9.23 USD
+0.06 (+0.65%)
9.23 USD
0 (0%)
Overall DRH gets a fundamental rating of 4 out of 10. We evaluated DRH against 128 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 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.
In the past year DRH had a positive cash flow from operations.
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 in line with its industry peers.
DRH's Return On Equity of 3.45% is in line compared to the rest of the industry. DRH outperforms 57.03% of its industry peers.
DRH has a Return On Invested Capital of 4.57%. This is amongst the best in the industry. DRH outperforms 89.06% 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 3.05%.
The last Return On Invested Capital (4.57%) for DRH is above the 3 year average (4.14%), which is a sign of increasing profitability.
| 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's Profit Margin of 4.81% is in line compared to the rest of the industry. DRH outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of DRH has declined.
Looking at the Operating Margin, with a value of 14.48%, DRH is doing worse than 67.97% of the companies in the same industry.
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: 90.63% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of DRH has grown nicely.
| 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.
Compared to 1 year ago, DRH has less shares outstanding
Compared to 5 years ago, DRH has more shares outstanding
DRH has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that DRH is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.95, DRH is doing good in the industry, outperforming 73.44% 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.
A Debt/Equity ratio of 0.70 indicates that DRH is somewhat dependend on debt financing.
The Debt to Equity ratio of DRH (0.70) is better than 82.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 8.03 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.64
WACC7.11%
2.3 Liquidity
A Current Ratio of 0.97 indicates that DRH may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.97, DRH is in line with its industry, 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.
DRH has a Quick ratio (0.97) which is in line with its industry peers.
| 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%.
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
The Earnings Per Share is expected to grow by 44.70% on average over the next years. This is a very strong growth
DRH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.59% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
DRH is valuated quite expensively with a Price/Earnings ratio of 36.92.
Compared to the rest of the industry, the Price/Earnings ratio of DRH is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.59, DRH is valued a bit more expensive.
DRH is valuated reasonably with a Price/Forward Earnings ratio of 11.95.
DRH's Price/Forward Earnings ratio is rather cheap when compared to the industry. DRH is cheaper than 98.44% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, DRH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.92 | ||
| Fwd PE | 11.95 |
4.2 Price Multiples
83.59% of the companies in the same industry are more expensive than DRH, based on the Enterprise Value to EBITDA ratio.
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 | 13.74 | ||
| EV/EBITDA | 10.25 |
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)0.26
PEG (5Y)N/A
EPS Next 2Y113.19%
EPS Next 3Y44.7%
5. Dividend
5.1 Amount
DRH has a Yearly Dividend Yield of 2.92%.
Compared to an average industry Dividend Yield of 6.33, DRH's dividend is way lower than its industry peers. On top of this 80.47% of the companies listed in the same industry pay a better dividend than DRH!
Compared to an average S&P500 Dividend Yield of 1.88, DRH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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.
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 2Y113.19%
EPS Next 3Y44.7%
9.23
+0.06 (+0.65%)
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 Cap1.88B
Revenue(TTM)1.13B
Net Income(TTM)54.16M
Analysts75
Price TargetN/A
Short Float %6.56%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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)3.98%
EPS NQ rev (1m)10.34%
EPS NQ rev (3m)93.94%
EPS NY rev (1m)-3.53%
EPS NY rev (3m)-4.09%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-11.01%
Revenue NY rev (3m)-10.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.92 | ||
| Fwd PE | 11.95 | ||
| P/S | 1.67 | ||
| P/FCF | 13.74 | ||
| P/OCF | 7.48 | ||
| P/B | 1.2 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 10.25 |
EPS(TTM)0.25
EY2.71%
EPS(NY)0.77
Fwd EY8.37%
FCF(TTM)0.67
FCFY7.28%
OCF(TTM)1.23
OCFY13.38%
SpS5.52
BVpS7.7
TBVpS7.7
PEG (NY)0.26
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 | 0.95 |
F-Score6
WACC7.11%
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 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 36.92 and the Price/Book (PB) ratio is 1.2.
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%.