Stock fact sheet · data as of
John Hancock Diversified Income Fund (HEQ): fair value, margin of safety and Wheel Score
Ticker symbol HEQ · Financial Services · Asset Management · United States · Shares of beneficial interest (trust) · Fund / Note
HEQ trades as shares of beneficial interest in John Hancock Diversified Income Fund - a trust rather than a company.
Is HEQ undervalued?
John Hancock Diversified Income Fund (HEQ) closed at 11.35 on 5 Nov 2026. The GLS average fair value - the simple average of the 1 valuation models that produced a positive number - is 14.71, so the price sits 23% below it. 1 of the 1 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
Only 1 of the nine models produced a value (DDM); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
HEQ looks like a fund, note or preferred share rather than an operating company, so the nightly engine files it under Fund / Note: the valuation models are not built for it, and its Wheel Score is capped at 45.
Nine valuation models for HEQ
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 14.71 | +30% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -0.0118 | -100% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
No Piotroski health score is on file for HEQ (the statements it needs were not available), so the Health part of the Wheel Score counts it at half marks - 10 of 20 - rather than marking the stock down for missing data. There is no GLS Moat score for HEQ: funds, notes and second share lines get none, and so does a company with fewer than two years of accounts on file. The Moat part of the Wheel Score is zero.
Returns on capital are high - ROIC 12.8%, ROE 12.8%, ROA 12.8% - with debt at 0.00 times equity and negative free cash flow.
The dividend yield is high at 8.81% (payout ratio 0%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 4/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | - / 9 | ROIC | 12.8% |
|---|---|---|---|
| GLS Moat | - / 10 | ROE | 12.8% |
| Debt / equity | 0.00 | ROA | 12.8% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 4 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 23: No options
HEQ has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business. It fails the first Wheel Trade Filter (options that actually trade), so the score stays under 70 and is shown as "No options" (23 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 21k shares a day on a market cap of $135M, with a beta of 0.62 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | no listed options |
| 2 | A real business, not a gamble | Fails | a fund or note, not a company |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | no implied volatility |
| 8 | Big enough | Fails | market cap $135M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Good | 23% below fair value | |
| Premium | Weak | no option data | |
| Moat | Weak | no moat score | |
| Health | Fair | no Piotroski score on file - half marks | |
| Red Flags | Fair | not scored yet - half marks | |
| Option trading | Weak | no option volume data | |
| Stability | Fair | beta 0.62, $135M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for HEQ in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to John Hancock Diversified Income Fund by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BGX Blackstone Long-Short Credit Income Fund | 10.65 | 11.28 | +6% | 14No options | $135M |
| SPE Special Opportunities Fund, Inc. | 12.30 | 45.27 | +73% | 26No options | $136M |
| MZCSX Muzinich Dynamic Income Fund Supra Institutional Shares | 9.42 | 4,035.66 | +100% | 25No options | $137M |
| MPA BlackRock MuniYield Pennsylvania Quality Fund | 10.27 | 26.93 | +62% | 26No options | $133M |
| MSD Morgan Stanley Emerging Markets Debt Fund, Inc. | 6.85 | 26.79 | +74% | 24No options | $139M |
| ATESX Anchor Risk Managed Equity Strategies Fund - Institutional Class | 15.43 | 1.16 | -1226% | 10No options | $132M |
| EARN Ellington Credit Company | 3.43 | 55.45 | +94% | 31Weak | $131M |
| GLQ Clough Global Equity Fund | 7.58 | 82.01 | +91% | 25No options | $142M |
| ACSMX Advisors Capital Small/Mid Cap | 11.85 | 430.87 | +97% | 26No options | $129M |
| EDF Virtus Stone Harbor Emerging Markets Income Fund | 4.43 | 23.36 | +81% | 25No options | $142M |
| MHF Western Asset Municipal High Income Fund | 6.44 | 7.97 | +19% | 21No options | $143M |
| SPMC Sound Point Meridian Capital Inc | 6.20 | 37.96 | +84% | 27No options | $128M |
⚖ Compare HEQ with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about HEQ
Is HEQ undervalued right now?
By the GLS models, moderately: at 11.35 the stock trades 23% below the average fair value of 14.71 (data as of 5 Nov 2026).
What is the Wheel Score of HEQ and what does it mean?
HEQ has no listed options in our nightly snapshot, so it cannot be wheeled; it fails the first Wheel Trade Filter (options that actually trade), stays under 70 and is shown as "No options".
What is the GLS fair value for HEQ?
14.71 per share as of 5 Nov 2026 - the simple average of the 1 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does John Hancock Diversified Income Fund report earnings next?
No upcoming earnings date is recorded for HEQ in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does HEQ have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on HEQ, so the wheel strategy cannot be run on it and the Wheel Score stays under 70.