DIAMONDROCK HOSPITALITY CO (DRH) Fundamental Analysis & Valuation

NASDAQ:DRH • US2527843013

Current stock price

10.23 USD
-0.03 (-0.29%)
Last:

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.
  • DRH had positive earnings in 4 of the past 5 years.
  • 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 74.38% of its industry peers.
  • The Return On Equity of DRH (6.33%) is better than 73.55% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 4.79%, DRH belongs to the top of the industry, outperforming 89.26% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for DRH is in line with the industry average of 3.11%.
  • 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 has a Profit Margin (8.18%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of DRH has declined.
  • DRH has a Operating Margin of 14.61%. This is in the lower half of the industry: DRH underperforms 64.46% of its industry peers.
  • In the last couple of years the Operating Margin of DRH has declined.
  • DRH has a Gross Margin of 27.77%. This is amonst the worse of the industry: DRH underperforms 89.26% of its industry peers.
  • In the last couple of years the Gross Margin of DRH has declined.
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.
  • The number of shares outstanding for DRH has been reduced compared to 1 year ago.
  • DRH has less shares outstanding than it did 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.
  • DRH has a Altman-Z score of 1.01. This is in the better half of the industry: DRH outperforms 71.90% of its industry peers.
  • DRH has a debt to FCF ratio of 6.78. This is a slightly negative value and a sign of low solvency as DRH would need 6.78 years to pay back of all of its debts.
  • DRH has a Debt to FCF ratio of 6.78. This is amongst the best in the industry. DRH outperforms 95.04% of its industry peers.
  • A Debt/Equity ratio of 0.76 indicates that DRH is somewhat dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.76, DRH is doing good in the industry, outperforming 76.86% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 6.78
Altman-Z 1.01
ROIC/WACC0.66
WACC7.28%
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

  • DRH has a Current Ratio of 0.67. 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 (0.67) is comparable to the rest of the 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 comparable to the rest of the industry.
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.
  • Measured over the past years, DRH shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.47% on average per year.
  • The Revenue has decreased by -0.83% in the past year.
  • The Revenue has been growing by 30.20% on average over the past years. This is a very strong growth!
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

  • Based on estimates for the next years, DRH will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.30% on average per year.
  • DRH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.34% yearly.
EPS Next Y15.92%
EPS Next 2Y10.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.66%
Revenue Next 2Y2.54%
Revenue Next 3Y2.34%
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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4

4. DRH Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 23.25 indicates a rather 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 78.51% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of DRH to the average of the S&P500 Index (26.91), we can say DRH is valued inline with the index average.
  • A Price/Forward Earnings ratio of 20.06 indicates a rather expensive valuation of DRH.
  • Based on the Price/Forward Earnings ratio, DRH is valued cheaply inside the industry as 92.56% of the companies are valued more expensively.
  • DRH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.99, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.25
Fwd PE 20.06
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

  • DRH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DRH is cheaper than 78.51% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, DRH is valued cheaply inside the industry as 85.95% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.92
EV/EBITDA 11.31
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)1.46
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

  • DRH has a Yearly Dividend Yield of 3.25%.
  • Compared to an average industry Dividend Yield of 7.43, DRH is paying slightly less dividend.
  • DRH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.25%

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.
  • The dividend of DRH is growing, but the earnings are growing slower. 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 (4/29/2026, 11:15:03 AM)

10.23

-0.03 (-0.29%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Industry Strength64.6
Industry Growth19.25
Earnings (Last)02-26
Earnings (Next)04-30
Inst Owners104.93%
Inst Owner Change-0.11%
Ins Owners0.92%
Ins Owner Change4.43%
Market Cap2.09B
Revenue(TTM)1.12B
Net Income(TTM)91.62M
Analysts77.65
Price Target10.73 (4.89%)
Short Float %7.13%
Short Ratio6.73
Dividend
Industry RankSector Rank
Dividend Yield 3.25%
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)5.45%
EPS NQ rev (1m)25%
EPS NQ rev (3m)0%
EPS NY rev (1m)4.12%
EPS NY rev (3m)3.06%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.43%
Valuation
Industry RankSector Rank
PE 23.25
Fwd PE 20.06
P/S 1.87
P/FCF 12.92
P/OCF 8.59
P/B 1.45
P/tB 1.45
EV/EBITDA 11.31
EPS(TTM)0.44
EY4.3%
EPS(NY)0.51
Fwd EY4.99%
FCF(TTM)0.79
FCFY7.74%
OCF(TTM)1.19
OCFY11.64%
SpS5.48
BVpS7.07
TBVpS7.07
PEG (NY)1.46
PEG (5Y)N/A
Graham Number8.3691 (-18.19%)
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
WACC7.28%
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 Year2.66%
Revenue Next 2Y2.54%
Revenue Next 3Y2.34%
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%.