9.47 USD
-0.13 (-1.35%)
9.41 USD
-0.06 (-0.63%)
Overall DRH gets a fundamental rating of 4 out of 10. We evaluated DRH against 125 industry peers in the Diversified REITs industry. DRH has only an average score on both its financial health and profitability. DRH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year DRH was profitable.
- DRH had a positive operating cash flow in the past year.
- 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 60.00% of the companies in the same industry.
- DRH has a Return On Equity of 3.45%. This is comparable to the rest of the industry: DRH outperforms 57.60% of its industry peers.
- The Return On Invested Capital of DRH (4.57%) is better than 88.80% 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 3.07%.
- 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
- The Profit Margin of DRH (4.81%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of DRH has declined.
- With a Operating Margin value of 14.48%, DRH is not doing good in the industry: 66.40% of the companies in the same industry are doing better.
- DRH's Operating Margin has improved in the last couple of years.
- DRH has a worse Gross Margin (27.54%) than 89.60% 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
- 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
- Compared to 5 years ago, DRH has more shares outstanding
- DRH has a better debt/assets ratio than last year.
2.2 Solvency
- DRH has an Altman-Z score of 0.97. This is a bad value and indicates that DRH is not financially healthy and even has some risk of bankruptcy.
- DRH's Altman-Z score of 0.97 is fine compared to the rest of the industry. DRH outperforms 72.80% of its industry peers.
- 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 95.20% 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.
- The Debt to Equity ratio of DRH (0.70) is better than 83.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 8.03 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.63
WACC7.21%
2.3 Liquidity
- A Current Ratio of 0.97 indicates that DRH may have some problems paying its short term obligations.
- DRH has a Current ratio (0.97) which is comparable to the rest of the industry.
- 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.
- With a Quick ratio value of 0.97, DRH perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
| 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.
- Looking at the last year, DRH shows a small growth in Revenue. The Revenue has grown by 0.95% in the last year.
- Measured over the past years, DRH shows a small growth in Revenue. The Revenue has been growing by 3.79% on average per year.
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 44.70% 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 Y131.71%
EPS Next 2Y65.32%
EPS Next 3Y44.7%
EPS Next 5YN/A
Revenue Next Year-0.53%
Revenue Next 2Y0.92%
Revenue Next 3Y1.39%
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.
- 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 37.88 indicates a quite expensive valuation of DRH.
- DRH's Price/Earnings ratio is in line with the industry average.
- DRH's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 20.38 indicates a rather expensive valuation of DRH.
- 93.60% of the companies in the same industry are more expensive than DRH, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, DRH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.88 | ||
| Fwd PE | 20.38 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRH indicates a rather cheap valuation: DRH is cheaper than 84.80% of the companies listed in the same industry.
- DRH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DRH is cheaper than 84.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.09 | ||
| EV/EBITDA | 10.53 |
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)0.29
PEG (5Y)N/A
EPS Next 2Y65.32%
EPS Next 3Y44.7%
5. Dividend
5.1 Amount
- DRH has a Yearly Dividend Yield of 2.90%. Purely for dividend investing, there may be better candidates out there.
- With a Dividend Yield of 2.90, DRH pays less dividend than the industry average, which is at 6.59. 81.60% of the companies listed in the same industry pay a better dividend than DRH!
- Compared to an average S&P500 Dividend Yield of 1.82, DRH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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
- 180.94% of the earnings are spent on dividend by DRH. This is not a sustainable payout ratio.
DP180.94%
EPS Next 2Y65.32%
EPS Next 3Y44.7%
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 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 4 / 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 37.88 and the Price/Book (PB) ratio is 1.23.
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 131.71% in the next year.