ISE:DHG

Stock Analysis Report

Executive Summary

Dalata Hotel Group plc owns and operates hotels under the Clayton Hotel and Maldron Hotel brand names in Ireland and the United Kingdom.

Rewards

Trading at 14.9% below its fair value

Earnings are forecast to grow 1.74% per year

Earnings grew by 10% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Good value with acceptable track record.


Similar Companies

Share Price & News

How has Dalata Hotel Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DHG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

DHG

-1.0%

IE Hospitality

1.5%

IE Market


1 Year Return

19.4%

DHG

15.3%

IE Hospitality

23.4%

IE Market

Return vs Industry: DHG exceeded the Irish Hospitality industry which returned 15.3% over the past year.

Return vs Market: DHG underperformed the Irish Market which returned 23.4% over the past year.


Shareholder returns

DHGIndustryMarket
7 Day-3.0%-1.0%1.5%
30 Day-1.1%0.8%4.8%
90 Day8.5%2.8%17.2%
1 Year21.7%19.4%18.8%15.3%26.1%23.4%
3 Year15.8%13.1%26.1%14.5%25.4%19.4%
5 Year86.3%82.0%51.7%28.0%81.6%66.0%

Price Volatility Vs. Market

How volatile is Dalata Hotel Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dalata Hotel Group undervalued compared to its fair value and its price relative to the market?

14.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DHG (€5.26) is trading below our estimate of fair value (€6.18)

Significantly Below Fair Value: DHG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DHG is good value based on its PE Ratio (12.5x) compared to the Hospitality industry average (19.6x).

PE vs Market: DHG is good value based on its PE Ratio (12.5x) compared to the Irish market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: DHG is poor value based on its PEG Ratio (7.2x)


Price to Book Ratio

PB vs Industry: DHG is good value based on its PB Ratio (1x) compared to the XE Hospitality industry average (1.5x).


Next Steps

Future Growth

How is Dalata Hotel Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DHG's forecast earnings growth (1.7% per year) is above the savings rate (0.06%).

Earnings vs Market: DHG's earnings (1.7% per year) are forecast to grow slower than the Irish market (11.9% per year).

High Growth Earnings: DHG's earnings are forecast to grow, but not significantly.

Revenue vs Market: DHG's revenue (7.1% per year) is forecast to grow faster than the Irish market (3.9% per year).

High Growth Revenue: DHG's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DHG's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has Dalata Hotel Group performed over the past 5 years?

44.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DHG has high quality earnings.

Growing Profit Margin: DHG's current net profit margins (18.6%) are lower than last year (19.1%).


Past Earnings Growth Analysis

Earnings Trend: DHG's earnings have grown significantly by 44.9% per year over the past 5 years.

Accelerating Growth: DHG's earnings growth over the past year (10%) is below its 5-year average (44.9% per year).

Earnings vs Industry: DHG earnings growth over the past year (10%) exceeded the Hospitality industry -7%.


Return on Equity

High ROE: DHG's Return on Equity (8.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dalata Hotel Group's financial position?


Financial Position Analysis

Short Term Liabilities: DHG's short term assets (€79.6M) do not cover its short term liabilities (€103.6M).

Long Term Liabilities: DHG's short term assets (€79.6M) do not cover its long term liabilities (€744.2M).


Debt to Equity History and Analysis

Debt Level: DHG's debt to equity ratio (42%) is considered high.

Reducing Debt: Insufficient data to determine if DHG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: DHG's debt is well covered by operating cash flow (35.8%).

Interest Coverage: DHG's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet

Inventory Level: DHG has a high level of physical assets or inventory.

Debt Coverage by Assets: DHG's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Dalata Hotel Group's current dividend yield, its reliability and sustainability?

2.66%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.3%markettop25%4.5%industryaverage2.9%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: DHG's dividend (2.66%) is higher than the bottom 25% of dividend payers in the Irish market (2.33%).

High Dividend: DHG's dividend (2.66%) is low compared to the top 25% of dividend payers in the Irish market (4.48%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether DHG's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if DHG's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25%), DHG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DHG's dividends in 3 years are forecast to be well covered by earnings (25.9% payout ratio).


Next Steps

Management

What is the CEO of Dalata Hotel Group's salary, the management and board of directors tenure and is there insider trading?

9.6yrs

Average management tenure


CEO

Pat McCann (67yo)

12.9yrs

Tenure

€1,512,000

Compensation

Mr. Patrick A. McCann, also known as Pat, H.N.D Business Studies, FIHI serves as the Chief Executive Officer at Dalata Hotel Group p.l.c. since 2007 and has been its Executive Director since January 28, 20 ...


CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD1.68M) is above average for companies of similar size in the Irish market ($USD1.07M).

Compensation vs Earnings: Pat's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.6yrs

Average Tenure

52yo

Average Age

Experienced Management: DHG's management team is seasoned and experienced (9.6 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

57yo

Average Age

Experienced Board: DHG's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€46,60004 Sep 19
Stephen McNally
EntityIndividual
Role
Member of the Board of Directors
Deputy CEO & Executive Director
Shares10,000
Max Price€4.66
Buy€22,19904 Sep 19
Dermot Crowley
EntityIndividual
Role
Member of the Board of Directors
Deputy CEO of Business Development & Finance and Executive Director
Shares5,000
Max Price€4.44
Buy€89,00004 Sep 19
John Hennessy
EntityIndividual
Role
Chairman of the Board
Independent Non Executive Chairman
Shares20,000
Max Price€4.45
Buy€254,77303 Sep 19
Patrick McCann
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares57,300
Max Price€4.45
Buy€68,34310 Apr 19
Dermot Crowley
EntityIndividual
Role
Member of the Board of Directors
Deputy CEO of Business Development & Finance and Executive Director
Shares11,824
Max Price€5.78
Buy€68,34310 Apr 19
Stephen McNally
EntityIndividual
Role
Member of the Board of Directors
Deputy CEO & Executive Director
Shares11,824
Max Price€5.78

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Pat McCann (67yo)

    CEO & Executive Director

    • Tenure: 12.9yrs
    • Compensation: €1.51m
  • Dermot Crowley (52yo)

    Deputy CEO of Business Development & Finance and Executive Director

    • Tenure: 5.9yrs
    • Compensation: €910.00k
  • Shane Casserly (50yo)

    Head of Strategy & Development

    • Tenure: 0yrs
  • Seán McKeon (52yo)

    Company Secretary

    • Tenure: 0yrs
  • Stephen McNally (55yo)

    Deputy CEO & Executive Director

    • Tenure: 5.9yrs
    • Compensation: €901.00k
  • Patrice Lennon (40yo)

    Head of Sales & Marketing

    • Tenure: 6.9yrs
  • Tony McGuigan

    Head of Procurement

    • Tenure: 0yrs
  • Dawn Wynne

    Head of Human Resources

    • Tenure: 0yrs
  • Martha Mannion (40yo)

    Head of Rooms Revenue & Distribution

    • Tenure: 0yrs
  • Niamh Carr

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Margaret Sweeney (59yo)

    Non Executive Director

    • Tenure: 5.8yrs
    • Compensation: €75.00k
  • John Hennessy (63yo)

    Independent Non Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: €125.00k
  • Pat McCann (67yo)

    CEO & Executive Director

    • Tenure: 12.9yrs
    • Compensation: €1.51m
  • Liz McMeikan (57yo)

    Independent Non-Executive Director

    • Tenure: 0.2yrs
  • Alf Smiddy (57yo)

    Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: €79.00k
  • Robert Dix (66yo)

    Non Executive Director

    • Tenure: 5.8yrs
    • Compensation: €75.00k
  • Dermot Crowley (52yo)

    Deputy CEO of Business Development & Finance and Executive Director

    • Tenure: 5.9yrs
    • Compensation: €910.00k
  • Seán McKeon (52yo)

    Company Secretary

    • Tenure: 0yrs
  • Stephen McNally (55yo)

    Deputy CEO & Executive Director

    • Tenure: 5.9yrs
    • Compensation: €901.00k

Company Information

Dalata Hotel Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dalata Hotel Group plc
  • Ticker: DHG
  • Exchange: ISE
  • Founded: 2007
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: €988.437m
  • Shares outstanding: 185.10m
  • Website: https://www.dalatahotelgroup.com

Number of Employees


Location

  • Dalata Hotel Group plc
  • Burton Court
  • 4th Floor
  • Dublin
  • Co. Dublin
  • 18
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DHGISE (Irish Stock Exchange)YesOrdinary SharesIEEURMar 2014
DALLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2014
DHGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2014
DHGIBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMar 2014
DALLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2014
DLTT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2014

Biography

Dalata Hotel Group plc owns and operates hotels under the Clayton Hotel and Maldron Hotel brand names in Ireland and the United Kingdom. It operates in four segments: Dublin, Regional Ireland, United Kingd ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 21:13
End of Day Share Price2019/12/06 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.