Dalata Hotel Group Plc (DHG.I) Stock Fundamental Analysis
Europe - Euronext Dublin - DUB:DHG - IE00BJMZDW83 - Common Stock
6.44 EUR
-0.01 (-0.16%)
DHG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 62 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of DHG while its profitability can be described as average. DHG is not valued too expensively and it also shows a decent growth rate.
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.
- DHG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of DHG (2.32%) is comparable to the rest of the industry.
- DHG has a better Return On Equity (4.47%) than 62.96% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.05%, DHG is in line with its industry, 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
- Looking at the Profit Margin, with a value of 9.53%, DHG is in the better half of the industry, outperforming 68.52% of the companies in the same industry.
- In the last couple of years the Profit Margin of DHG has declined.
- DHG has a better Operating Margin (23.05%) than 85.19% of its industry peers.
- In the last couple of years the Operating Margin of DHG has declined.
- With a decent Gross Margin value of 63.17%, DHG is doing good in the industry, outperforming 62.96% of the companies in the same industry.
- 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.
- DHG has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, DHG has more shares outstanding
- DHG has a worse debt/assets ratio than last year.
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 of 1.21. This is comparable to the rest of the industry: DHG outperforms 44.44% of its industry peers.
- 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.
- With a Debt to FCF ratio value of 6.35, DHG perfoms like the industry average, outperforming 57.41% of the companies in the same 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.
- DHG's Quick ratio of 0.60 is on the low side compared to the rest of the industry. DHG is outperformed by 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- The earnings per share for DHG have decreased strongly by -23.29% in the last year.
- The Earnings Per Share has been decreasing by -3.43% on average over the past years.
- Looking at the last year, DHG shows a small growth in Revenue. The Revenue has grown by 4.97% in the last year.
- The Revenue has been growing by 8.73% on average over the past years. This is quite good.
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
- DHG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.79% yearly.
- The Revenue is expected to grow by 1.74% on average over the next years.
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.
- DHG's Price/Earnings ratio is a bit cheaper when compared to the industry. DHG is cheaper than 68.52% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. DHG is around the same levels.
- A Price/Forward Earnings ratio of 14.99 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. DHG is valued slightly cheaper when compared to this.
| 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.
- Based on the Price/Free Cash Flow ratio, DHG is valued a bit cheaper than 75.93% of the companies in the same industry.
| 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 DHG does not grow enough to justify the current Price/Earnings ratio.
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%.