DIVERSIFIED HEALTHCARE TRUST (DHC) Stock Fundamental Analysis
USA - NASDAQ:DHC - US25525P1075 - REIT
4.095 USD
-0.33 (-7.35%)
DHC gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 127 industry peers in the Diversified REITs industry. Both the profitability and financial health of DHC have multiple concerns. DHC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
DHC had negative earnings in the past year.
DHC had a positive operating cash flow in the past year.
In the past 5 years DHC reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: DHC reported negative operating cash flow in multiple years.
1.2 Ratios
DHC has a Return On Assets of -6.03%. This is amonst the worse of the industry: DHC underperforms 84.25% of its industry peers.
The Return On Equity of DHC (-15.46%) is worse than 79.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.03% | ||
| ROE | -15.46% | ||
| ROIC | N/A |
ROA(3y)-4.29%
ROA(5y)-2.48%
ROE(3y)-10.69%
ROE(5y)-6.22%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DHC's Gross Margin of 17.80% is on the low side compared to the rest of the industry. DHC is outperformed by 92.91% of its industry peers.
DHC's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for DHC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 17.8% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.33%
GM growth 5Y-20.05%
2. Health
2.1 Basic Checks
DHC does not have a ROIC to compare to the WACC, probably because it is not profitable.
DHC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DHC has more shares outstanding
DHC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.28, we must say that DHC is in the distress zone and has some risk of bankruptcy.
DHC has a worse Altman-Z score (-0.28) than 80.31% of its industry peers.
DHC has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
DHC's Debt to Equity ratio of 1.42 is in line compared to the rest of the industry. DHC outperforms 44.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.28 |
ROIC/WACCN/A
WACC6.23%
2.3 Liquidity
A Current Ratio of 3.37 indicates that DHC has no problem at all paying its short term obligations.
DHC has a better Current ratio (3.37) than 94.49% of its industry peers.
A Quick Ratio of 3.37 indicates that DHC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.37, DHC belongs to the top of the industry, outperforming 94.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.37 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
DHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.96%, which is quite impressive.
The Revenue has been growing slightly by 6.04% in the past year.
Measured over the past years, DHC shows a small growth in Revenue. The Revenue has been growing by 7.53% on average per year.
EPS 1Y (TTM)41.96%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)6.04%
Revenue growth 3Y2.63%
Revenue growth 5Y7.53%
Sales Q2Q%4.03%
3.2 Future
Based on estimates for the next years, DHC will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.25% on average per year.
DHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.37% yearly.
EPS Next Y20.64%
EPS Next 2Y17.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.66%
Revenue Next 2Y3.37%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DHC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year DHC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
DHC's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.95 |
4.3 Compensation for Growth
DHC's earnings are expected to grow with 17.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, DHC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.40, DHC's dividend is way lower than its industry peers. On top of this 92.13% of the companies listed in the same industry pay a better dividend than DHC!
Compared to an average S&P500 Dividend Yield of 2.38, DHC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of DHC decreases each year by -45.60%.
DHC has paid a dividend for at least 10 years, which is a reliable track record.
DHC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-45.6%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
DHC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-3.36%
EPS Next 2Y17.25%
EPS Next 3YN/A
NASDAQ:DHC (11/4/2025, 10:05:16 AM)
4.095
-0.33 (-7.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners75.89%
Inst Owner Change-0.25%
Ins Owners0.48%
Ins Owner Change-8.52%
Market Cap988.57M
Revenue(TTM)1.50B
Net Income(TTM)-286760000
Analysts48
Price Target4.34 (5.98%)
Short Float %2.52%
Short Ratio7.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.04
Dividend Growth(5Y)-45.6%
DP-3.36%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)25.74%
Min EPS beat(2)-71.02%
Max EPS beat(2)122.5%
EPS beat(4)2
Avg EPS beat(4)34.05%
Min EPS beat(4)-71.02%
Max EPS beat(4)122.5%
EPS beat(8)3
Avg EPS beat(8)16.12%
EPS beat(12)4
Avg EPS beat(12)5.38%
EPS beat(16)4
Avg EPS beat(16)-11.59%
Revenue beat(2)0
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-0.49%
Max Revenue beat(2)-0.04%
Revenue beat(4)1
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)1.32%
Revenue beat(8)2
Avg Revenue beat(8)-0.47%
Revenue beat(12)4
Avg Revenue beat(12)-0.38%
Revenue beat(16)4
Avg Revenue beat(16)-1.01%
PT rev (1m)13.33%
PT rev (3m)13.33%
EPS NQ rev (1m)-2.38%
EPS NQ rev (3m)-7.5%
EPS NY rev (1m)0.6%
EPS NY rev (3m)-27.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.65 | ||
| P/FCF | N/A | ||
| P/OCF | 11.09 | ||
| P/B | 0.53 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 14.95 |
EPS(TTM)-0.65
EYN/A
EPS(NY)-0.66
Fwd EYN/A
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)0.37
OCFY9.01%
SpS6.31
BVpS7.68
TBVpS7.68
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.03% | ||
| ROE | -15.46% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 17.8% | ||
| FCFM | N/A |
ROA(3y)-4.29%
ROA(5y)-2.48%
ROE(3y)-10.69%
ROE(5y)-6.22%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.33%
GM growth 5Y-20.05%
F-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 11.07 | ||
| Cap/Depr | 66.82% | ||
| Cap/Sales | 12.33% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 37.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.37 | ||
| Quick Ratio | 3.37 | ||
| Altman-Z | -0.28 |
F-Score6
WACC6.23%
ROIC/WACCN/A
Cap/Depr(3y)103.34%
Cap/Depr(5y)92.72%
Cap/Sales(3y)19.78%
Cap/Sales(5y)17.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)41.96%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y20.64%
EPS Next 2Y17.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.04%
Revenue growth 3Y2.63%
Revenue growth 5Y7.53%
Sales Q2Q%4.03%
Revenue Next Year3.66%
Revenue Next 2Y3.37%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y38.29%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year377.31%
EBIT Next 3Y72.02%
EBIT Next 5YN/A
FCF growth 1Y71.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y283.65%
OCF growth 3YN/A
OCF growth 5Y-15.84%
DIVERSIFIED HEALTHCARE TRUST / DHC FAQ
What is the fundamental rating for DHC stock?
ChartMill assigns a fundamental rating of 2 / 10 to DHC.
What is the valuation status for DHC stock?
ChartMill assigns a valuation rating of 1 / 10 to DIVERSIFIED HEALTHCARE TRUST (DHC). This can be considered as Overvalued.
How profitable is DIVERSIFIED HEALTHCARE TRUST (DHC) stock?
DIVERSIFIED HEALTHCARE TRUST (DHC) has a profitability rating of 1 / 10.
What is the expected EPS growth for DIVERSIFIED HEALTHCARE TRUST (DHC) stock?
The Earnings per Share (EPS) of DIVERSIFIED HEALTHCARE TRUST (DHC) is expected to grow by 20.64% in the next year.