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SEVNSeven Hills Realty Trust
$9.01$137M
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  4. Financial Ratios

Seven Hills Realty Trust (SEVN) Financial Ratios

Latest Ratios: P/E Ratio 9.0x · EV/EBITDA 10.9x · ROE 5.2%. (2011–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

SEVN Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$137M$136M$192M$189M$132M$117M$108M$206M$154M$163M$150M
Enterprise Value$501M$500M$539M$556M$533M$431M$4M$294M$242M$251M$210M
P/E Ratio →9.018.9010.907.354.814.76—2.91—20.985.90
P/S Ratio2.332.306.425.422.363.29—2.86—16.615.59
P/B Ratio0.420.410.710.700.490.460.560.760.510.480.55
P/FCF9.139.029.579.3410.37——41.0710.95—14.41
P/OCF9.139.029.579.3410.37148.15—41.0710.95—14.41

P/E links to full P/E history page with 30-year chart

SEVN EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—8.4918.0015.929.5112.06—4.08—25.567.82
EV / EBITDA10.8910.8610.6022.239.5116.47—3.9814.4020.2619.78
EV / EBIT11.1611.1210.87—11.7315.48—3.98—26.137.84
EV / FCF—33.2426.8327.4241.77——58.6117.22—20.16

SEVN Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin80.5%80.5%91.3%96.3%88.4%86.6%100.0%100.0%114.3%64.8%89.3%
Operating Margin76.3%76.3%165.6%69.9%81.1%77.9%——113.0%26.8%74.4%
Net Profit Margin26.2%26.2%58.8%73.8%49.0%69.0%102.5%98.4%85.4%83.6%96.0%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE5.2%5.2%6.5%9.5%10.4%10.9%-24.0%24.7%-6.3%2.7%11.0%
ROA2.0%2.0%2.5%3.5%4.1%6.2%-20.0%21.4%-6.2%2.7%9.7%
ROIC5.1%5.1%5.9%2.8%5.5%6.3%——-4.9%0.5%5.1%
ROCE11.5%11.5%8.6%3.3%6.8%7.0%——-8.3%0.9%7.6%

SEVN Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity1.481.481.551.681.741.32—0.320.290.260.22
Debt / EBITDA10.5910.598.2118.188.4212.99—1.195.247.105.64
Net Debt / Equity—1.111.291.351.471.22-0.540.320.290.260.22
Net Debt / EBITDA7.917.916.8214.667.1511.99—1.195.247.105.64
Debt / FCF—24.2217.2618.0831.41——17.546.27—5.75
Interest Coverage1.521.521.56-0.022.5812.35-45.1125.70-7.566.8826.71

SEVN Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.270.272.59122.19199.32224.55—10.7542.852.426.09
Quick Ratio0.270.272.59122.19199.32224.55—10.755136.48327.54852.83
Cash Ratio0.260.260.2715.0118.979.80—0.0318.521.751.76
Asset Turnover—0.070.040.050.070.06-0.280.20-0.080.030.10
Inventory Turnover———————————
Days Sales Outstanding———————————

SEVN Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield13.7%13.9%10.8%10.9%11.1%3.9%6.3%6.8%9.1%7.0%6.9%
Payout Ratio——117.8%80.2%53.3%18.6%———138.4%40.4%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield11.1%11.2%9.2%13.6%20.8%21.0%—34.4%—4.8%17.0%
FCF Yield11.0%11.1%10.5%10.7%9.6%——2.4%9.1%—6.9%
Buyback Yield0.3%0.3%0.2%0.1%0.1%0.0%15.5%0.0%0.0%0.0%0.0%
Total Shareholder Yield14.0%14.2%11.0%11.0%11.2%4.0%21.7%6.8%9.1%7.0%6.9%
Shares Outstanding—$15M$15M$15M$15M$11M$10M$10M$10M$9M$8M

Key Metrics

Growth RegimeMixed
ProfitabilityModerate
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

Transitional loan credit exposure

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Discounted Valuation Reflects Sector Skepticism

Based on reported financial data, SEVN trades at a P/B ratio of 0.42, which, according to recent market filings, represents a significant discount to book value that suggests investors are pricing in substantial credit risk within the company's transitional mortgage loan portfolio relative to its peers.

The current valuation multiple appears to reflect a market-wide lack of confidence in the recovery value of middle-market commercial real estate assets. While the low P/B ratio might imply an attractive entry point, it warrants further investigation into whether the underlying collateral values have been adequately marked down to reflect current interest rate environments.

NOI Margin Volatility Hinders Predictability

As reported in quarterly financial statements, SEVN's NOI margin has fluctuated between 66.8% and 100.0% over the last ten quarters, indicating that the company's property-level profitability is highly sensitive to credit loss provisions and the timing of interest income recognition on its floating-rate loan portfolio.

This volatility suggests that the company's core profitability is not as stable as a typical REIT, likely due to the inherent risks of transitional lending. Investors should monitor whether these margin swings are temporary accounting adjustments or indicative of a structural decline in the quality of the loan book.

Conservative Leverage Supports Balance Sheet

According to recent SEC filings, SEVN maintains a debt-to-equity ratio of 1.48x, which, based on historical data, remains notably lower than the leverage profiles of comparable mortgage REITs, providing a defensive cushion against potential asset impairments in the current high-interest-rate environment.

This conservative capital structure appears to be a deliberate management choice to mitigate risk, though it may also limit the company's ability to generate outsized returns on equity. The presence of significant cash reserves further suggests that the company is prioritizing liquidity over aggressive balance sheet expansion.

Payout Ratio Instability Challenges Sustainability

Based on the company's reported figures, the FFO payout ratio has frequently exceeded 100%, reaching as high as 141.2% in 2024Q4, which indicates that the current dividend distribution may not be fully supported by recurring cash earnings and warrants close scrutiny regarding long-term sustainability.

The inconsistency in dividend coverage suggests that the company is relying on non-recurring income or capital recycling to maintain its payout levels. Investors should monitor whether management will be forced to adjust the dividend if the current earnings volatility persists into future quarters.

P/E Ratio Misleads REIT Investors

As indicated by standard financial reporting, the P/E ratio is frequently misapplied to SEVN, as it fails to account for the significant non-cash depreciation and CECL credit loss provisions that distort net income, thereby obscuring the true cash-generating capacity of the mortgage REIT's underlying loan portfolio.

Analysts should instead prioritize FFO or Distributable Earnings to better assess the company's ability to fund its dividend and operations. Relying on P/E in this context may lead to an inaccurate assessment of valuation, as it ignores the fundamental differences between industrial earnings and REIT cash flows.

Download Financial Ratios Data

Includes 30+ ratios · 15 years · Updated daily

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SEVN — Frequently Asked Questions

Quick answers to the most common questions about buying SEVN stock.

What is Seven Hills Realty Trust's P/E ratio?

Seven Hills Realty Trust's current P/E ratio is 9.0x. The historical average is 13.4x. This places it at the 75th percentile of its historical range.

What is Seven Hills Realty Trust's EV/EBITDA?

Seven Hills Realty Trust's current EV/EBITDA is 10.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.1x.

What is Seven Hills Realty Trust's ROE?

Seven Hills Realty Trust's return on equity (ROE) is 5.2%. The historical average is 7.2%.

Is SEVN stock overvalued?

Based on historical data, Seven Hills Realty Trust is trading at a P/E of 9.0x. This is at the 75th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Seven Hills Realty Trust's dividend yield?

Seven Hills Realty Trust's current dividend yield is 13.72%.

What are Seven Hills Realty Trust's profit margins?

Seven Hills Realty Trust has 80.5% gross margin and 76.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.

How much debt does Seven Hills Realty Trust have?

Seven Hills Realty Trust's Debt/EBITDA ratio is 10.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.