DIAMONDROCK HOSPITALITY CO (DRH) Fundamental Analysis & Valuation

NASDAQ:DRH • US2527843013

Current stock price

9.59 USD
+0.03 (+0.31%)
At close:
9.65 USD
+0.06 (+0.63%)
After Hours:

This DRH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. DRH Profitability Analysis

1.1 Basic Checks

  • In the past year DRH was profitable.
  • In the past year DRH had a positive cash flow from operations.
  • Of the past 5 years DRH 4 years were profitable.
  • DRH had a positive operating cash flow in 4 of the past 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 2025 0 200M -200M

1.2 Ratios

  • DRH has a Return On Assets of 3.05%. This is in the better half of the industry: DRH outperforms 73.98% of its industry peers.
  • DRH has a Return On Equity of 6.33%. This is in the better half of the industry: DRH outperforms 73.17% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 4.79%, DRH belongs to the top of the industry, outperforming 89.43% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for DRH is in line with the industry average of 3.13%.
  • The 3 year average ROIC (4.24%) for DRH is below the current ROIC(4.79%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.05%
ROE 6.33%
ROIC 4.79%
ROA(3y)2.21%
ROA(5y)0.57%
ROE(3y)4.46%
ROE(5y)1.23%
ROIC(3y)4.24%
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 2025 0 -10 -20

1.3 Margins

  • DRH has a Profit Margin (8.18%) which is in line with its industry peers.
  • DRH's Profit Margin has declined in the last couple of years.
  • DRH's Operating Margin of 14.61% is on the low side compared to the rest of the industry. DRH is outperformed by 64.23% of its industry peers.
  • DRH's Operating Margin has declined in the last couple of years.
  • The Gross Margin of DRH (27.77%) is worse than 89.43% of its industry peers.
  • DRH's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 14.61%
PM (TTM) 8.18%
GM 27.77%
OM growth 3Y-3.65%
OM growth 5YN/A
PM growth 3Y-6.29%
PM growth 5YN/A
GM growth 3Y-3.34%
GM growth 5YN/A
DRH Yearly Profit, Operating, Gross MarginsDRH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100

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3

2. DRH Health Analysis

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
  • The number of shares outstanding for DRH has been reduced compared to 5 years ago.
  • The debt/assets ratio for DRH is higher compared to a year ago.
DRH Yearly Shares OutstandingDRH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 1B 2B 3B

2.2 Solvency

  • DRH has an Altman-Z score of 0.96. This is a bad value and indicates that DRH is not financially healthy and even has some risk of bankruptcy.
  • DRH has a Altman-Z score of 0.96. This is in the better half of the industry: DRH outperforms 74.80% of its industry peers.
  • The Debt to FCF ratio of DRH is 6.78, which is on the high side as it means it would take DRH, 6.78 years of fcf income to pay off all of its debts.
  • DRH's Debt to FCF ratio of 6.78 is amongst the best of the industry. DRH outperforms 95.12% of its industry peers.
  • A Debt/Equity ratio of 0.76 indicates that DRH is somewhat dependend on debt financing.
  • DRH has a Debt to Equity ratio of 0.76. This is in the better half of the industry: DRH outperforms 77.24% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 6.78
Altman-Z 0.96
ROIC/WACC0.67
WACC7.19%
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 2025 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 0.67 indicates that DRH may have some problems paying its short term obligations.
  • The Current ratio of DRH (0.67) is worse than 61.79% of its industry peers.
  • DRH has a Quick Ratio of 0.67. 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 Quick ratio of 0.67 is on the low side compared to the rest of the industry. DRH is outperformed by 61.79% of its industry peers.
Industry RankSector Rank
Current Ratio 0.67
Quick Ratio 0.67
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 2025 100M 200M 300M

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

5

3. DRH Growth Analysis

3.1 Past

  • DRH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 158.82%, which is quite impressive.
  • DRH shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.47% yearly.
  • Looking at the last year, DRH shows a decrease in Revenue. The Revenue has decreased by -0.83% in the last year.
  • The Revenue has been growing by 30.20% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)158.82%
EPS 3Y-1.47%
EPS 5YN/A
EPS Q2Q%271.43%
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y3.81%
Revenue growth 5Y30.2%
Sales Q2Q%-1.62%

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 8.20% yearly.
  • Based on estimates for the next years, DRH will show a small growth in Revenue. The Revenue will grow by 2.73% on average per year.
EPS Next Y11.33%
EPS Next 2Y8.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.21%
Revenue Next 2Y2.15%
Revenue Next 3Y2.73%
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.
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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4

4. DRH Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 21.80 indicates a rather expensive valuation of DRH.
  • Compared to the rest of the industry, the Price/Earnings ratio of DRH indicates a somewhat cheap valuation: DRH is cheaper than 79.67% of the companies listed in the same industry.
  • DRH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 19.58 indicates a rather expensive valuation of DRH.
  • Based on the Price/Forward Earnings ratio, DRH is valued cheaply inside the industry as 93.50% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of DRH to the average of the S&P500 Index (22.51), we can say DRH is valued inline with the index average.
Industry RankSector Rank
PE 21.8
Fwd PE 19.58
DRH Price Earnings VS Forward Price EarningsDRH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • 76.42% 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 cheaper than 85.37% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.05
EV/EBITDA 10.78
DRH Per share dataDRH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.92
PEG (5Y)N/A
EPS Next 2Y8.2%
EPS Next 3YN/A

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

4

5. DRH Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.47%, DRH has a reasonable but not impressive dividend return.
  • DRH's Dividend Yield is slightly below the industry average, which is at 7.32.
  • DRH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.90.
Industry RankSector Rank
Dividend Yield 3.47%

5.2 History

  • On average, the dividend of DRH grows each year by 30.13%, which is quite nice.
  • DRH has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of DRH decreased in the last 3 years.
Dividend Growth(5Y)30.13%
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 2026 0.2 0.4 0.6

5.3 Sustainability

  • 118.03% of the earnings are spent on dividend by DRH. This is not a sustainable payout ratio.
  • The dividend of DRH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP118.03%
EPS Next 2Y8.2%
EPS Next 3YN/A
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 2025 0 100M -100M -200M -300M
DRH Dividend Payout.DRH Dividend Payout, showing the Payout Ratio.DRH Dividend Payout.PayoutRetained Earnings

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DRH Fundamentals: All Metrics, Ratios and Statistics

DIAMONDROCK HOSPITALITY CO

NASDAQ:DRH (3/26/2026, 8:16:08 PM)

After market: 9.65 +0.06 (+0.63%)

9.59

+0.03 (+0.31%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)02-26
Earnings (Next)04-29
Inst Owners105.34%
Inst Owner Change2.03%
Ins Owners0.77%
Ins Owner Change4.43%
Market Cap1.95B
Revenue(TTM)1.12B
Net Income(TTM)91.62M
Analysts76.25
Price Target10.41 (8.55%)
Short Float %8.29%
Short Ratio5.91
Dividend
Industry RankSector Rank
Dividend Yield 3.47%
Yearly Dividend0.53
Dividend Growth(5Y)30.13%
DP118.03%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-31
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)55.16%
Min EPS beat(2)-5.7%
Max EPS beat(2)116.02%
EPS beat(4)2
Avg EPS beat(4)27.74%
Min EPS beat(4)-5.7%
Max EPS beat(4)116.02%
EPS beat(8)3
Avg EPS beat(8)-13.51%
EPS beat(12)4
Avg EPS beat(12)-10.87%
EPS beat(16)6
Avg EPS beat(16)5.5%
Revenue beat(2)1
Avg Revenue beat(2)0.74%
Min Revenue beat(2)-0.57%
Max Revenue beat(2)2.04%
Revenue beat(4)1
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)2.04%
Revenue beat(8)4
Avg Revenue beat(8)0.4%
Revenue beat(12)6
Avg Revenue beat(12)0.39%
Revenue beat(16)10
Avg Revenue beat(16)1.36%
PT rev (1m)1.81%
PT rev (3m)7.42%
EPS NQ rev (1m)-20%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-36.6%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 21.8
Fwd PE 19.58
P/S 1.74
P/FCF 12.05
P/OCF 8.02
P/B 1.35
P/tB 1.35
EV/EBITDA 10.78
EPS(TTM)0.44
EY4.59%
EPS(NY)0.49
Fwd EY5.11%
FCF(TTM)0.8
FCFY8.3%
OCF(TTM)1.2
OCFY12.47%
SpS5.5
BVpS7.11
TBVpS7.11
PEG (NY)1.92
PEG (5Y)N/A
Graham Number8.39
Profitability
Industry RankSector Rank
ROA 3.05%
ROE 6.33%
ROCE 6.07%
ROIC 4.79%
ROICexc 4.92%
ROICexgc 4.92%
OM 14.61%
PM (TTM) 8.18%
GM 27.77%
FCFM 14.47%
ROA(3y)2.21%
ROA(5y)0.57%
ROE(3y)4.46%
ROE(5y)1.23%
ROIC(3y)4.24%
ROIC(5y)N/A
ROICexc(3y)4.38%
ROICexc(5y)N/A
ROICexgc(3y)4.38%
ROICexgc(5y)N/A
ROCE(3y)5.37%
ROCE(5y)N/A
ROICexgc growth 3Y2.32%
ROICexgc growth 5YN/A
ROICexc growth 3Y2.32%
ROICexc growth 5YN/A
OM growth 3Y-3.65%
OM growth 5YN/A
PM growth 3Y-6.29%
PM growth 5YN/A
GM growth 3Y-3.34%
GM growth 5YN/A
F-Score7
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 6.78
Debt/EBITDA 3.97
Cap/Depr 72.11%
Cap/Sales 7.28%
Interest Coverage 2.79
Cash Conversion 88.03%
Profit Quality 176.92%
Current Ratio 0.67
Quick Ratio 0.67
Altman-Z 0.96
F-Score7
WACC7.19%
ROIC/WACC0.67
Cap/Depr(3y)93.13%
Cap/Depr(5y)110.9%
Cap/Sales(3y)9.48%
Cap/Sales(5y)12.34%
Profit Quality(3y)207.72%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)158.82%
EPS 3Y-1.47%
EPS 5YN/A
EPS Q2Q%271.43%
EPS Next Y11.33%
EPS Next 2Y8.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y3.81%
Revenue growth 5Y30.2%
Sales Q2Q%-1.62%
Revenue Next Year2.21%
Revenue Next 2Y2.15%
Revenue Next 3Y2.73%
Revenue Next 5YN/A
EBIT growth 1Y12.77%
EBIT growth 3Y0.02%
EBIT growth 5YN/A
EBIT Next Year82.48%
EBIT Next 3Y24.26%
EBIT Next 5YN/A
FCF growth 1Y44.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.57%
OCF growth 3Y5.71%
OCF growth 5YN/A

DIAMONDROCK HOSPITALITY CO / DRH Fundamental Analysis 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 4 / 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 21.8 and the Price/Book (PB) ratio is 1.35.


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 11.33% in the next year.