Diamondrock Hospitality Return On Equity vs. Current Valuation
| DRH Stock | USD 9.16 0.02 0.22% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.05257982 | Current Value 0.0552 | Quarterly Volatility 0.08735696 |
For Diamondrock Hospitality profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Diamondrock Hospitality to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Diamondrock Hospitality utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Diamondrock Hospitality's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Diamondrock Hospitality over time as well as its relative position and ranking within its peers.
Diamondrock |
Diamondrock Hospitality's Revenue Breakdown by Earning Segment
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Is Hotel & Resort REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Diamondrock Hospitality. If investors know Diamondrock will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Diamondrock Hospitality listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.06) | Dividend Share 0.12 | Earnings Share 0.29 | Revenue Per Share 5.283 | Quarterly Revenue Growth 0.031 |
The market value of Diamondrock Hospitality is measured differently than its book value, which is the value of Diamondrock that is recorded on the company's balance sheet. Investors also form their own opinion of Diamondrock Hospitality's value that differs from its market value or its book value, called intrinsic value, which is Diamondrock Hospitality's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Diamondrock Hospitality's market value can be influenced by many factors that don't directly affect Diamondrock Hospitality's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Diamondrock Hospitality's value and its price as these two are different measures arrived at by different means. Investors typically determine if Diamondrock Hospitality is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Diamondrock Hospitality's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Diamondrock Hospitality Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Diamondrock Hospitality's current stock value. Our valuation model uses many indicators to compare Diamondrock Hospitality value to that of its competitors to determine the firm's financial worth. Diamondrock Hospitality is rated # 4 in return on equity category among its peers. It is rated # 5 in current valuation category among its peers reporting about 70,386,505,235 of Current Valuation per Return On Equity. As of now, Diamondrock Hospitality's Return On Equity is decreasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Diamondrock Hospitality's earnings, one of the primary drivers of an investment's value.Diamondrock Current Valuation vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Diamondrock Hospitality |
| = | 0.0426 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Diamondrock Hospitality |
| = | 3 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Diamondrock Current Valuation vs Competition
Diamondrock Hospitality is rated # 5 in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Real Estate industry is currently estimated at about 37.04 Billion. Diamondrock Hospitality holds roughly 3 Billion in current valuation claiming about 8% of equities listed under Real Estate industry.
Diamondrock Hospitality Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Diamondrock Hospitality, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Diamondrock Hospitality will eventually generate negative long term returns. The profitability progress is the general direction of Diamondrock Hospitality's change in net profit over the period of time. It can combine multiple indicators of Diamondrock Hospitality, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -2 M | -2.1 M | |
| Operating Income | -207.8 M | -197.5 M | |
| Income Before Tax | 87 M | 91.3 M | |
| Total Other Income Expense Net | 294.8 M | 309.5 M | |
| Net Income | 86.6 M | 91 M | |
| Income Tax Expense | 317 K | 301.1 K | |
| Net Income Applicable To Common Shares | 89.6 M | 94 M | |
| Net Income From Continuing Ops | 86.6 M | 91 M | |
| Non Operating Income Net Other | -10.1 M | -9.6 M | |
| Interest Income | 2.6 M | 2.4 M | |
| Net Interest Income | -62.5 M | -65.6 M | |
| Change To Netincome | 26.3 M | 36.7 M | |
| Net Income Per Share | 0.41 | 0.43 | |
| Income Quality | 2.74 | 2.88 | |
| Net Income Per E B T | 0.99 | 0.82 |
Diamondrock Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Diamondrock Hospitality. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Diamondrock Hospitality position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Diamondrock Hospitality's important profitability drivers and their relationship over time.
Use Diamondrock Hospitality in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Diamondrock Hospitality position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Diamondrock Hospitality will appreciate offsetting losses from the drop in the long position's value.Diamondrock Hospitality Pair Trading
Diamondrock Hospitality Pair Trading Analysis
The ability to find closely correlated positions to Diamondrock Hospitality could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Diamondrock Hospitality when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Diamondrock Hospitality - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Diamondrock Hospitality to buy it.
The correlation of Diamondrock Hospitality is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Diamondrock Hospitality moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Diamondrock Hospitality moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Diamondrock Hospitality can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Diamondrock Hospitality position
In addition to having Diamondrock Hospitality in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Investing Opportunities. For more detail on how to invest in Diamondrock Stock please use our How to Invest in Diamondrock Hospitality guide.You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
To fully project Diamondrock Hospitality's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Diamondrock Hospitality at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Diamondrock Hospitality's income statement, its balance sheet, and the statement of cash flows.