Equity Research Analysis: Seven Hills Realty Trust (SEVN)
|Blank Capital Research Unit|Spot: $8.67
Price$8.67
Composite Score32.7/100
RatingAVOID (1★)
Rank#4313 OF 7,333
Market Cap$144M
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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#4313
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Trading
$144M
N/A
Seven Hills Realty Trust focuses on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate in the United States. The company was formerly known as RMR Mortgage Trust.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = SEVN ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$SEVN Seven Hills Realty Trust | 33 | 23 | 37 | 15 | 12.1x | 12.6x | 4.9% | 2.0% | 0.0% | 48.1% | 52.1% | -24.4% | 13.8% | 150.0x | $144M | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
Seven Hills Realty Trust (SEVN) receives a "Avoid" rating with a composite score of 32.7/100. It ranks #4313 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
Average volatility — neutral timing signal
Moderate investment profile
Below-average composite — caution warranted
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for SEVN.
View All RatingsROIC 4.4% vs WACC 4.2% (spread +0.2%)
GM 0% vs sector 78%, OM 48% vs sector 18%
Capital turnover 0.08x
Rev growth -24%, 5yr history
Interest coverage 2.2x, Net debt/EBITDA 22.8x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Seven Hills Realty Trust (SEVN) as Avoid with a composite score of 32.7/100 at a current price of $8.67. The stock falls in the bottom quintile, and the multi-factor weakness suggests a high probability of continued underperformance.
Seven Hills Realty Trust holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 32.7/100 places it at rank #4313 in our full universe.
No Moat
High
Standard
Fair Value
Stable competitive position in a defensive sector.
Leverage of 150% D/E amplifies downside risk.
Weak momentum suggests persistent institutional selling pressure.
Below-average quality raises earnings sustainability concerns.
Seven Hills Realty Trust represents a avoid based on multi-factor quantitative performance.
Our quantitative model flags Seven Hills Realty Trust with an Avoid rating, assigning a composite score of 32.7/100 and 1 out of 5 stars. Ranked #4313 of 7,333 stocks, SEVN falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
Seven Hills Realty Trust registers a weak quality score of just 23/100, indicating significant profitability challenges. The company reports a return on equity of 4.9% (sector avg: 9.0%), gross margins of 0.0% (sector avg: 77.7%), net margins of 52.1% (sector avg: 21.9%). Low quality scores are often associated with businesses in turnaround mode, early-stage growth, or structurally challenged industries.
With a value score of 37/100, SEVN appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 12.09x, an EV/EBITDA of 12.55x, a P/B ratio of 0.59x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
Seven Hills Realty Trust's investment score of 38/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of -24.4% vs. a sector average of 10.7% and a return on assets of 2.0% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
Seven Hills Realty Trust is experiencing notably weak momentum with a score of just 15/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at -24.4% year-over-year, while a beta of 0.54 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
With a stability score of 49/100, SEVN exhibits average financial resilience. Key stability metrics include a beta of 0.54 and a debt-to-equity ratio of 150.00x (sector avg: 0.5x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 50/100 for SEVN suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 150.00x), micro-cap liquidity risk. With a $144M market cap (micro-cap), Seven Hills Realty Trust may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Seven Hills Realty Trust offers an attractive dividend yield of 13.8%, placing it among the higher-yielding stocks in its peer group. This compares to a sector average dividend yield of 2.0%. A yield this high can provide meaningful income, but investors should verify the payout is sustainable by examining the payout ratio, free cash flow coverage, and any history of dividend cuts.
Seven Hills Realty Trust is a micro-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #4313 of 7,333 overall (41st percentile). Key comparisons include ROE of 4.9% trailing the 9.0% sector median and operating margins of 48.1% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While SEVN currently exhibits a AVOID profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Momentum (15) would have the largest impact on the composite score.
EV/EBITDA 62% ABOVE SECTOR MEDIAN
ROE 46% BELOW SECTOR MEDIAN
Gross Margin 100% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Operator: Good day, and welcome to the Seven Hills Realty Trust Fourth Quarter 2025 Earnings Call. [Operator Instructions] Please note, this event is being recorded.
NEWTON, Mass., February 18, 2026--Seven Hills Realty Trust (Nasdaq: SEVN) today announced its financial results for the quarter and year ended December 31, 2025, which can be found at the Quarterly Results section of SEVN's website at https://sevnreit.com/investors/financial-information/default.aspx.
This article first appeared on GuruFocus. Seven Hills Realty Trust (NASDAQ:SEVN) is set to release its Q4 2025 earnings on Feb 19, 2026. The consensus estimate for Q4 2025 revenue is $7.34 million, and the earnings are expected to come in at $0.22 per share.
This article first appeared on GuruFocus. Seven Hills Realty Trust (NASDAQ:SEVN) is set to release its Q4 2025 earnings on Feb 18, 2026. The consensus estimate for Q4 2025 revenue is $7.34 million, and the earnings are expected to come in at $0.22 per share.
NEWTON, Mass., February 13, 2026--Seven Hills Realty Trust (Nasdaq: SEVN) today announced the closing of a $30.5 million first mortgage loan to refinance Glenridge Medical Center in Atlanta, Georgia.