Dalata Hotel Group Plc (DHG.I) Stock Fundamental Analysis

Europe - Euronext Dublin - DUB:DHG - IE00BJMZDW83 - Common Stock

6.44 EUR

-0.01 (-0.16%)

Last: 11/6/2025, 7:00:00 PM

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to DHG. DHG was compared to 60 industry peers in the Hotels, Restaurants & Leisure industry. While DHG is still in line with the averages on profitability rating, there are concerns on its financial health. DHG has a decent growth rate and is not valued too expensively.

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1. Profitability

1.1 Basic Checks

In the past year DHG was profitable.
DHG had a positive operating cash flow in the past year.
In multiple years DHG reported negative net income over the last 5 years.
In the past 5 years DHG always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 2.32%, DHG is in line with its industry, outperforming 51.85% of the companies in the same industry.
DHG has a better Return On Equity (4.47%) than 62.96% of its industry peers.
With a Return On Invested Capital value of 5.05%, DHG perfoms like the industry average, outperforming 53.70% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DHG is significantly below the industry average of 11.82%.

		Industry Rank	Sector Rank
ROA	2.32%
ROE	4.47%
ROIC	5.05%

ROA(3y)3.59%

ROA(5y)0.94%

ROE(3y)6.64%

ROE(5y)1.7%

ROIC(3y)5.33%

ROIC(5y)N/A

1.3 Margins

DHG has a Profit Margin of 9.53%. This is in the better half of the industry: DHG outperforms 68.52% of its industry peers.
DHG's Profit Margin has declined in the last couple of years.
DHG has a better Operating Margin (23.05%) than 85.19% of its industry peers.
DHG's Operating Margin has declined in the last couple of years.
DHG's Gross Margin of 63.17% is fine compared to the rest of the industry. DHG outperforms 62.96% of its industry peers.
DHG's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	23.05%
PM (TTM)	9.53%
GM	63.17%

OM growth 3Y30.63%

OM growth 5Y-2.23%

PM growth 3YN/A

PM growth 5Y-7.9%

GM growth 3Y-2.36%

GM growth 5Y-0.19%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

DHG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DHG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DHG has been increased compared to 5 years ago.
Compared to 1 year ago, DHG has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.21, we must say that DHG is in the distress zone and has some risk of bankruptcy.
DHG has a Altman-Z score of 1.21. This is comparable to the rest of the industry: DHG outperforms 44.44% of its industry peers.
The Debt to FCF ratio of DHG is 6.35, which is on the high side as it means it would take DHG, 6.35 years of fcf income to pay off all of its debts.
DHG has a Debt to FCF ratio of 6.35. This is comparable to the rest of the industry: DHG outperforms 57.41% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that DHG is somewhat dependend on debt financing.
DHG's Debt to Equity ratio of 0.77 is fine compared to the rest of the industry. DHG outperforms 66.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.77
Debt/FCF	6.35
Altman-Z	1.21

ROIC/WACC0.75

WACC6.7%

2.3 Liquidity

A Current Ratio of 0.62 indicates that DHG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.62, DHG is doing worse than 68.52% of the companies in the same industry.
DHG has a Quick Ratio of 0.62. This is a bad value and indicates that DHG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DHG (0.60) is worse than 62.96% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.62
Quick Ratio	0.6

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for DHG have decreased strongly by -23.29% in the last year.
The Earnings Per Share has been decreasing by -3.43% on average over the past years.
DHG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.97%.
DHG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.73% yearly.

EPS 1Y (TTM)-23.29%

EPS 3YN/A

EPS 5Y-3.43%

EPS Q2Q%-42.77%

Revenue 1Y (TTM)4.97%

Revenue growth 3Y50.33%

Revenue growth 5Y8.73%

Sales Q2Q%1.36%

3.2 Future

Based on estimates for the next years, DHG will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.79% on average per year.
The Revenue is expected to grow by 1.74% on average over the next years.

EPS Next Y2.68%

EPS Next 2Y7.94%

EPS Next 3Y9.54%

EPS Next 5Y13.79%

Revenue Next Year3.16%

Revenue Next 2Y3.73%

Revenue Next 3Y4.03%

Revenue Next 5Y1.74%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 23.00, which indicates a rather expensive current valuation of DHG.
Compared to the rest of the industry, the Price/Earnings ratio of DHG indicates a somewhat cheap valuation: DHG is cheaper than 68.52% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DHG to the average of the S&P500 Index (27.21), we can say DHG is valued inline with the index average.
A Price/Forward Earnings ratio of 14.99 indicates a correct valuation of DHG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DHG indicates a somewhat cheap valuation: DHG is cheaper than 74.07% of the companies listed in the same industry.
DHG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.

		Industry Rank	Sector Rank
PE	23
Fwd PE	14.99

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DHG is valued a bit cheaper than 64.81% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DHG indicates a somewhat cheap valuation: DHG is cheaper than 75.93% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	7.95
EV/EBITDA	10.64

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DHG does not grow enough to justify the current Price/Earnings ratio.