DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations.
Very undervalued with reasonable growth potential.
Share Price & News
How has DiamondRock Hospitality's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HBO's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: HBO underperformed the German REITs industry which returned 9.7% over the past year.
Return vs Market: HBO underperformed the German Market which returned 3.9% over the past year.
Price Volatility Vs. Market
How volatile is DiamondRock Hospitality's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is DiamondRock Hospitality undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HBO (€4.5) is trading below our estimate of fair value (€44.14)
Significantly Below Fair Value: HBO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HBO is good value based on its PE Ratio (7.5x) compared to the DE REITs industry average (8.6x).
PE vs Market: HBO is good value based on its PE Ratio (7.5x) compared to the German market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: HBO is good value based on its PEG Ratio (0.2x)
Price to Book Ratio
PB vs Industry: HBO is good value based on its PB Ratio (0.6x) compared to the DE REITs industry average (1.5x).
How is DiamondRock Hospitality forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HBO's forecast earnings growth (46.2% per year) is above the savings rate (0.2%).
Earnings vs Market: HBO's earnings (46.2% per year) are forecast to grow faster than the German market (22.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HBO's revenue (15.3% per year) is forecast to grow faster than the German market (5.9% per year).
High Growth Revenue: HBO's revenue (15.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HBO is forecast to be unprofitable in 3 years.
How has DiamondRock Hospitality performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HBO has a large one-off gain of $141.8M impacting its March 31 2020 financial results.
Growing Profit Margin: HBO's current net profit margins (15.4%) are higher than last year (10.4%).
Past Earnings Growth Analysis
Earnings Trend: HBO's earnings have declined by -3.2% per year over the past 5 years.
Accelerating Growth: HBO's earnings growth over the past year (51.4%) exceeds its 5-year average (-3.2% per year).
Earnings vs Industry: HBO earnings growth over the past year (51.4%) exceeded the REITs industry 25.3%.
Return on Equity
High ROE: HBO's Return on Equity (7.5%) is considered low.
How is DiamondRock Hospitality's financial position?
Financial Position Analysis
Short Term Liabilities: HBO's short term assets ($526.5M) exceed its short term liabilities ($67.5M).
Long Term Liabilities: HBO's short term assets ($526.5M) do not cover its long term liabilities ($1.7B).
Debt to Equity History and Analysis
Debt Level: HBO's debt to equity ratio (76%) is considered high.
Reducing Debt: HBO's debt to equity ratio has increased from 56.9% to 76% over the past 5 years.
Debt Coverage: HBO's debt is not well covered by operating cash flow (12.7%).
Interest Coverage: HBO's interest payments on its debt are not well covered by EBIT (1.3x coverage).
What is DiamondRock Hospitality current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate HBO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate HBO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if HBO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if HBO's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: HBO is not paying a notable dividend for the German market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of HBO's dividend in 3 years as they are not forecast to pay a notable one for the German market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Brugger (50yo)
Mr. Mark W. Brugger is a Co-Founder of Diamondrock Hospitality Company and has been its Chief Executive Officer and Director since September 1, 2008, and President since May 1, 2013. Mr. Brugger co-founded ...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD4.86M) is above average for companies of similar size in the German market ($USD1.43M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||0.92yr||US$1.31m||0.053% $488.8k|
|Executive VP of Asset Management & COO||3.5yrs||US$1.66m||0.033% $301.8k|
|Executive VP & Chief Investment Officer||6.25yrs||US$1.75m||0.015% $141.8k|
|Executive VP||10.5yrs||US$1.41m||0.058% $532.7k|
|Vice President of Acquisitions and Investments||5.58yrs||no data||no data|
|Senior VP & Treasurer||2.33yrs||no data||0.074% $686.2k|
|VP & Corporate Controller||no data||no data||no data|
|Director of Financial Planning & Analysis||no data||no data||no data|
Experienced Management: HBO's management team is seasoned and experienced (5.6 years average tenure).
|Independent Director||3.75yrs||US$187.50k||0.026% $235.9k|
|Independent Lead Director||4.17yrs||US$212.50k||0.039% $356.7k|
|Independent Director||16yrs||US$195.00k||0.016% $144.6k|
|Independent Chairman of the Board||16.5yrs||US$278.00k||0.18% $1.6m|
|Independent Director||16yrs||US$175.00k||0.033% $305.1k|
|Independent Director||5.08yrs||US$175.00k||0.031% $285.5k|
|Independent Director||1.42yrs||US$189.65k||no data|
Experienced Board: HBO's board of directors are considered experienced (8.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
DiamondRock Hospitality Company's company bio, employee growth, exchange listings and data sources
- Name: DiamondRock Hospitality Company
- Ticker: HBO
- Exchange: DB
- Founded: 2004
- Industry: Hotel and Resort REITs
- Sector: Real Estate
- Implied Market Cap: US$1.042b
- Market Cap: US$917.539m
- Listing Market Cap: US$921.102m
- Shares outstanding: 200.02m
- Website: https://www.drhc.com
Number of Employees
- DiamondRock Hospitality Company
- 2 Bethesda Metro Center
- Suite 1400
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|HBO||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||May 2005|
|DRH||NYSE (New York Stock Exchange)||Yes||Common Shares||US||USD||May 2005|
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations. The Company owns 31 premium quality hotels with over 10,000 rooms. The Company has strategically positioned its hotels to be operated both under leading global brand families as well as unique boutique hotels in the lifestyle segment.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/13 05:35|
|End of Day Share Price||2020/07/10 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.