NRCNRC Health
Is the business good?
The checks split: earnings fully cash-backed (3.2×), but margins compressing and returns that lean on debt.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 88% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NRC?
NRC Health earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.0 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Health Information Services median 2.8% · 12 months to Q2 2026
- Cash conversion
- 3.21×
Cash conversion · 1.05× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.9%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 32% |
| FY2021 | 34% |
| FY2022 | 31% |
| FY2023 | 27% |
| FY2024 | 25% |
| FY2025 | 16% |
Details›
- Gross margin12 months to Q2 2026
- 62%
- Operating margin12 months to Q2 2026
- 11%
- Net margin12 months to Q2 2026
- 4.2%
- Free cash flow margin
- 15%
- Revenue, trailing twelve months
- $140M
- Free cash flow, trailing twelve months
- $22M
- Net income, trailing twelve months
- $5.9M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Health Information Services
Ranks #6 of 20 by RyuScore