Diamond Hill Investment Group (DHIL) AI Stock Analysis

• Market Cap: $412.48M
• Dividend Yield: 3.38%
• Average Volume (3M): 36.22K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.63
• Revenue Growth: 7.47%
• EPS Growth: -2.12%
• Country: US
• Employees: 127
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 4.99
• Shares Outstanding: 2,430,947
• 10 Day Avg. Volume: 52,680
• 30 Day Avg. Volume: 36,217
• PEG Ratio: 1.06
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 2.83
• P/FCF Ratio: 28.08
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 2.36
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: 6.62
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $192.00 ▲(62.16% Upside)

Diamond Hill Investment Group's overall stock score is driven by strong valuation metrics and positive corporate events, particularly the merger with First Eagle. While financial performance is solid, challenges in cash flow management and potential technical pullbacks due to overbought conditions slightly temper the score.

Positive Factors

Merger with First Eagle

The merger with First Eagle is expected to enhance Diamond Hill's market position and align its operations with strategic objectives, potentially leading to increased market reach and operational efficiencies.

Strong Profitability

A robust net profit margin and minimal debt indicate strong profitability and financial stability, providing a solid foundation for long-term growth and resilience against economic fluctuations.

Market Presence

Significant AUM highlights Diamond Hill's strong market presence and ability to attract and manage large-scale investments, supporting sustained revenue generation through management fees.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth suggests potential difficulties in expanding market share or product offerings, which could impact long-term financial performance and investor confidence.

Cash Flow Issues

Negative cash flows indicate potential liquidity issues, which could constrain the company's ability to invest in growth opportunities or weather economic downturns, affecting long-term sustainability.

Dividend Suspension

Suspending dividends may signal cash flow management challenges and could impact investor sentiment, potentially affecting the company's attractiveness to income-focused investors.

Diamond Hill Investment Group Business Overview & Revenue Model

Company Description

Diamond Hill Investment Group, Inc., through its subsidiary, Diamond Hill Capital Management, Inc., provides investment advisory and fund administration services in the United States. It sponsors, distributes, and offers investment advisory and related services to its clients through pooled investment vehicles, including the Diamond Hill Funds, separately managed accounts, and model delivery programs. The company also provides fund administration services, including portfolio and regulatory compliance, treasury and financial oversight, and general business management and governance of the mutual fund complex, as well as oversight of back-office service providers, such as the custodian, fund accountant, and transfer agent. The company was founded in 1990 and is based in Columbus, Ohio.

How the Company Makes Money

Diamond Hill generates revenue primarily through management fees charged on assets under management (AUM). These fees are calculated as a percentage of the AUM in their mutual funds and separate accounts. Additionally, the company may earn performance fees based on the returns generated by its investment strategies exceeding a specified benchmark. Key revenue streams include fees from institutional clients, retail mutual fund investors, and separate account management. The firm's reputation for disciplined investment strategies and its ability to attract and retain a significant client base are crucial factors contributing to its earnings, alongside any strategic partnerships with financial advisors and institutions that help to expand its reach in the market.

Diamond Hill Investment Group Financial Statement Overview

Summary

Diamond Hill Investment Group exhibits strong profitability with a robust net profit margin and a stable balance sheet with low leverage. However, challenges in sustaining revenue growth and improving cash flow generation are notable concerns.

Income Statement

Diamond Hill Investment Group shows a strong gross profit margin of 63.5% for TTM, indicating efficient cost management. The net profit margin is also robust at 32.1%, reflecting solid profitability. However, revenue growth has been inconsistent, with a slight increase of 1.7% in the latest TTM period. The EBIT margin is healthy at 34.9%, but the EBITDA margin is slightly lower at 35.6%, suggesting some non-operating expenses. Overall, the company demonstrates strong profitability but faces challenges in sustaining revenue growth.

Balance Sheet

The balance sheet of Diamond Hill Investment Group is strong, with a minimal debt-to-equity ratio of 0.00002, indicating low leverage and financial stability. The return on equity is modest at 0.06% for TTM, suggesting room for improvement in generating returns for shareholders. The equity ratio is high, reflecting a solid capital structure with significant equity backing. Overall, the company maintains a stable financial position with low risk from debt.

Cash Flow

The cash flow statement reveals challenges, with negative operating and free cash flows in the TTM period, indicating potential liquidity issues. The free cash flow to net income ratio is positive at 1.08, suggesting that the company is generating cash relative to its net income. However, the negative operating cash flow coverage ratio highlights concerns about cash flow sustainability. While there is some growth in free cash flow, the overall cash flow position needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	145.89M	151.10M	136.72M	154.50M	182.19M	126.39M
Gross Profit	75.71M	68.19M	57.12M	85.10M	97.94M	62.54M
EBITDA	52.01M	45.12M	36.79M	65.71M	77.54M	46.53M
Net Income	46.87M	43.18M	42.23M	40.43M	74.20M	38.66M
Balance Sheet
Total Assets	256.27M	245.13M	232.09M	249.82M	286.15M	263.10M
Cash, Cash Equivalents and Short-Term Investments	43.02M	41.62M	46.99M	63.20M	80.55M	98.48M
Total Debt	6.50M	6.34M	768.92K	0.00	0.00	0.00
Total Liabilities	75.30M	82.56M	71.78M	72.02M	83.97M	69.64M
Stockholders Equity	180.94M	162.32M	160.32M	163.67M	184.42M	184.08M
Cash Flow
Free Cash Flow	-5.06M	15.24M	34.65M	39.38M	25.21M	57.32M
Operating Cash Flow	-2.21M	16.60M	34.67M	39.48M	26.31M	59.77M
Investing Cash Flow	10.83M	30.51M	-4.21M	6.03M	27.26M	8.41M
Financing Cash Flow	686.38K	-52.48M	-46.67M	-62.87M	-71.50M	-62.88M

Diamond Hill Investment Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 118.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHIL, the sentiment is Positive. The current price of 118.4 is below the 20-day moving average (MA) of 128.09, below the 50-day MA of 128.21, and below the 200-day MA of 132.88, indicating a bullish trend. The MACD of 9.54 indicates Negative momentum. The RSI at 85.56 is Negative, neither overbought nor oversold. The STOCH value of 96.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DHIL.

Diamond Hill Investment Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DHIL	76 Outperform	$412.48M	9.84	26.98%	3.38%	7.47%	-2.12%
TSLX	75 Outperform	$2.07B	10.72	11.91%	9.07%	-6.44%	-1.18%
VRTS	69 Neutral	$1.13B	8.55	15.07%	5.41%	-3.07%	18.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SCM	64 Neutral	$367.05M	11.64	8.20%	12.62%	90.34%	-44.25%
PNNT	55 Neutral	$393.74M	12.03	6.83%	16.41%	-3.09%	200.66%
PSBD	54 Neutral	$373.34M	27.30	2.72%	14.14%	-2.38%	-75.49%

Diamond Hill Investment Group Corporate Events

Diamond Hill Announces Merger with First Eagle

On December 10, 2025, Diamond Hill Investment Group entered into a merger agreement with First Eagle Investment Management, where Diamond Hill will become a wholly owned subsidiary of First Eagle. The merger will involve a cash transaction for Diamond Hill’s common stock at $175 per share, and the board of directors has unanimously approved the merger, recommending shareholder approval. The merger is expected to be financed through First Eagle’s cash on hand and existing credit facilities, with no financing condition attached to the merger’s completion. The agreement includes provisions for the treatment of equity awards and executive severance agreements, and outlines conditions for closing, including shareholder approval and regulatory clearances. The merger is anticipated to enhance Diamond Hill’s market position and align its operations with First Eagle’s strategic objectives.

Diamond Hill Reports $29.624 Billion in AUM

As of November 30, 2025, Diamond Hill Capital Management, Inc. reported a total of $29.624 billion in assets under management. The assets are diversified across various investment strategies, with significant allocations in large cap and short duration securitized bond strategies, indicating a strong market presence in these areas.

Diamond Hill Reports $30.02 Billion in Assets

As of October 31, 2025, Diamond Hill Capital Management reported assets under management totaling $30.02 billion, with significant allocations in large cap and short duration securitized bond strategies. This financial update highlights the company’s diverse investment strategy and substantial market presence, potentially impacting stakeholders by showcasing its robust asset management capabilities.

Diamond Hill Expands Board, Appoints New Director

On October 29, 2025, Diamond Hill Investment Group‘s Board of Directors expanded its size from seven to eight members, appointing Diane C. Nordin as an independent director and member of several committees. In its third-quarter 2025 financial results, the company reported a slight decrease in revenue and net income compared to the previous year, despite positive net client inflows and growth in fixed income strategies. The company also declared a regular and special dividend, reflecting a strong capital return to shareholders.

Diamond Hill Reports $30.583 Billion in Assets

As of September 30, 2025, Diamond Hill Capital Management, a subsidiary of Diamond Hill Investment Group, reported total assets under management of $30.583 billion. The breakdown of these assets shows a significant focus on large-cap investments, with $16.175 billion allocated to large-cap strategies, highlighting the company’s strategic emphasis on this segment.

Diamond Hill Appoints Jo Ann Quinif as President

On September 19, 2025, Diamond Hill Investment Group and its subsidiary entered into an Executive Employment Agreement with Jo Ann Quinif, formalizing her role as President and Chief Client Officer. The agreement outlines her compensation, including a base salary, cash incentive awards, and equity awards, and details the terms of her employment and potential severance packages, reflecting the company’s commitment to retaining key leadership and ensuring stability in its management team.