Diamond Hill Investment Group, Inc.
Diamond Hill Investment Group, Inc. Fundamental Analysis
Diamond Hill Investment Group, Inc. (DHIL) shows strong financial fundamentals with a PE ratio of 9.64, profit margin of 30.89%, and ROE of 27.96%. The company generates $0.2B in annual revenue with strong year-over-year growth of 10.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze DHIL's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDHIL demonstrates superior asset utilization.
Valuation Score
ModerateDHIL shows balanced valuation metrics.
Growth Score
ModerateDHIL shows steady but slowing expansion.
Financial Health Score
ModerateDHIL shows balanced financial health with some risks.
Profitability Score
ExcellentDHIL achieves industry-leading margins.
Key Financial Metrics
Is DHIL Expensive or Cheap?
P/E Ratio
DHIL trades at 9.64 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DHIL's PEG of 2.41 indicates potential overvaluation.
Price to Book
The market values Diamond Hill Investment Group, Inc. at 2.67 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 532.98 times EBITDA. This signals the market has high growth expectations.
How Well Does DHIL Make Money?
Net Profit Margin
For every $100 in sales, Diamond Hill Investment Group, Inc. keeps $30.89 as profit after all expenses.
Operating Margin
Core operations generate 38.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.96 in profit for every $100 of shareholder equity.
ROA
Diamond Hill Investment Group, Inc. generates $18.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Diamond Hill Investment Group, Inc. generates strong operating cash flow of $42.91B, reflecting robust business health.
Free Cash Flow
Diamond Hill Investment Group, Inc. generates strong free cash flow of $44.18B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $16329.24 in free cash annually.
FCF Yield
DHIL converts 95.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.67
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
36.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
75115.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How DHIL Stacks Against Its Sector Peers
| Metric | DHIL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.64 | 18.50 | Better (Cheaper) |
| ROE | 27.96% | 809.00% | Weak |
| Net Margin | 30.89% | 2211.00% | Weak |
| Debt/Equity | 36.27 | 0.90 | Weak (High Leverage) |
| Current Ratio | 75115.85 | 691.82 | Strong Liquidity |
| ROA | 18.73% | -24320.00% (disorted) | Strong |
DHIL outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Diamond Hill Investment Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.81%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-2.10%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-63.69%
Industry Style: Value, Dividend, Cyclical
Declining