DRH Stock Analysis: Diamondrock Hospitality | NASDAQ
REIT - Hotel & Motel | NASDAQ, USA | Market Cap: 2.551m USD | 12M Return: 61.7% | US2527843013 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 34.0M
EPS Trend: 82.4%
Qual. Beats: 4
Rev. Trend: 85.7%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
DiamondRock Hospitality Company (DRH) is a self-advised real estate investment trust (REIT) that owns a geographically diversified portfolio of 34 premium-quality hotels with 9,400 rooms, concentrated in leisure destinations and top gateway markets across the United States. The companys hotels operate under leading global brand families as well as independent boutique brands in the lifestyle segment. DiamondRock is headquartered in Bethesda, Maryland and was established in 2004, with its IPO following in 2005.
As a Hotel & Resort REIT within the Real Estate sector, DiamondRock benefits from the REIT structure, which requires the company to distribute at least 90% of its taxable income to shareholders in the form of dividends, making it subject to lodging demand cycles driven by both business and leisure travel trends. Its mid-cap market capitalization of approximately $2.5 billion USD places it among the more established publicly traded lodging REITs.
- Leisure travel demand lifts RevPAR in destination gateway markets
- Operating margin expansion pressured by rising labor and wage costs
- Acquisition and disposition activity reshapes portfolio toward lifestyle boutique hotels
| Net Income: 153.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 4.12 > 1.0 |
| NWC/Revenue: 8.72% < 20% (prev -8.45%; Δ 17.16% < -1%) |
| CFO/TA 0.08 > 3% & CFO 244.0m > Net Income 153.7m |
| Net Debt (1.19b) to EBITDA (330.1m): 3.60 < 3 |
| Current Ratio: 15.32 > 1.5 & < 3 |
| Outstanding Shares: last quarter (205.9m) vs 12m ago -0.97% < -2% |
| Gross Margin: 53.98% > 18% (prev 45.27%; Δ 8.72% > 0.5%) |
| Asset Turnover: 37.09% > 50% (prev 36.74%; Δ 0.35% > 0%) |
| Interest Coverage Ratio: 3.53 > 6 (EBIT TTM 215.6m / Interest Expense TTM 61.0m) |
| A: 0.03 (Total Current Assets 106.0m - Total Current Liabilities 6.92m) / Total Assets 3.07b |
| B: -0.19 (Retained Earnings -594.6m / Total Assets 3.07b) |
| C: 0.07 (EBIT TTM 215.6m / Avg Total Assets 3.06b) |
| D: 0.99 (Book Value of Equity 1.52b / Total Liabilities 1.54b) |
| Altman-Z'' = 1.09 = BB |
| DSRI: 1.09 (Receivables 189.5m/171.8m, Revenue 1.14b/1.12b) |
| GMI: 0.84 (GM 45.27% / 53.98%) |
| AQI: 3.80 (AQ_t 0.10 / AQ_t-1 0.03) |
| SGI: 1.01 (Revenue 1.14b / 1.12b) |
| TATA: -0.03 (NI 153.7m - CFO 244.0m) / TA 3.07b) |
| Beneish M = -1.43 (Cap -4..+1) = D |
As of September 27, 2026, the stock is trading at USD 12.49 with a total of 1,985,908 shares traded. Over the past week, the price has changed by +2.04%, over one month by -2.95%, over three months by +1.39% and over the past year by +61.70%.
Current recommended Stop Loss: 11.70 (which is 6.3% or 2.8 ATR below the current price).
Diamondrock Hospitality has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold DRH.
- StrongBuy: 4
- Buy: 0
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 14 | 11.8% |
P/E Trailing = 17.0137
P/E Forward = 19.8413
P/S = 2.2448
P/B = 1.6534
P/EG = 2.5153
Revenue TTM = 1.14b USD
EBIT TTM = 215.6m USD
EBITDA TTM = 330.1m USD
Long Term Debt = 1.10b USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 1.29b USD (from shortLongTermDebtTotal, last quarter) + Leases 97.2m
Net Debt = 1.19b USD (calculated: Debt 1.29b - CCE 106.0m)
Enterprise Value = 3.74b USD (2.55b + Debt 1.29b - CCE 106.0m)
Interest Coverage Ratio = 3.53 (Ebit TTM 215.6m / Interest Expense TTM 61.0m)
EV/FCF = 19.02x (Enterprise Value 3.74b / FCF TTM 196.6m)
FCF Yield = 5.26% (FCF TTM 196.6m / Enterprise Value 3.74b)
FCF Margin = 17.30% (FCF TTM 196.6m / Revenue TTM 1.14b)
Net Margin = 13.52% (Net Income TTM 153.7m / Revenue TTM 1.14b)
Gross Margin = 53.98% ((Revenue TTM 1.14b - Cost of Revenue TTM 522.9m) / Revenue TTM)
Gross Margin QoQ = 17.26% (prev 54.40%)
Tobins Q-Ratio = 1.22 (Enterprise Value 3.74b / Total Assets 3.07b)
Interest Expense / Debt = 4.72% (Interest Expense 61.0m / Debt 1.29b)
Taxrate = 0.22% (346k / 154.6m)
NOPAT = 215.2m (EBIT 215.6m * (1 - 0.22%))
Current Ratio = 0.57 (Total Current Assets 106.0m / Total Current Liabilities 186.2m)
Debt / Equity = 0.85 (Debt 1.29b / totalStockholderEquity, last quarter 1.52b)
Debt / EBITDA = 3.60 (Net Debt 1.19b / EBITDA 330.1m)
Debt / FCF = 6.04 (Net Debt 1.19b / FCF TTM 196.6m)
Total Stockholder Equity = 1.50b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.02% (Net Income 153.7m / Total Assets 3.07b)
RoE = 10.27% (Net Income TTM 153.7m / Total Stockholder Equity 1.50b)
RoCE = 8.31% (EBIT 215.6m / Capital Employed (Equity 1.50b + L.T.Debt 1.10b))
RoIC = 7.17% (NOPAT 215.2m / Invested Capital 3.00b)
WACC = 7.27% (E(2.55b)/V(3.84b) * Re(8.57%) + D(1.29b)/V(3.84b) * Rd(4.72%) * (1-Tc(0.00)))
Discount Rate = 8.57% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -92.39 | Cagr: -1.36%
[DCF] Terminal Value 77.97% ; FCFF base≈146.0m ; Y1≈167.3m ; Y5≈246.3m
[DCF] Fair Price = 12.31 (EV 3.71b - Net Debt 1.19b = Equity 2.52b / Shares 204.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 82.39 | EPS CAGR: 46.80% | SUE: 1.95 | # QB: 4
Revenue Correlation: 85.74 | Revenue CAGR: 2.01% | SUE: 0.77 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.14 | Chg30d=+0.00% | Revisions=-25% | Analysts=1
EPS current Year (2026-12-31): EPS=0.78 | Chg30d=+13.35% | Revisions=+57% | GrowthEPS=+76.9% | GrowthRev=+2.1%
EPS next Year (2027-12-31): EPS=0.59 | Chg30d=+5.36% | Revisions=+25% | GrowthEPS=+4.1% | GrowthRev=+2.3%
[Analyst] Revisions Ratio: +44% (up=5, down=1)