9.31 USD
+0.01 (+0.11%)
9.37 USD
+0.06 (+0.64%)
We assign a fundamental rating of 5 out of 10 to DRH. DRH was compared to 125 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year DRH was profitable.
- In the past year DRH had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: DRH reported negative net income in multiple 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 better Return On Assets (1.72%) than 60.32% of its industry peers.
- DRH has a Return On Equity (3.45%) which is comparable to the rest of the industry.
- DRH's Return On Invested Capital of 4.57% is amongst the best of the industry. DRH outperforms 88.89% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DRH is in line with the industry average of 3.07%.
- 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 (4.81%) which is comparable to the rest of the industry.
- DRH's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 14.48%, DRH is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of DRH has grown nicely.
- With a Gross Margin value of 27.54%, DRH is not doing good in the industry: 89.68% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DRH is destroying value.
- The number of shares outstanding for DRH has been reduced compared to 1 year ago.
- 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.
- Looking at the Altman-Z score, with a value of 0.95, DRH is in the better half of the industry, outperforming 73.81% 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 Debt to FCF ratio of 8.03. This is amongst the best in the industry. DRH outperforms 95.24% 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's Debt to Equity ratio of 0.70 is amongst the best of the industry. DRH outperforms 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 8.03 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.64
WACC7.18%
2.3 Liquidity
- A Current Ratio of 0.97 indicates that DRH may have some problems paying its short term obligations.
- With a Current ratio value of 0.97, DRH perfoms like the industry average, outperforming 49.21% 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.
- The Quick ratio of DRH (0.97) is comparable to the rest of the industry.
| 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%.
- Measured over the past years, DRH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.50% on average per year.
- DRH shows a small growth in Revenue. In the last year, the Revenue has grown by 0.95%.
- 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
- Based on estimates for the next years, DRH will show a very strong growth in Earnings Per Share. The EPS will grow by 44.70% on average per year.
- DRH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.93% yearly.
EPS Next Y131.71%
EPS Next 2Y65.32%
EPS Next 3Y44.7%
EPS Next 5YN/A
Revenue Next Year-0.53%
Revenue Next 2Y0.92%
Revenue Next 3Y1.39%
Revenue Next 5Y1.93%
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
- DRH is valuated quite expensively with a Price/Earnings ratio of 37.24.
- 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 27.38, DRH is valued a bit more expensive.
- The Price/Forward Earnings ratio is 20.04, which indicates a rather expensive current valuation of DRH.
- 94.44% 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 24.29, DRH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.24 | ||
| Fwd PE | 20.04 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DRH is valued cheaply inside the industry as 84.13% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, DRH is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.86 | ||
| EV/EBITDA | 10.31 |
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)0.28
PEG (5Y)N/A
EPS Next 2Y65.32%
EPS Next 3Y44.7%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.90%, DRH has a reasonable but not impressive dividend return.
- With a Dividend Yield of 2.90, DRH pays less dividend than the industry average, which is at 6.59. 81.75% of the companies listed in the same industry pay a better dividend than DRH!
- Compared to an average S&P500 Dividend Yield of 1.85, DRH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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
- DRH pays out 180.94% of its income as dividend. This is not a sustainable payout ratio.
DP180.94%
EPS Next 2Y65.32%
EPS Next 3Y44.7%
9.31
+0.01 (+0.11%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-26 2026-02-26/amc
Inst Owners109.25%
Inst Owner Change0.84%
Ins Owners0.99%
Ins Owner Change-0.03%
Market Cap1.90B
Revenue(TTM)1.13B
Net Income(TTM)54.16M
Analysts77.14
Price Target10.18 (9.34%)
Short Float %5.97%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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)5.02%
PT rev (3m)9.2%
EPS NQ rev (1m)-68.75%
EPS NQ rev (3m)-39.39%
EPS NY rev (1m)-4.88%
EPS NY rev (3m)-8.77%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)12.57%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.24 | ||
| Fwd PE | 20.04 | ||
| P/S | 1.69 | ||
| P/FCF | 13.86 | ||
| P/OCF | 7.54 | ||
| P/B | 1.21 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 10.31 |
EPS(TTM)0.25
EY2.69%
EPS(NY)0.46
Fwd EY4.99%
FCF(TTM)0.67
FCFY7.22%
OCF(TTM)1.23
OCFY13.26%
SpS5.52
BVpS7.7
TBVpS7.7
PEG (NY)0.28
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
WACC7.18%
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-0.53%
Revenue Next 2Y0.92%
Revenue Next 3Y1.39%
Revenue Next 5Y1.93%
EBIT growth 1Y21.19%
EBIT growth 3YN/A
EBIT growth 5Y7.52%
EBIT Next Year98.18%
EBIT Next 3Y27.06%
EBIT Next 5Y20.33%
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 5 / 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 5 / 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 37.24 and the Price/Book (PB) ratio is 1.21.
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.