Fundamental analysis: Diversified Healthcare Trust (DHC)

Awarener score: 6.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Lacking) and growth (Lacking), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 4.0

Business has been slightly shrinking. It's been encouraging in relation to peer companies.
Diversified Healthcare Trust business shows some variation, there's some risk. It looks bottom tier against rivals.

Margins score: 6.8

DHC profit margins -on goods and services sold- are usually hardly sufficient. They stand bottom tier against rival companies.
Business profit on sales tends to be very good. It's last-in-rank when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain a disappointment compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still bottom tier against similar companies.
Profits -before income taxes- are usually hardly sufficient considering total sales, and remain last-in-rank when measured against rivals.
Total net profit tends to be sufficient when confronted to sales. Company stands last-in-rank when measured against comparable firms.

Growth score: 1.3

Diversified Healthcare Trust profit -on goods and services sold- has been shrinking. It's been in a very weak position compared to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
Profits -available to repay debt and purchase properties- tended to shrink, which compares substantially worse when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 1.0

DHC had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 5.5

Diversified Healthcare Trust usually gets sufficient returns on the resources it controls. It proves last-in-rank when measured against peer firms.
The company normally gets hardly sufficient proceeds -on the resources directly invested in the business-. They remain a disappointment compared to similar companies.
Profitability -in relation to owned resources- is usually modest. It ranks last-in-rank when measured against competitors.
In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's last-in-rank when measured against comparable enterprises.

Usage of Funds score: 4.4

DHC usually uses almost no genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is non-significant. It stands last-in-rank when measured against rival firms.
The company is usually not replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is weak when measured against industry peers.
In the past twelve months it paid some dividends, considering the current stock price. It came worse than most competitors.
In recent years, has greatly cut back dividend payments. It could be enduring difficult times. The company has behaved a disappointment compared to similar firms.
The company pays more dividends than genuine funds is usually able to generate, therefore borrowing more funds. Future payments may be at risk, especially if a downturn in business occurs. Sustainability looks worse than most comparable companies.
The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
The company uses a lot more funds to reward investors than it can genuinely generate, so they're paid out of existing cash or by borrowing money, both of which will eventually reach a limit. Either business improves, or rewards won't keep at current pace. It still looks substantially worse when measured against competitors.

Balance Sheet score: 5.7

Diversified Healthcare Trust intangible assets (like brands and goodwill) represent a non-significant portion of resources controlled, according to accounting books, which is safer. It happens to be almost average when measured against peer companies.
The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be rather normal in relation to similar firms.
A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains mediocre against rival firms.
Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks similar to rivals.
For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's close to average when compared to peer firms.
For every dollar of short-term obligations, the company has roughly another of cash and equivalents, which is well ranked against similar enterprises.
Usually, sales are mostly on cash. It still ranks similar to peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes less than one month from the purchase to charging customers. It happens to be slightly better than peers.
Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's in a weak position compared to similar companies.
Usual business earnings barely cover net interest expenses. Creditors may be earning money by assuming risks, but hardly shareholders. Situation is risky, profitability must increase, or additional stockholders' funding will eventually be required. It stands worse than most rival firms.
Business earnings have usually been low when measured against loans taken. Even cutting back reinvesting in the business, it could take more than seven years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
Fixed assets turnover remains undisclosed. It looks we cannot relate it to similar firms.
Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 5.6

Diversified Healthcare Trust reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains impressive in relation to peers.
In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could get, it reinvested in the business, which stands bottom tier against similar companies.
The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still substantially worse when measured against industry firms.
In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up in a weak position compared to peer ventures.
The company is drowned in loans. It almost belongs more to the creditors than the stockholders. The situation may be dire. It looks bottom tier against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks impressive in relation to rival firms.
The stock price is significantly below the accounting book value. Unless profitability is extremely low, the stock may be selling at a large discount. Pay attention to the other key indicators for hints. The company remains top-notch against peer firms.
In the past twelve months, the operating business lost some money. It happens to be last-in-rank when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still impressive in relation to peer companies.

Total score: 4.3

Company at a glance: Diversified Healthcare Trust (DHC)

Sector, industry: Real Estate, REIT—Healthcare Facilities

Market Cap: 0.41 billions

Revenues TTM: 1.28 billions

DHC is a real estate investment trust, or REIT, that owns medical office and life science properties, senior living communities and wellness centers throughout the United States. DHC is managed by the operating subsidiary of The RMR Group Inc., an alternative asset management company that is headquartered in Newton, MA.