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Diversified Healthcare Trust has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Diversified Healthcare Trust displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Diversified Healthcare Trust's Interest Coverage for the quarter that ended in Jun. 2026 was 0.07.
Diversified Healthcare Trust's debt to revenue ratio for the quarter that ended in Jun. 2026 was 1.64.
As of today, Diversified Healthcare Trust's Altman Z-Score is -0.24.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Diversified Healthcare Trust has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Diversified Healthcare Trust Financial Strength Related Terms
DHC vs LTC, MPT, NHP: Financial Strength Comparison
For the REIT - Healthcare Facilities subindustry, Diversified Healthcare Trust's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs REITs Industry
For the REITs industry and Real Estate sector, Diversified Healthcare Trust's Financial Strength distribution charts can be found below:
* The bar in red indicates where Diversified Healthcare Trust's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Diversified Healthcare Trust has a Z-score of -0.24, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -0.24 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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 (DHC) has a Financial Strength of 3 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Diversified Healthcare Trust and its competitors. This is near median its historical median of 3.00. Over the past decade, Diversified Healthcare Trust's Financial Strength has ranged from 3.00 to 5.00.
Is Diversified Healthcare Trust's Financial Strength too high?
Diversified Healthcare Trust's current Financial Strength of 3 is near median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 5.00. Overall, Diversified Healthcare Trust has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Diversified Healthcare Trust's Financial Strength compare to LTC and MPT?
Diversified Healthcare Trust's Financial Strength of 3 can be compared against companies in the REITs industry. Historically, Diversified Healthcare Trust's own Financial Strength has ranged from 3.00 to 5.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a REITs company?
A good Financial Strength depends on the REITs industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Diversified Healthcare Trust and its competitors. Diversified Healthcare Trust's current Financial Strength is 3, which is near median its own 10-year median of 3.00. 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 $3.33, compared to a current price of $8.83 — trading 165.2% above its estimated fair value. The current Financial Strength is 3, which is near median its 10-year median of 3.00. Diversified Healthcare Trust's overall GF Score™ is 46/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Diversified Healthcare Trust (DHC), the current Financial Strength is 3 as of Jun. 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 $8.83 is trading 165.2% above its estimated GF Value™ of $3.33.
GuruFocus considers Diversified Healthcare Trust to be Significantly Overvalued.
Key valuation signals for DHC:
Financial Strength: 3 (near median its 10-year median of 3.00)
GF Value™: $3.33 vs. price of $8.83 (165.2% above fair value)
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 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.
46GF Score
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