MeritValue

DIVERSIFIED HEALTHCARE TRUST

DHCdata completeness 100%18 fiscal years on file
The thesis, from the filings

DIVERSIFIED HEALTHCARE TRUST earns about 3% on invested capital, with a roughly flat share count. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.38B1$1.28B2$1.41B3$1.5B3$1.54B3
Net income$174.5M4−$15.8M5−$293.6M6−$370.3M6−$285.9M6
Operating cash flow−$63.3M7−$40.4M8$10.5M9$112.2M9−$19.6M9
Capital expenditure$227.6M10$299.4M11$235M12$201.7M12$146.8M12
Free cash flow (derived)−$290.9M7−$339.7M8−$224.5M9−$89.5M9−$166.4M9
Total debt———$3.05B13$2.44B14
Cash & equivalents$634.8M15$658.1M16$245.9M17$144.6M17$105.4M17
Diluted shares238.0M238.3M238.8M239.5M240.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$69.32
your share of equity
Profit it earned you last year
−$11.9
Free cash flow it threw off
−$6.93
Debt you’d be carrying
$101.72

10 shares is a claim on $69.32 of net worth that earned you −$11.9 and generated −$6.93 of cash last year, against $101.72 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
3% avg · 5y
FY21 21%FY22 8%FY23 -3%FY24 -6%FY25 -6%

It earned an average 3% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has fallen 20% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001075415-24-000007 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001075415-25-000012 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001075415-26-000013 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001075415-24-000007 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001075415-25-000012 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001075415-26-000013 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001075415-24-000007 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001075415-25-000012 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001075415-26-000013 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001075415-24-000007 (PaymentsForCapitalImprovements)
  11. 10-K · period ending 2022-12-31 · accession 0001075415-25-000012 (PaymentsForCapitalImprovements)
  12. 10-K · period ending 2023-12-31 · accession 0001075415-26-000013 (PaymentsForCapitalImprovements)
  13. 10-K · period ending 2024-12-31 · accession 0001075415-25-000012 (LongTermDebt)
  14. 10-K · period ending 2025-12-31 · accession 0001075415-26-000013 (LongTermDebt)
  15. 10-K · period ending 2021-12-31 · accession 0001075415-24-000007 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-12-31 · accession 0001075415-25-000012 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-12-31 · accession 0001075415-26-000013 (CashAndCashEquivalentsAtCarryingValue)