Diamondrock Hospitality Company Common Stock (DRH)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a REIT owner, I start with the asset base, not reported EPS. DiamondRock owns 34 premium hotels with 9,479 rooms in leisure and gateway markets; that is a solid portfolio, but hotel ownership is cyclical and brand affiliation is not a wide moat. Depreciation distorts EPS and P/E, so I would normally use FFO/AFFO; those right REIT measures are not in the data. Instead, at the 2026-10-13 close of $13.16, FairStock’s P/B is 1.77, dividend yield 3.59%, EV/EBITDA 11.48, and FCF yield 6.1%. The balance sheet shows D/E 0.78 and a low Altman Z-Score of 0.96, though Piotroski is strong at 8/9. FairStock’s ROE is 9.91% and ROCE 3.81%, so returns are modest. Filed figures show fiscal 2025 revenue of $1.1B, net income of $101.4M, and diluted EPS of $0.44, versus fiscal 2024 net income of $48.0M and EPS $0.18, and fiscal 2023 net income of $86.3M and EPS $0.36. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $90.5M and diluted EPS $0.44, up sharply from fiscal Q2 2025’s $40.8M and $0.18. FairStock calls it a SLOW GROWER: shrinking, with profit -2.5% a year over three years and revenue 3.8%. The price looks fair against book and income, not a bargain. I want durable per-share cash flow and lower leverage.

In plain English: DiamondRock Hospitality owns 34 premium hotels in leisure destinations and big-city markets. Recent quarterly profit was much stronger than a year earlier, but long-term sales growth is slow and profits have been uneven. At $13.16, the stock looks roughly fairly priced compared with its assets and earnings, and it pays a moderate dividend.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer