DIVERSIFIED HEALTHCARE TRUST (DHC) Stock Fundamental Analysis
USA - NASDAQ:DHC - US25525P1075 - REIT
4.3 USD
0 (0%)
4.3 USD
0 (0%)
We assign a fundamental rating of 2 out of 10 to DHC. DHC was compared to 127 industry peers in the Diversified REITs industry. Both the profitability and financial health of DHC have multiple concerns. DHC is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DHC has reported negative net income.
In the past year DHC had a positive cash flow from operations.
In the past 5 years DHC reported 4 times negative net income.
In multiple years DHC reported negative operating cash flow during the last 5 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.
With a Return On Equity value of -15.46%, DHC is not doing good in the industry: 79.53% of the companies in the same industry are doing better.
| 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
The Gross Margin of DHC (17.80%) is worse than 92.91% of its industry peers.
In the last couple of years the Gross Margin of DHC has declined.
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.
The number of shares outstanding for DHC has been increased compared to 5 years ago.
DHC has a worse debt/assets ratio than last year.
2.2 Solvency
DHC has an Altman-Z score of -0.28. This is a bad value and indicates that DHC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.28, DHC is doing worse than 81.89% of the companies in the same industry.
A Debt/Equity ratio of 1.42 is on the high side and indicates that DHC has dependencies on debt financing.
DHC has a Debt to Equity ratio (1.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.28 |
ROIC/WACCN/A
WACC6.24%
2.3 Liquidity
DHC has a Current Ratio of 3.37. This indicates that DHC is financially healthy and has no problem in meeting its short term obligations.
DHC has a better Current ratio (3.37) than 92.91% of its industry peers.
A Quick Ratio of 3.37 indicates that DHC has no problem at all paying its short term obligations.
The Quick ratio of DHC (3.37) is better than 92.91% of its industry peers.
| 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 39.64%, which is quite impressive.
DHC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.29%.
DHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.53% yearly.
EPS 1Y (TTM)39.64%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-8.57%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y2.63%
Revenue growth 5Y7.53%
Sales Q2Q%3.05%
3.2 Future
The Earnings Per Share is expected to grow by 17.25% on average over the next years. This is quite good.
Based on estimates for the next years, DHC will show a small growth in Revenue. The Revenue will grow by 3.37% on average per year.
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
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.83 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DHC's earnings are expected to grow with 17.25% in the coming years.
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 0.93%, DHC is not a good candidate for dividend investing.
With a Dividend Yield of 0.93, DHC pays less dividend than the industry average, which is at 6.15. 92.13% of the companies listed in the same industry pay a better dividend than DHC!
With a Dividend Yield of 0.93, DHC pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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
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
4.3
0 (0%)
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 Change0.18%
Ins Owners0.48%
Ins Owner Change-8.52%
Market Cap1.04B
Revenue(TTM)1.52B
Net Income(TTM)-286760000
Analysts48
Price Target4.34 (0.93%)
Short Float %2.5%
Short Ratio7.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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 | 0.68 | ||
| P/FCF | N/A | ||
| P/OCF | 11.65 | ||
| P/B | 0.56 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | 14.83 |
EPS(TTM)-0.67
EYN/A
EPS(NY)-0.66
Fwd EYN/A
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)0.37
OCFY8.58%
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
WACC6.24%
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)39.64%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-8.57%
EPS Next Y20.64%
EPS Next 2Y17.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.29%
Revenue growth 3Y2.63%
Revenue growth 5Y7.53%
Sales Q2Q%3.05%
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.