MeritValue

Seven Hills Realty Trust

SEVNdata completeness 75%6 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'totalDebt'

The thesis, from the filings

Seven Hills Realty Trust earns about 17% on invested capital, but has diluted owners by 35% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $16.76 a share.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—$38.4M1$38.2M2$35.3M3$29.4M3
Net income$24.7M4$27.6M5$26M6$17.8M7$15.4M7
Operating cash flow$792,0008$12.8M9$20.3M10$20.1M11$15M11
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$26.2M12$71.1M13$87.9M14$70.8M15$123.5M15
Diluted shares11.3M14.5M14.6M14.7M15.2M

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
$215.65
your share of equity
Profit it earned you last year
$10.13
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $215.65 of net worth that earned you $10.13 last year.

iii. Is this a good business?
Moat signal · return on invested capital
17% avg · 5y
FY21 12%FY22 23%FY23 32%FY24 9%FY25 8%

It earned an average 17% 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
+35% shares · 5y

Share count is up 35% over 5 years — owners have been diluted. Worth asking what they got for it.

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
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$16.76
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$24.7M
  • growthAssumed0.0%
Graham Number
$22.03
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-12-31 · accession 0001452477-24-000011 (Revenues)
  2. 10-K · period ending 2023-12-31 · accession 0001452477-25-000014 (Revenues)
  3. 10-K · period ending 2024-12-31 · accession 0001452477-26-000010 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0001452477-23-000011 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001452477-24-000011 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001452477-25-000014 (NetIncomeLoss)
  7. 10-K · period ending 2024-12-31 · accession 0001452477-26-000010 (NetIncomeLoss)
  8. 10-K · period ending 2021-12-31 · accession 0001452477-23-000011 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-12-31 · accession 0001452477-24-000011 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-12-31 · accession 0001452477-25-000014 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2024-12-31 · accession 0001452477-26-000010 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2021-12-31 · accession 0001452477-23-000011 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2022-12-31 · accession 0001452477-24-000011 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2023-12-31 · accession 0001452477-25-000014 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2024-12-31 · accession 0001452477-26-000010 (CashAndCashEquivalentsAtCarryingValue)