9.005 USD
+0.04 (+0.5%)
Taking everything into account, DRH scores 4 out of 10 in our fundamental rating. DRH was compared to 127 industry peers in the Diversified REITs industry. DRH has an average financial health and profitability rating. DRH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DRH had positive earnings in the past year.
DRH had a positive operating cash flow in the past year.
In multiple years DRH reported negative net income over the last 5 years.
In multiple years DRH reported negative operating cash flow during the last 5 years.
1.2 Ratios
DRH's Return On Assets of 1.72% is in line compared to the rest of the industry. DRH outperforms 59.84% of its industry peers.
Looking at the Return On Equity, with a value of 3.45%, DRH is in line with its industry, outperforming 57.48% of the companies in the same industry.
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.
DRH had an Average Return On Invested Capital over the past 3 years of 4.14%. This is in line with the industry average of 3.06%.
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 has a Profit Margin of 4.81%. This is comparable to the rest of the industry: DRH outperforms 50.39% 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 66.93% 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: 89.76% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DRH is destroying value.
DRH has less shares outstanding than it did 1 year ago.
DRH has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DRH has been reduced compared to a year ago.
2.2 Solvency
DRH has an Altman-Z score of 0.92. This is a bad value and indicates that DRH is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.92, DRH is doing good in the industry, outperforming 73.23% of the companies in the same industry.
DRH has a debt to FCF ratio of 8.03. This is a slightly negative value and a sign of low solvency as DRH would need 8.03 years to pay back of all of its debts.
The Debt to FCF ratio of DRH (8.03) is better than 95.28% of its industry peers.
DRH has a Debt/Equity ratio of 0.70. This is a neutral value indicating DRH is somewhat dependend on debt financing.
DRH has a better Debt to Equity ratio (0.70) than 81.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 8.03 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.64
WACC7.1%
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.
DRH's Current ratio of 0.97 is in line compared to the rest of the industry. DRH outperforms 48.82% of its industry peers.
A Quick Ratio of 0.97 indicates that DRH may have some problems paying 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%.
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
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 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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 36.02, DRH can be considered very expensive at the moment.
DRH's Price/Earnings is on the same level as the industry average.
DRH's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.51.
DRH is valuated rather expensively with a Price/Forward Earnings ratio of 19.38.
Based on the Price/Forward Earnings ratio, DRH is valued cheaply inside the industry as 93.70% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, DRH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.02 | ||
| Fwd PE | 19.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRH indicates a rather cheap valuation: DRH is cheaper than 84.25% of the companies listed in the same industry.
85.04% of the companies in the same industry are more expensive than DRH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.4 | ||
| EV/EBITDA | 10.06 |
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.
A more expensive valuation may be justified as DRH's earnings are expected to grow with 44.70% in the coming years.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y65.32%
EPS Next 3Y44.7%
5. Dividend
5.1 Amount
DRH has a Yearly Dividend Yield of 2.93%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.43, DRH's dividend is way lower than its industry peers. On top of this 81.89% of the companies listed in the same industry pay a better dividend than DRH!
Compared to an average S&P500 Dividend Yield of 2.00, DRH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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%
NASDAQ:DRH (1/2/2026, 10:57:45 AM)
9.005
+0.04 (+0.5%)
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 Cap1.83B
Revenue(TTM)1.13B
Net Income(TTM)54.16M
Analysts75
Price Target9.92 (10.16%)
Short Float %5.97%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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)-8.24%
EPS NY rev (3m)-8.77%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)-12.65%
Revenue NY rev (3m)-12.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.02 | ||
| Fwd PE | 19.38 | ||
| P/S | 1.63 | ||
| P/FCF | 13.4 | ||
| P/OCF | 7.29 | ||
| P/B | 1.17 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 10.06 |
EPS(TTM)0.25
EY2.78%
EPS(NY)0.46
Fwd EY5.16%
FCF(TTM)0.67
FCFY7.46%
OCF(TTM)1.23
OCFY13.71%
SpS5.52
BVpS7.7
TBVpS7.7
PEG (NY)0.27
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 | 0.92 |
F-Score6
WACC7.1%
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 36.02 and the Price/Book (PB) ratio is 1.17.
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.