9.31 USD
+0.01 (+0.11%)
9.37 USD
+0.06 (+0.64%)
DRH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 126 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
- In the past year DRH was profitable.
- DRH had a positive operating cash flow in the past year.
- In multiple years DRH reported negative net income over the last 5 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 60.32% of the companies in the same industry.
- DRH has a Return On Equity (3.45%) which is in line with its industry peers.
- The Return On Invested Capital of DRH (4.57%) is better than 88.89% 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 3.06%.
- 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 50.79% of the companies in the same industry.
- In the last couple of years the Profit Margin of DRH has declined.
- With a Operating Margin value of 14.48%, DRH is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of DRH has grown nicely.
- The Gross Margin of DRH (27.54%) is worse than 89.68% 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
- DRH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, DRH has less shares outstanding
- DRH has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, DRH has an improved debt to assets ratio.
2.2 Solvency
- DRH has an Altman-Z score of 0.95. This is a bad value and indicates that DRH is not financially healthy and even has some risk of bankruptcy.
- DRH's Altman-Z score of 0.95 is fine compared to the rest of the industry. DRH outperforms 73.81% 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.
- DRH's Debt to FCF ratio of 8.03 is amongst the best of the industry. DRH outperforms 95.24% 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.
- DRH's Debt to Equity ratio of 0.70 is amongst the best of the industry. DRH outperforms 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 8.03 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.64
WACC7.18%
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 49.21% 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.
- Looking at the Quick ratio, with a value of 0.97, DRH is in line with its industry, outperforming 51.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- The earnings per share for DRH have decreased strongly by -10.71% in the last year.
- DRH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -28.50% yearly.
- 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
- The Earnings Per Share is expected to grow by 44.70% on average over the next years. This is a very strong growth
- DRH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.93% yearly.
EPS Next Y131.71%
EPS Next 2Y65.32%
EPS Next 3Y44.7%
EPS Next 5YN/A
Revenue Next Year-0.53%
Revenue Next 2Y0.92%
Revenue Next 3Y1.39%
Revenue Next 5Y1.93%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 37.24, which means the current valuation is very expensive for DRH.
- DRH's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.47. DRH is valued slightly more expensive when compared to this.
- A Price/Forward Earnings ratio of 20.04 indicates a rather expensive valuation of DRH.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DRH indicates a rather cheap valuation: DRH is cheaper than 95.24% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. DRH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.24 | ||
| Fwd PE | 20.04 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DRH is valued cheaper than 84.13% of the companies in the same industry.
- 85.71% 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 | 13.86 | ||
| EV/EBITDA | 10.31 |
4.3 Compensation for Growth
- The 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)0.28
PEG (5Y)N/A
EPS Next 2Y65.32%
EPS Next 3Y44.7%
5. Dividend
5.1 Amount
- DRH has a Yearly Dividend Yield of 2.90%.
- Compared to an average industry Dividend Yield of 6.61, DRH's dividend is way lower than its industry peers. On top of this 82.54% of the companies listed in the same industry pay a better dividend than DRH!
- DRH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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.
- 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
- 180.94% of the earnings are spent on dividend by DRH. This is not a sustainable payout ratio.
DP180.94%
EPS Next 2Y65.32%
EPS Next 3Y44.7%
9.31
+0.01 (+0.11%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-26 2026-02-26/amc
Inst Owners109.25%
Inst Owner Change0.84%
Ins Owners0.99%
Ins Owner Change0.28%
Market Cap1.90B
Revenue(TTM)1.13B
Net Income(TTM)54.16M
Analysts77.14
Price Target10.18 (9.34%)
Short Float %5.97%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend0.17
Dividend Growth(5Y)-19.57%
DP180.94%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)5.02%
PT rev (3m)9.2%
EPS NQ rev (1m)-68.75%
EPS NQ rev (3m)-39.39%
EPS NY rev (1m)-4.88%
EPS NY rev (3m)-8.77%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)12.57%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.24 | ||
| Fwd PE | 20.04 | ||
| P/S | 1.69 | ||
| P/FCF | 13.86 | ||
| P/OCF | 7.54 | ||
| P/B | 1.21 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 10.31 |
EPS(TTM)0.25
EY2.69%
EPS(NY)0.46
Fwd EY4.99%
FCF(TTM)0.67
FCFY7.22%
OCF(TTM)1.23
OCFY13.26%
SpS5.52
BVpS7.7
TBVpS7.7
PEG (NY)0.28
PEG (5Y)N/A
Graham Number6.58
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 | 0.95 |
F-Score6
WACC7.18%
ROIC/WACC0.64
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 Y131.71%
EPS Next 2Y65.32%
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-0.53%
Revenue Next 2Y0.92%
Revenue Next 3Y1.39%
Revenue Next 5Y1.93%
EBIT growth 1Y21.19%
EBIT growth 3YN/A
EBIT growth 5Y7.52%
EBIT Next Year98.18%
EBIT Next 3Y27.06%
EBIT Next 5Y20.33%
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 for 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.
What is the valuation of DIAMONDROCK HOSPITALITY CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DIAMONDROCK HOSPITALITY CO (DRH) is 37.24 and the Price/Book (PB) ratio is 1.21.
What is the earnings growth outlook for DIAMONDROCK HOSPITALITY CO?
The Earnings per Share (EPS) of DIAMONDROCK HOSPITALITY CO (DRH) is expected to grow by 131.71% in the next year.