Diamondrock Hospitality Company Common Stock (DRH) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Diamondrock Hospitality Company Common Stock stock (DRH) is currently trading at $9.44. Diamondrock Hospitality Company Common Stock PE ratio is 20.93. Diamondrock Hospitality Company Common Stock PS ratio (Price-to-Sales) is 1.69. Analyst consensus price target for DRH is $10.48. WallStSmart rates DRH as Underperform.
- DRH PE ratio analysis and historical PE chart
- DRH PS ratio (Price-to-Sales) history and trend
- DRH intrinsic value — DCF, Graham Number, EPV models
- DRH stock price prediction 2025 2026 2027 2028 2029 2030
- DRH fair value vs current price
- DRH insider transactions and insider buying
- Is DRH undervalued or overvalued?
- Diamondrock Hospitality Company Common Stock financial analysis — revenue, earnings, cash flow
- DRH Piotroski F-Score and Altman Z-Score
- DRH analyst price target and Smart Rating
Diamondrock Hospitality Company
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DRH Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Diamondrock Hospitality Company Common Stock (DRH)
DRH trades 235% above its Graham fair value of $2.99, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Diamondrock Hospitality Company Common Stock (DRH) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/sales, price/book, institutional own.. Concerns around return on equity and revenue growth. Mixed signals suggest waiting for clearer direction before acting.
Diamondrock Hospitality Company Common Stock (DRH) Key Strengths (3)
105.25% of shares held by major funds and institutions
Paying $1.69 for every $1 of annual revenue
Trading at 1.30x book value, attractively priced
Supporting Valuation Data
Diamondrock Hospitality Company Common Stock (DRH) Areas to Watch (7)
Revenue declining -1.60%, a shrinking business
Earnings declining -11.20%, profits shrinking
Low profitability relative to shareholder equity
Paying a premium for growth, expensive relative to earnings expansion
Thin operating margins with cost pressures present
Thin profit margins with limited profitability
Small-cap company with higher risk but more growth potential
Diamondrock Hospitality Company Common Stock (DRH) Detailed Analysis Report
Overall Assessment
This company scores 46/100 in our Smart Analysis, earning a D+ grade. Out of 10 metrics analyzed, 3 register as strengths (avg 8.7/10) while 7 fall into concern territory (avg 2.9/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Price/Sales, Price/Book. Valuation metrics including Price/Sales (1.69), Price/Book (1.30) suggest the stock is attractively priced.
The Bear Case
The primary concerns are Revenue Growth, EPS Growth, Return on Equity. Some valuation metrics including PEG Ratio (2.52) suggest expensive pricing. Growth concerns include Revenue Growth at -1.60%, EPS Growth at -11.20%, which may limit upside. Profitability pressure is visible in Return on Equity at 6.67%, Operating Margin at 14.50%, Profit Margin at 9.05%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 6.67% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -1.60% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Revenue Growth and EPS Growth are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
DRH Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
DRH's Price-to-Sales ratio of 1.69x trades at a deep discount to its historical average of 3.62x (10th percentile). The current valuation is 89% below its historical high of 15.99x set in Dec 2006, and 86% above its historical low of 0.91x in Feb 2009.
WallStSmart Analysis Synopsis
Data-driven financial summary for Diamondrock Hospitality Company Common Stock (DRH) · REAL ESTATE › REIT - HOTEL & MOTEL
The Big Picture
Diamondrock Hospitality Company Common Stock operates as a stable business with moderate growth and solid fundamentals. Revenue reached 1.1B with 160% decline year-over-year. Profit margins are thin at 9.1%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 667.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 47M in free cash flow and 68M in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 160% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Margin expansion: can Diamondrock Hospitality Company Common Stock push profit margins above 15% as the business scales?
Dividend sustainability with a current yield of 337.0%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor REIT - HOTEL & MOTEL industry trends, competitive moves, and regulatory changes that could impact Diamondrock Hospitality Company Common Stock.
Bottom Line
Diamondrock Hospitality Company Common Stock offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Diamondrock Hospitality Company Common Stock(DRH)
NYSE
REAL ESTATE
REIT - HOTEL & MOTEL
USA
DiamondRock Hospitality Company is a self-advising real estate investment trust (REIT) that owns a leading portfolio of geographically diversified hotels concentrated in major entry markets and destination resort locations.