DHC (Diversified Healthcare Trust) Beneish M-Score: -2.80 (As of Jun. 25, 2026)

What is Diversified Healthcare Trust Beneish M-Score?

Diversified Healthcare Trust DHC +2.52% 56 Beneish M-Score is -2.80 as of Jun. 25, 2026. GuruFocus rates DHC with a GF Score™ of 56/100 and a GF Value™ of $3.20 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 765 REITs companies, Diversified Healthcare Trust ranks better than 80.13% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.8 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Diversified Healthcare Trust's Beneish M-Score or its related term are showing as below:

DHC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.37 Med: -2.65 Max: -1.83
Current: -2.8

During the past 13 years, the highest Beneish M-Score of Diversified Healthcare Trust was -1.83. The lowest was -3.37. And the median was -2.65.

Diversified Healthcare Trust Beneish M-Score Related Terms

Diversified Healthcare Trust Beneish M-Score Historical Data

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The historical data trend for Diversified Healthcare Trust's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Diversified Healthcare Trust Beneish M-Score Chart

Diversified Healthcare Trust Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Beneish M-Score

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-2.78

-2.37

-3.03

-3.18

-2.79

Diversified Healthcare Trust Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Beneish M-Score	Get a 7-Day Free Trial															-2.82	-2.83	-2.72	-2.79	-2.80

DHC vs LTC, SILA, MPT: Beneish M-Score Comparison

For the REIT - Healthcare Facilities subindustry, Diversified Healthcare Trust's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Diversified Healthcare Trust Beneish M-Score vs REITs Industry

For the REITs industry and Real Estate sector, Diversified Healthcare Trust's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Diversified Healthcare Trust's Beneish M-Score falls into.

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56GF Score

Diversified Healthcare Trust DHC

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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Diversified Healthcare Trust Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Diversified Healthcare Trust for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1

0.528 * 0.9554

0.404 * 1.0483

0.892 * 1.0039

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.8012

4.679 * -0.038386

0.327 * 1.0052

-2.80

This Year (Mar26) TTM:

Last Year (Mar25) TTM:

Total Receivables was $0 Mil.
Revenue was 366.471 + 379.571 + 388.706 + 382.712 = $1,517 Mil.
Gross Profit was 75.915 + 72.524 + 63.319 + 70.132 = $282 Mil.
Total Current Assets was $140 Mil.
Total Assets was $4,268 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $257 Mil.
Selling, General, & Admin. Expense(SGA) was $51 Mil.
Total Current Liabilities was $26 Mil.
Long-Term Debt & Capital Lease Obligation was $2,402 Mil.
Net Income was -43.275 + -21.221 + -164.04 + -91.639 = $-320 Mil.
Non Operating Income was -4.9 + -0.472 + -104.332 + -38.623 = $-148 Mil.
Cash Flow from Operations was 8.342 + -20.11 + -49.285 + 53.02 = $-8 Mil.

Total Receivables was $0 Mil.
Revenue was 386.864 + 379.619 + 373.64 + 371.392 = $1,512 Mil.
Gross Profit was 72.538 + 64.443 + 63.943 + 67.327 = $268 Mil.
Total Current Assets was $386 Mil.
Total Assets was $4,996 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $283 Mil.
Selling, General, & Admin. Expense(SGA) was $28 Mil.
Total Current Liabilities was $27 Mil.
Long-Term Debt & Capital Lease Obligation was $2,800 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(0 / 1517.46)	/	(0 / 1511.515)
	=	0	/	0
	=	1

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(268.251 / 1511.515)	/	(281.89 / 1517.46)
	=	0.177472	/	0.185764
	=	0.9554

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (139.852 + 0) / 4267.552)	/	(1 - (386.392 + 0) / 4995.843)
	=	0.967229	/	0.922657
	=	1.0483

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	1517.46	/	1511.515
	=	1.0039

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(283.253 / (283.253 + 0))	/	(256.628 / (256.628 + 0))
	=	1	/	1
	=	1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(50.54 / 1517.46)	/	(27.95 / 1511.515)
	=	0.033306	/	0.018491
	=	1.8012

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((2401.576 + 26.078) / 4267.552)	/	((2800.393 + 26.929) / 4995.843)
	=	0.568863	/	0.565935
	=	1.0052

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-320.175 - -148.327	-	-8.033)	/	4267.552
	=	-0.038386

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Diversified Healthcare Trust has a M-score of -2.80 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →

What does a Beneish M-Score of -2.80 mean?

Diversified Healthcare Trust (DHC) has a Beneish M-Score of -2.80 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Diversified Healthcare Trust and its competitors. According to the industry distribution chart, Diversified Healthcare Trust ranks #152 out of 765 companies in the REITs industry, placing it in the top 19.9%.

Is Diversified Healthcare Trust's Beneish M-Score too high?

Diversified Healthcare Trust's current Beneish M-Score is -2.80. Based on the distribution chart, Diversified Healthcare Trust ranks #152 out of 765 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Diversified Healthcare Trust has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Diversified Healthcare Trust's Beneish M-Score compare to LTC and SILA?

According to the REITs industry distribution chart, Diversified Healthcare Trust ranks #152 out of 765 companies for Beneish M-Score. This places Diversified Healthcare Trust in the top 20% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Beneish M-Score for a REITs company?

A good Beneish M-Score depends on the REITs industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Beneish M-Score mean?

A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Diversified Healthcare Trust and its competitors. Diversified Healthcare Trust's current Beneish M-Score is -2.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Diversified Healthcare Trust stock overvalued right now?

Based on GuruFocus' analysis, Diversified Healthcare Trust (DHC) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.20, compared to a current price of $9.37 — trading 192.8% above its estimated fair value. The current Beneish M-Score is -2.80. Diversified Healthcare Trust's overall GF Score™ is 56/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Beneish M-Score calculated?

Beneish M-Score is calculated from a company's financial statements. For Diversified Healthcare Trust (DHC), the current Beneish M-Score is -2.80 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Diversified Healthcare Trust (DHC) Overvalued in 2026?

Based on GuruFocus' analysis, Diversified Healthcare Trust stock appears to be overvalued. The current stock price of $9.37 is trading 192.8% above its estimated GF Value™ of $3.20. GuruFocus considers Diversified Healthcare Trust to be Significantly Overvalued.

Key valuation signals for DHC:

Beneish M-Score: -2.80
GF Value™: $3.20 vs. price of $9.37 (192.8% above fair value)
GF Score™: 56/100 with 7 warning signs

No single metric tells the full story. See the DHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Diversified Healthcare Trust Business Description

Industry Real Estate REITs

Comparable Companies LTC SILA MPT NHP UHT CHCT NHI XRN STRW SBRA WELL VTR OHI DOC AHR CTRE HR XBRU:AED TSX:CSH.UN XBRU:COFB

Other Exchanges SNF:Germany

Address 255 Washington Street, Suite 300, Two Newton Place, Newton, MA, USA, 02458-1634

Website https://www.dhcreit.com

Diversified Healthcare Trust is a real estate investment trust that focuses on healthcare-related properties, including life science estates, medical offices, and senior living communities. It acquires and owns properties and is engaged in the development and implementation of medical services and technologies. The company has two reportable segments: SHOP (Senior Housing Operating Portfolio) and Medical Office and Life Science Portfolio. The SHOP segment includes managed senior living communities providing residential living and care services. The Medical Office and Life Science Portfolio segment consists of properties leased to medical providers and biotechnology laboratories. It generates the majority of its revenue from the SHOP segment.

56GF Score

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Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$9.37

Price

$3.20

GF Value

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