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NRC Health

NRC
48
Medical - Healthcare Information Services · Healthcare
Price
$22.19
+0.37 (+1.70%)
Market Cap
$500.1M
Exchange
NASDAQ
Winston Score
48
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Weak
Cash Flow
Exceptional
Stability
Weak
Valuation
Good
Dividends
Strong

Share count falling — buybacks

12.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 25.6M (2021) → 22.4M (2025)

Winston Score History

The full picture

NRC Health is a company that helps hospitals and healthcare systems understand how their patients feel about their care. It collects feedback through surveys and data tools, then turns that information into reports that help healthcare providers improve their services. The company focuses almost entirely on the healthcare industry in the United States.

NRC Health makes money by charging hospitals and health systems recurring subscription fees for access to its data platform and analytics tools. It operates primarily in the US and serves hundreds of healthcare organizations, giving it a stable, predictable revenue base. Its main competitive advantage is its deep focus on healthcare — it is not a general survey company, which makes switching costs relatively high for long-term clients. The key risk is that hospital budgets are under pressure, and spending on analytics software can be cut when healthcare systems face financial strain.

Score breakdown

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Quality

Profit per sale
Gross Margin
100.0%
Premium pricing power — 100.0% gross margin
Profit after running costs
Operating Margin
-9.1%
Losing money on operations — -9.1%
Return on the money invested
ROCE
15.3%
Strong — 15.3% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
-0.2%
Shrinking sales (-0.2% YoY)
Profit growth
EPS YoY
-65.7%
Earnings shrinking (-65.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
504%
Turns 504% of profit into real cash
Spare cash per sale
FCF Margin
15.5%
Converts sales into free cash efficiently (15.5%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
13.75
Heavy debt load (13.75)
Covers its interest
Interest Cover
2.73x
Tight — interest eats into profit (2.7x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
84.5x
Expensive — P/E 84.5

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+59.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (84.5 → 25.1)

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Dividends

Dividend
Dividend Yield
2.93%
Moderate income — 2.93% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
+33.3%
Dividend growing fast (33.3% YoY)

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