DiamondRock Hospitality Company cash flow to debt ratio of 20.55% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

DiamondRock Hospitality Company's free cash flow has increased 13.49% from $142.82M last year to $162.09M, signaling increasing performance

DiamondRock Hospitality Company's debt to equity ratio is 0.79, which means that the company's assets are unhealthy financed, signaling financial risk.

DiamondRock Hospitality Company's debt has increased relative to shareholder equity from 0.74 last year to 0.79 today, signaling weakened financials

DiamondRock Hospitality Company has a net debt to EBITDA ratio of 4.07x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

DiamondRock Hospitality Company's interest coverage ratio of 3.00 indicates that earnings with margin can cover interest payments on company debt

DiamondRock Hospitality Company's profit margin has increased (218.04%) in the last year from 4.25% to 13.52%, signaling increasing performance

DiamondRock Hospitality Company's short-term liabilities of $360.71M exceed its short-term assets of $68.08M, signaling financial risk

DiamondRock Hospitality Company's return on assets of 5.01% is higher than the 5.00% threshold, indicating efficient asset utilization

DiamondRock Hospitality Company's return on equity of 10.27%, is lower than 15.00%, indicating bad performance

DiamondRock Hospitality Company's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

DiamondRock Hospitality Company had positive net income in 4 out of 5 years, indicating stable and consistent earnings

DiamondRock Hospitality Company has positive free cash flow, indicating the company generates cash after capital expenditures

DiamondRock Hospitality Company has a free cash flow yield of 6.53%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

DiamondRock Hospitality Company's yearly earnings has increased 111.11% since last year from $48.05M to $101.43M, signaling increasing performance

DiamondRock Hospitality Company's yearly revenue has decreased 0.83% since last year from $1.13B to $1.12B, signaling decreasing performance

ROIC 6.63% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

DiamondRock Hospitality Company's 3-year revenue CAGR of 3.81% is positive, indicating growing revenue over the past 3 years

DiamondRock Hospitality Company had revenue growth in 4 out of 5 years, indicating consistent revenue performance

DiamondRock Hospitality Company had positive ROE in 4 out of 5 years, indicating consistent and reliable returns on equity

DiamondRock Hospitality Company has insufficient data to evaluate this check.

DiamondRock Hospitality Company has an earnings yield of 6.19%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

DiamondRock Hospitality Company is overvalued relative to its fair value price of 3.96 based on EBITDA multiple model

DiamondRock Hospitality Company has an EV/EBITDA ratio of 13.11x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

DiamondRock Hospitality Company is undervalued relative to its fair value price of 18.92 based on Earnings Fair Value model

DiamondRock Hospitality Company had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

DiamondRock Hospitality Company has a price-to-book ratio of 1.62x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

DiamondRock Hospitality Company has a price-to-sales ratio of 2.19x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue