NasdaqGS:DHIL

Stock Analysis Report

Executive Summary

Diamond Hill Investment Group, Inc., together with its subsidiaries, provides investment advisory and fund administration services in the United States.


Snowflake Analysis

Undervalued with acceptable track record.


Similar Companies

Share Price & News

How has Diamond Hill Investment Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.7%

DHIL

1.9%

US Capital Markets

1.2%

US Market


1 Year Return

-10.0%

DHIL

19.2%

US Capital Markets

24.2%

US Market

Return vs Industry: DHIL underperformed the US Capital Markets industry which returned 21.7% over the past year.

Return vs Market: DHIL underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

DHILIndustryMarket
7 Day-0.7%1.9%1.2%
30 Day1.5%3.9%3.5%
90 Day5.8%14.3%11.7%
1 Year-4.1%-10.0%21.6%19.2%26.9%24.2%
3 Year-16.1%-27.4%48.8%40.4%53.0%43.2%
5 Year25.4%3.3%95.9%77.7%75.3%56.0%

Price Volatility Vs. Market

How volatile is Diamond Hill Investment Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Diamond Hill Investment Group undervalued compared to its fair value and its price relative to the market?

43.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DHIL ($144.4) is trading below our estimate of fair value ($255.13)

Significantly Below Fair Value: DHIL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DHIL is good value based on its PE Ratio (10.8x) compared to the Capital Markets industry average (36.1x).

PE vs Market: DHIL is good value based on its PE Ratio (10.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DHIL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DHIL is good value based on its PB Ratio (2x) compared to the US Capital Markets industry average (6.6x).


Next Steps

Future Growth

How is Diamond Hill Investment Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.8%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Diamond Hill Investment Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Diamond Hill Investment Group performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DHIL has high quality earnings.

Growing Profit Margin: DHIL's current net profit margins (34.3%) are lower than last year (36.5%).


Past Earnings Growth Analysis

Earnings Trend: DHIL's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: DHIL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DHIL had negative earnings growth (-14.9%) over the past year, making it difficult to compare to the Capital Markets industry average (20.6%).


Return on Equity

High ROE: DHIL's Return on Equity (20.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Diamond Hill Investment Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: DHIL has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DHIL's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: DHIL's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if DHIL has a sufficient allowance for bad loans.

Low Risk Liabilities: DHIL reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if DHIL has an acceptable proportion of non-loan assets held.

Low Risk Deposits: DHIL has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if DHIL has an appropriate level of bad loans.


Next Steps

Dividend

What is Diamond Hill Investment Group's current dividend yield, its reliability and sustainability?

6.34%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: DHIL's dividend (6.23%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: DHIL's dividend (6.23%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: DHIL's dividend payments have been volatile in the past 10 years.

Growing Dividend: DHIL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Diamond Hill Investment Group's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Heather Brilliant 0

0.3yrs

Tenure

0

Ms. Heather Elizabeth Brilliant, CFA, has been President, CEO & Director at Diamond Hill Investment Group, Inc. since September 2019. She has been Managing Director of Americas at First Sentier Investors ( ...


Management Age and Tenure

5.0yrs

Average Tenure

52yo

Average Age

Experienced Management: DHIL's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

0.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: DHIL's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: DHIL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$80,40004 Dec 19
Heather Brilliant
EntityIndividual
Role
Chief Executive Officer
President
Shares600
Max PriceUS$134.00
BuyUS$71,12505 Nov 19
Heather Brilliant
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$142.25
BuyUS$361,00005 Nov 19
James Laird
EntityIndividual
Role
Chairman of the Board
Chairman of the Board & Lead Independent Director
Shares2,500
Max PriceUS$144.40

Ownership Breakdown

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


Management Team

  • Chuck Bath (64yo)

    Managing Director of Equities - Diamond Hill Capital Management Inc

    • Tenure: 17.3yrs
  • Gary Young (49yo)

    MD of Administration

    • Chris Welch

      Co-Chief Investment Officer & Portfolio Manager

      • Tenure: 9.6yrs
    • Tom Line (52yo)

      CFO & Treasurer

      • Tenure: 5yrs
      • Compensation: US$516.23k
    • Austin Hawley

      Co-Chief Investment Officer & Portfolio Manager

      • Tenure: 5yrs
    • Frances Skinner (54yo)

      Chief Administrative Officer of Investments

      • Tenure: 1.8yrs
    • Susan Stuart

      Head of Communications

      • Jeff Cook (38yo)

        Controller

        • Heather Brilliant

          President

          • Tenure: 0.3yrs
        • Jill Williams

          Director of Human Resources

          • Tenure: 6yrs

        Board Members

        • Bradley Shoup (61yo)

          Independent Director

          • Tenure: 7.8yrs
        • Jim Laird (62yo)

          Chairman of the Board & Lead Independent Director

          • Tenure: 0.7yrs
        • Paul Reeder (57yo)

          Independent Director

          • Tenure: 4.8yrs
        • Randy Fortener (65yo)

          Independent Director

          • Tenure: 6.8yrs
          • Compensation: US$694.80k
        • Heather Brilliant

          President

          • Tenure: 0.3yrs
        • Paula Meyer (64yo)

          Independent Director

          • Tenure: 0.9yrs
        • Nicole St. Pierre (46yo)

          Independent Director

          • Tenure: 0.9yrs

        Company Information

        Diamond Hill Investment Group, Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Diamond Hill Investment Group, Inc.
        • Ticker: DHIL
        • Exchange: NasdaqGS
        • Founded: 1990
        • Industry: Asset Management and Custody Banks
        • Sector: Diversified Financials
        • Market Cap: US$447.317m
        • Shares outstanding: 3.15m
        • Website: https://www.diamond-hill.com

        Number of Employees


        Location

        • Diamond Hill Investment Group, Inc.
        • 325 John H. McConnell Boulevard
        • Suite 200
        • Columbus
        • Ohio
        • 43215
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        DHILNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1995

        Biography

        Diamond Hill Investment Group, Inc., together with its subsidiaries, provides investment advisory and fund administration services in the United States. It sponsors, distributes, and offers investment advisory and related services to a range of clients, such as corporations, mutual funds, retirement plans, public pension funds, endowments, foundations, financial institutions, and high net worth individuals. The company also provides fund administration services, including portfolio and regulatory compliance, treasury and financial oversight, and general business management and governance of the mutual fund complex, as well as oversight of back-office service providers, such as the custodian, fund accountant, and transfer agent. It offers investment advisory services to third-party financial intermediaries comprising independent registered investment advisors, brokers, financial planners, and wealth advisers; and fund administration services primarily to mutual funds, institutional accounts, and private investment funds. The company was founded in 1990 and is based in Columbus, Ohio. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/20 23:37
        End of Day Share Price2020/01/17 00:00
        Earnings2019/09/30
        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.