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DHT

DHT Holdings NYSE:DHT Stock Report

Last Price

US$7.40

Market Cap

US$1.2b

7D

3.6%

1Y

28.2%

Updated

10 Aug, 2022

Data

Company Financials +
DHT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health2/6
Dividends1/6

DHT Stock Overview

DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway.

DHT Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for DHT Holdings
Historical stock prices
Current Share PriceUS$7.40
52 Week HighUS$7.62
52 Week LowUS$4.55
Beta-0.30
1 Month Change22.92%
3 Month Change42.58%
1 Year Change28.25%
3 Year Change42.58%
5 Year Change97.33%
Change since IPO-94.88%

Recent News & Updates

Aug 03
DHT Holdings (NYSE:DHT) Is Carrying A Fair Bit Of Debt

DHT Holdings (NYSE:DHT) Is Carrying A Fair Bit Of Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jul 11

DHT Holdings: Recovery Dependent On VLCC Rates Catching Up

VLCC rates have improved lately, but the segment is still lagging other tanker types. There are several reasons why VLCCs have lagged lately and that might not get corrected in the short term. DHT is still a great company with good liquidity, little leverage, and a great capital allocation track record. Investment Thesis DHT Holdings (DHT) is a tanker company focused on VLCCs exclusively, with 24 tankers from which 18 were as of the latest information exposed to the spot market. I have written a few articles about the company in the past and I have also been long the stock, but I have recently liquidated my holdings due to more attractive risk-rewards elsewhere in the energy sector. Figure 1 - Source: DHT Holdings Many shipping companies with a focus on oil and product tankers have so far had a very good year, while most stocks without a connection to energy have seen declines in 2022. Shipping companies with exposure to product or mid-size oil tankers have outperformed DHT so far in the recovery, primarily due to more attractive tanker rates. Data by YCharts That might mean DHT has the potential to at least partly catch up once VLCC rates improve. However, a recovery is potentially dependent on China not continuing with zero covid policies, the U.S. not restricting oil exports, and/or sanctions being lifted on Iran & Venezuela. Oil & Tanker Market Since the invasion of Ukraine, we have seen tanker rates recover from the lows about 6 months ago across tanker types. However, if we just focus on the oil tankers, the recovery in tanker rates has not been equal across all sizes. As Europe has decreased its imports of Russia oil, we have seen some rearranging of transport routes. India's reliance on VLCCs has decreased as the country has bought more oil from Russia, primarily transported on mid-size tankers. We have seen less oil being exported outside of Europe from the North Sea, which also means less demand for VLCCs. Figure 3 - Source: @chigirl on Twitter China's zero Covid policies have also impacted VLCCs disproportionally, since the infrastructure to handle the larger tankers is better in Asia. Now, China might be moving away from zero Covid policies going forward, but it is still a potential risk factor in my view. Another potential risk factor which might not be probable, but the impact would likely not be good for VLCCs, is if the U.S. enacted some kind of export restrictions on oil or products. While this would have dire effects on the U.S. allies, making it quite unlikely, I would not rule it out completely as a desperate move with an upcoming U.S. election. Despite the weak tanker rates over the last couple of years, we have seen relatively little recycling of older VLCCs. That has been and might continue to be a headwind for the segment. If the restrictions are scrapped on Iran and Venezuela, we would on the other hand see a very positive impact on VLCCs. If or when such a move would happen is still very unclear, at least to me. Another factor which will eventually be a positive for VLCCs and tankers in general is the drawdown of oil inventories. It is not sustainable and will need to reverse relatively soon. Once we see that trend reverse, the demand for tankers will naturally increase as well. Balance Sheet & Capital Allocation DHT has lately been operating with less leverage and more liquidity than most peers in the industry. That means the breakeven tanker rate is among the lowest in the industry and it also provides the company with a lot of flexibility on the capital allocation side. Figure 4 - Source: Koyfin DHT has opportunistically bought back 2.8M shares during Q2-22, equivalent to 1.7% of the outstanding shares at an average price of $5.6256. The company does also pay out a very substantial part of earnings in dividends, which means the dividend yield can rise very drastically during periods of very good tanker rates. Figure 5 - Source: Koyfin

Jun 29

Sell Petrobras And Buy DHT For A Rising Inventory And Oil Restocking Environment

Large oil trading companies and refiners who are buyers of oil are not restocking because the futures curve is signaling prices will be lower in the future (negative carry). There is an inability to hedge this negative carry because longer-dated oil futures prices are lower than near-term or spot prices. This means buyers of oil have essentially no choice but to draw down inventories and delay restocking, which has been a draw on the tanker market. I think this backwardation of the curve (downward sloping) will flip to contango (upward sloping) for one of two reasons. Regardless of the reason, tanker stocks stand to benefit. Either the discounted back-end rises at a faster pace than the expensive front-end or the front-end is more oversupplied than people believe, inventories start to rise and near-term/spot prices fall at a faster rate than the back-end in a risk-off environment.

Shareholder Returns

DHTUS Oil and GasUS Market
7D3.6%1.5%1.2%
1Y28.2%49.9%-11.6%

Return vs Industry: DHT underperformed the US Oil and Gas industry which returned 49.4% over the past year.

Return vs Market: DHT exceeded the US Market which returned -13.5% over the past year.

Price Volatility

Is DHT's price volatile compared to industry and market?
DHT volatility
DHT Average Weekly Movement6.9%
Oil and Gas Industry Average Movement8.9%
Market Average Movement7.9%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.2%

Stable Share Price: DHT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: DHT's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200518Arnet Harfjeldhttps://www.dhtankers.com

DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. As of March 17, 2022, it had a fleet of 26 very large crude carriers with a capacity of 8,043,657 deadweight tons. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.

DHT Holdings Fundamentals Summary

How do DHT Holdings's earnings and revenue compare to its market cap?
DHT fundamental statistics
Market CapUS$1.21b
Earnings (TTM)-US$40.39m
Revenue (TTM)US$285.27m

4.3x

P/S Ratio

-30.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DHT income statement (TTM)
RevenueUS$285.27m
Cost of RevenueUS$191.37m
Gross ProfitUS$93.90m
Other ExpensesUS$134.28m
Earnings-US$40.39m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 10, 2022

Earnings per share (EPS)-0.25
Gross Margin32.91%
Net Profit Margin-14.16%
Debt/Equity Ratio51.0%

How did DHT perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

-33%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is DHT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DHT?

Other financial metrics that can be useful for relative valuation.

DHT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.9x
Enterprise Value/EBITDA26.4x
PEG Ration/a

Price to Sales Ratio vs Peers

How does DHT's PS Ratio compare to its peers?

DHT PS Ratio vs Peers
The above table shows the PS ratio for DHT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.5x
GEL Genesis Energy
0.5xn/aUS$1.3b
INSW International Seaways
4.1x13.7%US$1.3b
PBFX PBF Logistics
3.1x1.7%US$1.1b
SFL SFL
2.3x6.7%US$1.3b
DHT DHT Holdings
4.3x21.3%US$1.2b

Price-To-Sales vs Peers: DHT is expensive based on its Price-To-Sales Ratio (4.3x) compared to the peer average (2.5x).


Price to Earnings Ratio vs Industry

How does DHT's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Sales vs Industry: DHT is expensive based on its Price-To-Sales Ratio (4.3x) compared to the US Oil and Gas industry average (1.6x)


Price to Sales Ratio vs Fair Ratio

What is DHT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DHT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.3x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: DHT is expensive based on its Price-To-Sales Ratio (4.3x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).


Share Price vs Fair Value

What is the Fair Price of DHT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DHT ($7.4) is trading below our estimate of fair value ($29.19)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is DHT Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


94.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DHT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: DHT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DHT is expected to become profitable in the next 3 years.

Revenue vs Market: DHT's revenue (21.3% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: DHT's revenue (21.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DHT's Return on Equity is forecast to be low in 3 years time (17.9%).


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Past Performance

How has DHT Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


38.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DHT is currently unprofitable.

Growing Profit Margin: DHT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DHT is unprofitable, but has reduced losses over the past 5 years at a rate of 38.2% per year.

Accelerating Growth: Unable to compare DHT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DHT is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (189.7%).


Return on Equity

High ROE: DHT has a negative Return on Equity (-3.92%), as it is currently unprofitable.


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Financial Health

How is DHT Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DHT's short term assets ($130.2M) exceed its short term liabilities ($45.2M).

Long Term Liabilities: DHT's short term assets ($130.2M) do not cover its long term liabilities ($504.4M).


Debt to Equity History and Analysis

Debt Level: DHT's net debt to equity ratio (45.3%) is considered high.

Reducing Debt: DHT's debt to equity ratio has reduced from 97.5% to 51% over the past 5 years.

Debt Coverage: DHT's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: Insufficient data to determine if DHT's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

What is DHT Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DHT's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.51%).

High Dividend: DHT's dividend (1.35%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: DHT is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (83.6%), DHT's dividend payments are covered by cash flows.


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Management

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

4.2yrs

Average management tenure


CEO

Arnet Harfjeld (58 yo)

0.33

Tenure

US$1,933,245

Compensation

Mr. Svein Moxnes Harfjeld, also known as Arnet serves as Chief Executive Officer of DHT Holdings, Inc. since April 08, 2022. He serves as President of DHT Holdings, Inc. since 2022. He had been Co-Chief Ex...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Arnet's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Arnet's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: DHT's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: DHT's board of directors are considered experienced (6 years average tenure).


Ownership

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.


Ownership Breakdown

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


Top Shareholders

Company Information

DHT Holdings, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: DHT Holdings, Inc.
  • Ticker: DHT
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Implied Market Cap: US$1.213b
  • Shares outstanding: 163.97m
  • Website: https://www.dhtankers.com

Number of Employees


Location

  • DHT Holdings, Inc.
  • Clarendon House
  • 2 Church Street
  • Hamilton
  • HM 11
  • Bermuda

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.