DIAMONDROCK HOSPITALITY CO (DRH) Fundamental Analysis & Valuation

NASDAQ:DRH • US2527843013

Current stock price

10.18 USD
+0.1 (+0.99%)
At close:
10.18 USD
0 (0%)
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

  • DRH had positive earnings in the past year.
  • DRH had a positive operating cash flow in the past year.
  • Of the past 5 years DRH 4 years were profitable.
  • Of the past 5 years DRH 4 years had a positive operating cash flow.
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's Return On Assets of 3.05% is fine compared to the rest of the industry. DRH outperforms 74.59% of its industry peers.
  • DRH has a better Return On Equity (6.33%) than 73.77% of its industry peers.
  • DRH's Return On Invested Capital of 4.79% is amongst the best of the industry. DRH outperforms 89.34% 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 3.13%.
  • The last Return On Invested Capital (4.79%) for DRH is above the 3 year average (4.24%), which is a sign of increasing profitability.
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's Profit Margin of 8.18% is in line compared to the rest of the industry. DRH outperforms 58.20% 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 14.61%, DRH is doing worse than 63.93% of the companies in the same industry.
  • DRH's Operating Margin has declined in the last couple of years.
  • DRH has a Gross Margin of 27.77%. This is amonst the worse of the industry: DRH underperforms 89.34% 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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4

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.
  • DRH has a worse debt/assets ratio than last year.
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

  • Based on the Altman-Z score of 1.01, 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 1.01, DRH is in the better half of the industry, outperforming 74.59% of the companies in the same industry.
  • 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 has a Debt to FCF ratio of 6.78. This is amongst the best in the industry. DRH outperforms 95.08% of its industry peers.
  • DRH has a Debt/Equity ratio of 0.76. This is a neutral value indicating DRH is somewhat dependend on debt financing.
  • The Debt to Equity ratio of DRH (0.76) is better than 77.05% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 6.78
Altman-Z 1.01
ROIC/WACC0.66
WACC7.25%
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.
  • With a Current ratio value of 0.67, DRH perfoms like the industry average, outperforming 40.16% of the companies in the same industry.
  • A Quick Ratio of 0.67 indicates that DRH may have some problems paying its short term obligations.
  • DRH has a Quick ratio (0.67) which is in line with 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

  • The Earnings Per Share has grown by an impressive 158.82% over the past year.
  • The Earnings Per Share has been decreasing by -1.47% on average over the past years.
  • The Revenue has decreased by -0.83% in the past year.
  • DRH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.20% yearly.
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

  • The Earnings Per Share is expected to grow by 10.30% on average over the next years. This is quite good.
  • 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 Y15.92%
EPS Next 2Y10.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.39%
Revenue Next 2Y2.36%
Revenue Next 3Y2.73%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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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5

4. DRH Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 23.14, the valuation of DRH can be described as rather expensive.
  • 81.15% of the companies in the same industry are more expensive than DRH, based on the Price/Earnings ratio.
  • DRH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.86.
  • A Price/Forward Earnings ratio of 19.96 indicates a rather expensive valuation of DRH.
  • 93.44% of the companies in the same industry are more expensive than DRH, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 37.39. DRH is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 23.14
Fwd PE 19.96
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRH indicates a somewhat cheap valuation: DRH is cheaper than 75.41% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, DRH is valued cheaper than 86.07% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.85
EV/EBITDA 11.25
DRH Per share dataDRH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • DRH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.45
PEG (5Y)N/A
EPS Next 2Y10.3%
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 3.27%, DRH has a reasonable but not impressive dividend return.
  • DRH's Dividend Yield is slightly below the industry average, which is at 7.71.
  • Compared to an average S&P500 Dividend Yield of 1.82, DRH pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.27%

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.
  • DRH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)30.13%
Div Incr Years3
Div Non Decr Years3
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

  • DRH pays out 118.03% of its income as dividend. This is not a sustainable payout ratio.
  • DRH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP118.03%
EPS Next 2Y10.3%
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 (4/10/2026, 8:17:52 PM)

After market: 10.18 0 (0%)

10.18

+0.1 (+0.99%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)02-26
Earnings (Next)04-30
Inst Owners104.93%
Inst Owner Change0.01%
Ins Owners0.92%
Ins Owner Change4.43%
Market Cap2.08B
Revenue(TTM)1.12B
Net Income(TTM)91.62M
Analysts77.65
Price Target10.73 (5.4%)
Short Float %7.66%
Short Ratio5.58
Dividend
Industry RankSector Rank
Dividend Yield 3.27%
Yearly Dividend0.53
Dividend Growth(5Y)30.13%
DP118.03%
Div Incr Years3
Div Non Decr Years3
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)3.1%
PT rev (3m)8.18%
EPS NQ rev (1m)12.5%
EPS NQ rev (3m)-10%
EPS NY rev (1m)4.12%
EPS NY rev (3m)9.78%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.17%
Valuation
Industry RankSector Rank
PE 23.14
Fwd PE 19.96
P/S 1.86
P/FCF 12.85
P/OCF 8.55
P/B 1.44
P/tB 1.44
EV/EBITDA 11.25
EPS(TTM)0.44
EY4.32%
EPS(NY)0.51
Fwd EY5.01%
FCF(TTM)0.79
FCFY7.78%
OCF(TTM)1.19
OCFY11.7%
SpS5.48
BVpS7.07
TBVpS7.07
PEG (NY)1.45
PEG (5Y)N/A
Graham Number8.37
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 1.01
F-Score7
WACC7.25%
ROIC/WACC0.66
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 Y15.92%
EPS Next 2Y10.3%
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 Year2.39%
Revenue Next 2Y2.36%
Revenue Next 3Y2.73%
Revenue Next 5YN/A
EBIT growth 1Y12.77%
EBIT growth 3Y0.02%
EBIT growth 5YN/A
EBIT Next Year82.14%
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 5 / 10 to DIAMONDROCK HOSPITALITY CO (DRH). This can be considered as Fairly Valued.


How profitable is DIAMONDROCK HOSPITALITY CO (DRH) stock?

DIAMONDROCK HOSPITALITY CO (DRH) has a profitability rating of 4 / 10.


Can you provide the expected EPS growth for DRH stock?

The Earnings per Share (EPS) of DIAMONDROCK HOSPITALITY CO (DRH) is expected to grow by 15.92% in the next year.


How sustainable is the dividend of DIAMONDROCK HOSPITALITY CO (DRH) stock?

The dividend rating of DIAMONDROCK HOSPITALITY CO (DRH) is 4 / 10 and the dividend payout ratio is 118.03%.