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DRHPA.PFD (Diamondrock Hospitality Co) Piotroski F-Score : 6 (As of Apr. 08, 2025)


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What is Diamondrock Hospitality Co Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Diamondrock Hospitality Co has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Diamondrock Hospitality Co's Piotroski F-Score or its related term are showing as below:

DRHpA.PFD' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Diamondrock Hospitality Co was 8. The lowest was 2. And the median was 6.


Diamondrock Hospitality Co Piotroski F-Score Historical Data

The historical data trend for Diamondrock Hospitality Co's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Diamondrock Hospitality Co Piotroski F-Score Chart

Diamondrock Hospitality Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.00 4.00 7.00 5.00 6.00

Diamondrock Hospitality Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 7.00 6.00 6.00

Competitive Comparison of Diamondrock Hospitality Co's Piotroski F-Score

For the REIT - Hotel & Motel subindustry, Diamondrock Hospitality Co's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Diamondrock Hospitality Co's Piotroski F-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Diamondrock Hospitality Co's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Diamondrock Hospitality Co's Piotroski F-Score falls into.


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How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec24) TTM:Last Year (Dec23) TTM:
Net Income was 8.328 + 24.53 + 26.432 + -11.243 = $48.05 Mil.
Cash Flow from Operations was 31.233 + 55.72 + 61.662 + 75.794 = $224.41 Mil.
Revenue was 256.423 + 309.28 + 285.129 + 279.051 = $1,129.88 Mil.
Gross Profit was 133.288 + 175.782 + 158.046 + 150.82 = $617.94 Mil.
Average Total Assets from the begining of this year (Dec23)
to the end of this year (Dec24) was
(3238.687 + 3238.797 + 3248.652 + 3181.323 + 3172.251) / 5 = $3215.942 Mil.
Total Assets at the begining of this year (Dec23) was $3,238.69 Mil.
Long-Term Debt & Capital Lease Obligation was $1,180.53 Mil.
Total Current Assets was $368.14 Mil.
Total Current Liabilities was $392.79 Mil.
Net Income was 9.156 + 38.965 + 27.272 + 10.947 = $86.34 Mil.

Revenue was 243.553 + 291.247 + 276.52 + 263.547 = $1,074.87 Mil.
Gross Profit was 131.095 + 166.404 + 152.292 + 138.601 = $588.39 Mil.
Average Total Assets from the begining of last year (Dec22)
to the end of last year (Dec23) was
(3207.54 + 3183.516 + 3224.737 + 3256.321 + 3238.687) / 5 = $3222.1602 Mil.
Total Assets at the begining of last year (Dec22) was $3,207.54 Mil.
Long-Term Debt & Capital Lease Obligation was $1,289.87 Mil.
Total Current Assets was $311.86 Mil.
Total Current Liabilities was $299.83 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Diamondrock Hospitality Co's current Net Income (TTM) was 48.05. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Diamondrock Hospitality Co's current Cash Flow from Operations (TTM) was 224.41. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec23)
=48.047/3238.687
=0.01483533

ROA (Last Year)=Net Income/Total Assets (Dec22)
=86.34/3207.54
=0.02691782

Diamondrock Hospitality Co's return on assets of this year was 0.01483533. Diamondrock Hospitality Co's return on assets of last year was 0.02691782. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Diamondrock Hospitality Co's current Net Income (TTM) was 48.05. Diamondrock Hospitality Co's current Cash Flow from Operations (TTM) was 224.41. ==> 224.41 > 48.05 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec23 to Dec24
=1180.529/3215.942
=0.36708653

Gearing (Last Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=1289.871/3222.1602
=0.4003125

Diamondrock Hospitality Co's gearing of this year was 0.36708653. Diamondrock Hospitality Co's gearing of last year was 0.4003125. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec24)=Total Current Assets/Total Current Liabilities
=368.136/392.79
=0.93723364

Current Ratio (Last Year: Dec23)=Total Current Assets/Total Current Liabilities
=311.86/299.833
=1.04011233

Diamondrock Hospitality Co's current ratio of this year was 0.93723364. Diamondrock Hospitality Co's current ratio of last year was 1.04011233. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Diamondrock Hospitality Co's number of shares in issue this year was 0. Diamondrock Hospitality Co's number of shares in issue last year was 0. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=617.936/1129.883
=0.54690264

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=588.392/1074.867
=0.54740912

Diamondrock Hospitality Co's gross margin of this year was 0.54690264. Diamondrock Hospitality Co's gross margin of last year was 0.54740912. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec23)
=1129.883/3238.687
=0.3488707

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec22)
=1074.867/3207.54
=0.33510634

Diamondrock Hospitality Co's asset turnover of this year was 0.3488707. Diamondrock Hospitality Co's asset turnover of last year was 0.33510634. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+1+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Diamondrock Hospitality Co has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Diamondrock Hospitality Co  (NYSE:DRHpA.PFD) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Diamondrock Hospitality Co Piotroski F-Score Related Terms

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Diamondrock Hospitality Co Business Description

Traded in Other Exchanges
Address
2 Bethesda Metro Center, Suite 1400, Bethesda, MD, USA, 20814
Diamondrock Hospitality Company is a real estate investment trust that owns lodging properties. Its business is to acquire, own, manage, and renovate full-service hotel properties in the United States. It operates in cities such as Chicago, Boston, New York, Denver, and others. Within DiamondRock's holdings, the majority of the hotel brands include Marriott, Starwood, and Hilton. The revenue is divided between room, food and beverage, and others. The room segment contributes the majority of the revenue. The firm's customers include leisure transients, business transients, and group customers.