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Diamondrock Hospitality CoFRA:HBO +2.70%66 Return-on-Tangible-Equity is 24.40% as of Jun. 2026, which is 368% above its 10-year median of 5.21. GuruFocus rates FRA:HBO with a GF Score™ of 66/100 and a GF Value™ of €8.03 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 920 REITs companies, Diamondrock Hospitality Co ranks better than 73.15% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Diamondrock Hospitality Co's annualized net income for the quarter that ended in Jun. 2026 was €314.1 Mil. Diamondrock Hospitality Co's average shareholder tangible equity for the quarter that ended in Jun. 2026 was €1,287.5 Mil. Therefore, Diamondrock Hospitality Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 24.40%.
The historical rank and industry rank for Diamondrock Hospitality Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:HBO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -21.77 Med: 5.21 Max: 10.16
Current: 10.16
During the past 13 years, Diamondrock Hospitality Co's highest Return-on-Tangible-Equity was 10.16%. The lowest was -21.77%. And the median was 5.21%.
FRA:HBO's Return-on-Tangible-Equity is ranked better than 73.15% of 920
companies
in the REITs industry
Industry Median: 6.275
vs FRA:HBO: 10.16
Diamondrock Hospitality Co (FRA:HBO) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Diamondrock Hospitality Co Return-on-Tangible-Equity Related Terms
Diamondrock Hospitality Co Return-on-Tangible-Equity Historical Data
* 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.
Diamondrock Hospitality Co Return-on-Tangible-Equity Chart
FRA:HBO vs PK, SHO, PEB: Return-on-Tangible-Equity Comparison
For the REIT - Hotel & Motel subindustry, Diamondrock Hospitality Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Diamondrock Hospitality Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Diamondrock Hospitality Co's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 24.40% mean?
Diamondrock Hospitality Co (FRA:HBO) has a Return-on-Tangible-Equity of 24.40% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Diamondrock Hospitality Co and its competitors. This is 368% above median its historical median of 5.21. According to the industry distribution chart, Diamondrock Hospitality Co ranks #247 out of 920 companies in the REITs industry, placing it in the top 26.8%.
Is Diamondrock Hospitality Co's Return-on-Tangible-Equity too high?
Diamondrock Hospitality Co's current Return-on-Tangible-Equity of 24.40% is 368% above median its 10-year median of 5.21. The REITs industry median Return-on-Tangible-Equity is 6.28. Diamondrock Hospitality Co's value of 24.40% is 288.8% above this industry median. Based on the distribution chart, Diamondrock Hospitality Co ranks #247 out of 920 companies in the REITs industry, which is above the industry midpoint. Overall, Diamondrock Hospitality Co has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Diamondrock Hospitality Co's Return-on-Tangible-Equity compare to PK and SHO?
According to the REITs industry distribution chart, Diamondrock Hospitality Co ranks #247 out of 920 companies for Return-on-Tangible-Equity. This puts Diamondrock Hospitality Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.28. Diamondrock Hospitality Co's value of 24.40% is 288.8% above this benchmark. While the company's 10-year median is 5.21 vs. the industry median of 6.28, Diamondrock Hospitality Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.28, based on 920 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diamondrock Hospitality Co's current Return-on-Tangible-Equity of 24.40% is 288.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Diamondrock Hospitality Co and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamondrock Hospitality Co's current Return-on-Tangible-Equity is 24.40%, which is 368% above median its own 10-year median of 5.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamondrock Hospitality Co stock overvalued right now?
Based on GuruFocus' analysis, Diamondrock Hospitality Co (FRA:HBO) is currently considered Significantly Overvalued. The stock's GF Value™ is €8.03, compared to a current price of €11.40 — trading 42% above its estimated fair value. The current Return-on-Tangible-Equity is 24.40%, which is 368% above median its 10-year median of 5.21 and 288.8% above the REITs industry median of 6.28. Diamondrock Hospitality Co's overall GF Score™ is 66/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Diamondrock Hospitality Co (FRA:HBO), the current Return-on-Tangible-Equity is 24.40% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Diamondrock Hospitality Co (FRA:HBO) Overvalued in 2026?
Based on GuruFocus' analysis, Diamondrock Hospitality Co stock appears to be overvalued.
The current stock price of €11.40 is trading 42% above its estimated GF Value™ of €8.03.
GuruFocus considers Diamondrock Hospitality Co to be Significantly Overvalued.
Key valuation signals for FRA:HBO:
Return-on-Tangible-Equity: 24.40% (368% above median its 10-year median of 5.21)
GF Value™: €8.03 vs. price of €11.40 (42% above fair value)
Industry Position: 288.8% above the REITs median (#247 of 920)
No single metric tells the full story. See the FRA:HBO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 company operates in one reportable segment: The hotel ownership segment, which is comprised of upper upscale and luxury chain scale hotels that offer hotel rooms, food and beverage and other ancillary guest services.
66GF Score
Get the complete analysis for FRA:HBO
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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