DIAMONDROCK HOSPITALITY CO (DRH) Stock Fundamental Analysis

NASDAQ:DRH • US2527843013

9.89 USD
+0.01 (+0.1%)
Last: Feb 20, 2026, 10:30 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall DRH gets a fundamental rating of 5 out of 10. We evaluated DRH against 123 industry peers in the Diversified REITs industry. DRH has an average financial health and profitability rating. DRH has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

5

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.
  • In multiple years DRH reported negative operating cash flow during the last 5 years.
DRH Yearly Net Income VS EBIT VS OCF VS FCFDRH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M

1.2 Ratios

  • DRH has a Return On Assets of 1.72%. This is in the better half of the industry: DRH outperforms 60.98% of its industry peers.
  • DRH's Return On Equity of 3.45% is in line compared to the rest of the industry. DRH outperforms 58.54% of its industry peers.
  • DRH's Return On Invested Capital of 4.57% is amongst the best of the industry. DRH outperforms 87.80% 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 3 year average ROIC (4.14%) for DRH is below the current ROIC(4.57%), indicating increased profibility in the last year.
Industry RankSector 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
DRH Yearly ROA, ROE, ROICDRH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -10 -20

1.3 Margins

  • DRH has a Profit Margin (4.81%) which is in line with its industry peers.
  • DRH's Profit Margin has declined in the last couple of years.
  • DRH has a Operating Margin of 14.48%. This is in the lower half of the industry: DRH underperforms 64.23% of its industry peers.
  • DRH's Operating Margin has improved in the last couple of years.
  • DRH has a Gross Margin of 27.54%. This is amonst the worse of the industry: DRH underperforms 89.43% of its industry peers.
  • In the last couple of years the Gross Margin of DRH has grown nicely.
Industry RankSector 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%
DRH Yearly Profit, Operating, Gross MarginsDRH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DRH is destroying value.
  • Compared to 1 year ago, DRH has less shares outstanding
  • Compared to 5 years ago, DRH has more shares outstanding
  • Compared to 1 year ago, DRH has an improved debt to assets ratio.
DRH Yearly Shares OutstandingDRH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
DRH Yearly Total Debt VS Total AssetsDRH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

  • Based on the Altman-Z score of 1.00, we must say that DRH is in the distress zone and has some risk of bankruptcy.
  • DRH has a better Altman-Z score (1.00) than 73.98% of its industry peers.
  • 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.
  • With an excellent Debt to FCF ratio value of 8.03, DRH belongs to the best of the industry, outperforming 94.31% of the companies in the same industry.
  • DRH has a Debt/Equity ratio of 0.70. This is a neutral value indicating DRH is somewhat dependend on debt financing.
  • With an excellent Debt to Equity ratio value of 0.70, DRH belongs to the best of the industry, outperforming 83.74% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 8.03
Altman-Z 1
ROIC/WACC0.64
WACC7.15%
DRH Yearly LT Debt VS Equity VS FCFDRH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

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 has a Current ratio (0.97) which is in line with its industry peers.
  • 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 of 0.97. This is comparable to the rest of the industry: DRH outperforms 52.03% of its industry peers.
Industry RankSector Rank
Current Ratio 0.97
Quick Ratio 0.97
DRH Yearly Current Assets VS Current LiabilitesDRH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The earnings per share for DRH have decreased strongly by -10.71% in the last year.
  • 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%.
  • 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

  • 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 Y137.65%
EPS Next 2Y69.75%
EPS Next 3Y44.7%
EPS Next 5YN/A
Revenue Next Year-0.44%
Revenue Next 2Y0.92%
Revenue Next 3Y1.33%
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.
  • 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.
DRH Yearly Revenue VS EstimatesDRH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
DRH Yearly EPS VS EstimatesDRH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 -0.5 -1

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 39.56 indicates a quite expensive valuation of DRH.
  • The rest of the industry has a similar Price/Earnings ratio as DRH.
  • When comparing the Price/Earnings ratio of DRH to the average of the S&P500 Index (27.09), we can say DRH is valued slightly more expensively.
  • Based on the Price/Forward Earnings ratio of 20.19, the valuation of DRH can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DRH indicates a rather cheap valuation: DRH is cheaper than 94.31% of the companies listed in the same industry.
  • DRH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.98, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 39.56
Fwd PE 20.19
DRH Price Earnings VS Forward Price EarningsDRH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • 82.93% 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 cheaply inside the industry as 86.18% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 14.72
EV/EBITDA 10.73
DRH Per share dataDRH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The 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)0.29
PEG (5Y)N/A
EPS Next 2Y69.75%
EPS Next 3Y44.7%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • DRH has a Yearly Dividend Yield of 2.75%. Purely for dividend investing, there may be better candidates out there.
  • With a Dividend Yield of 2.75, DRH pays less dividend than the industry average, which is at 6.78. 80.49% 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 bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.75%

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
DRH Yearly Dividends per shareDRH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2022 2023 2024 2025 0.2 0.4 0.6

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 2Y69.75%
EPS Next 3Y44.7%
DRH Yearly Income VS Free CF VS DividendDRH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M -200M -300M
DRH Dividend Payout.DRH Dividend Payout, showing the Payout Ratio.DRH Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

DIAMONDROCK HOSPITALITY CO

NASDAQ:DRH (2/20/2026, 10:30:01 AM)

9.89

+0.01 (+0.1%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-06
Earnings (Next)02-26
Inst Owners109.25%
Inst Owner Change-0.55%
Ins Owners0.99%
Ins Owner Change0%
Market Cap2.01B
Revenue(TTM)1.13B
Net Income(TTM)54.16M
Analysts75
Price Target10.22 (3.34%)
Short Float %7.49%
Short Ratio5.39
Dividend
Industry RankSector Rank
Dividend Yield 2.75%
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)3.06%
PT rev (3m)10.25%
EPS NQ rev (1m)10%
EPS NQ rev (3m)-35.29%
EPS NY rev (1m)2.56%
EPS NY rev (3m)-5.88%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.27%
Valuation
Industry RankSector Rank
PE 39.56
Fwd PE 20.19
P/S 1.79
P/FCF 14.72
P/OCF 8.01
P/B 1.28
P/tB 1.28
EV/EBITDA 10.73
EPS(TTM)0.25
EY2.53%
EPS(NY)0.49
Fwd EY4.95%
FCF(TTM)0.67
FCFY6.79%
OCF(TTM)1.23
OCFY12.49%
SpS5.52
BVpS7.7
TBVpS7.7
PEG (NY)0.29
PEG (5Y)N/A
Graham Number6.58
Profitability
Industry RankSector 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 RankSector 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 1
F-Score6
WACC7.15%
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 Y137.65%
EPS Next 2Y69.75%
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-0.44%
Revenue Next 2Y0.92%
Revenue Next 3Y1.33%
Revenue Next 5Y1.93%
EBIT growth 1Y21.19%
EBIT growth 3YN/A
EBIT growth 5Y7.52%
EBIT Next Year96.01%
EBIT Next 3Y26.89%
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 39.56 and the Price/Book (PB) ratio is 1.28.


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 137.65% in the next year.