| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 32.33 | 178 |
| Intrinsic value (DCF) | 7.47 | -36 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 4.70 | -60 |
National Research Corporation (NRC) is a leading provider of analytics and insights for the healthcare industry, specializing in patient and employee experience measurement. Founded in 1981 and headquartered in Lincoln, Nebraska, NRC serves integrated health systems, post-acute providers, and payer organizations across the U.S. and Canada. The company offers a subscription-based portfolio of solutions, including patient experience tracking, workforce engagement, health risk assessments, and reputation management. NRC's data-driven tools help healthcare organizations improve care transitions, reduce readmissions, and enhance brand loyalty through real-time competitive assessments and segmentation tools. With a focus on transparency and governance, NRC also provides solutions for hospital boards and executives to support strategic decision-making. Operating in the growing healthcare information services sector, NRC plays a critical role in helping providers navigate value-based care models and consumer-driven healthcare trends.
National Research Corporation presents a niche investment opportunity in the healthcare analytics space, benefiting from the industry's shift toward patient-centric care and performance measurement. The company's subscription-based model provides recurring revenue stability, while its specialized focus on healthcare experience analytics offers differentiation from broader health IT competitors. Key strengths include a long operating history (founded 1981), positive net income ($24.8M in latest reporting), and strong operating cash flow ($34.6M). However, investors should note the company's relatively small market cap (~$310M) and modest revenue growth trajectory. The low beta (0.36) suggests lower volatility than the broader market, but the concentrated healthcare focus creates sector-specific risks. The dividend yield (~1.5% at current prices) provides income support. Competitive pressures from larger health IT vendors and potential budget constraints at client healthcare organizations represent key risks to monitor.
National Research Corporation competes in the specialized healthcare experience analytics segment, differentiating itself through deep domain expertise and a focused product suite tailored specifically for healthcare providers. The company's competitive advantage stems from its longitudinal datasets on patient experience metrics and proprietary methodologies for measuring healthcare brand perception. Unlike broader health IT vendors, NRC maintains singular focus on constituent experience measurement, allowing for more sophisticated benchmarking capabilities within the healthcare vertical. The company's solutions are particularly strong in post-acute care settings and for measuring care transitions - areas often underserved by competitors. However, NRC faces challenges from larger competitors with more comprehensive IT platforms that can integrate experience data with clinical and operational metrics. The company's smaller scale limits its R&D budget compared to major players, potentially constraining innovation pace. NRC mitigates this through strategic partnerships and by maintaining high customer retention rates (exact churn data not disclosed). Its mid-market positioning allows for more customized implementations than enterprise-scale competitors, though this may limit scalability. The shift toward value-based care models in healthcare creates tailwinds for NRC's solutions, as providers increasingly need to demonstrate patient satisfaction and outcomes.