DIAMONDROCK HOSPITALITY CO (DRH) Fundamental Analysis & Valuation

NASDAQ:DRH • US2527843013

Current stock price

9.21 USD
-0.29 (-3.05%)
At close:
9.16 USD
-0.05 (-0.54%)
Pre-Market:

This DRH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. DRH Profitability Analysis

1.1 Basic Checks

  • In the past year DRH was profitable.
  • In the past year DRH had a positive cash flow from operations.
  • Of the past 5 years DRH 4 years were profitable.
  • DRH had a positive operating cash flow in 4 of the past 5 years.
DRH Yearly Net Income VS EBIT VS OCF VS FCFDRH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M

1.2 Ratios

  • DRH has a better Return On Assets (3.05%) than 73.98% of its industry peers.
  • With a decent Return On Equity value of 6.33%, DRH is doing good in the industry, outperforming 73.17% of the companies in the same industry.
  • DRH's Return On Invested Capital of 4.79% is amongst the best of the industry. DRH outperforms 89.43% of its industry peers.
  • DRH had an Average Return On Invested Capital over the past 3 years of 4.24%. This is in line with the industry average of 3.13%.
  • The 3 year average ROIC (4.24%) for DRH is below the current ROIC(4.79%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.05%
ROE 6.33%
ROIC 4.79%
ROA(3y)2.21%
ROA(5y)0.57%
ROE(3y)4.46%
ROE(5y)1.23%
ROIC(3y)4.24%
ROIC(5y)N/A
DRH Yearly ROA, ROE, ROICDRH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -10 -20

1.3 Margins

  • DRH has a Profit Margin (8.18%) which is comparable to the rest of the industry.
  • DRH's Profit Margin has declined in the last couple of years.
  • With a Operating Margin value of 14.61%, DRH is not doing good in the industry: 64.23% of the companies in the same industry are doing better.
  • In the last couple of years the Operating Margin of DRH has declined.
  • DRH has a worse Gross Margin (27.77%) than 89.43% of its industry peers.
  • DRH's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 14.61%
PM (TTM) 8.18%
GM 27.77%
OM growth 3Y-3.65%
OM growth 5YN/A
PM growth 3Y-6.29%
PM growth 5YN/A
GM growth 3Y-3.34%
GM growth 5YN/A
DRH Yearly Profit, Operating, Gross MarginsDRH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100

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3

2. DRH Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 reduced compared to 5 years ago.
  • DRH has a worse debt/assets ratio than last year.
DRH Yearly Shares OutstandingDRH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
DRH Yearly Total Debt VS Total AssetsDRH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • DRH has an Altman-Z score of 0.93. This is a bad value and indicates that DRH is not financially healthy and even has some risk of bankruptcy.
  • With a decent Altman-Z score value of 0.93, DRH is doing good in the industry, outperforming 74.80% of the companies in the same industry.
  • DRH has a debt to FCF ratio of 6.78. This is a slightly negative value and a sign of low solvency as DRH would need 6.78 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 6.78, DRH belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
  • DRH has a Debt/Equity ratio of 0.76. This is a neutral value indicating DRH is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.76, DRH is in the better half of the industry, outperforming 77.24% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 6.78
Altman-Z 0.93
ROIC/WACC0.67
WACC7.18%
DRH Yearly LT Debt VS Equity VS FCFDRH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 0.67 indicates that DRH may have some problems paying its short term obligations.
  • DRH's Current ratio of 0.67 is on the low side compared to the rest of the industry. DRH is outperformed by 61.79% of its industry peers.
  • A Quick Ratio of 0.67 indicates that DRH may have some problems paying its short term obligations.
  • DRH has a worse Quick ratio (0.67) than 61.79% of its industry peers.
Industry RankSector Rank
Current Ratio 0.67
Quick Ratio 0.67
DRH Yearly Current Assets VS Current LiabilitesDRH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. DRH Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 158.82% over the past year.
  • DRH shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.47% yearly.
  • The Revenue has decreased by -0.83% in the past year.
  • The Revenue has been growing by 30.20% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)158.82%
EPS 3Y-1.47%
EPS 5YN/A
EPS Q2Q%271.43%
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y3.81%
Revenue growth 5Y30.2%
Sales Q2Q%-1.62%

3.2 Future

  • Based on estimates for the next years, DRH will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.20% on average per year.
  • The Revenue is expected to grow by 2.73% on average over the next years.
EPS Next Y11.33%
EPS Next 2Y8.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.21%
Revenue Next 2Y2.15%
Revenue Next 3Y2.73%
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.
  • 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.
DRH Yearly Revenue VS EstimatesDRH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
DRH Yearly EPS VS EstimatesDRH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 -0.5 -1

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4

4. DRH Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 20.93, the valuation of DRH can be described as rather expensive.
  • Based on the Price/Earnings ratio, DRH is valued cheaper than 82.11% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of DRH to the average of the S&P500 Index (25.23), we can say DRH is valued inline with the index average.
  • A Price/Forward Earnings ratio of 18.80 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 93.50% of the companies listed in the same industry.
  • DRH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.42, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.93
Fwd PE 18.8
DRH Price Earnings VS Forward Price EarningsDRH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DRH is valued a bit cheaper than 77.24% of the companies in the same industry.
  • DRH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DRH is cheaper than 85.37% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.57
EV/EBITDA 10.5
DRH Per share dataDRH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.85
PEG (5Y)N/A
EPS Next 2Y8.2%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. DRH Dividend Analysis

5.1 Amount

  • DRH has a Yearly Dividend Yield of 3.47%.
  • DRH's Dividend Yield is slightly below the industry average, which is at 7.32.
  • Compared to an average S&P500 Dividend Yield of 1.89, DRH pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.47%

5.2 History

  • On average, the dividend of DRH grows each year by 30.13%, which is quite nice.
  • 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)30.13%
Div Incr Years2
Div Non Decr Years2
DRH Yearly Dividends per shareDRH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • DRH pays out 118.03% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of DRH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP118.03%
EPS Next 2Y8.2%
EPS Next 3YN/A
DRH Yearly Income VS Free CF VS DividendDRH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M -200M -300M
DRH Dividend Payout.DRH Dividend Payout, showing the Payout Ratio.DRH Dividend Payout.PayoutRetained Earnings

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DRH Fundamentals: All Metrics, Ratios and Statistics

DIAMONDROCK HOSPITALITY CO

NASDAQ:DRH (3/20/2026, 8:00:01 PM)

Premarket: 9.16 -0.05 (-0.54%)

9.21

-0.29 (-3.05%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)02-26
Earnings (Next)04-29
Inst Owners105.34%
Inst Owner Change2.03%
Ins Owners0.77%
Ins Owner Change4.43%
Market Cap1.88B
Revenue(TTM)1.12B
Net Income(TTM)91.62M
Analysts76.25
Price Target10.41 (13.03%)
Short Float %8.29%
Short Ratio5.91
Dividend
Industry RankSector Rank
Dividend Yield 3.47%
Yearly Dividend0.53
Dividend Growth(5Y)30.13%
DP118.03%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-31
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)55.16%
Min EPS beat(2)-5.7%
Max EPS beat(2)116.02%
EPS beat(4)2
Avg EPS beat(4)27.74%
Min EPS beat(4)-5.7%
Max EPS beat(4)116.02%
EPS beat(8)3
Avg EPS beat(8)-13.51%
EPS beat(12)4
Avg EPS beat(12)-10.87%
EPS beat(16)6
Avg EPS beat(16)5.5%
Revenue beat(2)1
Avg Revenue beat(2)0.74%
Min Revenue beat(2)-0.57%
Max Revenue beat(2)2.04%
Revenue beat(4)1
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)2.04%
Revenue beat(8)4
Avg Revenue beat(8)0.4%
Revenue beat(12)6
Avg Revenue beat(12)0.39%
Revenue beat(16)10
Avg Revenue beat(16)1.36%
PT rev (1m)1.81%
PT rev (3m)7.42%
EPS NQ rev (1m)-20%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-36.6%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 20.93
Fwd PE 18.8
P/S 1.67
P/FCF 11.57
P/OCF 7.7
P/B 1.3
P/tB 1.3
EV/EBITDA 10.5
EPS(TTM)0.44
EY4.78%
EPS(NY)0.49
Fwd EY5.32%
FCF(TTM)0.8
FCFY8.64%
OCF(TTM)1.2
OCFY12.99%
SpS5.5
BVpS7.11
TBVpS7.11
PEG (NY)1.85
PEG (5Y)N/A
Graham Number8.39
Profitability
Industry RankSector Rank
ROA 3.05%
ROE 6.33%
ROCE 6.07%
ROIC 4.79%
ROICexc 4.92%
ROICexgc 4.92%
OM 14.61%
PM (TTM) 8.18%
GM 27.77%
FCFM 14.47%
ROA(3y)2.21%
ROA(5y)0.57%
ROE(3y)4.46%
ROE(5y)1.23%
ROIC(3y)4.24%
ROIC(5y)N/A
ROICexc(3y)4.38%
ROICexc(5y)N/A
ROICexgc(3y)4.38%
ROICexgc(5y)N/A
ROCE(3y)5.37%
ROCE(5y)N/A
ROICexgc growth 3Y2.32%
ROICexgc growth 5YN/A
ROICexc growth 3Y2.32%
ROICexc growth 5YN/A
OM growth 3Y-3.65%
OM growth 5YN/A
PM growth 3Y-6.29%
PM growth 5YN/A
GM growth 3Y-3.34%
GM growth 5YN/A
F-Score7
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 6.78
Debt/EBITDA 3.97
Cap/Depr 72.11%
Cap/Sales 7.28%
Interest Coverage 2.79
Cash Conversion 88.03%
Profit Quality 176.92%
Current Ratio 0.67
Quick Ratio 0.67
Altman-Z 0.93
F-Score7
WACC7.18%
ROIC/WACC0.67
Cap/Depr(3y)93.13%
Cap/Depr(5y)110.9%
Cap/Sales(3y)9.48%
Cap/Sales(5y)12.34%
Profit Quality(3y)207.72%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)158.82%
EPS 3Y-1.47%
EPS 5YN/A
EPS Q2Q%271.43%
EPS Next Y11.33%
EPS Next 2Y8.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y3.81%
Revenue growth 5Y30.2%
Sales Q2Q%-1.62%
Revenue Next Year2.21%
Revenue Next 2Y2.15%
Revenue Next 3Y2.73%
Revenue Next 5YN/A
EBIT growth 1Y12.77%
EBIT growth 3Y0.02%
EBIT growth 5YN/A
EBIT Next Year82.48%
EBIT Next 3Y24.26%
EBIT Next 5YN/A
FCF growth 1Y44.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.57%
OCF growth 3Y5.71%
OCF growth 5YN/A

DIAMONDROCK HOSPITALITY CO / DRH Fundamental Analysis FAQ

What is the ChartMill fundamental rating of DIAMONDROCK HOSPITALITY CO (DRH) stock?

ChartMill assigns a fundamental rating of 4 / 10 to DRH.


What is the valuation status for DRH stock?

ChartMill assigns a valuation rating of 4 / 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 4 / 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 20.93 and the Price/Book (PB) ratio is 1.3.


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 11.33% in the next year.