Dalata Hotel Group Plc (DHG.I) Stock Fundamental Analysis
Europe - Euronext Dublin - DUB:DHG - IE00BJMZDW83 - Common Stock
6.44 EUR
-0.01 (-0.16%)
Taking everything into account, DHG scores 3 out of 10 in our fundamental rating. DHG was compared to 62 industry peers in the Hotels, Restaurants & Leisure industry. While DHG is still in line with the averages on profitability rating, there are concerns on its financial health. DHG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- DHG had positive earnings in the past year.
- DHG had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: DHG reported negative net income in multiple years.
- In the past 5 years DHG always reported a positive cash flow from operatings.
1.2 Ratios
- DHG has a Return On Assets of 2.32%. This is comparable to the rest of the industry: DHG outperforms 51.85% of its industry peers.
- DHG has a better Return On Equity (4.47%) than 62.96% of its industry peers.
- With a Return On Invested Capital value of 5.05%, DHG perfoms like the industry average, outperforming 53.70% of the companies in the same industry.
- DHG had an Average Return On Invested Capital over the past 3 years of 5.33%. This is significantly below the industry average of 12.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 4.47% | ||
| ROIC | 5.05% |
ROA(3y)3.59%
ROA(5y)0.94%
ROE(3y)6.64%
ROE(5y)1.7%
ROIC(3y)5.33%
ROIC(5y)N/A
1.3 Margins
- DHG has a Profit Margin of 9.53%. This is in the better half of the industry: DHG outperforms 68.52% of its industry peers.
- DHG's Profit Margin has declined in the last couple of years.
- DHG has a Operating Margin of 23.05%. This is amongst the best in the industry. DHG outperforms 85.19% of its industry peers.
- In the last couple of years the Operating Margin of DHG has declined.
- DHG's Gross Margin of 63.17% is fine compared to the rest of the industry. DHG outperforms 62.96% of its industry peers.
- DHG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.05% | ||
| PM (TTM) | 9.53% | ||
| GM | 63.17% |
OM growth 3Y30.63%
OM growth 5Y-2.23%
PM growth 3YN/A
PM growth 5Y-7.9%
GM growth 3Y-2.36%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DHG is destroying value.
- Compared to 1 year ago, DHG has less shares outstanding
- DHG has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, DHG has a worse debt to assets ratio.
2.2 Solvency
- DHG has an Altman-Z score of 1.21. This is a bad value and indicates that DHG is not financially healthy and even has some risk of bankruptcy.
- DHG has a Altman-Z score (1.21) which is comparable to the rest of the industry.
- The Debt to FCF ratio of DHG is 6.35, which is on the high side as it means it would take DHG, 6.35 years of fcf income to pay off all of its debts.
- DHG has a Debt to FCF ratio (6.35) which is comparable to the rest of the industry.
- DHG has a Debt/Equity ratio of 0.77. This is a neutral value indicating DHG is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.77, DHG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 6.35 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.75
WACC6.7%
2.3 Liquidity
- A Current Ratio of 0.62 indicates that DHG may have some problems paying its short term obligations.
- DHG has a worse Current ratio (0.62) than 68.52% of its industry peers.
- DHG has a Quick Ratio of 0.62. This is a bad value and indicates that DHG is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.60, DHG is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- DHG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.29%.
- DHG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.43% yearly.
- DHG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.97%.
- DHG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.73% yearly.
EPS 1Y (TTM)-23.29%
EPS 3YN/A
EPS 5Y-3.43%
EPS Q2Q%-42.77%
Revenue 1Y (TTM)4.97%
Revenue growth 3Y50.33%
Revenue growth 5Y8.73%
Sales Q2Q%1.36%
3.2 Future
- The Earnings Per Share is expected to grow by 13.79% on average over the next years. This is quite good.
- DHG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.74% yearly.
EPS Next Y2.68%
EPS Next 2Y7.94%
EPS Next 3Y9.54%
EPS Next 5Y13.79%
Revenue Next Year3.16%
Revenue Next 2Y3.73%
Revenue Next 3Y4.03%
Revenue Next 5Y1.74%
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 23.00, the valuation of DHG can be described as rather expensive.
- 68.52% of the companies in the same industry are more expensive than DHG, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of DHG to the average of the S&P500 Index (27.21), we can say DHG is valued inline with the index average.
- The Price/Forward Earnings ratio is 14.99, which indicates a correct valuation of DHG.
- DHG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DHG is cheaper than 74.07% of the companies in the same industry.
- DHG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23 | ||
| Fwd PE | 14.99 |
4.2 Price Multiples
- 64.81% of the companies in the same industry are more expensive than DHG, based on the Enterprise Value to EBITDA ratio.
- 75.93% of the companies in the same industry are more expensive than DHG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.95 | ||
| EV/EBITDA | 10.64 |
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)8.57
PEG (5Y)N/A
EPS Next 2Y7.94%
EPS Next 3Y9.54%
5. Dividend
5.1 Amount
- DHG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dalata Hotel Group Plc / DHG.I FAQ
Can you provide the ChartMill fundamental rating for Dalata Hotel Group Plc?
ChartMill assigns a fundamental rating of 3 / 10 to DHG.I.
What is the valuation status of Dalata Hotel Group Plc (DHG.I) stock?
ChartMill assigns a valuation rating of 4 / 10 to Dalata Hotel Group Plc (DHG.I). This can be considered as Fairly Valued.
Can you provide the profitability details for Dalata Hotel Group Plc?
Dalata Hotel Group Plc (DHG.I) has a profitability rating of 5 / 10.
What is the earnings growth outlook for Dalata Hotel Group Plc?
The Earnings per Share (EPS) of Dalata Hotel Group Plc (DHG.I) is expected to grow by 2.68% in the next year.
Can you provide the dividend sustainability for DHG stock?
The dividend rating of Dalata Hotel Group Plc (DHG.I) is 0 / 10 and the dividend payout ratio is 43.03%.