NasdaqGS:DHIL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet and undervalued.


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

6.4%

DHIL

2.3%

US Capital Markets

2.5%

US Market


1 Year Return

-11.8%

DHIL

6.7%

US Capital Markets

16.3%

US Market

Return vs Industry: DHIL underperformed the US Capital Markets industry which returned 6.7% over the past year.

Return vs Market: DHIL underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

DHILIndustryMarket
7 Day6.4%2.3%2.5%
30 Day3.4%1.9%5.6%
90 Day16.7%12.4%16.4%
1 Year-6.0%-11.8%8.9%6.7%18.8%16.3%
3 Year-27.4%-37.1%26.9%19.2%45.1%35.7%
5 Year-23.2%-36.7%57.9%42.6%75.8%56.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DHIL ($121.36) is trading below our estimate of fair value ($264.47)

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 (10.4x) compared to the US Capital Markets industry average (28.6x).

PE vs Market: DHIL is good value based on its PE Ratio (10.4x) 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 (1.8x) compared to the US Capital Markets industry average (9x).


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?

6.5%

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?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DHIL has high quality earnings.

Growing Profit Margin: DHIL's current net profit margins (29.5%) are lower than last year (36.3%).


Past Earnings Growth Analysis

Earnings Trend: DHIL's earnings have grown by 4.1% 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 (-23%) over the past year, making it difficult to compare to the Capital Markets industry average (16.6%).


Return on Equity

High ROE: DHIL's Return on Equity (17.7%) is considered low.


Next Steps

Financial Health

How is Diamond Hill Investment Group's financial position?


Financial Position Analysis

Short Term Liabilities: DHIL's short term assets ($128.3M) exceed its short term liabilities ($20.8M).

Long Term Liabilities: DHIL's short term assets ($128.3M) exceed its long term liabilities ($29.2M).


Debt to Equity History and Analysis

Debt Level: DHIL is debt free.

Reducing Debt: DHIL has not had any debt for past 5 years.

Debt Coverage: DHIL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DHIL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

7.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DHIL's dividend (7.42%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: DHIL's dividend (7.42%) is in the top 25% of dividend payers in the US market (4.36%)


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

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Heather Brilliant (43 yo)

0.92

Tenure

US$4,763,989

Compensation

Ms. Heather Elizabeth Brilliant, CFA, has been President, CEO & Director at Diamond Hill Investment Group, Inc. since September 3, 2019. She is Chief Executive Officer and President at Diamond Hill Capital ...


CEO Compensation Analysis

Compensation vs Market: Heather's total compensation ($USD4.76M) is above average for companies of similar size in the US market ($USD2.03M).

Compensation vs Earnings: Insufficient data to compare Heather's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Heather Brilliant
President0.92yrUS$4.76m0.84%
$ 3.1m
Thomas Line
CFO & Treasurer5.58yrsUS$2.09m0.65%
$ 2.4m
Christopher Welch
Co-Chief Investment Officer & Portfolio Manager10.17yrsno datano data
Austin Hawley
Co-Chief Investment Officer & Portfolio Manager5.58yrsno datano data
Gary Young
MD of Administrationno datano datano data
Susan Stuart
Head of Communicationsno datano datano data
Jill Williams
Director of Human Resources6.58yrsno datano data
Frances Skinner
Chief Administrative Officer of Investments2.33yrsno datano data
Jeffrey Cook
Controllerno datano datano data
Charles Bath
Managing Director of Equities - Diamond Hill Capital Management Inc17.92yrsno datano data
Thomas Schindler
Portfolio Managerno datano datano data
William Zox
Portfolio Manager and Investment Analystno datano datano data

5.6yrs

Average Tenure

51.5yo

Average Age

Experienced Management: DHIL's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Heather Brilliant
President0.92yrUS$4.76m0.84%
$ 3.1m
Bradley Shoup
Independent Director8.33yrsno data0.24%
$ 874.9k
James Laird
Chairman of the Board & Lead Independent Director1.25yrsUS$30.00k1.06%
$ 3.9m
Randolph Fortener
Independent Director7.33yrsUS$30.00k0.29%
$ 1.0m
Paula Meyer
Independent Director1.5yrsUS$1.31mno data
Nicole St. Pierre
Independent Director1.5yrsUS$1.31m0.27%
$ 972.1k

1.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: DHIL's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DHIL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$365.602m
  • Shares outstanding: 3.02m
  • 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 Analysis2020/08/09 00:10
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.