DIAMONDROCK HOSPITALITY CO (DRH)
US2527843013 - REIT
Overall DRH gets a fundamental rating of 4 out of 10. We evaluated DRH against 130 industry peers in the Diversified REITs industry. DRH has an average financial health and profitability rating. DRH is valued correctly, but it does not seem to be growing.
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.
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
Looking at the Return On Assets, with a value of 1.90%, DRH is in the better half of the industry, outperforming 66.41% of the companies in the same industry.
The Return On Equity of DRH (3.66%) is better than 63.28% of its industry peers.
DRH has a Return On Invested Capital of 3.67%. This is in the better half of the industry: DRH outperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 3.66% | ||
| ROIC | 3.67% |
ROA(3y)-0.48%
ROA(5y)-1.74%
ROE(3y)-0.86%
ROE(5y)-3.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 5.42%, DRH perfoms like the industry average, outperforming 49.22% of the companies in the same industry.
DRH's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 12.06%, DRH is not doing good in the industry: 74.22% of the companies in the same industry are doing better.
DRH's Operating Margin has improved in the last couple of years.
The Gross Margin of DRH (27.24%) is worse than 92.19% of its industry peers.
In the last couple of years the Gross Margin of DRH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.06% | ||
| PM (TTM) | 5.42% | ||
| GM | 27.24% |
OM growth 3YN/A
OM growth 5Y2%
PM growth 3YN/A
PM growth 5Y-6.88%
GM growth 3YN/A
GM growth 5Y0.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DRH is destroying value.
The number of shares outstanding for DRH remains at a similar level compared to 1 year ago.
Compared to 5 years ago, DRH has more shares outstanding
Compared to 1 year ago, DRH has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that DRH is in the distress zone and has some risk of bankruptcy.
DRH has a Altman-Z score of 0.99. This is in the better half of the industry: DRH outperforms 72.66% of its industry peers.
The Debt to FCF ratio of DRH is 8.89, which is on the high side as it means it would take DRH, 8.89 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 8.89, DRH belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
DRH has a Debt/Equity ratio of 0.67. This is a neutral value indicating DRH is somewhat dependend on debt financing.
DRH has a Debt to Equity ratio of 0.67. This is in the better half of the industry: DRH outperforms 78.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.5
WACC7.27%
2.3 Liquidity
DRH has a Current Ratio of 1.09. This is a normal value and indicates that DRH is financially healthy and should not expect problems in meeting its short term obligations.
DRH has a Current ratio of 1.09. This is comparable to the rest of the industry: DRH outperforms 46.09% of its industry peers.
DRH has a Quick Ratio of 1.09. This is a normal value and indicates that DRH is financially healthy and should not expect problems in meeting its short term obligations.
DRH has a Quick ratio (1.09) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
DRH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.64%.
DRH shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.04% yearly.
The Revenue has been growing slightly by 4.50% in the past year.
DRH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.47% yearly.
EPS 1Y (TTM)-25.64%
EPS 3YN/A
EPS 5Y-3.04%
EPS Q2Q%0%
Revenue 1Y (TTM)4.5%
Revenue growth 3Y53.1%
Revenue growth 5Y4.47%
Sales Q2Q%3.11%
3.2 Future
DRH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.81% yearly.
The Revenue is expected to grow by 3.42% on average over the next years.
EPS Next Y-13.96%
EPS Next 2Y14.22%
EPS Next 3Y10.81%
EPS Next 5YN/A
Revenue Next Year4.52%
Revenue Next 2Y3.63%
Revenue Next 3Y3.42%
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
A Price/Earnings ratio of 32.34 indicates a quite expensive valuation of DRH.
Based on the Price/Earnings ratio, DRH is valued a bit cheaper than the industry average as 64.06% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.55, DRH is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.97, the valuation of DRH can be described as rather expensive.
92.97% of the companies in the same industry are more expensive than DRH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, DRH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.34 | ||
| Fwd PE | 19.97 |
4.2 Price Multiples
72.66% of the companies in the same industry are more expensive than DRH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DRH is valued a bit cheaper than 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.78 | ||
| EV/EBITDA | 11.97 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.22%
EPS Next 3Y10.81%
5. Dividend
5.1 Amount
DRH has a Yearly Dividend Yield of 1.30%.
Compared to an average industry Dividend Yield of 16.05, DRH's dividend is way lower than its industry peers. On top of this 92.97% of the companies listed in the same industry pay a better dividend than DRH!
Compared to an average S&P500 Dividend Yield of 2.36, DRH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
The dividend of DRH decreases each year by -17.06%.
DRH has been paying a dividend for at least 10 years, so it has a reliable track record.
DRH has decreased its dividend recently.
Dividend Growth(5Y)-17.06%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DRH pays out 58.73% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP58.73%
EPS Next 2Y14.22%
EPS Next 3Y10.81%
DIAMONDROCK HOSPITALITY CO
NYSE:DRH (12/26/2024, 8:04:00 PM)
After market: 9.38 0 (0%)9.38
+0.04 (+0.43%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners106.65%
Inst Owner Change1.33%
Ins Owners0.76%
Ins Owner Change0.25%
Market Cap1.95B
Analysts71.25
Price Target10.36 (10.45%)
Short Float %9.43%
Short Ratio8.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Dividend Growth(5Y)-17.06%
DP58.73%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.78%
Min EPS beat(2)-42.6%
Max EPS beat(2)-4.95%
EPS beat(4)1
Avg EPS beat(4)-6.88%
Min EPS beat(4)-42.6%
Max EPS beat(4)32.01%
EPS beat(8)2
Avg EPS beat(8)-9.36%
EPS beat(12)5
Avg EPS beat(12)17.2%
EPS beat(16)8
Avg EPS beat(16)17.82%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)1.47%
Revenue beat(4)2
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-1.53%
Max Revenue beat(4)2%
Revenue beat(8)5
Avg Revenue beat(8)0.54%
Revenue beat(12)9
Avg Revenue beat(12)2.03%
Revenue beat(16)12
Avg Revenue beat(16)3.25%
PT rev (1m)3.47%
PT rev (3m)2.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-36.84%
EPS NY rev (1m)-12.38%
EPS NY rev (3m)-13.21%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.34 | ||
| Fwd PE | 19.97 | ||
| P/S | 1.75 | ||
| P/FCF | 15.78 | ||
| P/OCF | 9.66 | ||
| P/B | 1.18 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 11.97 |
EPS(TTM)0.29
EY3.09%
EPS(NY)0.47
Fwd EY5.01%
FCF(TTM)0.59
FCFY6.34%
OCF(TTM)0.97
OCFY10.35%
SpS5.37
BVpS7.94
TBVpS7.94
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 3.66% | ||
| ROCE | 4.64% | ||
| ROIC | 3.67% | ||
| ROICexc | 3.77% | ||
| ROICexgc | 3.77% | ||
| OM | 12.06% | ||
| PM (TTM) | 5.42% | ||
| GM | 27.24% | ||
| FCFM | 11.07% |
ROA(3y)-0.48%
ROA(5y)-1.74%
ROE(3y)-0.86%
ROE(5y)-3.24%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y7.28%
ROICexc growth 3YN/A
ROICexc growth 5Y7.74%
OM growth 3YN/A
OM growth 5Y2%
PM growth 3YN/A
PM growth 5Y-6.88%
GM growth 3YN/A
GM growth 5Y0.2%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 8.89 | ||
| Debt/EBITDA | 4.44 | ||
| Cap/Depr | 69.19% | ||
| Cap/Sales | 7.01% | ||
| Interest Coverage | 2.09 | ||
| Cash Conversion | 81.49% | ||
| Profit Quality | 204.26% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 0.99 |
F-Score6
WACC7.27%
ROIC/WACC0.5
Cap/Depr(3y)127.89%
Cap/Depr(5y)126.11%
Cap/Sales(3y)14.83%
Cap/Sales(5y)19.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.64%
EPS 3YN/A
EPS 5Y-3.04%
EPS Q2Q%0%
EPS Next Y-13.96%
EPS Next 2Y14.22%
EPS Next 3Y10.81%
EPS Next 5YN/A
Revenue 1Y (TTM)4.5%
Revenue growth 3Y53.1%
Revenue growth 5Y4.47%
Sales Q2Q%3.11%
Revenue Next Year4.52%
Revenue Next 2Y3.63%
Revenue Next 3Y3.42%
Revenue Next 5YN/A
EBIT growth 1Y-15.6%
EBIT growth 3YN/A
EBIT growth 5Y6.56%
EBIT Next Year83.46%
EBIT Next 3Y24.63%
EBIT Next 5YN/A
FCF growth 1Y856.71%
FCF growth 3YN/A
FCF growth 5Y2.65%
OCF growth 1Y13.16%
OCF growth 3YN/A
OCF growth 5Y1.77%