DIAMONDROCK HOSPITALITY CO (DRH) Stock Fundamental Analysis
USA - NYSE:DRH - US2527843013 - REIT
8.96 USD
+0.75 (+9.14%)
8.83 USD
-0.13 (-1.45%)
Overall DRH gets a fundamental rating of 5 out of 10. We evaluated DRH against 127 industry peers in the Diversified REITs industry. DRH has an average financial health and profitability rating. DRH has a correct valuation and a medium growth rate.
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.
In multiple years DRH reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.90%, DRH is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
DRH has a Return On Equity of 3.69%. This is comparable to the rest of the industry: DRH outperforms 58.27% of 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 3.07%.
The 3 year average ROIC (4.14%) for DRH is below the current ROIC(4.68%), indicating increased profibility in the last year.
| 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 51.97% 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.
In the last couple of years the Operating Margin of DRH has grown nicely.
The Gross Margin of DRH (27.44%) is worse than 90.55% of its industry peers.
DRH's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DRH is destroying value.
Compared to 1 year ago, DRH has less shares outstanding
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
DRH has an Altman-Z score of 0.94. 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 0.94. This is in the better half of the industry: DRH outperforms 73.23% of its industry peers.
The Debt to FCF ratio of DRH is 8.43, which is on the high side as it means it would take DRH, 8.43 years of fcf income to pay off 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 84.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 8.43 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.66
WACC7.06%
2.3 Liquidity
A Current Ratio of 0.71 indicates that DRH may have some problems paying its short term obligations.
DRH has a worse Current ratio (0.71) than 63.78% of its industry peers.
A Quick Ratio of 0.71 indicates that DRH may have some problems paying its short term obligations.
DRH has a Quick ratio of 0.71. This is in the lower half of the industry: DRH underperforms 63.78% 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 -10.71%.
Measured over the past years, DRH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.50% on average per year.
DRH shows a small growth in Revenue. In the last year, the Revenue has grown by 5.12%.
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)5.12%
Revenue growth 3Y25.83%
Revenue growth 5Y3.79%
Sales Q2Q%0.09%
3.2 Future
The Earnings Per Share is expected to grow by 44.70% on average over the next years. This is a very strong growth
Based on estimates for the next years, DRH will show a small growth in Revenue. The Revenue will grow by 1.62% on average per year.
EPS Next Y152.5%
EPS Next 2Y65.76%
EPS Next 3Y44.7%
EPS Next 5YN/A
Revenue Next Year-0.71%
Revenue Next 2Y0.79%
Revenue Next 3Y1.62%
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.
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
With a Price/Earnings ratio of 35.84, DRH can be considered very expensive at the moment.
Based on the Price/Earnings ratio, DRH is valued a bit cheaper than the industry average as 62.20% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.83, DRH is valued a bit more expensive.
DRH is valuated rather expensively with a Price/Forward Earnings ratio of 19.18.
94.49% 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 32.68. DRH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.84 | ||
| Fwd PE | 19.18 |
4.2 Price Multiples
84.25% 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 81.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.17 | ||
| EV/EBITDA | 10.16 |
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 44.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y65.76%
EPS Next 3Y44.7%
5. Dividend
5.1 Amount
DRH has a Yearly Dividend Yield of 3.29%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.31, DRH is paying slightly less dividend.
DRH's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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.
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
151.27% of the earnings are spent on dividend by DRH. This is not a sustainable payout ratio.
DP151.27%
EPS Next 2Y65.76%
EPS Next 3Y44.7%
8.96
+0.75 (+9.14%)
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 Change0.45%
Ins Owners0.99%
Ins Owner Change1.85%
Market Cap1.84B
Revenue(TTM)1.13B
Net Income(TTM)58.06M
Analysts75
Price Target9.27 (3.46%)
Short Float %8.35%
Short Ratio6.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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)-0.5%
PT rev (3m)-0.99%
EPS NQ rev (1m)-4.55%
EPS NQ rev (3m)-8.7%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-2.86%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.84 | ||
| Fwd PE | 19.18 | ||
| P/S | 1.63 | ||
| P/FCF | 15.17 | ||
| P/OCF | 7.7 | ||
| P/B | 1.17 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 10.16 |
EPS(TTM)0.25
EY2.79%
EPS(NY)0.47
Fwd EY5.21%
FCF(TTM)0.59
FCFY6.59%
OCF(TTM)1.16
OCFY12.99%
SpS5.49
BVpS7.69
TBVpS7.69
PEG (NY)0.24
PEG (5Y)N/A
Graham Number6.58
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 | 0.94 |
F-Score8
WACC7.06%
ROIC/WACC0.66
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 Y152.5%
EPS Next 2Y65.76%
EPS Next 3Y44.7%
EPS Next 5YN/A
Revenue 1Y (TTM)5.12%
Revenue growth 3Y25.83%
Revenue growth 5Y3.79%
Sales Q2Q%0.09%
Revenue Next Year-0.71%
Revenue Next 2Y0.79%
Revenue Next 3Y1.62%
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 35.84 and the Price/Book (PB) ratio is 1.17.
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%.