DRH Stock Analysis: Diamondrock Hospitality | NYSE
REIT - Hotel & Motel | NYSE, USA | Market Cap: 2.756m USD | 12M Return: 85.5% | US2527843013 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 41.0M
EPS Trend: 82.4%
Qual. Beats: 4
Rev. Trend: 85.7%
Qual. Beats: 0
Warnings
Tailwinds
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 (NYSE: DRH) is a self-advised real estate investment trust (REIT) headquartered in Bethesda, Maryland, that owns a portfolio of 34 premium quality hotels with 9,400 rooms. The Company concentrates its properties in leisure destinations and top gateway markets, operating them under both leading global brand families and independent boutique hotels in the lifestyle segment. DiamondRock was established on May 26, 2004, and trades as a mid-cap stock with a market capitalization of approximately $2.55 billion USD.
As a REIT, DiamondRock is structured to benefit from tax-advantaged treatment in exchange for distributing the majority of its taxable income to shareholders, a standard requirement for REITs operating in the U.S. Within the Real Estate sector, the Company is classified under the Hotel & Resort REITs sub-industry, meaning its revenue and performance are closely tied to occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR)-key industry metrics that reflect the operational health of its lodging properties.
- RevPAR growth in leisure destinations drives revenue upside
- Group demand recovery boosts gateway market hotel performance
- Rising rates pressure REIT valuations and dividend yields
| 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 October 22, 2026, the stock is trading at USD 13.94 with a total of 2,952,265 shares traded. Over the past week, the price has changed by +8.19%, over one month by +14.58%, over three months by +8.40% and over the past year by +85.52%.
Current recommended Stop Loss: 13.50 (which is 3.2% or 1.3 ATR below the current price).
Diamondrock Hospitality has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy DRH.
- StrongBuy: 7
- Buy: 0
- Hold: 7
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 14 | 0.7% |
P/E Trailing = 18.6389
P/E Forward = 19.8413
P/S = 2.4256
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 = 3.94b USD (2.76b + Debt 1.29b - CCE 106.0m)
Interest Coverage Ratio = 3.53 (Ebit TTM 215.6m / Interest Expense TTM 61.0m)
EV/FCF = 20.06x (Enterprise Value 3.94b / FCF TTM 196.6m)
FCF Yield = 4.98% (FCF TTM 196.6m / Enterprise Value 3.94b)
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 = 1.29 (Enterprise Value 3.94b / 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 = 6.93% (E(2.76b)/V(4.05b) * Re(7.98%) + D(1.29b)/V(4.05b) * Rd(4.72%) * (1-Tc(0.00)))
Discount Rate = 7.98% (= 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=-0.03% | Revisions=+0% | GrowthEPS=+77.4% | GrowthRev=+2.2%
EPS next Year (2027-12-31): EPS=0.63 | Chg30d=+6.78% | Revisions=+25% | GrowthEPS=+4.1% | GrowthRev=+2.2%
[Analyst] Revisions Ratio: +0% (up=2, down=2)