NYSE:DRH

Stock Analysis Report

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.

Snowflake

Fundamentals

6 star dividend payer 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


Market Performance


7 Day Return

-1.4%

NYSE:DRH

-0.5%

US REITs

-1.6%

US Market


1 Year Return

-20.9%

NYSE:DRH

8.6%

US REITs

-3.0%

US Market

DRH underperformed the REITs industry which returned 8.5% over the past year.

DRH underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

DRHIndustryMarket
7 Day-1.4%-0.5%-1.6%
30 Day-6.9%2.6%-5.7%
90 Day-12.3%2.2%0.2%
1 Year-16.9%-20.9%13.5%8.6%-0.8%-3.0%
3 Year-0.2%-13.4%24.8%8.5%38.1%29.1%
5 Year-12.7%-30.4%57.4%24.0%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

30%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

DiamondRock Hospitality's share price is below the future cash flow value, and at a moderate discount (> 20%).

DiamondRock Hospitality's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

DiamondRock Hospitality is good value based on earnings compared to the US REITs industry average.

DiamondRock Hospitality is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

DiamondRock Hospitality earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

DiamondRock Hospitality is good value based on assets compared to the US REITs industry average.


Next Steps

Future Growth

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

-4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

DiamondRock Hospitality's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).

DiamondRock Hospitality's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

DiamondRock Hospitality's revenue growth is positive but not above the United States of America market average.

DiamondRock Hospitality's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

DiamondRock Hospitality's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

DiamondRock Hospitality is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has DiamondRock Hospitality performed over the past 5 years?

-8.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

DiamondRock Hospitality's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

DiamondRock Hospitality's 1-year earnings growth exceeds its 5-year average (18.5% vs -8.1%)

DiamondRock Hospitality's earnings growth has exceeded the US REITs industry average in the past year (18.5% vs 16.9%).


Return on Equity

DiamondRock Hospitality has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

DiamondRock Hospitality used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

DiamondRock Hospitality's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is DiamondRock Hospitality's financial position?


Financial Position Analysis

DiamondRock Hospitality is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

DiamondRock Hospitality's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

DiamondRock Hospitality's level of debt (59%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (66.3% vs 59% today).

Debt is well covered by operating cash flow (21.6%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

5.39%

Expected Dividend Yield


Dividend Yield and Payments Analysis

DiamondRock Hospitality's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

DiamondRock Hospitality's dividend is above the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (403.2x coverage).


Next Steps

Management

What is the CEO of DiamondRock Hospitality's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Mark Brugger (49yo)

10.9yrs

Tenure

US$5,100,461

Compensation

Mr. Mark W. Brugger has been the Chief Executive Officer at Diamondrock Hospitality Company since September 1, 2008 and has been its President since May 1, 2013. Mr. Brugger co-founded Diamondrock Hospital ...


CEO Compensation Analysis

Mark's remuneration is about average for companies of similar size in United States of America.

Mark's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.7yrs

Average Tenure

49yo

Average Age

The tenure for the DiamondRock Hospitality management team is about average.


Board Age and Tenure

7.5yrs

Average Tenure

64.5yo

Average Age

The tenure for the DiamondRock Hospitality board of directors is about average.


Insider Trading

DiamondRock Hospitality individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$82,88008 Jul 19
Maureen McAvey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$10.36

Ownership Breakdown


Management Team

  • Mark Brugger (49yo)

    President

    • Tenure: 10.9yrs
    • Compensation: US$5.10m
  • Troy Furbay (52yo)

    Executive VP & Chief Investment Officer

    • Tenure: 5.3yrs
    • Compensation: US$1.88m
  • Jeff Donnelly (48yo)

    Executive VP & CFO

    • Tenure: 0.0yrs
  • William Tennis (64yo)

    Executive VP

    • Tenure: 9.6yrs
    • Compensation: US$1.50m
  • Tom Healy (51yo)

    Executive VP of Asset Management & COO

    • Tenure: 2.6yrs
    • Compensation: US$1.66m
  • Briony Quinn (48yo)

    Senior VP & Treasurer

    • Tenure: 1.4yrs
  • Dustin Resnick

    Vice President of Acquisitions and Investments

    • Tenure: 4.7yrs
  • Jay Johnson (42yo)

    Executive VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$1.31m
  • Sean Kensil

    Director of Financial Planning & Analysis

    • Tenure: 0.0yrs

Board Members

  • Bill Shaw (73yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$167.50k
  • Bruce Wardinski (59yo)

    Lead Director

    • Tenure: 3.3yrs
    • Compensation: US$202.50k
  • Gilbert Ray (75yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$187.50k
  • Bill McCarten (70yo)

    Chairman of the Board

    • Tenure: 15.6yrs
    • Compensation: US$275.55k
  • Maureen McAvey (72yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$167.50k
  • Mark Brugger (49yo)

    President

    • Tenure: 10.9yrs
    • Compensation: US$5.10m
  • Tim Chi (42yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$167.50k
  • Kathleen Wayton (59yo)

    Independent Director

    • Tenure: 0.5yrs

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$1.863b
  • Market Cap: US$1.856b
  • Shares outstanding: 200.99m
  • 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

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 Analysis2019/08/24 23:55
End of Day Share Price2019/08/23 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.