profit hospital and health system boards.

How Does NRC Make Money?

• Subscription-based revenue from analytics and insights solutions.
• Focus on recurring revenue through long-term client relationships.
• Offer a portfolio of solutions addressing various aspects of patient and employee experience.
• Serve integrated health systems, post-acute providers, and payer organizations.

What Industry Does NRC Operate In?

National Research Corporation operates within the healthcare information services industry, which is experiencing growth driven by the increasing emphasis on patient-centered care and the need for data-driven decision-making. The market is competitive, with various players offering analytics and insights solutions. NRC differentiates itself through its focus on patient and employee experience, providing specialized solutions tailored to healthcare organizations. The industry is expected to continue growing as healthcare providers seek to improve outcomes, reduce costs, and enhance patient satisfaction.

Who Are NRC's Key Customers?

• Integrated health systems
• Post-acute providers
• Payer organizations

Net buyingInsider Activity

Over the past six months, National Research Corporation insiders filed 4 SEC Form 4 transactions — 0 sales and 4 purchases. On net that is roughly 86K shares acquired (about $486K) — insiders putting money in tends to read as conviction.

NRC Valuation & Market Position

With a $507.98M market cap, National Research Corporation sits in the small-cap segment of the market. Relative to its peer group, NRC's quantitative score of 69/100 is roughly in line with the peer average of 67/100.

ROE 57%Key Financial Metrics

Return on equity for National Research Corporation stands at 57.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.7%, showing how much profit it generates from its asset base. NRC trades at a trailing price-to-earnings ratio of 44.71, above the Healthcare sector average of ~23x. Its free cash flow yield is 4.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.52 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 2.2%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 5/9Financial Health

National Research Corporation's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 3.66 places it in the safe zone, indicating low near-term bankruptcy risk.

FY2026 estForward Outlook

Wall Street analysts project National Research Corporation revenue of about $118.3M for fiscal 2026, with EPS near $0.88.

Company Profile

National Research Corporation operates in the Medical - Healthcare Information Services industry within the Healthcare sector. It is headquartered in Lincoln, US. The company is led by CEO Trent Green. NRC has traded publicly since 2013.

NRC Financials

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NRC Analyst Consensus

NRC MoonshotScore

What Investors Ask About National Research Corporation (NRC) — Healthcare

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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