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ACR vs SEVN

ACR
ACRES Commercial Realty Corp.
BEARISH
Price
$19.94
Market Cap
$148.1M
Sector
Real Estate
AI Confidence
78%
SEVN
Seven Hills Realty Trust
BEARISH
Price
$8.54
Market Cap
$193.0M
Sector
Real Estate
AI Confidence
85%

Valuation

P/E Ratio
ACR
21.44
SEVN
8.46
Forward P/E
ACR
23.28
SEVN
7.62
P/B Ratio
ACR
0.32
SEVN
0.59
P/S Ratio
ACR
1.66
SEVN
6.61
EV/EBITDA
ACR
--
SEVN
--

Profitability

Gross Margin
ACR
35.64%
SEVN
92.22%
Operating Margin
ACR
20.31%
SEVN
60.81%
Profit Margin
ACR
32.15%
SEVN
52.89%
ROE
ACR
7.03%
SEVN
5.16%
ROA
ACR
1.67%
SEVN
2.04%

Growth

Revenue Growth
ACR
10.4%
SEVN
-24.6%
Earnings Growth
ACR
272.2%
SEVN
-12.6%

Financial Health

Debt/Equity
ACR
2.84
SEVN
1.48
Current Ratio
ACR
75.88
SEVN
5.77
Quick Ratio
ACR
70.32
SEVN
5.76

Dividends

Dividend Yield
ACR
--
SEVN
13.09%
Payout Ratio
ACR
0.0%
SEVN
122.76%

AI Verdict

ACR BEARISH

ACR exhibits weak financial health with a Piotroski F-Score of just 2/9, signaling significant operational and balance sheet concerns. Despite strong recent earnings growth and profitability margins, the company's high leverage (Debt/Equity of 2.84) and extremely low valuation multiples like Price/Book of 0.32 suggest deep underlying risks. The absence of an Altman Z-Score due to insufficient data further clouds solvency assessment, while technical indicators and insider sentiment are neutral-to-bearish. Although the stock appears undervalued relative to the Graham Number ($35.84) and analyst target ($24.50), erratic earnings surprises and lack of dividend support undermine confidence in sustained recovery.

Strengths
High profitability margins: Gross margin at 35.64%, operating margin at 20.31%, and net profit margin at 32.15% exceed sector averages.
Strong year-over-year earnings growth: YoY EPS growth of +320.8% and revenue growth of 10.40% indicate recent top- and bottom-line momentum.
Significant earnings surprise in recent quarters: One quarter reported a +10,000% beat, showing potential for upside volatility.
Risks
Critically low Piotroski F-Score of 2/9: Indicates severe financial distress and poor fundamental health.
High leverage with Debt/Equity ratio of 2.84: Increases vulnerability to interest rate shocks and refinancing risk.
Erratic and volatile earnings performance: History of large negative surprises (e.g., -291.1%, -180.7%) undermines earnings quality.
SEVN BEARISH

SEVN exhibits classic 'value trap' characteristics, anchored by a weak Piotroski F-Score of 3/9 indicating deteriorating financial health. While the stock trades at a significant discount to its Graham Number ($18.18) and book value (P/B 0.59), these metrics are offset by negative revenue growth (-24.60%) and an unsustainable dividend payout ratio of 122.76%. The disconnect between the 'Strong Buy' analyst consensus and the 0/100 technical trend suggests a fundamental misalignment between market expectations and current performance.

Strengths
Deeply undervalued relative to book value (P/B 0.59)
Strong liquidity position with a Current Ratio of 5.77
High operating margins (60.81%) and profit margins (52.89%)
Risks
Unsustainable dividend payout ratio (122.76%) suggesting an imminent cut
Significant contraction in YoY revenue (-24.60%) and earnings (-12.60%)
Weak financial health as evidenced by a Piotroski F-Score of 3/9

Compare Another Pair

ACR vs SEVN: Head-to-Head Comparison

This page compares ACRES Commercial Realty Corp. (ACR) and Seven Hills Realty Trust (SEVN) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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