Dalata Hotel Group Plc (DHG.I) Stock Fundamental Analysis

Europe - Euronext Dublin - DUB:DHG - IE00BJMZDW83 - Common Stock

6.44 EUR

-0.01 (-0.16%)

Last: 11/6/2025, 7:00:00 PM

Fundamental Rating

DHG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 60 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.

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1. Profitability

1.1 Basic Checks

DHG had positive earnings in the past year.
In the past year DHG had a positive cash flow from operations.
In multiple years DHG reported negative net income over the last 5 years.
DHG had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 2.32%, DHG is in line with its industry, outperforming 51.85% of the companies in the same industry.
DHG has a better Return On Equity (4.47%) than 62.96% of its industry peers.
DHG has a Return On Invested Capital (5.05%) which is comparable to the rest of the 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 11.82%.

		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.
The Operating Margin of DHG (23.05%) is better than 85.19% of its industry peers.
In the last couple of years the Operating Margin of DHG has declined.
DHG has a better Gross Margin (63.17%) than 62.96% of its industry peers.
In the last couple of years the Gross Margin of DHG has remained more or less at the same level.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

DHG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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

Based on the Altman-Z score of 1.21, we must say that DHG is in the distress zone and 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.
DHG has a debt to FCF ratio of 6.35. This is a slightly negative value and a sign of low solvency as DHG would need 6.35 years to pay back of 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.
With a decent Debt to Equity ratio value of 0.77, DHG is doing good in 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.
The Current ratio of DHG (0.62) is worse 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.
The Quick ratio of DHG (0.60) is worse than 62.96% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.62
Quick Ratio	0.6

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for DHG have decreased strongly by -23.29% in the last year.
Measured over the past years, DHG shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.43% on average per year.
The Revenue has been growing slightly by 4.97% in the past year.
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

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 23.00, which indicates a rather expensive current valuation of DHG.
68.52% of the companies in the same industry are more expensive than DHG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. DHG is around the same levels.
The Price/Forward Earnings ratio is 14.99, which indicates a correct valuation of DHG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DHG indicates a somewhat cheap valuation: DHG is cheaper than 74.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, DHG is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	23
Fwd PE	14.99

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DHG indicates a somewhat cheap valuation: DHG is cheaper than 64.81% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DHG is valued a bit cheaper than the industry average as 75.93% of the companies are valued more expensively.

		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.