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DIVERSIFIED HEALTHCARE TRUST (DHC) Stock Fundamental Analysis

NASDAQ:DHC - Nasdaq - US25525P1075 - REIT - Currency: USD

2.48  -0.14 (-5.34%)

After market: 2.51 +0.03 (+1.21%)

Fundamental Rating

2

Taking everything into account, DHC scores 2 out of 10 in our fundamental rating. DHC was compared to 128 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.


Dividend Valuation Growth Profitability Health

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1

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.
The reported operating cash flow has been mixed in the past 5 years: DHC reported negative operating cash flow in multiple years.
DHC Yearly Net Income VS EBIT VS OCF VS FCFDHC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M -600M

1.2 Ratios

Looking at the Return On Assets, with a value of -7.29%, DHC is doing worse than 91.27% of the companies in the same industry.
DHC's Return On Equity of -18.81% is on the low side compared to the rest of the industry. DHC is outperformed by 87.30% of its industry peers.
Industry RankSector Rank
ROA -7.29%
ROE -18.81%
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
DHC Yearly ROA, ROE, ROICDHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 -10

1.3 Margins

With a Gross Margin value of 17.10%, DHC is not doing good in the industry: 95.24% of the companies in the same industry are doing better.
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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 17.1%
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%
DHC Yearly Profit, Operating, Gross MarginsDHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

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3

2. Health

2.1 Basic Checks

DHC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for DHC has been increased compared to 1 year ago.
DHC has more shares outstanding than it did 5 years ago.
DHC has a worse debt/assets ratio than last year.
DHC Yearly Shares OutstandingDHC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
DHC Yearly Total Debt VS Total AssetsDHC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of -0.29, we must say that DHC is in the distress zone and has some risk of bankruptcy.
DHC's Altman-Z score of -0.29 is on the low side compared to the rest of the industry. DHC is outperformed by 85.71% of its industry peers.
DHC has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.44, DHC is not doing good in the industry: 60.32% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.44
Debt/FCF N/A
Altman-Z -0.29
ROIC/WACCN/A
WACC6.89%
DHC Yearly LT Debt VS Equity VS FCFDHC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 5.85 indicates that DHC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.85, DHC belongs to the top of the industry, outperforming 96.03% of the companies in the same industry.
A Quick Ratio of 5.85 indicates that DHC has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.85, DHC belongs to the best of the industry, outperforming 96.03% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 5.85
Quick Ratio 5.85
DHC Yearly Current Assets VS Current LiabilitesDHC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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3

3. Growth

3.1 Past

DHC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.23%.
DHC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.62%.
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)-47.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-33.33%
Revenue 1Y (TTM)6.62%
Revenue growth 3Y-4.75%
Revenue growth 5Y4.77%
Sales Q2Q%4.8%

3.2 Future

The Earnings Per Share is expected to grow by 5.26% on average over the next years.
DHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.77% yearly.
EPS Next Y-61.26%
EPS Next 2Y-0.46%
EPS Next 3Y5.26%
EPS Next 5YN/A
Revenue Next Year5.41%
Revenue Next 2Y4.93%
Revenue Next 3Y5.77%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
DHC Yearly Revenue VS EstimatesDHC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
DHC Yearly EPS VS EstimatesDHC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 -1

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0

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for DHC. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for DHC. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
DHC Price Earnings VS Forward Price EarningsDHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60

4.2 Price Multiples

DHC's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 15.02
DHC Per share dataDHC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.46%
EPS Next 3Y5.26%

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2

5. Dividend

5.1 Amount

DHC has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.53, DHC pays less dividend than the industry average, which is at 18.31. 90.48% of the companies listed in the same industry pay a better dividend than DHC!
Compared to the average S&P500 Dividend Yield of 2.27, DHC is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.53%

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.
DHC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-51.94%
Div Incr Years0
Div Non Decr Years3
DHC Yearly Dividends per shareDHC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

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-2.5%
EPS Next 2Y-0.46%
EPS Next 3Y5.26%
DHC Yearly Income VS Free CF VS DividendDHC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M -400M -600M

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DIVERSIFIED HEALTHCARE TRUST

NASDAQ:DHC (2/21/2025, 8:13:54 PM)

After market: 2.51 +0.03 (+1.21%)

2.48

-0.14 (-5.34%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-04 2024-11-04/amc
Earnings (Next)02-25 2025-02-25/amc
Inst Owners75.97%
Inst Owner Change-98.98%
Ins Owners0.35%
Ins Owner ChangeN/A
Market Cap598.37M
Analysts44.44
Price Target2.04 (-17.74%)
Short Float %3.15%
Short Ratio6.26
Dividend
Industry RankSector Rank
Dividend Yield 1.53%
Yearly Dividend0.04
Dividend Growth(5Y)-51.94%
DP-2.5%
Div Incr Years0
Div Non Decr Years3
Ex-Date01-27 2025-01-27 (0.01)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)41.93%
Min EPS beat(2)-23.76%
Max EPS beat(2)107.62%
EPS beat(4)1
Avg EPS beat(4)-3.44%
Min EPS beat(4)-70.3%
Max EPS beat(4)107.62%
EPS beat(8)3
Avg EPS beat(8)9.18%
EPS beat(12)3
Avg EPS beat(12)-12.53%
EPS beat(16)5
Avg EPS beat(16)-7.46%
Revenue beat(2)0
Avg Revenue beat(2)-1.81%
Min Revenue beat(2)-2.43%
Max Revenue beat(2)-1.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)-0.84%
Revenue beat(8)3
Avg Revenue beat(8)-0.62%
Revenue beat(12)3
Avg Revenue beat(12)-1.06%
Revenue beat(16)3
Avg Revenue beat(16)-1.67%
PT rev (1m)-42.86%
PT rev (3m)-50%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.41
P/FCF N/A
P/OCF 6.89
P/B 0.29
P/tB 0.29
EV/EBITDA 15.02
EPS(TTM)-1.12
EYN/A
EPS(NY)-0.93
Fwd EYN/A
FCF(TTM)-0.48
FCFYN/A
OCF(TTM)0.36
OCFY14.51%
SpS6.12
BVpS8.49
TBVpS8.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -7.29%
ROE -18.81%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 17.1%
FCFM 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
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-11.61%
GM growth 5Y-22.42%
F-Score6
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 1.44
Debt/FCF N/A
Debt/EBITDA 13.46
Cap/Depr 69.24%
Cap/Sales 13.64%
Interest Coverage N/A
Cash Conversion 39.68%
Profit Quality N/A
Current Ratio 5.85
Quick Ratio 5.85
Altman-Z -0.29
F-Score6
WACC6.89%
ROIC/WACCN/A
Cap/Depr(3y)107.73%
Cap/Depr(5y)97.46%
Cap/Sales(3y)20.76%
Cap/Sales(5y)20.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-47.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-33.33%
EPS Next Y-61.26%
EPS Next 2Y-0.46%
EPS Next 3Y5.26%
EPS Next 5YN/A
Revenue 1Y (TTM)6.62%
Revenue growth 3Y-4.75%
Revenue growth 5Y4.77%
Sales Q2Q%4.8%
Revenue Next Year5.41%
Revenue Next 2Y4.93%
Revenue Next 3Y5.77%
Revenue Next 5YN/A
EBIT growth 1Y-20.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year378.31%
EBIT Next 3Y75.54%
EBIT Next 5YN/A
FCF growth 1Y74.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y199.71%
OCF growth 3Y-59.56%
OCF growth 5Y-51.55%