DIAMONDROCK HOSPITALITY CO (DRH) Stock Fundamental Analysis
NYSE:DRH - US2527843013 - REIT
8.58 USD
-0.02 (-0.23%)
8.58 USD
0 (0%)
Overall DRH gets a fundamental rating of 5 out of 10. We evaluated DRH against 129 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
DRH had positive earnings in the past year.
DRH had a positive operating cash flow in the past year.
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's Return On Assets of 1.90% is fine compared to the rest of the industry. DRH outperforms 62.02% of its industry peers.
DRH has a Return On Equity (3.69%) which is in line with its industry peers.
With an excellent Return On Invested Capital value of 4.68%, DRH belongs to the best of the industry, outperforming 86.82% of the companies in the same industry.
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(4.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 3.69% | ||
| ROIC | 4.68% |
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 (5.16%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DRH has declined.
Looking at the Operating Margin, with a value of 14.46%, DRH is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of DRH has grown nicely.
DRH's Gross Margin of 27.44% is on the low side compared to the rest of the industry. DRH is outperformed by 90.70% of its industry peers.
DRH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.46% | ||
| PM (TTM) | 5.16% | ||
| GM | 27.44% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DRH is destroying value.
The number of shares outstanding for DRH has been reduced compared to 1 year ago.
The number of shares outstanding for DRH has been increased compared to 5 years ago.
The debt/assets ratio for DRH has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that DRH is in the distress zone and has some risk of bankruptcy.
DRH has a better Altman-Z score (0.91) than 70.54% of its industry peers.
The Debt to FCF ratio of DRH is 8.43, which is on the high side as it means it would take DRH, 8.43 years of fcf income to pay off all of its debts.
DRH has a better Debt to FCF ratio (8.43) than 93.02% of its industry peers.
DRH has a Debt/Equity ratio of 0.65. This is a neutral value indicating DRH is somewhat dependend on debt financing.
DRH's Debt to Equity ratio of 0.65 is amongst the best of the industry. DRH outperforms 83.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 8.43 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.65
WACC7.16%
2.3 Liquidity
A Current Ratio of 0.71 indicates that DRH may have some problems paying its short term obligations.
DRH has a Current ratio of 0.71. This is in the lower half of the industry: DRH underperforms 62.02% of its industry peers.
A Quick Ratio of 0.71 indicates that DRH may have some problems paying its short term obligations.
DRH has a worse Quick ratio (0.71) than 62.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
DRH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.34%.
Measured over the past years, DRH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.50% on average per year.
DRH shows a small growth in Revenue. In the last year, the Revenue has grown by 1.72%.
DRH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.79% yearly.
EPS 1Y (TTM)-10.34%
EPS 3YN/A
EPS 5Y-28.5%
EPS Q2Q%80%
Revenue 1Y (TTM)1.72%
Revenue growth 3Y25.83%
Revenue growth 5Y3.79%
Sales Q2Q%-1.15%
3.2 Future
The Earnings Per Share is expected to grow by 45.64% on average over the next years. This is a very strong growth
Based on estimates for the next years, DRH will show a small growth in Revenue. The Revenue will grow by 1.73% on average per year.
EPS Next Y153.99%
EPS Next 2Y86.83%
EPS Next 3Y45.64%
EPS Next 5YN/A
Revenue Next Year-0.88%
Revenue Next 2Y0.7%
Revenue Next 3Y1.73%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.00, DRH can be considered very expensive at the moment.
Based on the Price/Earnings ratio, DRH is valued a bit cheaper than 62.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. DRH is valued slightly more expensive when compared to this.
DRH is valuated correctly with a Price/Forward Earnings ratio of 14.46.
DRH's Price/Forward Earnings ratio is rather cheap when compared to the industry. DRH is cheaper than 97.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, DRH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33 | ||
| Fwd PE | 14.46 |
4.2 Price Multiples
85.27% of the companies in the same industry are more expensive than DRH, based on the Enterprise Value to EBITDA ratio.
DRH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DRH is cheaper than 84.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.53 | ||
| EV/EBITDA | 9.88 |
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.
DRH's earnings are expected to grow with 45.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y86.83%
EPS Next 3Y45.64%
5. Dividend
5.1 Amount
DRH has a Yearly Dividend Yield of 3.14%.
With a Dividend Yield of 3.14, DRH pays less dividend than the industry average, which is at 6.60. 80.62% of the companies listed in the same industry pay a better dividend than DRH!
Compared to an average S&P500 Dividend Yield of 2.41, DRH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
5.2 History
The dividend of DRH decreases each year by -19.57%.
DRH has been paying a dividend for at least 10 years, so it has 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
DRH pays out 151.27% of its income as dividend. This is not a sustainable payout ratio.
DP151.27%
EPS Next 2Y86.83%
EPS Next 3Y45.64%
8.58
-0.02 (-0.23%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners112.74%
Inst Owner Change-2.49%
Ins Owners0.98%
Ins Owner Change6.86%
Market Cap1.76B
Analysts75
Price Target9.25 (7.81%)
Short Float %7.32%
Short Ratio5.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Yearly Dividend0.17
Dividend Growth(5Y)-19.57%
DP151.27%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.33%
Min EPS beat(2)-4.95%
Max EPS beat(2)5.61%
EPS beat(4)1
Avg EPS beat(4)-51.95%
Min EPS beat(4)-195.6%
Max EPS beat(4)5.61%
EPS beat(8)3
Avg EPS beat(8)-26.07%
EPS beat(12)3
Avg EPS beat(12)-24.65%
EPS beat(16)6
Avg EPS beat(16)-0.96%
Revenue beat(2)0
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-0.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.53%
Max Revenue beat(4)1.57%
Revenue beat(8)4
Avg Revenue beat(8)0.47%
Revenue beat(12)7
Avg Revenue beat(12)0.55%
Revenue beat(16)11
Avg Revenue beat(16)2.17%
PT rev (1m)-1.24%
PT rev (3m)0.25%
EPS NQ rev (1m)-4.35%
EPS NQ rev (3m)-16.98%
EPS NY rev (1m)-2.29%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-5.02%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33 | ||
| Fwd PE | 14.46 | ||
| P/S | 1.56 | ||
| P/FCF | 14.53 | ||
| P/OCF | 7.37 | ||
| P/B | 1.12 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 9.88 |
EPS(TTM)0.26
EY3.03%
EPS(NY)0.59
Fwd EY6.92%
FCF(TTM)0.59
FCFY6.88%
OCF(TTM)1.16
OCFY13.57%
SpS5.49
BVpS7.69
TBVpS7.69
PEG (NY)0.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 3.69% | ||
| ROCE | 5.92% | ||
| ROIC | 4.68% | ||
| ROICexc | 4.77% | ||
| ROICexgc | 4.77% | ||
| OM | 14.46% | ||
| PM (TTM) | 5.16% | ||
| GM | 27.44% | ||
| FCFM | 10.76% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 8.43 | ||
| Debt/EBITDA | 3.7 | ||
| Cap/Depr | 103.67% | ||
| Cap/Sales | 10.46% | ||
| Interest Coverage | 2.68 | ||
| Cash Conversion | 86.45% | ||
| Profit Quality | 208.42% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.91 |
F-Score8
WACC7.16%
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)-10.34%
EPS 3YN/A
EPS 5Y-28.5%
EPS Q2Q%80%
EPS Next Y153.99%
EPS Next 2Y86.83%
EPS Next 3Y45.64%
EPS Next 5YN/A
Revenue 1Y (TTM)1.72%
Revenue growth 3Y25.83%
Revenue growth 5Y3.79%
Sales Q2Q%-1.15%
Revenue Next Year-0.88%
Revenue Next 2Y0.7%
Revenue Next 3Y1.73%
Revenue Next 5YN/A
EBIT growth 1Y23.11%
EBIT growth 3YN/A
EBIT growth 5Y7.52%
EBIT Next Year90.1%
EBIT Next 3Y25.69%
EBIT Next 5YN/A
FCF growth 1Y51.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2.67%
OCF growth 3YN/A
OCF growth 5Y3.03%