Is NHC (NHC) Halal?

AMEX Healthcare United States $2.5B
✓ HALAL
Confidence: 95/100
NHC (NHC) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 8.2% against the AAOIFI threshold of 30%, NHC comfortably passes the key financial ratio tests. The company operates in the Healthcare sector (Medical Care Facilities), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 8.2%
/ 30%
8.3%
/ 30%
5.2%
/ 30%
0.78%
/ 5%
✓ HALAL
DJIM 8.2%
/ 33%
8.3%
/ 33%
5.2%
/ 33%
0.78%
/ 5%
✓ HALAL
MSCI 14.1%
/ 33%
14.2%
/ 33%
8.9%
/ 33%
0.78%
/ 5%
✓ HALAL
S&P 8.2%
/ 33%
8.3%
/ 33%
5.2%
/ 33%
0.78%
/ 5%
✓ HALAL
FTSE 14.1%
/ 33%
14.2%
/ 33%
8.9%
/ 50%
0.78%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
21.0
Forward: 374.5
EPS
$7.67
Dividend Yield
159.0%
Payout: 33.0%
P/B Ratio
2.3
EV/EBITDA
13.5
EV: $2.3B
Revenue
$1.5B
Growth: 4.6%
Beta
0.6
Low volatility
Current Ratio
1.8

Profitability

Gross Margin 39.3%
Operating Margin 8.6%
Net Margin 7.9%
Return on Equity (ROE) 11.9%
Return on Assets (ROA) 5.3%

Cash Flow & Balance Sheet

Operating Cash Flow$185M
Free Cash Flow$149M
Total Debt$87M
Debt-to-Equity8.1
Current Ratio1.8
Total Assets$1.5B

Price & Trading

Last Close$161.28
50-Day MA$157.00
200-Day MA$127.93
Avg Volume85K
Beta0.6
52-Week Range
$89.14
$174.54

About NHC (NHC)

CEO
Dr. Stephen Fowler Flatt
Employees
15,278
Sector
Healthcare
Industry
Medical Care Facilities
Country
United States
Exchange
AMEX
Market Cap
$2.5B
Currency
USD

National HealthCare Corporation engages in the operation of services to skilled nursing facilities, assisted and independent living facilities, homecare and hospice agencies, and health hospitals. It operates through two segments: Inpatient and Homecare and Hospice Services. The company's skilled nursing facilities offer licensed therapy services, nutrition services, social services, activities, and housekeeping and laundry services, as well as medical services prescribed by physicians; and rehabilitative services, such as physical, speech, respiratory, and occupational therapy for patients recovering from strokes, heart attacks, orthopedic conditions, neurological illnesses, or other illnesses, injuries, or disabilities. It provides medical specialty units comprise memory care units and sub-acute nursing units that provide specialized care and programs for persons with Alzheimer's or related disorders; and assisted living facilities offer personal care services and assistance with general activities of daily living, such as dressing, bathing, meal preparation, and medication management. Its independent living facilities offers specially designed residential units for the active and ambulatory elderly and provide various ancillary services for residents, including restaurants, activity rooms and social areas; and behavioral health services to both adults and geriatric patients with psychiatric, emotional, and addictive disorders. In addition, the company homecare agencies assist those who wish to stay at home or in assisted living residences but still require some degree of medical care or assistance with daily activities; hospice agencies that provides hospice and palliative care; and operates pharmacies, as well as managed care insurance solutions. Further, the company offers management, accounting, and financial services; and leases its properties to third party operators. The company was founded in 1971 and is based in Murfreesboro, Tennessee.

Purification Calculator

As a halal stock with 0.78% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is NHC (NHC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), NHC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is NHC's debt ratio?

NHC's debt ratio is 8.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 14.1%.

Does NHC require dividend purification?

Yes, NHC has an impermissible income ratio of 0.78%, which means 0.78% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are NHC's key financial metrics?

NHC has a market capitalization of $2.5B, trailing P/E ratio of 21.0, and revenue of $1.5B. The company maintains a gross margin of 39.3% and a net margin of 7.9%. Return on equity stands at 11.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.