SEVEN HILLS REALTY TRUST (SEVN) Stock Fundamental Analysis
USA - NASDAQ:SEVN - US81784E1010 - REIT
10.5 USD
+0.14 (+1.35%)
10.5 USD
0 (0%)
SEVN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. SEVN has an average financial health and profitability rating. SEVN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SEVN had positive earnings in the past year.
In the past year SEVN had a positive cash flow from operations.
1.2 Ratios
With an excellent Return On Assets value of 2.24%, SEVN belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
SEVN's Return On Equity of 5.76% is amongst the best of the industry. SEVN outperforms 87.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.61%, SEVN belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
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
With an excellent Profit Margin value of 25.13%, SEVN belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
SEVN's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 29.42%, SEVN belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
In the last couple of years the Operating Margin of SEVN has declined.
SEVN has a Gross Margin of 44.45%. This is amongst the best in the industry. SEVN outperforms 84.85% of its industry peers.
In the last couple of years the Gross Margin of SEVN has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SEVN is destroying value.
The number of shares outstanding for SEVN has been increased compared to 1 year ago.
The debt/assets ratio for SEVN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.29, we must say that SEVN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.29, SEVN belongs to the top of the industry, outperforming 84.85% 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.
Looking at the Debt to FCF ratio, with a value of 21.01, SEVN belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
SEVN has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.04, SEVN belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 21.01 | ||
| Altman-Z | 0.29 |
ROIC/WACC0.39
WACC6.65%
2.3 Liquidity
SEVN has a Current Ratio of 0.34. This is a bad value and indicates that SEVN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SEVN (0.34) is better than 62.12% of its industry peers.
A Quick Ratio of 0.34 indicates that SEVN may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.34, SEVN is doing good in the industry, outperforming 62.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The earnings per share for SEVN have decreased strongly by -13.55% in the last year.
The earnings per share for SEVN have been decreasing by -18.07% on average. This is quite bad
The Revenue for SEVN has decreased by -16.74% in the past year. This is quite bad
Measured over the past years, SEVN shows a very strong growth in Revenue. The Revenue has been growing by 23.36% on average per year.
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
Based on estimates for the next years, SEVN will show a very negative growth in Earnings Per Share. The EPS will decrease by -12.03% on average per year.
SEVN is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -11.41% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
SEVN is valuated cheaply with a Price/Earnings ratio of 7.84.
Based on the Price/Earnings ratio, SEVN is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.69. SEVN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.36, the valuation of SEVN can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as SEVN.
When comparing the Price/Forward Earnings ratio of SEVN to the average of the S&P500 Index (23.18), we can say SEVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.84 | ||
| Fwd PE | 9.36 |
4.2 Price Multiples
95.45% of the companies in the same industry are more expensive than SEVN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SEVN is valued a bit cheaper than 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.92 | ||
| EV/EBITDA | 27.38 |
4.3 Compensation for Growth
SEVN has a very decent profitability rating, which 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 10.98%, SEVN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.08, SEVN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, SEVN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.98% |
5.2 History
SEVN has been paying a dividend for at least 10 years, so it has 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
10.5
+0.14 (+1.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners43.53%
Inst Owner Change0%
Ins Owners2.96%
Ins Owner Change15.13%
Market Cap156.87M
Analysts84.44
Price Target13.26 (26.29%)
Short Float %1.66%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.98% |
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)2.92%
EPS NQ rev (3m)-14.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.84 | ||
| Fwd PE | 9.36 | ||
| P/S | 2.56 | ||
| P/FCF | 7.92 | ||
| P/OCF | 7.92 | ||
| P/B | 0.59 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 27.38 |
EPS(TTM)1.34
EY12.76%
EPS(NY)1.12
Fwd EY10.69%
FCF(TTM)1.33
FCFY12.62%
OCF(TTM)1.33
OCFY12.62%
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 | 0.29 |
F-Score4
WACC6.65%
ROIC/WACC0.39
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