NYSE:DRH

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DiamondRock Hospitality

Executive Summary

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations. More Details


Snowflake Analysis

High growth potential and fair value.


Similar Companies

Share Price & News

How has DiamondRock Hospitality's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DRH is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: DRH's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

8.4%

DRH

0.4%

US REITs

2.8%

US Market


1 Year Return

-23.7%

DRH

-8.8%

US REITs

19.7%

US Market

Return vs Industry: DRH underperformed the US REITs industry which returned -8.8% over the past year.

Return vs Market: DRH underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

DRHIndustryMarket
7 Day8.4%0.4%2.8%
30 Day61.0%7.0%8.0%
90 Day41.6%3.3%6.8%
1 Year-22.8%-23.7%-4.9%-8.8%22.4%19.7%
3 Year-20.8%-28.8%18.3%4.2%47.3%37.5%
5 Year-8.5%-25.5%47.7%18.0%93.6%72.3%

Long-Term Price Volatility Vs. Market

How volatile is DiamondRock Hospitality's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DiamondRock Hospitality 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: DRH ($7.97) is trading below our estimate of fair value ($41.48)

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


Price To Earnings Ratio

PE vs Industry: DRH is unprofitable, so we can't compare its PE Ratio to the US REITs industry average.

PE vs Market: DRH is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DRH is good value based on its PB Ratio (0.9x) compared to the US REITs industry average (1.6x).


Next Steps

Future Growth

How is DiamondRock Hospitality forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

102.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

High Growth Earnings: DRH's is expected to become profitable in the next 3 years.

Revenue vs Market: DRH's revenue (33.8% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: DRH's revenue (33.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DRH's Return on Equity is forecast to be low in 3 years time (4.8%).


Next Steps

Past Performance

How has DiamondRock Hospitality performed over the past 5 years?

-9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DRH is currently unprofitable.

Growing Profit Margin: DRH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DRH is unprofitable, and losses have increased over the past 5 years at a rate of 9.5% per year.

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

Earnings vs Industry: DRH is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (2%).


Return on Equity

High ROE: DRH has a negative Return on Equity (-2.88%), as it is currently unprofitable.


Next Steps

Financial Health

How is DiamondRock Hospitality's financial position?


Financial Position Analysis

Short Term Liabilities: DRH's short term assets ($243.2M) exceed its short term liabilities ($69.1M).

Long Term Liabilities: DRH's short term assets ($243.2M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: DRH's debt to equity ratio (60.5%) is considered high.

Reducing Debt: DRH's debt to equity ratio has increased from 58.1% to 60.5% over the past 5 years.

Debt Coverage: DRH's debt is not well covered by operating cash flow (0.3%).

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


Balance Sheet


Next Steps

Dividend

What is DiamondRock Hospitality current dividend yield, its reliability and sustainability?

0.85%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DRH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DRH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DRH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DRH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: DRH is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DRH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Mark Brugger (50 yo)

12.17yrs

Tenure

US$4,855,086

Compensation

Mr. Mark W. Brugger is a Co-Founder of Diamondrock Hospitality Company and has been its Chief Executive Officer and Director since September 1, 2008, and President since May 1, 2013. Mr. Brugger co-founded...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD4.86M) is about average for companies of similar size in the US market ($USD4.15M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Brugger
Co-Founder12.17yrsUS$4.86m0.57%
$ 9.1m
Jeffrey Donnelly
Executive VP & CFO1.25yrsUS$1.31m0.056%
$ 886.3k
Thomas Healy
Executive VP of Asset Management & COO3.83yrsUS$1.66m0.033%
$ 522.5k
Troy Furbay
Executive VP & Chief Investment Officer6.58yrsUS$1.75m0.015%
$ 245.6k
William Tennis
Executive VP10.83yrsUS$1.41m0.058%
$ 922.3k
Dustin Resnick
Vice President of Acquisitions and Investments5.92yrsno datano data
Briony Quinn
Senior VP & Treasurer2.67yrsno data0.074%
$ 1.2m
Ben Nelson
VP & Corporate Controllerno datano datano data
Sean Kensil
Director of Financial Planning & Analysisno datano datano data

5.9yrs

Average Tenure

51yo

Average Age

Experienced Management: DRH's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Brugger
Co-Founder12.17yrsUS$4.86m0.57%
$ 9.1m
William Shaw
Independent Director4.08yrsUS$187.50k0.026%
$ 408.5k
Bruce Wardinski
Independent Lead Director4.5yrsUS$212.50k0.039%
$ 617.7k
Gilbert Ray
Independent Director16.33yrsUS$195.00k0.016%
$ 250.4k
William McCarten
Independent Chairman of the Board16.83yrsUS$278.00k0.18%
$ 2.8m
Maureen McAvey
Independent Director16.33yrsUS$175.00k0.033%
$ 528.1k
Timothy Chi
Independent Director5.42yrsUS$175.00k0.031%
$ 494.3k
Kathleen Wayton
Independent Director1.75yrsUS$189.65kno data
Michael Hartmeier
Independent Director0.083yrno data0.022%
$ 354.2k

5.4yrs

Average Tenure

65.5yo

Average Age

Experienced Board: DRH's board of directors are considered experienced (5.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: DRH insiders have bought more shares than they have sold 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

DiamondRock Hospitality Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DiamondRock Hospitality Company
  • Ticker: DRH
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Implied Market Cap: US$1.597b
  • Market Cap: US$1.590b
  • Shares outstanding: 200.37m
  • Website: https://www.drhc.com

Number of Employees


Location

  • DiamondRock Hospitality Company
  • 2 Bethesda Metro Center
  • Suite 1400
  • Bethesda
  • Maryland
  • 20814
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBODB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2005
DRHNYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 2005
DRH.PRANYSE (New York Stock Exchange)8.25 SR A PFD SHUSUSDSep 2020

Biography

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and de...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:42
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
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.