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Diamondrock Hospitality CoFRA:HBO +2.70%65 ROA % is 11.93% as of Jun. 2026, which is 313% above its 10-year median of 2.89. GuruFocus rates FRA:HBO with a GF Score™ of 65/100 and a GF Value™ of €7.93 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 926 REITs companies, Diamondrock Hospitality Co ranks better than 68.14% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Diamondrock Hospitality Co's annualizedNet Income for the quarter that ended in Jun. 2026 was €314.1 Mil.
Diamondrock Hospitality Co's average Total Assets over the quarter that ended in Jun. 2026 was €2,632.6 Mil. Therefore, Diamondrock Hospitality Co's annualized ROA % for the quarter that ended in Jun. 2026 was 11.93%.
The historical rank and industry rank for Diamondrock Hospitality Co's ROA % or its related term are showing as below:
FRA:HBO'
s ROA % Range Over the Past 10 Years
Min: -12 Med: 2.89 Max: 5.54
Current: 5.03
During the past 13 years, Diamondrock Hospitality Co's highest ROA % was 5.54%. The lowest was -12.00%. And the median was 2.89%.
FRA:HBO's ROA % is ranked better than 68.14% of 926
companies
in the REITs industry
Industry Median: 3.24
vs FRA:HBO: 5.03
Diamondrock Hospitality Co (FRA:HBO) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the REIT - Hotel & Motel subindustry, Diamondrock Hospitality Co's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs REITs Industry
For the REITs industry and Real Estate sector, Diamondrock Hospitality Co's ROA % distribution charts can be found below:
* The bar in red indicates where Diamondrock Hospitality Co's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Diamondrock Hospitality Co (FRA:HBO) has a ROA % of 11.93% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Diamondrock Hospitality Co and its competitors. This is 313% above median its historical median of 2.89. According to the industry distribution chart, Diamondrock Hospitality Co ranks #295 out of 926 companies in the REITs industry, placing it in the top 31.9%.
Is Diamondrock Hospitality Co's ROA % too high?
Diamondrock Hospitality Co's current ROA % of 11.93% is 313% above median its 10-year median of 2.89. The REITs industry median ROA % is 3.24. Diamondrock Hospitality Co's value of 11.93% is 268.2% above this industry median. Based on the distribution chart, Diamondrock Hospitality Co ranks #295 out of 926 companies in the REITs industry, which is above the industry midpoint. Overall, Diamondrock Hospitality Co has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Diamondrock Hospitality Co's ROA % compare to PK and SHO?
According to the REITs industry distribution chart, Diamondrock Hospitality Co ranks #295 out of 926 companies for ROA %. This puts Diamondrock Hospitality Co in the upper half of its industry. The industry median ROA % is 3.24. Diamondrock Hospitality Co's value of 11.93% is 268.2% above this benchmark. While the company's 10-year median is 2.89 vs. the industry median of 3.24, 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 ROA % for a REITs company?
The median ROA % among REITs companies is 3.24, based on 926 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diamondrock Hospitality Co's current ROA % of 11.93% is 268.2% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Diamondrock Hospitality Co and its competitors. For the REITs industry, the median ROA % is 3.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamondrock Hospitality Co's current ROA % is 11.93%, which is 313% above median its own 10-year median of 2.89. 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 €7.93, compared to a current price of €11.40 — trading 43.8% above its estimated fair value. The current ROA % is 11.93%, which is 313% above median its 10-year median of 2.89 and 268.2% above the REITs industry median of 3.24. Diamondrock Hospitality Co's overall GF Score™ is 65/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Diamondrock Hospitality Co (FRA:HBO), the current ROA % is 11.93% 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 43.8% above its estimated GF Value™ of €7.93.
GuruFocus considers Diamondrock Hospitality Co to be Significantly Overvalued.
Key valuation signals for FRA:HBO:
ROA %: 11.93% (313% above median its 10-year median of 2.89)
GF Value™: €7.93 vs. price of €11.40 (43.8% above fair value)
Industry Position: 268.2% above the REITs median (#295 of 926)
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.
65GF Score
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