DIAMONDROCK HOSPITALITY CO (DRH) Stock Fundamental Analysis
USA - NYSE:DRH - US2527843013 - REIT
8.73 USD
-0.24 (-2.68%)
8.73 USD
0 (0%)
Taking everything into account, DRH scores 5 out of 10 in our fundamental rating. DRH was compared to 128 industry peers in the Diversified REITs industry. DRH has an average financial health and profitability rating. DRH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DRH had positive earnings in the past year.
In the past year DRH had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DRH reported negative net income in multiple years.
In multiple years DRH reported negative operating cash flow during the last 5 years.
1.2 Ratios
DRH has a better Return On Assets (1.72%) than 62.50% of its industry peers.
The Return On Equity of DRH (3.45%) is better than 60.16% of its industry peers.
DRH has a better Return On Invested Capital (4.57%) than 89.06% of its industry peers.
DRH had an Average Return On Invested Capital over the past 3 years of 4.14%. This is in line with the industry average of 3.04%.
The 3 year average ROIC (4.14%) for DRH is below the current ROIC(4.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 3.45% | ||
| ROIC | 4.57% |
ROA(3y)2.22%
ROA(5y)-2.57%
ROE(3y)4.44%
ROE(5y)-4.68%
ROIC(3y)4.14%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 4.81%, DRH is in line with its industry, outperforming 53.13% of the companies in the same industry.
In the last couple of years the Profit Margin of DRH has declined.
The Operating Margin of DRH (14.48%) is worse than 67.97% of its industry peers.
In the last couple of years the Operating Margin of DRH has grown nicely.
DRH's Gross Margin of 27.54% is on the low side compared to the rest of the industry. DRH is outperformed by 90.63% of its industry peers.
In the last couple of years the Gross Margin of DRH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.48% | ||
| PM (TTM) | 4.81% | ||
| GM | 27.54% |
OM growth 3YN/A
OM growth 5Y3.59%
PM growth 3YN/A
PM growth 5Y-29.59%
GM growth 3Y11.38%
GM growth 5Y1.6%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DRH is destroying value.
Compared to 1 year ago, DRH has less shares outstanding
DRH has more shares outstanding than it did 5 years ago.
DRH has a better debt/assets ratio than last year.
2.2 Solvency
DRH has an Altman-Z score of 0.91. This is a bad value and indicates that DRH is not financially healthy and even has some risk of bankruptcy.
DRH has a better Altman-Z score (0.91) than 72.66% of its industry peers.
DRH has a debt to FCF ratio of 8.03. This is a slightly negative value and a sign of low solvency as DRH would need 8.03 years to pay back of all of its debts.
The Debt to FCF ratio of DRH (8.03) is better than 95.31% of its industry peers.
DRH has a Debt/Equity ratio of 0.70. This is a neutral value indicating DRH is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.70, DRH belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 8.03 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.65
WACC7.06%
2.3 Liquidity
A Current Ratio of 0.97 indicates that DRH may have some problems paying its short term obligations.
DRH's Current ratio of 0.97 is in line compared to the rest of the industry. DRH outperforms 50.78% of its industry peers.
DRH has a Quick Ratio of 0.97. This is a bad value and indicates that DRH is not financially healthy enough and could expect problems in meeting its short term obligations.
DRH has a Quick ratio of 0.97. This is comparable to the rest of the industry: DRH outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
DRH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.71%.
The earnings per share for DRH have been decreasing by -28.50% on average. This is quite bad
DRH shows a small growth in Revenue. In the last year, the Revenue has grown by 0.95%.
Measured over the past years, DRH shows a small growth in Revenue. The Revenue has been growing by 3.79% on average per year.
EPS 1Y (TTM)-10.71%
EPS 3YN/A
EPS 5Y-28.5%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)0.95%
Revenue growth 3Y25.83%
Revenue growth 5Y3.79%
Sales Q2Q%0.09%
3.2 Future
Based on estimates for the next years, DRH will show a very strong growth in Earnings Per Share. The EPS will grow by 44.70% on average per year.
Based on estimates for the next years, DRH will show a small growth in Revenue. The Revenue will grow by 1.62% on average per year.
EPS Next Y152.5%
EPS Next 2Y65.76%
EPS Next 3Y44.7%
EPS Next 5YN/A
Revenue Next Year-0.71%
Revenue Next 2Y0.79%
Revenue Next 3Y1.62%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.92, the valuation of DRH can be described as expensive.
DRH's Price/Earnings ratio is a bit cheaper when compared to the industry. DRH is cheaper than 64.06% of the companies in the same industry.
When comparing the Price/Earnings ratio of DRH to the average of the S&P500 Index (25.56), we can say DRH is valued slightly more expensively.
DRH is valuated rather expensively with a Price/Forward Earnings ratio of 18.69.
Based on the Price/Forward Earnings ratio, DRH is valued cheaper than 95.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.62, DRH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.92 | ||
| Fwd PE | 18.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRH is valued cheaply inside the industry as 83.59% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DRH is valued cheaply inside the industry as 85.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.07 | ||
| EV/EBITDA | 9.93 |
4.3 Compensation for Growth
DRH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as DRH's earnings are expected to grow with 44.70% in the coming years.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y65.76%
EPS Next 3Y44.7%
5. Dividend
5.1 Amount
DRH has a Yearly Dividend Yield of 8.19%, which is a nice return.
Compared to an average industry Dividend Yield of 6.49, DRH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, DRH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.19% |
5.2 History
The dividend of DRH decreases each year by -19.57%.
DRH has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of DRH decreased in the last 3 years.
Dividend Growth(5Y)-19.57%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
180.94% of the earnings are spent on dividend by DRH. This is not a sustainable payout ratio.
DP180.94%
EPS Next 2Y65.76%
EPS Next 3Y44.7%
8.73
-0.24 (-2.68%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners108.85%
Inst Owner Change-0.72%
Ins Owners0.99%
Ins Owner Change0.33%
Market Cap1.79B
Revenue(TTM)1.13B
Net Income(TTM)54.16M
Analysts75
Price Target9.27 (6.19%)
Short Float %8.35%
Short Ratio6.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.19% |
Yearly Dividend0.17
Dividend Growth(5Y)-19.57%
DP180.94%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.33%
Min EPS beat(2)-5.7%
Max EPS beat(2)-4.95%
EPS beat(4)1
Avg EPS beat(4)-50.16%
Min EPS beat(4)-195.6%
Max EPS beat(4)5.61%
EPS beat(8)2
Avg EPS beat(8)-29.51%
EPS beat(12)3
Avg EPS beat(12)-23.62%
EPS beat(16)6
Avg EPS beat(16)-0.14%
Revenue beat(2)1
Avg Revenue beat(2)0.86%
Min Revenue beat(2)-0.32%
Max Revenue beat(2)2.04%
Revenue beat(4)2
Avg Revenue beat(4)0.45%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)2.04%
Revenue beat(8)4
Avg Revenue beat(8)0.44%
Revenue beat(12)7
Avg Revenue beat(12)0.51%
Revenue beat(16)11
Avg Revenue beat(16)1.64%
PT rev (1m)-0.5%
PT rev (3m)-0.99%
EPS NQ rev (1m)3.03%
EPS NQ rev (3m)6.25%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-2.86%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.92 | ||
| Fwd PE | 18.69 | ||
| P/S | 1.59 | ||
| P/FCF | 13.07 | ||
| P/OCF | 7.11 | ||
| P/B | 1.14 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 9.93 |
EPS(TTM)0.25
EY2.86%
EPS(NY)0.47
Fwd EY5.35%
FCF(TTM)0.67
FCFY7.65%
OCF(TTM)1.23
OCFY14.06%
SpS5.49
BVpS7.65
TBVpS7.65
PEG (NY)0.23
PEG (5Y)N/A
Graham Number6.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 3.45% | ||
| ROCE | 5.78% | ||
| ROIC | 4.57% | ||
| ROICexc | 4.82% | ||
| ROICexgc | 4.82% | ||
| OM | 14.48% | ||
| PM (TTM) | 4.81% | ||
| GM | 27.54% | ||
| FCFM | 12.17% |
ROA(3y)2.22%
ROA(5y)-2.57%
ROE(3y)4.44%
ROE(5y)-4.68%
ROIC(3y)4.14%
ROIC(5y)N/A
ROICexc(3y)4.27%
ROICexc(5y)N/A
ROICexgc(3y)4.27%
ROICexgc(5y)N/A
ROCE(3y)5.24%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y9.26%
ROICexc growth 3YN/A
ROICexc growth 5Y9.26%
OM growth 3YN/A
OM growth 5Y3.59%
PM growth 3YN/A
PM growth 5Y-29.59%
GM growth 3Y11.38%
GM growth 5Y1.6%
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 8.03 | ||
| Debt/EBITDA | 3.98 | ||
| Cap/Depr | 101.08% | ||
| Cap/Sales | 10.19% | ||
| Interest Coverage | 2.76 | ||
| Cash Conversion | 91.03% | ||
| Profit Quality | 252.73% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.91 |
F-Score6
WACC7.06%
ROIC/WACC0.65
Cap/Depr(3y)145.53%
Cap/Depr(5y)112.1%
Cap/Sales(3y)15.36%
Cap/Sales(5y)16.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.71%
EPS 3YN/A
EPS 5Y-28.5%
EPS Q2Q%-9.09%
EPS Next Y152.5%
EPS Next 2Y65.76%
EPS Next 3Y44.7%
EPS Next 5YN/A
Revenue 1Y (TTM)0.95%
Revenue growth 3Y25.83%
Revenue growth 5Y3.79%
Sales Q2Q%0.09%
Revenue Next Year-0.71%
Revenue Next 2Y0.79%
Revenue Next 3Y1.62%
Revenue Next 5YN/A
EBIT growth 1Y21.19%
EBIT growth 3YN/A
EBIT growth 5Y7.52%
EBIT Next Year91.3%
EBIT Next 3Y25.96%
EBIT Next 5YN/A
FCF growth 1Y316.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8%
OCF growth 3YN/A
OCF growth 5Y3.03%
DIAMONDROCK HOSPITALITY CO / DRH FAQ
What is the ChartMill fundamental rating of DIAMONDROCK HOSPITALITY CO (DRH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DRH.
What is the valuation status of DIAMONDROCK HOSPITALITY CO (DRH) stock?
ChartMill assigns a valuation rating of 6 / 10 to DIAMONDROCK HOSPITALITY CO (DRH). This can be considered as Fairly Valued.
What is the profitability of DRH stock?
DIAMONDROCK HOSPITALITY CO (DRH) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for DRH stock?
The Price/Earnings (PE) ratio for DIAMONDROCK HOSPITALITY CO (DRH) is 34.92 and the Price/Book (PB) ratio is 1.14.
How sustainable is the dividend of DIAMONDROCK HOSPITALITY CO (DRH) stock?
The dividend rating of DIAMONDROCK HOSPITALITY CO (DRH) is 5 / 10 and the dividend payout ratio is 180.94%.