Stock fact sheet · data as of
John Hancock Diversified Income Fund (HEQ): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · Speculative / Distressed
Is HEQ undervalued?
John Hancock Diversified Income Fund (HEQ) closed at 11.33 on 16 Oct 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.
The nightly engine files HEQ under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
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
Financial health is weak: HEQ passes 0 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is 7.5 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.
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 8.83% (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 | 0 / 9 | ROIC | 12.8% |
|---|---|---|---|
| GLS Moat | 7.5 / 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 39: 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; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 34k 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 gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 22 / 25 | 23% margin of safety | |
| Health | 0 / 20 | Piotroski 0/9 | |
| Moat | 11 / 15 | moat 7.5/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 6 / 20 | 34k shares/day, $135M cap, beta 0.62 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score 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 |
|---|---|---|---|---|---|
| VTN Invesco Trust for Investment Grade New York Municipals | 9.22 | 9.09 | -1% | 38No options | $135M |
| DFDV DeFi Development Corp. | 4.16 | - | - | 45Weak | $136M |
| MSD Morgan Stanley Emerging Markets Debt Fund, Inc. | 6.72 | 26.79 | +75% | 39No options | $136M |
| SPE Special Opportunities Fund, Inc. | 12.36 | 44.48 | +72% | 39No options | $136M |
| MZCSX Muzinich Dynamic Income Fund Supra Institutional Shares | 9.36 | 4,018.49 | +100% | 39No options | $137M |
| HSDT Solana Company | 2.35 | - | - | 40Weak | $137M |
| IHD Voya Emerging Markets High Dividend Equity Fund | 7.41 | 59.11 | +87% | 39No options | $137M |
| BGX Blackstone Long-Short Credit Income Fund | 10.45 | 11.20 | +7% | 39No options | $133M |
| ATESX Anchor Risk Managed Equity Strategies Fund - Institutional Class | 15.57 | 1.16 | -1238% | 17No options | $133M |
| BCV Bancroft Fund Ltd. | 22.40 | 167.58 | +87% | 39No options | $130M |
| GLQ Clough Global Equity Fund | 7.48 | 82.00 | +91% | 39No options | $140M |
| OXSQH Oxford Square Capital Corp. | 24.81 | 6.18 | -301% | 6No options | $141M |
⚖ 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 11.33 the stock trades 23% below the average fair value of 14.71 (data as of 16 Oct 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; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for HEQ?
14.71 per share as of 16 Oct 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 16 Oct 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 is capped at 39.