DIVERSIFIED HEALTHCARE TRUST(NASDAQ:DHC) stock Fundamental Analysis

Fundamental Rating

DHC gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 129 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.

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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.

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

Looking at the Return On Assets, with a value of -7.21%, DHC is doing worse than 89.15% of the companies in the same industry.

DHC has a Return On Equity of -18.90%. This is amonst the worse of the industry: DHC underperforms 85.27% of its industry peers.

		Industry Rank	Sector Rank
ROA	-7.21%
ROE	-18.9%
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 has a Gross Margin of 17.31%. This is amonst the worse of the industry: DHC underperforms 93.02% of its industry peers.

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	17.31%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

DHC does not have a ROIC to compare to the WACC, probably because it is not profitable.

Compared to 1 year ago, DHC has more shares outstanding

DHC has more shares outstanding than it did 5 years ago.

The debt/assets ratio for DHC is higher compared to a year ago.

2.2 Solvency

DHC has an Altman-Z score of -0.30. This is a bad value and indicates that DHC is not financially healthy and even has some risk of bankruptcy.

DHC's Altman-Z score of -0.30 is on the low side compared to the rest of the industry. DHC is outperformed by 81.40% of its industry peers.

A Debt/Equity ratio of 1.49 is on the high side and indicates that DHC has dependencies on debt financing.

The Debt to Equity ratio of DHC (1.49) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	1.49
Debt/FCF	N/A
Altman-Z	-0.3

ROIC/WACCN/A

WACC6.17%

2.3 Liquidity

DHC has a Current Ratio of 2.83. This indicates that DHC is financially healthy and has no problem in meeting its short term obligations.

Looking at the Current ratio, with a value of 2.83, DHC belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.

DHC has a Quick Ratio of 2.83. This indicates that DHC is financially healthy and has no problem in meeting its short term obligations.

DHC has a better Quick ratio (2.83) than 90.70% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.83
Quick Ratio	2.83

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 39.62% over the past year.

DHC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.04%.

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)39.62%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%113.89%

Revenue 1Y (TTM)6.04%

Revenue growth 3Y2.63%

Revenue growth 5Y7.53%

Sales Q2Q%4.34%

3.2 Future

The Earnings Per Share is expected to grow by 13.50% on average over the next years. This is quite good.

DHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.67% yearly.

EPS Next Y40.36%

EPS Next 2Y13.5%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year4.86%

Revenue Next 2Y5.67%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for DHC. In the last year negative earnings were reported.

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 ratio is a bit more expensive when compared to the industry. DHC is more expensive than 61.24% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	15.17

4.3 Compensation for Growth

DHC's earnings are expected to grow with 13.50% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y13.5%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

DHC has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.

With a Dividend Yield of 1.32, DHC pays less dividend than the industry average, which is at 6.61. 92.25% of the companies listed in the same industry pay a better dividend than DHC!

With a Dividend Yield of 1.32, DHC pays less dividend than the S&P500 average, which is at 2.36.

		Industry Rank	Sector Rank
Dividend Yield	1.32%

5.2 History

The dividend of DHC decreases each year by -45.60%.

DHC has been paying a dividend for at least 10 years, so it has 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

The earnings of DHC are negative and hence is the payout ratio. DHC will probably not be able to sustain this dividend level.

DP-2.6%

EPS Next 2Y13.5%

EPS Next 3YN/A

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DIVERSIFIED HEALTHCARE TRUST

NASDAQ:DHC (5/22/2025, 5:20:01 PM)

After market: 3.01 0 (0%)

3.01

-0.13 (-4.14%)

Chartmill FA Rating

GICS SectorReal Estate

GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)

GICS IndustryDiversified REITs

Earnings (Last)05-05 2025-05-05/amc

Earnings (Next)07-30 2025-07-30/amc

Inst Owners75.97%

Inst Owner Change2.44%

Ins Owners0.35%

Ins Owner ChangeN/A

Market Cap726.22M

Analysts48

Price Target3.32 (10.3%)

Short Float %2.73%

Short Ratio6.75

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1.32%

Yearly Dividend0.04

Dividend Growth(5Y)-45.6%

DP-2.6%

Div Incr Years0

Div Non Decr Years3

Ex-Date04-22 2025-04-22 (0.01)

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)42.35%

Min EPS beat(2)-22.91%

Max EPS beat(2)107.62%

EPS beat(4)1

Avg EPS beat(4)8.41%

Min EPS beat(4)-27.3%

Max EPS beat(4)107.62%

EPS beat(8)3

Avg EPS beat(8)6.67%

EPS beat(12)3

Avg EPS beat(12)-9.02%

EPS beat(16)4

Avg EPS beat(16)-13.17%

Revenue beat(2)1

Avg Revenue beat(2)-0.56%

Min Revenue beat(2)-2.43%

Max Revenue beat(2)1.32%

Revenue beat(4)1

Avg Revenue beat(4)-0.81%

Min Revenue beat(4)-2.43%

Max Revenue beat(4)1.32%

Revenue beat(8)3

Avg Revenue beat(8)-0.59%

Revenue beat(12)4

Avg Revenue beat(12)-0.89%

Revenue beat(16)4

Avg Revenue beat(16)-1.46%

PT rev (1m)62.5%

PT rev (3m)62.5%

EPS NQ rev (1m)0%

EPS NQ rev (3m)12%

EPS NY rev (1m)20.51%

EPS NY rev (3m)32.61%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)2.41%

Revenue NY rev (1m)0.13%

Revenue NY rev (3m)0.38%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S	0.49
P/FCF	N/A
P/OCF	6.47
P/B	0.37
P/tB	0.37
EV/EBITDA	15.17

EPS(TTM)-0.64

EYN/A

EPS(NY)-0.75

Fwd EYN/A

FCF(TTM)-0.37

FCFYN/A

OCF(TTM)0.47

OCFY15.45%

SpS6.2

BVpS8.12

TBVpS8.12

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-7.21%
ROE	-18.9%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	N/A
GM	17.31%
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

ROICexcg growth 3YN/A

ROICexcg 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-Score5

Asset Turnover0.29

Health

		Industry Rank	Sector Rank
Debt/Equity	1.49
Debt/FCF	N/A
Debt/EBITDA	12.53
Cap/Depr	70.78%
Cap/Sales	13.49%
Interest Coverage	N/A
Cash Conversion	48.3%
Profit Quality	N/A
Current Ratio	2.83
Quick Ratio	2.83
Altman-Z	-0.3

F-Score5

WACC6.17%

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)39.62%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%113.89%

EPS Next Y40.36%

EPS Next 2Y13.5%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)6.04%

Revenue growth 3Y2.63%

Revenue growth 5Y7.53%

Sales Q2Q%4.34%

Revenue Next Year4.86%

Revenue Next 2Y5.67%

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y28.99%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year365.69%

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y60.15%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y970.52%

OCF growth 3YN/A

OCF growth 5Y-15.84%

DIVERSIFIED HEALTHCARE TRUST (DHC) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens