DIVERSIFIED HEALTHCARE TRUST (DHC)
US25525P1075 - REIT
DHC gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 126 industry peers in the Diversified REITs industry. DHC has a bad profitability rating. Also its financial health evaluation is rather negative. DHC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year DHC has reported negative net income.
DHC had a positive operating cash flow in the past year.
DHC had negative earnings in 4 of the past 5 years.
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
The Return On Assets of DHC (-5.39%) is worse than 91.87% of its industry peers.
With a Return On Equity value of -12.56%, DHC is not doing good in the industry: 86.99% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.39% | ||
| ROE | -12.56% | ||
| ROIC | N/A |
ROA(3y)-1.01%
ROA(5y)-1.3%
ROE(3y)-2.2%
ROE(5y)-3.08%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 16.75%, DHC is doing worse than 95.12% of the companies in the same industry.
DHC's Gross Margin has declined in the last couple of years.
DHC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 16.75% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.61%
GM growth 5Y-22.42%
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
The debt/assets ratio for DHC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.22, we must say that DHC is in the distress zone and has some risk of bankruptcy.
DHC's Altman-Z score of -0.22 is on the low side compared to the rest of the industry. DHC is outperformed by 85.37% of its industry peers.
DHC has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
DHC has a Debt to Equity ratio of 1.21. This is comparable to the rest of the industry: DHC outperforms 47.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.22 |
ROIC/WACCN/A
WACC6.9%
2.3 Liquidity
DHC has a Current Ratio of 4.70. This indicates that DHC is financially healthy and has no problem in meeting its short term obligations.
DHC's Current ratio of 4.70 is amongst the best of the industry. DHC outperforms 96.75% of its industry peers.
DHC has a Quick Ratio of 4.70. This indicates that DHC is financially healthy and has no problem in meeting its short term obligations.
DHC has a Quick ratio of 4.70. This is amongst the best in the industry. DHC outperforms 96.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.7 | ||
| Quick Ratio | 4.7 |
3. Growth
3.1 Past
DHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.06%, which is quite impressive.
DHC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.87%.
Measured over the past years, DHC shows a small growth in Revenue. The Revenue has been growing by 4.77% on average per year.
EPS 1Y (TTM)36.06%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-59.26%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y-4.75%
Revenue growth 5Y4.77%
Revenue growth Q2Q7.32%
3.2 Future
The Earnings Per Share is expected to grow by 8.00% on average over the next years.
Based on estimates for the next years, DHC will show a small growth in Revenue. The Revenue will grow by 5.62% on average per year.
EPS Next Y-15.18%
EPS Next 2Y8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.44%
Revenue Next 2Y6.86%
Revenue Next 3Y5.62%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DHC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DHC has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.68, DHC pays less dividend than the industry average, which is at 6.06. 86.18% of the companies listed in the same industry pay a better dividend than DHC!
Compared to the average S&P500 Dividend Yield of 2.41, DHC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of DHC decreases each year by -51.94%.
DHC has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of DHC decreased in the last 3 years.
Dividend Growth(5Y)-51.94%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
The earnings of DHC are negative and hence is the payout ratio. DHC will probably not be able to sustain this dividend level.
DP-3.27%
EPS Next 2Y8%
EPS Next 3YN/A
DIVERSIFIED HEALTHCARE TRUST
NASDAQ:DHC (4/26/2024, 7:00:02 PM)
After market: 2.43 0 (0%)2.43
+0.05 (+2.1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap584.22M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.39% | ||
| ROE | -12.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 16.75% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.7 | ||
| Quick Ratio | 4.7 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)36.06%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-15.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.87%
Revenue growth 3Y-4.75%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y