Diversified Healthcare Return On Asset vs. Beta
| DHCNL Stock | USD 15.41 0.79 4.88% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.16 | 0.1675 |
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For Diversified Healthcare profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Diversified Healthcare to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Diversified Healthcare Trust utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Diversified Healthcare's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Diversified Healthcare Trust over time as well as its relative position and ranking within its peers.
Diversified |
Diversified Healthcare's Revenue Breakdown by Earning Segment
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Is Health Care REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Diversified Healthcare. If investors know Diversified will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Diversified Healthcare listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.68) | Revenue Per Share 6.324 | Quarterly Revenue Growth 0.541 | Return On Assets 0.0124 | Return On Equity (0.06) |
The market value of Diversified Healthcare is measured differently than its book value, which is the value of Diversified that is recorded on the company's balance sheet. Investors also form their own opinion of Diversified Healthcare's value that differs from its market value or its book value, called intrinsic value, which is Diversified Healthcare's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Diversified Healthcare's market value can be influenced by many factors that don't directly affect Diversified Healthcare's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Diversified Healthcare's value and its price as these two are different measures arrived at by different means. Investors typically determine if Diversified Healthcare is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Diversified Healthcare's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Diversified Healthcare Beta vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Diversified Healthcare's current stock value. Our valuation model uses many indicators to compare Diversified Healthcare value to that of its competitors to determine the firm's financial worth. Diversified Healthcare Trust is rated # 2 in return on asset category among its peers. It is one of the top stocks in beta category among its peers totaling about 109.83 of Beta per Return On Asset. Comparative valuation analysis is a catch-all technique that is used if you cannot value Diversified Healthcare by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Diversified Beta vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Diversified Healthcare |
| = | 0.0124 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Diversified Healthcare |
| = | 1.36 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Diversified Healthcare will likely underperform.
Diversified Healthcare Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Diversified Healthcare, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Diversified Healthcare will eventually generate negative long term returns. The profitability progress is the general direction of Diversified Healthcare's change in net profit over the period of time. It can combine multiple indicators of Diversified Healthcare, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -2.3 B | -2.2 B | |
| Operating Income | 4.1 M | 3.9 M | |
| Net Loss | -293.6 M | -278.9 M | |
| Income Tax Expense | 445 K | 422.8 K | |
| Income Before Tax | -272.7 M | -259 M | |
| Total Other Income Expense Net | -276.8 M | -262.9 M | |
| Net Loss | -125.5 M | -119.2 M | |
| Non Operating Income Net Other | 67.1 M | 52.1 M | |
| Net Loss | -125.5 M | -119.2 M | |
| Interest Income | 252.1 M | 195.9 M | |
| Change To Netincome | 106 M | 111.3 M | |
| Net Loss | (1.23) | (1.17) | |
| Income Quality | (0.04) | (0.03) | |
| Net Income Per E B T | 1.08 | 0.81 |
Diversified Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Diversified Healthcare. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Diversified Healthcare position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Diversified Healthcare's important profitability drivers and their relationship over time.
Use Diversified Healthcare in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Diversified Healthcare position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Diversified Healthcare will appreciate offsetting losses from the drop in the long position's value.Diversified Healthcare Pair Trading
Diversified Healthcare Trust Pair Trading Analysis
The ability to find closely correlated positions to Diversified Healthcare could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Diversified Healthcare when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Diversified Healthcare - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Diversified Healthcare Trust to buy it.
The correlation of Diversified Healthcare is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Diversified Healthcare moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Diversified Healthcare moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Diversified Healthcare can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Diversified Healthcare position
In addition to having Diversified Healthcare in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project Diversified Healthcare's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Diversified Healthcare at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Diversified Healthcare's income statement, its balance sheet, and the statement of cash flows.