Seven Hills Realty Trust (SEVN): fair value, margin of safety and Wheel Score

Is SEVN undervalued?

SEVN has a margin of safety of 67%: the stock closed at 6.78 on 16 Oct 2026 against a GLS average fair value of 20.74. 6 of the 9 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.

The 9 models disagree widely: GLS Growth gives 0.9348 while DCF gives 107.96. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files SEVN under High Yield Income: a dividend yield above 4%.

Nine valuation models for SEVN

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.

Quality and financial health

Financial health is average - SEVN passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 2.6 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are thin or negative - ROIC 1.9%, ROE 4.7%, ROA 1.9% - with debt at 1.48 times equity and a free-cash-flow yield of 12.3%.

The dividend yield is high at 16.46% (payout ratio 179%) - a payout above 100% of earnings, which is not covered by profits. 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.

Wheel Score 68: Good

SEVN scores 68 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (11/20), the GLS moat (4/15), the option premium on offer (20/20) and how easily the stock trades (8/20). Moat (4/15) is the part holding the score back.

Implied volatility is 48% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 2,731 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 200k shares a day on a market cap of $129M, with a beta of 0.47 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 8 of 20.

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

Seven Hills Realty Trust reports earnings on 26 Oct 2026 - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk. The shares go ex-dividend on 19 Oct 2026 (0.2800 per share), so a covered call sold before then carries a small early-assignment risk around that date.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in REIT - Mortgage

The 12 companies below are the closest to Seven Hills Realty Trust by market cap within the REIT - Mortgage industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare SEVN with 7 of them   All Real Estate stocks →