9.25 USD
+0.09 (+0.98%)
9.25 USD
0 (0%)
Overall DRH gets a fundamental rating of 4 out of 10. We evaluated DRH against 127 industry peers in the Diversified REITs industry. Both the profitability and the financial health of DRH get a neutral evaluation. Nothing too spectacular is happening here. DRH has a correct valuation and a medium growth rate.
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.
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
DRH has a Return On Assets (1.72%) which is comparable to the rest of the industry.
DRH's Return On Equity of 3.45% is in line compared to the rest of the industry. DRH outperforms 57.48% of its industry peers.
DRH has a Return On Invested Capital of 4.57%. This is amongst the best in the industry. DRH outperforms 88.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DRH 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
The Profit Margin of DRH (4.81%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DRH has declined.
DRH's Operating Margin of 14.48% is on the low side compared to the rest of the industry. DRH is outperformed by 66.93% of its industry peers.
DRH's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 27.54%, DRH is not doing good in the industry: 89.76% of the companies in the same industry are doing better.
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
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.
Compared to 5 years ago, DRH has more shares outstanding
The debt/assets ratio for DRH has been reduced compared to a year ago.
2.2 Solvency
DRH has an Altman-Z score of 0.94. 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 0.94 is fine compared to the rest of the industry. DRH outperforms 73.23% 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.
The Debt to FCF ratio of DRH (8.03) is better than 95.28% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that 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 81.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 8.03 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.64
WACC7.14%
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 48.82% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that DRH may have some problems paying its short term obligations.
With a Quick ratio value of 0.97, DRH perfoms like the industry average, outperforming 51.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
DRH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.71%.
The earnings per share for DRH have been decreasing by -28.50% on average. This is quite bad
Looking at the last year, DRH shows a small growth in Revenue. The Revenue has grown by 0.95% in the last 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
Based on estimates for the next years, DRH will show a very strong growth in Earnings Per Share. The EPS will grow by 44.70% on average per year.
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 Y131.71%
EPS Next 2Y65.32%
EPS Next 3Y44.7%
EPS Next 5YN/A
Revenue Next Year-13.27%
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
The Price/Earnings ratio is 37.00, which means the current valuation is very expensive for DRH.
Compared to the rest of the industry, the Price/Earnings ratio of DRH is on the same level as its industry peers.
DRH is valuated rather expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.91 indicates a rather expensive valuation of DRH.
Based on the Price/Forward Earnings ratio, DRH is valued cheaper than 93.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, DRH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37 | ||
| Fwd PE | 19.91 |
4.2 Price Multiples
85.04% of the companies in the same industry are more expensive than DRH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DRH is valued cheaply inside the industry as 85.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.77 | ||
| EV/EBITDA | 10.2 |
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 44.70% in the coming years. This may justify a more expensive valuation.
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 3.01%.
With a Dividend Yield of 3.01, DRH pays less dividend than the industry average, which is at 6.83. 81.10% 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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%
9.25
+0.09 (+0.98%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners109.25%
Inst Owner Change0%
Ins Owners0.99%
Ins Owner Change0.28%
Market Cap1.88B
Revenue(TTM)1.13B
Net Income(TTM)54.16M
Analysts75
Price Target9.92 (7.24%)
Short Float %5.97%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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)3.86%
PT rev (3m)6.44%
EPS NQ rev (1m)-65.52%
EPS NQ rev (3m)-39.39%
EPS NY rev (1m)-4.88%
EPS NY rev (3m)-8.77%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)-1.84%
Revenue NY rev (3m)-12.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37 | ||
| Fwd PE | 19.91 | ||
| P/S | 1.67 | ||
| P/FCF | 13.77 | ||
| P/OCF | 7.49 | ||
| P/B | 1.2 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 10.2 |
EPS(TTM)0.25
EY2.7%
EPS(NY)0.46
Fwd EY5.02%
FCF(TTM)0.67
FCFY7.26%
OCF(TTM)1.23
OCFY13.35%
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 | 0.94 |
F-Score6
WACC7.14%
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-13.27%
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 Year98.18%
EBIT Next 3Y27.06%
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 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 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 37 and the Price/Book (PB) ratio is 1.2.
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.