9.19 USD
+0.15 (+1.66%)
At close: Jan 29, 2026
9.19 USD
0 (0%)
After Hours: 1/29/2026, 8:07:03 PM
Overall DRH gets a fundamental rating of 5 out of 10. We evaluated DRH against 124 industry peers in the Diversified REITs industry. DRH has an average financial health and profitability rating. DRH has a decent growth rate and is not valued too expensively.
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.
- In multiple years DRH reported negative operating cash flow during the last 5 years.
1.2 Ratios
- With a decent Return On Assets value of 1.72%, DRH is doing good in the industry, outperforming 60.48% of the companies in the same industry.
- DRH's Return On Equity of 3.45% is in line compared to the rest of the industry. DRH outperforms 58.06% of its industry peers.
- DRH has a better Return On Invested Capital (4.57%) than 88.71% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DRH is in line with the industry average of 3.05%.
- The 3 year average ROIC (4.14%) for DRH is below the current ROIC(4.57%), indicating increased profibility in the last year.
| 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: 66.13% of the companies in the same industry are doing better.
- DRH's Operating Margin has improved in the last couple of years.
- DRH's Gross Margin of 27.54% is on the low side compared to the rest of the industry. DRH is outperformed by 89.52% of its industry peers.
- DRH's Gross Margin has improved in the last couple of years.
| 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.
- DRH has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, DRH has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.94, we must say that DRH is in the distress zone and has some risk of bankruptcy.
- DRH's Altman-Z score of 0.94 is fine compared to the rest of the industry. DRH outperforms 72.58% 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 95.16% 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.
- DRH's Debt to Equity ratio of 0.70 is amongst the best of the industry. DRH outperforms 83.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 8.03 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.64
WACC7.18%
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.
- A Quick Ratio of 0.97 indicates that DRH may have some problems paying its short term obligations.
- DRH has a Quick ratio (0.97) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- The earnings per share for DRH have decreased strongly by -10.71% in the last year.
- The earnings per share for DRH have been decreasing by -28.50% on average. This is quite bad
- Looking at the last year, DRH shows a small growth in Revenue. The Revenue has grown by 0.95% in the last year.
- DRH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.79% yearly.
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 46.57% on average per year.
- Based on estimates for the next years, DRH will show a small growth in Revenue. The Revenue will grow by 1.93% on average per year.
EPS Next Y143.59%
EPS Next 2Y70.62%
EPS Next 3Y46.57%
EPS Next 5YN/A
Revenue Next Year-0.44%
Revenue Next 2Y0.88%
Revenue Next 3Y1.33%
Revenue Next 5Y1.93%
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.
4. Valuation
4.1 Price/Earnings Ratio
- DRH is valuated quite expensively with a Price/Earnings ratio of 36.76.
- Compared to the rest of the industry, the Price/Earnings ratio of DRH is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of DRH to the average of the S&P500 Index (28.39), we can say DRH is valued slightly more expensively.
- A Price/Forward Earnings ratio of 18.57 indicates a rather expensive valuation of DRH.
- Based on the Price/Forward Earnings ratio, DRH is valued cheaply inside the industry as 95.16% of the companies are valued more expensively.
- DRH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.76 | ||
| Fwd PE | 18.57 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DRH is valued cheaply inside the industry as 87.10% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DRH indicates a rather cheap valuation: DRH is cheaper than 85.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.68 | ||
| EV/EBITDA | 10.23 |
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 46.57% in the coming years.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y70.62%
EPS Next 3Y46.57%
5. Dividend
5.1 Amount
- DRH has a Yearly Dividend Yield of 2.81%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 6.82, DRH's dividend is way lower than its industry peers. On top of this 82.26% of the companies listed in the same industry pay a better dividend than DRH!
- DRH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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.
- The dividend of DRH decreased 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 2Y70.62%
EPS Next 3Y46.57%
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 36.76 and the Price/Book (PB) ratio is 1.19.
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 143.59% in the next year.