DIAMONDROCK HOSPITALITY CO (DRH) Stock Fundamental Analysis
USA - NYSE:DRH - US2527843013 - REIT
7.81 USD
0 (0%)
DRH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 127 industry peers in the Diversified REITs industry. DRH has an average financial health and profitability rating. DRH is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
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
DRH's Return On Assets of 1.90% is fine compared to the rest of the industry. DRH outperforms 61.42% of its industry peers.
DRH has a Return On Equity (3.69%) which is in line with its industry peers.
DRH has a better Return On Invested Capital (4.68%) than 89.76% 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 3.04%.
The last Return On Invested Capital (4.68%) for DRH is above the 3 year average (4.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 3.69% | ||
| ROIC | 4.68% |
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's Profit Margin of 5.16% is in line compared to the rest of the industry. DRH outperforms 50.39% of its industry peers.
DRH's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 14.46%, DRH is not doing good in the industry: 67.72% 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 27.44% is on the low side compared to the rest of the industry. DRH is outperformed by 90.55% of its industry peers.
In the last couple of years the Gross Margin of DRH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.46% | ||
| PM (TTM) | 5.16% | ||
| GM | 27.44% |
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.
Compared to 1 year ago, DRH has less shares outstanding
The number of shares outstanding for DRH has been increased compared to 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 0.85, we must say that DRH is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.85, DRH is doing good in the industry, outperforming 70.08% of the companies in the same industry.
DRH has a debt to FCF ratio of 8.43. This is a slightly negative value and a sign of low solvency as DRH would need 8.43 years to pay back of all of its debts.
DRH has a better Debt to FCF ratio (8.43) than 92.91% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that DRH is somewhat dependend on debt financing.
DRH has a better Debt to Equity ratio (0.65) than 83.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 8.43 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.68
WACC6.84%
2.3 Liquidity
DRH has a Current Ratio of 0.71. This is a bad value and indicates that DRH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of DRH (0.71) is worse than 64.57% of its industry peers.
DRH has a Quick Ratio of 0.71. 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 0.71 is on the low side compared to the rest of the industry. DRH is outperformed by 64.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
DRH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.34%.
DRH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -28.50% yearly.
DRH shows a small growth in Revenue. In the last year, the Revenue has grown by 1.72%.
DRH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.79% yearly.
EPS 1Y (TTM)-10.34%
EPS 3YN/A
EPS 5Y-28.5%
EPS Q2Q%80%
Revenue 1Y (TTM)1.72%
Revenue growth 3Y25.83%
Revenue growth 5Y3.79%
Sales Q2Q%-1.15%
3.2 Future
The Earnings Per Share is expected to grow by 45.64% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.68% on average over the next years.
EPS Next Y153.99%
EPS Next 2Y65.32%
EPS Next 3Y45.64%
EPS Next 5YN/A
Revenue Next Year-0.79%
Revenue Next 2Y0.75%
Revenue Next 3Y1.68%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.04 indicates a quite 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 65.35% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.83. DRH is around the same levels.
The Price/Forward Earnings ratio is 16.81, which indicates a correct valuation of DRH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DRH indicates a rather cheap valuation: DRH is cheaper than 95.28% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.82, DRH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.04 | ||
| Fwd PE | 16.81 |
4.2 Price Multiples
DRH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DRH is cheaper than 89.76% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DRH indicates a rather cheap valuation: DRH is cheaper than 86.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.23 | ||
| EV/EBITDA | 9.31 |
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 45.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y65.32%
EPS Next 3Y45.64%
5. Dividend
5.1 Amount
DRH has a Yearly Dividend Yield of 3.53%.
Compared to an average industry Dividend Yield of 6.23, DRH is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, DRH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
5.2 History
The dividend of DRH decreases each year by -19.57%.
DRH has been paying a dividend for at least 10 years, so it has 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
5.3 Sustainability
151.27% of the earnings are spent on dividend by DRH. This is not a sustainable payout ratio.
DP151.27%
EPS Next 2Y65.32%
EPS Next 3Y45.64%
NYSE:DRH (10/24/2025, 1:15:36 PM)
7.81
0 (0%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners108.85%
Inst Owner Change-0.01%
Ins Owners0.99%
Ins Owner Change1.85%
Market Cap1.60B
Revenue(TTM)1.12B
Net Income(TTM)58.06M
Analysts75
Price Target9.32 (19.33%)
Short Float %6.81%
Short Ratio4.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
Yearly Dividend0.17
Dividend Growth(5Y)-19.57%
DP151.27%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.33%
Min EPS beat(2)-4.95%
Max EPS beat(2)5.61%
EPS beat(4)1
Avg EPS beat(4)-51.95%
Min EPS beat(4)-195.6%
Max EPS beat(4)5.61%
EPS beat(8)3
Avg EPS beat(8)-26.07%
EPS beat(12)3
Avg EPS beat(12)-24.65%
EPS beat(16)6
Avg EPS beat(16)-0.96%
Revenue beat(2)0
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-0.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.53%
Max Revenue beat(4)1.57%
Revenue beat(8)4
Avg Revenue beat(8)0.47%
Revenue beat(12)7
Avg Revenue beat(12)0.55%
Revenue beat(16)11
Avg Revenue beat(16)2.17%
PT rev (1m)0%
PT rev (3m)-0.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.04 | ||
| Fwd PE | 16.81 | ||
| P/S | 1.42 | ||
| P/FCF | 13.23 | ||
| P/OCF | 6.71 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 9.31 |
EPS(TTM)0.26
EY3.33%
EPS(NY)0.46
Fwd EY5.95%
FCF(TTM)0.59
FCFY7.56%
OCF(TTM)1.16
OCFY14.91%
SpS5.49
BVpS7.69
TBVpS7.69
PEG (NY)0.2
PEG (5Y)N/A
Graham Number6.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 3.69% | ||
| ROCE | 5.92% | ||
| ROIC | 4.68% | ||
| ROICexc | 4.77% | ||
| ROICexgc | 4.77% | ||
| OM | 14.46% | ||
| PM (TTM) | 5.16% | ||
| GM | 27.44% | ||
| FCFM | 10.76% |
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-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 8.43 | ||
| Debt/EBITDA | 3.7 | ||
| Cap/Depr | 103.67% | ||
| Cap/Sales | 10.46% | ||
| Interest Coverage | 2.68 | ||
| Cash Conversion | 86.45% | ||
| Profit Quality | 208.42% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.85 |
F-Score8
WACC6.84%
ROIC/WACC0.68
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)-10.34%
EPS 3YN/A
EPS 5Y-28.5%
EPS Q2Q%80%
EPS Next Y153.99%
EPS Next 2Y65.32%
EPS Next 3Y45.64%
EPS Next 5YN/A
Revenue 1Y (TTM)1.72%
Revenue growth 3Y25.83%
Revenue growth 5Y3.79%
Sales Q2Q%-1.15%
Revenue Next Year-0.79%
Revenue Next 2Y0.75%
Revenue Next 3Y1.68%
Revenue Next 5YN/A
EBIT growth 1Y23.11%
EBIT growth 3YN/A
EBIT growth 5Y7.52%
EBIT Next Year91.3%
EBIT Next 3Y25.96%
EBIT Next 5YN/A
FCF growth 1Y51.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2.67%
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 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 5 / 10.
Can you provide the PE and PB ratios for DRH stock?
The Price/Earnings (PE) ratio for DIAMONDROCK HOSPITALITY CO (DRH) is 30.04 and the Price/Book (PB) ratio is 1.02.
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 151.27%.