SEVEN HILLS REALTY TRUST (SEVN) Stock Fundamental Analysis
USA - NASDAQ:SEVN - US81784E1010 - REIT
10.9 USD
-0.07 (-0.64%)
10.9 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SEVN. SEVN was compared to 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and the financial health of SEVN get a neutral evaluation. Nothing too spectacular is happening here. SEVN is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SEVN was profitable.
SEVN had a positive operating cash flow in the past year.
1.2 Ratios
SEVN's Return On Assets of 2.24% is amongst the best of the industry. SEVN outperforms 95.52% of its industry peers.
SEVN has a Return On Equity of 5.76%. This is amongst the best in the industry. SEVN outperforms 88.06% of its industry peers.
SEVN's Return On Invested Capital of 2.61% is amongst the best of the industry. SEVN outperforms 91.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SEVN is in line with the industry average of 1.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 5.76% | ||
| ROIC | 2.61% |
ROA(3y)3.26%
ROA(5y)N/A
ROE(3y)8.74%
ROE(5y)N/A
ROIC(3y)3.21%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 25.13%, SEVN belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
In the last couple of years the Profit Margin of SEVN has declined.
With an excellent Operating Margin value of 29.42%, SEVN belongs to the best of the industry, outperforming 88.06% of the companies in the same industry.
SEVN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 44.45%, SEVN belongs to the top of the industry, outperforming 85.07% of the companies in the same industry.
SEVN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.42% | ||
| PM (TTM) | 25.13% | ||
| GM | 44.45% |
OM growth 3Y-24.9%
OM growth 5YN/A
PM growth 3Y-27.5%
PM growth 5YN/A
GM growth 3Y-18.3%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SEVN is destroying value.
SEVN has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, SEVN has an improved debt to assets ratio.
2.2 Solvency
SEVN has an Altman-Z score of 0.30. This is a bad value and indicates that SEVN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.30, SEVN belongs to the top of the industry, outperforming 83.58% of the companies in the same industry.
The Debt to FCF ratio of SEVN is 21.01, which is on the high side as it means it would take SEVN, 21.01 years of fcf income to pay off all of its debts.
SEVN has a Debt to FCF ratio of 21.01. This is amongst the best in the industry. SEVN outperforms 95.52% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that SEVN has dependencies on debt financing.
SEVN's Debt to Equity ratio of 1.04 is amongst the best of the industry. SEVN outperforms 94.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 21.01 | ||
| Altman-Z | 0.3 |
ROIC/WACC0.38
WACC6.82%
2.3 Liquidity
A Current Ratio of 0.34 indicates that SEVN may have some problems paying its short term obligations.
The Current ratio of SEVN (0.34) is better than 61.19% of its industry peers.
A Quick Ratio of 0.34 indicates that SEVN may have some problems paying its short term obligations.
SEVN has a Quick ratio of 0.34. This is in the better half of the industry: SEVN outperforms 61.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
SEVN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.55%.
Measured over the past years, SEVN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.07% on average per year.
The Revenue for SEVN has decreased by -16.74% in the past year. This is quite bad
SEVN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.36% yearly.
EPS 1Y (TTM)-13.55%
EPS 3Y-18.07%
EPS 5YN/A
EPS Q2Q%-18.42%
Revenue 1Y (TTM)-16.74%
Revenue growth 3Y23.36%
Revenue growth 5YN/A
Sales Q2Q%-21.18%
3.2 Future
The Earnings Per Share is expected to decrease by -12.03% on average over the next years. This is quite bad
The Revenue is expected to decrease by -11.41% on average over the next years. This is quite bad
EPS Next Y-15.59%
EPS Next 2Y-12.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-16.79%
Revenue Next 2Y-11.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.13, the valuation of SEVN can be described as very reasonable.
80.60% of the companies in the same industry are more expensive than SEVN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, SEVN is valued rather cheaply.
SEVN is valuated reasonably with a Price/Forward Earnings ratio of 9.71.
Based on the Price/Forward Earnings ratio, SEVN is valued a bit cheaper than 61.19% of the companies in the same industry.
SEVN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SEVN indicates a rather cheap valuation: SEVN is cheaper than 95.52% of the companies listed in the same industry.
83.58% of the companies in the same industry are more expensive than SEVN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.22 | ||
| EV/EBITDA | 27.86 |
4.3 Compensation for Growth
The decent profitability rating of SEVN may justify a higher PE ratio.
A cheap valuation may be justified as SEVN's earnings are expected to decrease with -12.03% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.21%, SEVN is a good candidate for dividend investing.
SEVN's Dividend Yield is comparable with the industry average which is at 11.13.
SEVN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.21% |
5.2 History
SEVN has paid a dividend for at least 10 years, which is a reliable track record.
SEVN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
135.54% of the earnings are spent on dividend by SEVN. This is not a sustainable payout ratio.
DP135.54%
EPS Next 2Y-12.03%
EPS Next 3YN/A
10.9
-0.07 (-0.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners43.51%
Inst Owner Change-0.86%
Ins Owners2.71%
Ins Owner Change9.58%
Market Cap162.85M
Analysts84.44
Price Target13.26 (21.65%)
Short Float %2.05%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.21% |
Yearly Dividend1.4
Dividend Growth(5Y)N/A
DP135.54%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.66%
Min EPS beat(2)-11.48%
Max EPS beat(2)4.17%
EPS beat(4)1
Avg EPS beat(4)-3.52%
Min EPS beat(4)-11.48%
Max EPS beat(4)4.17%
EPS beat(8)4
Avg EPS beat(8)1.06%
EPS beat(12)7
Avg EPS beat(12)5.01%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-8.16%
Min Revenue beat(2)-8.43%
Max Revenue beat(2)-7.89%
Revenue beat(4)2
Avg Revenue beat(4)16.66%
Min Revenue beat(4)-8.43%
Max Revenue beat(4)78.4%
Revenue beat(8)6
Avg Revenue beat(8)10.55%
Revenue beat(12)10
Avg Revenue beat(12)28.32%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-10.34%
EPS NQ rev (1m)-14.5%
EPS NQ rev (3m)-20.83%
EPS NY rev (1m)-12.2%
EPS NY rev (3m)-15.49%
Revenue NQ rev (1m)-10.86%
Revenue NQ rev (3m)-12.63%
Revenue NY rev (1m)-8.33%
Revenue NY rev (3m)-8.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 9.71 | ||
| P/S | 2.66 | ||
| P/FCF | 8.22 | ||
| P/OCF | 8.22 | ||
| P/B | 0.61 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 27.86 |
EPS(TTM)1.34
EY12.29%
EPS(NY)1.12
Fwd EY10.29%
FCF(TTM)1.33
FCFY12.16%
OCF(TTM)1.33
OCFY12.16%
SpS4.1
BVpS17.87
TBVpS17.87
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 5.76% | ||
| ROCE | 3.3% | ||
| ROIC | 2.61% | ||
| ROICexc | 2.85% | ||
| ROICexgc | 2.93% | ||
| OM | 29.42% | ||
| PM (TTM) | 25.13% | ||
| GM | 44.45% | ||
| FCFM | 32.36% |
ROA(3y)3.26%
ROA(5y)N/A
ROE(3y)8.74%
ROE(5y)N/A
ROIC(3y)3.21%
ROIC(5y)N/A
ROICexc(3y)3.7%
ROICexc(5y)N/A
ROICexgc(3y)3.79%
ROICexgc(5y)N/A
ROCE(3y)4.07%
ROCE(5y)N/A
ROICexcg growth 3Y9.49%
ROICexcg growth 5YN/A
ROICexc growth 3Y8%
ROICexc growth 5YN/A
OM growth 3Y-24.9%
OM growth 5YN/A
PM growth 3Y-27.5%
PM growth 5YN/A
GM growth 3Y-18.3%
GM growth 5YN/A
F-Score4
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 21.01 | ||
| Debt/EBITDA | 14.54 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.64 | ||
| Cash Conversion | 103.32% | ||
| Profit Quality | 128.81% | ||
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 0.3 |
F-Score4
WACC6.82%
ROIC/WACC0.38
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)79.63%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.55%
EPS 3Y-18.07%
EPS 5YN/A
EPS Q2Q%-18.42%
EPS Next Y-15.59%
EPS Next 2Y-12.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-16.74%
Revenue growth 3Y23.36%
Revenue growth 5YN/A
Sales Q2Q%-21.18%
Revenue Next Year-16.79%
Revenue Next 2Y-11.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-28.66%
EBIT growth 3Y-7.35%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y9.72%
FCF growth 3Y194.17%
FCF growth 5YN/A
OCF growth 1Y9.72%
OCF growth 3Y194.17%
OCF growth 5YN/A