Diamond Hill Investment Group (DHIL) AI Stock Analysis

• Market Cap: $358.45M
• Dividend Yield: 4.57%
• Average Volume (3M): 15.91K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.65
• Revenue Growth: 9.58%
• EPS Growth: 0.68%
• Country: US
• Employees: 127
• Sector: Financial
• Sector Strength: 88
• Industry: Asset Management
• EPS (TTM): 14.81
• Shares Outstanding: 2,727,691
• 10 Day Avg. Volume: 14,779
• 30 Day Avg. Volume: 15,906
• PEG Ratio: 13.01
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.49
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Diamond Hill Investment Group's stock score is primarily influenced by its strong balance sheet and attractive valuation. However, the score is moderated by technical indicators pointing to a bearish trend and cash flow concerns, which highlight potential liquidity issues. The lack of recent earnings call or corporate events information leaves some uncertainty about near-term catalysts for the stock.

Diamond Hill Investment Group Business Overview & Revenue Model

Company Description

Diamond Hill Investment Group, Inc. (DHIL) is an independent investment management firm. The company, headquartered in Columbus, Ohio, specializes in providing a range of investment advisory and fund management services. Its core products include mutual funds, separate accounts, and private investment funds, serving both institutional and individual investors. Diamond Hill is recognized for its commitment to value-oriented investment principles and a long-term perspective in building wealth for its clients.

How the Company Makes Money

Diamond Hill Investment Group primarily makes money through management fees charged for overseeing assets under management (AUM). These fees are typically calculated as a percentage of the AUM and are the primary revenue stream for the company. Additionally, Diamond Hill may earn performance-based fees, which are contingent upon achieving specified investment results or benchmarks. The company also benefits from its ability to attract new investors and retain existing clients, which can lead to an increase in AUM and, consequently, higher fee revenues. Strategic partnerships and a reputation for value-driven investment strategies further contribute to the firm's financial success.

Diamond Hill Investment Group Financial Statement Overview

Summary

Diamond Hill Investment Group's financial performance is mixed. The balance sheet is strong with a high equity ratio and low debt-to-equity ratio, indicating financial stability. However, the income statement shows revenue volatility and a recent decline, raising concerns about growth. Cash flow analysis reveals liquidity challenges with negative free cash flow in the TTM, necessitating attention to cash management.

Income Statement

The income statement shows a volatile revenue trend, with a significant decrease in TTM compared to the previous annual report. Gross profit margin is high, indicating efficient cost management. However, the net profit margin has been positive, providing some stability. The EBIT and EBITDA margins are solid, but the recent revenue decline raises concerns about future growth.

Balance Sheet

The balance sheet is strong with a high equity ratio, suggesting financial stability. The debt-to-equity ratio is low, indicating prudent leverage management. Return on equity is positive, reflecting profitability relative to shareholder equity. Overall, the company maintains a robust financial position with low leverage risk.

Cash Flow

Cash flow analysis reveals a concerning negative free cash flow in the TTM, driven by substantial negative operating cash flow. The historical free cash flow has been generally positive, but recent fluctuations suggest potential liquidity challenges. The free cash flow to net income ratio is unfavorable, indicating inefficiencies in converting income to cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
151.10M	136.72M	154.50M	182.19M	126.39M
	Gross Profit
68.19M	57.12M	85.10M	97.94M	62.54M
	EBIT
53.79M	35.50M	64.33M	76.26M	45.54M
	EBITDA
55.01M	36.79M	65.71M	77.54M	46.53M
	Net Income Common Stockholders
43.18M	42.23M	40.43M	74.20M	38.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.62M	46.99M	63.20M	80.55M	98.48M
	Total Assets
245.13B	232.09M	249.82M	286.15M	263.10M
	Total Debt
6.34M	156.04K	1.40M	2.00M	2.50M
	Net Debt
-35.29M	-46.99M	-61.80M	-78.55M	-95.98M
	Total Liabilities
82.56B	71.78M	72.02M	83.97M	69.64M
	Stockholders Equity
162.32M	160.32M	163.67M	184.42M	184.08M
Cash Flow		Free Cash Flow
15.24M	34.65M	39.38M	25.21M	57.32M
	Operating Cash Flow
52.41M	34.67M	39.48M	26.31M	59.77M
	Investing Cash Flow
30.51M	-4.21M	6.03M	27.26M	8.41M
	Financing Cash Flow
-52.48M	-46.67M	-62.87M	-71.50M	-62.88M

Diamond Hill Investment Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 131.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHIL, the sentiment is Negative. The current price of 131.41 is above the 20-day moving average (MA) of 130.32, below the 50-day MA of 139.45, and below the 200-day MA of 149.98, indicating a bearish trend. The MACD of -3.55 indicates Negative momentum. The RSI at 40.91 is Neutral, neither overbought nor oversold. The STOCH value of 64.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DHIL.

Diamond Hill Investment Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAR	68 Neutral	$357.37M	10.03	9.28%	11.88%	-24.05%	28.25%
SCM	64 Neutral	$369.13M	7.25	13.29%	12.31%	17.67%	128.48%
Sector *	64 Neutral	$12.64B	9.74	8.05%	17044.60%	12.66%	-4.62%
DHIL	58 Neutral	$358.45M	8.87	24.80%	4.57%	9.58%	0.68%
CION	58 Neutral	$527.09M	15.71	3.99%	14.49%	2.30%	-63.97%
PSBD	51 Neutral	$429.17M	9.00	9.54%	12.31%	14.82%	-63.91%
PNNT	48 Neutral	$426.38M	26.15	3.28%	14.39%	―	-66.59%