DIAMONDROCK HOSPITALITY CO (DRH) Stock Fundamental Analysis
USA - NYSE:DRH - US2527843013 - REIT
8.97 USD
0 (0%)
8.97 USD
0 (0%)
Overall DRH gets a fundamental rating of 5 out of 10. We evaluated DRH against 128 industry peers in the Diversified REITs industry. DRH has an average financial health and profitability rating. DRH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year DRH was profitable.
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
With a decent Return On Assets value of 1.72%, DRH is doing good in the industry, outperforming 62.50% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for DRH 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
DRH has a Profit Margin (4.81%) which is in line with its industry peers.
DRH's Profit Margin has declined in the last couple of years.
DRH has a Operating Margin of 14.48%. This is in the lower half of the industry: DRH underperforms 67.97% of its industry peers.
In the last couple of years the Operating Margin of DRH has grown nicely.
The Gross Margin of DRH (27.54%) is worse than 90.63% of its industry peers.
DRH's Gross Margin has improved in the last couple of years.
| 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
Compared to 5 years ago, DRH has more shares outstanding
DRH has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that DRH is in the distress zone and has some risk of bankruptcy.
DRH has a Altman-Z score of 0.93. This is in the better half of the industry: DRH outperforms 73.44% of its industry peers.
The Debt to FCF ratio of DRH is 8.03, which is on the high side as it means it would take DRH, 8.03 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 8.03, DRH belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
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 | 0.93 |
ROIC/WACC0.65
WACC7.08%
2.3 Liquidity
DRH has a Current 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.
Looking at the Current ratio, with a value of 0.97, DRH is in line with its industry, outperforming 50.78% of the companies in the same industry.
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 (0.97) which is comparable to the rest of the industry.
| 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
The Revenue has been growing slightly by 0.95% in the past year.
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
DRH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.70% yearly.
DRH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.62% yearly.
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
A Price/Earnings ratio of 35.88 indicates a quite expensive valuation of DRH.
Based on the Price/Earnings ratio, DRH is valued a bit cheaper than 62.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of DRH to the average of the S&P500 Index (25.89), we can say DRH is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 19.20, the valuation of DRH can be described as rather expensive.
95.31% of the companies in the same industry are more expensive than DRH, based on the Price/Forward Earnings ratio.
DRH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.88 | ||
| Fwd PE | 19.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRH is valued cheaper than 83.59% of the companies in the same industry.
85.16% of the companies in the same industry are more expensive than DRH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.43 | ||
| EV/EBITDA | 10.1 |
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)0.24
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.
DRH's Dividend Yield is a higher than the industry average which is at 6.47.
DRH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| 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.
DRH has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-19.57%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DRH pays out 180.94% of its income as dividend. This is not a sustainable payout ratio.
DP180.94%
EPS Next 2Y65.76%
EPS Next 3Y44.7%
8.97
0 (0%)
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 Change0.4%
Ins Owners0.99%
Ins Owner Change0.28%
Market Cap1.84B
Revenue(TTM)1.13B
Net Income(TTM)54.16M
Analysts75
Price Target9.27 (3.34%)
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 | 35.88 | ||
| Fwd PE | 19.2 | ||
| P/S | 1.63 | ||
| P/FCF | 13.43 | ||
| P/OCF | 7.31 | ||
| P/B | 1.17 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 10.1 |
EPS(TTM)0.25
EY2.79%
EPS(NY)0.47
Fwd EY5.21%
FCF(TTM)0.67
FCFY7.45%
OCF(TTM)1.23
OCFY13.68%
SpS5.49
BVpS7.65
TBVpS7.65
PEG (NY)0.24
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 | 0.93 |
F-Score6
WACC7.08%
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 35.88 and the Price/Book (PB) ratio is 1.17.
How sustainable is the dividend of DIAMONDROCK HOSPITALITY CO (DRH) stock?
The dividend rating of DIAMONDROCK HOSPITALITY CO (DRH) is 3 / 10 and the dividend payout ratio is 180.94%.