DIAMONDROCK HOSPITALITY CO (DRH)
US2527843013 - REIT
Overall DRH gets a fundamental rating of 4 out of 10. We evaluated DRH against 126 industry peers in the Diversified REITs industry. DRH has an average financial health and profitability rating. DRH has a valuation in line with the averages, but it does not seem to be growing.
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.
The reported operating cash flow has been mixed in the past 5 years: DRH reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.36%, DRH is in the better half of the industry, outperforming 69.11% of the companies in the same industry.
With a decent Return On Equity value of 4.66%, DRH is doing good in the industry, outperforming 67.48% of the companies in the same industry.
DRH has a Return On Invested Capital of 3.99%. This is amongst the best in the industry. DRH outperforms 81.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 4.66% | ||
| ROIC | 3.99% |
ROA(3y)-0.48%
ROA(5y)-1.74%
ROE(3y)-0.86%
ROE(5y)-3.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DRH has a Profit Margin of 7.12%. This is comparable to the rest of the industry: DRH outperforms 58.54% of its industry peers.
In the last couple of years the Profit Margin of DRH has declined.
The Operating Margin of DRH (13.93%) is worse than 69.11% of its industry peers.
DRH's Operating Margin has improved in the last couple of years.
DRH has a worse Gross Margin (28.30%) than 91.87% of its industry peers.
In the last couple of years the Gross Margin of DRH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.93% | ||
| PM (TTM) | 7.12% | ||
| GM | 28.3% |
OM growth 3YN/A
OM growth 5Y2%
PM growth 3YN/A
PM growth 5Y-6.88%
GM growth 3YN/A
GM growth 5Y0.2%
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 remains at a similar level compared to 1 year ago.
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 0.95, we must say that DRH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DRH (0.95) is better than 73.17% of its industry peers.
The Debt to FCF ratio of DRH is 10.08, which is on the high side as it means it would take DRH, 10.08 years of fcf income to pay off all of its debts.
DRH has a Debt to FCF ratio of 10.08. This is amongst the best in the industry. DRH outperforms 86.18% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that DRH is somewhat dependend on debt financing.
DRH has a better Debt to Equity ratio (0.72) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 10.08 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.52
WACC7.64%
2.3 Liquidity
A Current Ratio of 1.24 indicates that DRH should not have too much problems paying its short term obligations.
The Current ratio of DRH (1.24) is comparable to the rest of the industry.
A Quick Ratio of 1.24 indicates that DRH should not have too much problems paying its short term obligations.
The Quick ratio of DRH (1.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
DRH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.74%.
The Earnings Per Share has been decreasing by -3.04% on average over the past years.
The Revenue has been growing slightly by 7.33% in the past year.
The Revenue has been growing slightly by 4.47% on average over the past years.
EPS 1Y (TTM)-21.74%
EPS 3YN/A
EPS 5Y-3.04%
EPS growth Q2Q-42.86%
Revenue 1Y (TTM)7.33%
Revenue growth 3Y53.1%
Revenue growth 5Y4.47%
Revenue growth Q2Q3.33%
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 9.66% on average per year.
DRH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.70% yearly.
EPS Next Y15.03%
EPS Next 2Y14.22%
EPS Next 3Y9.66%
EPS Next 5YN/A
Revenue Next Year4.16%
Revenue Next 2Y3.45%
Revenue Next 3Y2.7%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 25.32, DRH can be considered very expensive at the moment.
Based on the Price/Earnings ratio, DRH is valued a bit cheaper than 71.54% of the companies in the same industry.
DRH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.20.
The Price/Forward Earnings ratio is 22.01, which indicates a rather expensive current valuation of DRH.
DRH's Price/Forward Earnings ratio is rather cheap when compared to the industry. DRH is cheaper than 89.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, DRH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 22.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRH indicates a somewhat cheap valuation: DRH is cheaper than 77.24% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DRH is valued a bit cheaper than 77.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.46 | ||
| EV/EBITDA | 11.37 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.68
PEG (5Y)N/A
EPS Next 2Y14.22%
EPS Next 3Y9.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, DRH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.12, DRH's dividend is way lower than its industry peers. On top of this 91.06% of the companies listed in the same industry pay a better dividend than DRH!
Compared to an average S&P500 Dividend Yield of 2.44, DRH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of DRH decreases each year by -17.06%.
DRH has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DRH decreased recently.
Dividend Growth(5Y)-17.06%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
54.53% of the earnings are spent on dividend by DRH. This is a bit on the high side, but may be sustainable.
DP54.53%
EPS Next 2Y14.22%
EPS Next 3Y9.66%
DIAMONDROCK HOSPITALITY CO
NYSE:DRH (4/26/2024, 10:05:31 AM)
9.115
+0.04 (+0.39%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 22.01 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 4.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.93% | ||
| PM (TTM) | 7.12% | ||
| GM | 28.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-21.74%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y15.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.33%
Revenue growth 3Y53.1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y