8.82 USD
+0.07 (+0.8%)
Overall DRH gets a fundamental rating of 4 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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 1.72% is in line compared to the rest of the industry. DRH outperforms 59.38% of its industry peers.
Looking at the Return On Equity, with a value of 3.45%, DRH is in line with its industry, outperforming 57.03% of the companies in the same industry.
With an excellent Return On Invested Capital value of 4.57%, DRH belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DRH is in line with the industry average of 3.05%.
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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of DRH has declined.
The Operating Margin of DRH (14.48%) is worse than 67.97% of its industry peers.
In the last couple of years the Operating Margin of DRH has grown nicely.
DRH has a worse Gross Margin (27.54%) 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
DRH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DRH has less shares outstanding than it did 1 year ago.
DRH has more shares outstanding than it did 5 years ago.
DRH has a better debt/assets ratio than last year.
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.
With a decent Altman-Z score value of 0.91, DRH is doing good in the industry, outperforming 74.22% of the companies in the same industry.
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 has a better Debt to FCF ratio (8.03) than 95.31% 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 82.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 8.03 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.65
WACC7.05%
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.
With a Current ratio value of 0.97, DRH perfoms like the industry average, outperforming 47.66% 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.
Looking at the Quick ratio, with a value of 0.97, DRH is in line with its industry, outperforming 50.00% 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.
The Revenue has been growing slightly by 3.79% on average over the past years.
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.
Based on estimates for the next years, DRH will show a small growth in Revenue. The Revenue will grow by 1.59% on average per year.
EPS Next Y143.59%
EPS Next 2Y113.19%
EPS Next 3Y44.7%
EPS Next 5YN/A
Revenue Next Year-11.64%
Revenue Next 2Y0.88%
Revenue Next 3Y1.59%
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
Based on the Price/Earnings ratio of 35.28, the valuation of DRH can be described as expensive.
DRH's Price/Earnings is on the same level as the industry average.
DRH is valuated rather expensively when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.42 indicates a reasonable valuation of DRH.
Based on the Price/Forward Earnings ratio, DRH is valued cheaper than 98.44% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, DRH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.28 | ||
| Fwd PE | 11.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRH indicates a rather cheap valuation: DRH is cheaper than 83.59% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DRH indicates a rather cheap valuation: DRH is cheaper than 84.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.13 | ||
| EV/EBITDA | 9.9 |
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.
DRH's earnings are expected to grow with 44.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y113.19%
EPS Next 3Y44.7%
5. Dividend
5.1 Amount
DRH has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.59, DRH is paying slightly less dividend.
DRH's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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.
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 180.94% of its income as dividend. This is not a sustainable payout ratio.
DP180.94%
EPS Next 2Y113.19%
EPS Next 3Y44.7%
NASDAQ:DRH (12/8/2025, 2:29:04 PM)
8.82
+0.07 (+0.8%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners109.6%
Inst Owner Change-0.37%
Ins Owners0.99%
Ins Owner Change0.28%
Market Cap1.80B
Revenue(TTM)1.13B
Net Income(TTM)54.16M
Analysts75
Price Target9.69 (9.86%)
Short Float %9.51%
Short Ratio5.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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)4.5%
PT rev (3m)4.76%
EPS NQ rev (1m)70.59%
EPS NQ rev (3m)75.76%
EPS NY rev (1m)-3.53%
EPS NY rev (3m)-4.09%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)-11.01%
Revenue NY rev (3m)-10.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.28 | ||
| Fwd PE | 11.42 | ||
| P/S | 1.6 | ||
| P/FCF | 13.13 | ||
| P/OCF | 7.14 | ||
| P/B | 1.15 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 9.9 |
EPS(TTM)0.25
EY2.83%
EPS(NY)0.77
Fwd EY8.76%
FCF(TTM)0.67
FCFY7.62%
OCF(TTM)1.23
OCFY14%
SpS5.52
BVpS7.7
TBVpS7.7
PEG (NY)0.25
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 | 0.91 |
F-Score6
WACC7.05%
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 Y143.59%
EPS Next 2Y113.19%
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-11.64%
Revenue Next 2Y0.88%
Revenue Next 3Y1.59%
Revenue Next 5YN/A
EBIT growth 1Y21.19%
EBIT growth 3YN/A
EBIT growth 5Y7.52%
EBIT Next Year94.87%
EBIT Next 3Y26.42%
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 4 / 10 to DRH.
What is the valuation status of DIAMONDROCK HOSPITALITY CO (DRH) stock?
ChartMill assigns a valuation rating of 7 / 10 to DIAMONDROCK HOSPITALITY CO (DRH). This can be considered as Undervalued.
What is the profitability of DRH stock?
DIAMONDROCK HOSPITALITY CO (DRH) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for DRH stock?
The Price/Earnings (PE) ratio for DIAMONDROCK HOSPITALITY CO (DRH) is 35.28 and the Price/Book (PB) ratio is 1.15.
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%.