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

Fundamentals

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


Market Performance


7 Day Return

-1.1%

DHIL

1.7%

US Capital Markets

0.4%

US Market


1 Year Return

-21.9%

DHIL

2.4%

US Capital Markets

6.9%

US Market

Return vs Industry: DHIL underperformed the US Capital Markets industry which returned 2.4% over the past year.

Return vs Market: DHIL underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

DHILIndustryMarket
7 Day-1.1%1.7%0.4%
30 Day-1.6%-3.4%-1.2%
90 Day-4.2%-2.1%-0.4%
1 Year-18.2%-21.9%4.7%2.4%9.3%6.9%
3 Year-17.6%-26.1%51.1%42.6%45.8%36.4%
5 Year25.4%6.9%75.7%59.6%62.9%45.1%

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?

49.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: DHIL ($133.97) is trading below our estimate of fair value ($267.48)

Significantly Undervalued: 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 (9.4x) compared to the Capital Markets industry average (39.4x).

PE vs Market: DHIL is good value based on its PE Ratio (9.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low 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 (6.5x).


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?

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DHIL's forecast earnings growth (17.2% per year) is above the savings rate (2.7%).

Earnings vs Market: DHIL's earnings (17.2% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: Insufficient data to determine if DHIL's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if DHIL's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if DHIL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

12.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DHIL's earnings have grown by 12.4% 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 (-3.5%) over the past year, making it difficult to compare to the Capital Markets industry average (31.1%).


Return on Equity

High ROE: DHIL's Return on Equity (20.7%) is considered high.


Return on Assets

ROA vs Industry: DHIL has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: DHIL's Return on Capital Employed has declined over the past 3 years.


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?

5.97%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DHIL's dividend (5.97%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: DHIL's dividend (5.97%) is in the top 25% of dividend payers in the US market (3.73%)

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

  • Explore strong dividend paying companies in the Diversified Financials industry.

Management

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

4.8yrs

Average management tenure


CEO

Heather Brilliant 0

0.08yrs

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 Colonial First State Asse ...


Management Age and Tenure

4.8yrs

Average Tenure

52yo

Average Age

Experienced Management: DHIL's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

0.7yrs

Average Tenure

61.5yo

Average Age

Experienced Board: DHIL's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


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

SellUS$418,04016 Jan 19
Roderick Dillon
EntityIndividual
Shares2,600
Max PriceUS$160.85

Ownership Breakdown


Management Team

  • Chuck Bath (64yo)

    Managing Director of Equities - Diamond Hill Capital Management Inc

    • Tenure: 17.1yrs
  • Gary Young (49yo)

    MD of Administration

    • Tenure: 0yrs
  • Chris Welch

    Co-Chief Investment Officer & Portfolio Manager

    • Tenure: 9.3yrs
  • Tom Line (52yo)

    CFO & Treasurer

    • Tenure: 4.8yrs
    • Compensation: US$516.23k
  • Austin Hawley

    Co-Chief Investment Officer & Portfolio Manager

    • Tenure: 4.8yrs
  • Frances Skinner (54yo)

    Chief Administrative Officer of Investments

    • Tenure: 1.5yrs
  • Susan Stuart

    Head of Communications

    • Tenure: 0yrs
  • Jeff Cook (38yo)

    Controller

    • Tenure: 0yrs
  • Heather Brilliant

    President

    • Tenure: 0.08yrs
  • Jill Williams

    Director of Human Resources

    • Tenure: 5.8yrs

Board Members

  • Bradley Shoup (61yo)

    Independent Director

    • Tenure: 7.5yrs
  • Jim Laird (62yo)

    Chairman of the Board & Lead Independent Director

    • Tenure: 0.4yrs
  • Paul Reeder (57yo)

    Independent Director

    • Tenure: 4.5yrs
  • Randy Fortener (65yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$694.80k
  • Heather Brilliant

    President

    • Tenure: 0.08yrs
  • Paula Meyer (64yo)

    Independent Director

    • Tenure: 0.7yrs
  • Nicole St. Pierre (46yo)

    Independent Director

    • Tenure: 0.7yrs

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$429.887m
  • Shares outstanding: 3.21m
  • 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 advi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:34
End of Day Share Price2019/10/18 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.