Diamondrock Hospitality Stock Beta
| DRH Stock | USD 8.52 0.10 1.19% |
Diamondrock Hospitality fundamentals help investors to digest information that contributes to Diamondrock Hospitality's financial success or failures. It also enables traders to predict the movement of Diamondrock Stock. The fundamental analysis module provides a way to measure Diamondrock Hospitality's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Diamondrock Hospitality stock.
Diamondrock | Beta |
Diamondrock Hospitality Company Beta Analysis
Diamondrock Hospitality's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current Diamondrock Hospitality Beta | 1.61 |
Most of Diamondrock Hospitality's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Diamondrock Hospitality is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Diamondrock Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for Diamondrock Hospitality is extremely important. It helps to project a fair market value of Diamondrock Stock properly, considering its historical fundamentals such as Beta. Since Diamondrock Hospitality's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Diamondrock Hospitality's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Diamondrock Hospitality's interrelated accounts and indicators.
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In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, Diamondrock Hospitality has a Beta of 1.606. This is 123.06% higher than that of the Diversified REITs sector and significantly higher than that of the Real Estate industry. The beta for all United States stocks is notably lower than that of the firm.
Diamondrock Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Diamondrock Hospitality's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Diamondrock Hospitality could also be used in its relative valuation, which is a method of valuing Diamondrock Hospitality by comparing valuation metrics of similar companies.Diamondrock Hospitality is currently under evaluation in beta category among related companies.
Diamondrock Hospitality Institutional Holders
Institutional Holdings refers to the ownership stake in Diamondrock Hospitality that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Diamondrock Hospitality's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Diamondrock Hospitality's value.| Shares | Goldman Sachs Group Inc | 2023-12-31 | 4.5 M | Charles Schwab Investment Management Inc | 2023-12-31 | 4.5 M | Centersquare Investment Management Llc | 2023-12-31 | 4.5 M | Dimensional Fund Advisors, Inc. | 2023-12-31 | 3 M | Northern Trust Corp | 2023-12-31 | 3 M | H/2 Credit Manager Lp | 2023-12-31 | 2.7 M | Victory Capital Management Inc. | 2023-12-31 | 2.6 M | Van Lanschot Kempen Investment Management Nv | 2023-12-31 | 2.3 M | Bank Of New York Mellon Corp | 2023-12-31 | 2.1 M | Blackrock Inc | 2023-12-31 | 39 M | Vanguard Group Inc | 2023-12-31 | 35.2 M |
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Diamondrock Hospitality will likely underperform.
Diamondrock Fundamentals
| Return On Equity | 0.0529 | ||||
| Return On Asset | 0.0285 | ||||
| Profit Margin | 0.08 % | ||||
| Operating Margin | 0.09 % | ||||
| Current Valuation | 2.97 B | ||||
| Shares Outstanding | 210.06 M | ||||
| Shares Owned By Insiders | 2.26 % | ||||
| Shares Owned By Institutions | 97.74 % | ||||
| Number Of Shares Shorted | 15.25 M | ||||
| Price To Earning | 23.66 X | ||||
| Price To Book | 1.19 X | ||||
| Price To Sales | 1.83 X | ||||
| Revenue | 1.07 B | ||||
| Gross Profit | 304.22 M | ||||
| EBITDA | 263.62 M | ||||
| Net Income | 86.64 M | ||||
| Cash And Equivalents | 67.56 M | ||||
| Cash Per Share | 0.34 X | ||||
| Total Debt | 1.29 B | ||||
| Debt To Equity | 0.81 % | ||||
| Current Ratio | 6.39 X | ||||
| Book Value Per Share | 7.82 X | ||||
| Cash Flow From Operations | 237.56 M | ||||
| Short Ratio | 9.75 X | ||||
| Earnings Per Share | 0.36 X | ||||
| Price To Earnings To Growth | (2.54) X | ||||
| Target Price | 10.19 | ||||
| Number Of Employees | 33 | ||||
| Beta | 1.61 | ||||
| Market Capitalization | 1.79 B | ||||
| Total Asset | 3.24 B | ||||
| Retained Earnings | (48 K) | ||||
| Working Capital | 12.03 M | ||||
| Current Asset | 272.92 M | ||||
| Current Liabilities | 219.93 M | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 4.88 % | ||||
| Net Asset | 3.24 B | ||||
| Last Dividend Paid | 0.12 |
About Diamondrock Hospitality Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Diamondrock Hospitality's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Diamondrock Hospitality using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Diamondrock Hospitality based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Diamondrock Hospitality
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.Moving together with Diamondrock Stock
| 0.65 | FR | First Industrial Realty | PairCorr |
Moving against Diamondrock Stock
| 0.61 | ELME | Elme Communities | PairCorr |
| 0.51 | HR | Healthcare Realty Trust Financial Report 14th of May 2024 | PairCorr |
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.Check out Diamondrock Hospitality Piotroski F Score and Diamondrock Hospitality Altman Z Score analysis. 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Complementary Tools for Diamondrock Stock analysis
When running Diamondrock Hospitality's price analysis, check to measure Diamondrock Hospitality's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Diamondrock Hospitality is operating at the current time. Most of Diamondrock Hospitality's value examination focuses on studying past and present price action to predict the probability of Diamondrock Hospitality's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Diamondrock Hospitality's price. Additionally, you may evaluate how the addition of Diamondrock Hospitality to your portfolios can decrease your overall portfolio volatility.
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Is Diamondrock Hospitality's industry 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 (0.07) | Dividend Share 0.12 | Earnings Share 0.36 | Revenue Per Share 5.141 | Quarterly Revenue Growth 0.053 |
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.