8.68 USD
-0.07 (-0.8%)
8.68 USD
0 (0%)
Taking everything into account, DRH scores 4 out of 10 in our fundamental rating. DRH was compared to 128 industry peers in the Diversified REITs industry. DRH has an average financial health and profitability rating. DRH scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
In multiple years DRH reported negative net income over the last 5 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
Looking at the Return On Assets, with a value of 1.72%, DRH is in line with its industry, outperforming 59.38% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.45%, DRH is in line with its industry, outperforming 57.03% of the companies in the same industry.
DRH's Return On Invested Capital of 4.57% is amongst the best of the industry. DRH outperforms 89.06% 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 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.
In the last couple of years the Profit Margin of DRH has declined.
Looking at the Operating Margin, with a value of 14.48%, DRH is doing worse than 67.97% of the companies in the same industry.
In the last couple of years the Operating Margin of DRH has grown nicely.
The Gross Margin of DRH (27.54%) is worse than 90.63% of its industry peers.
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
DRH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DRH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DRH has been increased compared to 5 years ago.
The debt/assets ratio for DRH has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.90, 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 0.90, DRH is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
DRH has a debt to FCF ratio of 8.03. This is a slightly negative value and a sign of low solvency as DRH would need 8.03 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.03, DRH belongs to the top of the industry, outperforming 95.31% 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.
Looking at the Debt to Equity ratio, with a value of 0.70, DRH belongs to the top of the industry, outperforming 82.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 8.03 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.65
WACC7.04%
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's Quick ratio of 0.97 is in line compared to the rest of the industry. DRH outperforms 50.00% of its industry peers.
| 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%.
DRH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -28.50% yearly.
The Revenue has been growing slightly by 0.95% in the past year.
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
DRH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.70% yearly.
The Revenue is expected to grow by 1.59% on average over the next years.
EPS Next Y143.59%
EPS Next 2Y113.19%
EPS Next 3Y44.7%
EPS Next 5YN/A
Revenue Next Year-11.64%
Revenue Next 2Y0.88%
Revenue Next 3Y1.59%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 34.72 indicates a quite expensive valuation of DRH.
DRH's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.34, DRH is valued a bit more expensive.
DRH is valuated reasonably with a Price/Forward Earnings ratio of 11.23.
Based on the Price/Forward Earnings ratio, DRH is valued cheaply inside the industry as 98.44% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.56. DRH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.72 | ||
| Fwd PE | 11.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRH is valued cheaper than 83.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DRH is valued cheaper than 84.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.92 | ||
| EV/EBITDA | 9.85 |
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.
A more expensive valuation may be justified as DRH's earnings are expected to grow with 44.70% in the coming years.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y113.19%
EPS Next 3Y44.7%
5. Dividend
5.1 Amount
DRH has a Yearly Dividend Yield of 3.13%.
DRH's Dividend Yield is slightly below the industry average, which is at 6.59.
Compared to an average S&P500 Dividend Yield of 2.31, DRH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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 2Y113.19%
EPS Next 3Y44.7%
8.68
-0.07 (-0.8%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners109.6%
Inst Owner Change-0.37%
Ins Owners0.99%
Ins Owner Change0.28%
Market Cap1.77B
Revenue(TTM)1.13B
Net Income(TTM)54.16M
Analysts75
Price Target9.69 (11.64%)
Short Float %9.51%
Short Ratio5.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend0.17
Dividend Growth(5Y)-19.57%
DP180.94%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)4.5%
PT rev (3m)4.76%
EPS NQ rev (1m)70.59%
EPS NQ rev (3m)75.76%
EPS NY rev (1m)-3.53%
EPS NY rev (3m)-4.09%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)-11.01%
Revenue NY rev (3m)-10.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.72 | ||
| Fwd PE | 11.23 | ||
| P/S | 1.57 | ||
| P/FCF | 12.92 | ||
| P/OCF | 7.03 | ||
| P/B | 1.13 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 9.85 |
EPS(TTM)0.25
EY2.88%
EPS(NY)0.77
Fwd EY8.9%
FCF(TTM)0.67
FCFY7.74%
OCF(TTM)1.23
OCFY14.23%
SpS5.52
BVpS7.7
TBVpS7.7
PEG (NY)0.24
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 | 0.9 |
F-Score6
WACC7.04%
ROIC/WACC0.65
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 Y143.59%
EPS Next 2Y113.19%
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-11.64%
Revenue Next 2Y0.88%
Revenue Next 3Y1.59%
Revenue Next 5YN/A
EBIT growth 1Y21.19%
EBIT growth 3YN/A
EBIT growth 5Y7.52%
EBIT Next Year94.87%
EBIT Next 3Y26.42%
EBIT Next 5YN/A
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 4 / 10 to DRH.
What is the valuation status of DIAMONDROCK HOSPITALITY CO (DRH) stock?
ChartMill assigns a valuation rating of 7 / 10 to DIAMONDROCK HOSPITALITY CO (DRH). This can be considered as Undervalued.
What is the profitability of DRH stock?
DIAMONDROCK HOSPITALITY CO (DRH) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for DRH stock?
The Price/Earnings (PE) ratio for DIAMONDROCK HOSPITALITY CO (DRH) is 34.72 and the Price/Book (PB) ratio is 1.13.
How sustainable is the dividend of DIAMONDROCK HOSPITALITY CO (DRH) stock?
The dividend rating of DIAMONDROCK HOSPITALITY CO (DRH) is 3 / 10 and the dividend payout ratio is 180.94%.