Bull Rankings model

DiamondRock Hospitality Company (DRH) stock analysis

REIT - Hotel & Motel. Scored on the same transparent model behind the daily rankings.

★
DRH
DiamondRock Hospitality Company · REIT - Hotel & Motel
72.8REIT strength
$13.16Oct 13 close$2.7B
1Y Target$14.04Analyst consensus · 13 analysts
5Y Target$20.55Compound horizon
10Y Target$30.49Long-dated conviction
Yield3.5%
B
Yield 3.5% — modest income · REITs are valued on FFO / AFFO, which our data source doesn't provide — we grade income, growth, and sector-relative leverage instead.
Rev-0.8%
D+
Revenue -0.8% — shrinking; needs a catalyst to reverse
D/E0.78
B+
D/E 0.78 — below the Real Estate debt median (≈40th pctile)

Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology

Financial strength · 72.8 / 100
Profitability83.0
Value (P/B)64.8
Income74.7

A peer-relative read for reits on profitability (ROE, depreciation-adjusted), valuation, and covered income — the quality-growth (FCF/ROIC) screen doesn't apply to balance-sheet businesses. Not comparable to the 0–100 quality-growth score shown on other stocks.

Entry · Margin of safety
52-week rangeNear 52-week high
5% off the 12-month high

Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards

Why now
REIT - Hotel & Motel · market cap $2.7b. 5% off the 52-week high of $13.79. 13 sell-side analysts rate this a Buy with a mean 1-yr target of $14.04 (implying +7% upside).
Moat
Net margin 14% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent.
Risk
Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon
1-3 yr $14.04 (13-analyst consensus) — fundamentals + valuation re-rating. 5 yr $20.55 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $30.49 if current growth sustains into durable earnings power.

Not enough history yet — the model records DRH's score after each daily run, and the chart appears once a few days have accumulated.

DRH at a glance

FINANCIAL STRENGTH · REITPROFITABILITY83VALUE65COVERED INCOME7572.8/100 on our peer scale — not the quality-growth score.
PRICE IN ITS 52-WEEK RANGE$13.2LOW $7.5HIGH $13.8Trading near its 52-week high ($7.5–$13.8).
ONE-YEAR MOVE VS ITS BETAFLATThis stock+66%Trailing one-year price change. Price history is not an inputto the Bull Rankings score.

Same audited fundamentals as the score, unless a card says otherwise.

Analyst estimate revisions

30-day change+6.8%
90-day change+12.5%
Forward EPS estimate$0.63

Over the last 90 days, what analysts expect DRH to earn is materially higher (+12.5%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →

Shares to buy
151
Position size
$1,987
4.0% of portfolio
Stop price
$9.87
25% below $13.16
$ at risk if stopped
$496.79
budget $500.00 · 1% of portfolio

Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.

DiamondRock Hospitality Company (DRH): score, valuation & FAQ

DiamondRock Hospitality Company (DRH) is a REIT - Hotel & Motel company. As a bank, insurer or REIT it runs on a different financial model from the rest of the market, so Bull Rankings grades it on a sector-appropriate card — price-to-book, dividend yield, payout ratio and cash-flow coverage — rather than the 0–100 quality-growth score used elsewhere. The read below is a transparent screen, not a buy recommendation.

Its strongest graded signals are D/E (B+), while Rev (D+) rate weaker.

Is DRH a good stock to buy?

Bull Rankings grades DRH on a sector-appropriate card — price-to-book, dividend yield, payout and cash-flow coverage — rather than a single quality-growth score. That is driven by D/E (B+). A score is a quantitative screen of DiamondRock Hospitality Company's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

How does Bull Rankings grade DRH?

As a bank, insurer or REIT, DRH isn't given a quality-growth score — signals like free cash flow, debt-to-equity and P/E don't translate cleanly to a balance-sheet business. Instead it's graded on a sector-appropriate card: price-to-book, dividend yield, payout ratio and operating-cash-flow coverage, where it rates strongest on D/E (B+) and weakest on Rev (D+).

Is DRH overvalued or undervalued?

We don't publish a discounted-cash-flow value for DRH, and not because the business is unprofitable. For a lender, insurer or property trust, "free cash flow" measures balance-sheet growth rather than owner earnings — loan originations and repayments run through operating cash flow — so discounting it would produce a confident-looking number with nothing behind it. DRH is judged on book value, return on equity and income cover instead, which is what the financial-strength card shows.

What are the main risks of investing in DRH?

Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.

New to these metrics? See the guides and the methodology.

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