Diamond Hill Investment Group (DHIL) AI Stock Analysis

• Market Cap: $379.69M
• Dividend Yield: 4.31%
• Average Volume (3M): 19.83K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.63
• Revenue Growth: 9.58%
• EPS Growth: 0.68%
• Country: US
• Employees: 127
• Sector: Financial
• Sector Strength: 82
• Industry: Asset Management
• EPS (TTM): 14.81
• Shares Outstanding: 2,727,691
• 10 Day Avg. Volume: 30,100
• 30 Day Avg. Volume: 19,826
• PEG Ratio: -1.75
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.48
• Enterprise Value/Market Cap: 17.49
• Enterprise Value/Revenue: 11.03
• Enterprise Value/Gross Profit: 73.61
• Enterprise Value/Ebitda: 39.09
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: $150.00 ▲(5.82%Upside)

Diamond Hill Investment Group's strong balance sheet and attractive valuation are key strengths, providing financial stability and potentially undervalued investment opportunities. However, revenue volatility and negative cash flow present risks that could impact future performance. Technical analysis supports moderate positive momentum, but liquidity concerns warrant attention.

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 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

The financial performance is mixed with a strong balance sheet characterized by high equity ratios and low leverage, ensuring financial stability. However, the income statement shows revenue volatility and recent declines, and cash flow analysis reveals liquidity concerns due to negative free cash flow in the TTM.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
148.36M	151.10M	136.72M	154.50M	182.19M	126.39M
	Gross Profit
90.21M	68.19M	57.12M	85.10M	97.94M	62.54M
	EBIT
48.82M	53.79M	35.50M	64.33M	76.26M	45.54M
	EBITDA
49.95M	55.01M	36.79M	65.71M	77.54M	46.53M
	Net Income Common Stockholders
40.52M	43.18M	42.23M	40.43M	74.20M	38.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.62M	41.62M	46.99M	63.20M	80.55M	98.48M
	Total Assets
245.13M	245.13M	232.09M	249.82M	286.15M	263.10M
	Total Debt
6.34M	6.34M	156.04K	1.40M	2.00M	2.50M
	Net Debt
-35.29M	-35.29M	-46.99M	-61.80M	-78.55M	-95.98M
	Total Liabilities
82.56M	82.56M	71.78M	72.02M	83.97M	69.64M
	Stockholders Equity
162.32M	162.32M	160.32M	163.67M	184.42M	184.08M
Cash Flow		Free Cash Flow
16.38M	15.24M	34.65M	39.38M	25.21M	57.32M
	Operating Cash Flow
18.27M	52.41M	34.67M	39.48M	26.31M	59.77M
	Investing Cash Flow
31.16M	30.51M	-4.21M	6.03M	27.26M	8.41M
	Financing Cash Flow
-41.77M	-52.48M	-46.67M	-62.87M	-71.50M	-62.88M

Diamond Hill Investment Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 141.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 141.75 is above the 20-day moving average (MA) of 139.84, above the 50-day MA of 135.28, and below the 200-day MA of 147.25, indicating a neutral trend. The MACD of 0.82 indicates Positive momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 36.32 is Neutral, 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
SAR	68 Neutral	$359.54M	12.09	7.36%	12.13%	-24.05%	28.25%
DHIL	66 Neutral	$379.69M	9.40	24.80%	4.31%	9.58%	0.68%
Sector *	64 Neutral	$12.87B	9.81	7.76%	16985.65%	12.28%	-7.83%
SCM	64 Neutral	$380.49M	9.36	10.83%	11.95%	17.67%	128.48%
CION	58 Neutral	$479.46M	15.47	-1.88%	15.82%	2.30%	-63.97%
PSBD	54 Neutral	$449.34M	27.59	3.05%	11.67%	1.13%	-86.09%
PNNT	48 Neutral	$442.71M	45.84	1.95%	13.86%	―	-66.59%

Diamond Hill Investment Group Corporate Events

Diamond Hill Reports $29.381 Billion in Assets

As of May 31, 2025, Diamond Hill Capital Management reported total assets under management of $29.381 billion. The company’s investment strategies are diversified across various asset classes, with a significant portion allocated to large cap investments, indicating a strong position in the market. This diversification and substantial asset base may enhance the company’s operational capabilities and market presence.

Diamond Hill Appoints Austin Hawley as New Director

On May 27, 2025, Diamond Hill Investment Group appointed Austin Hawley as a new director, expanding its Board from six to seven members. Hawley, a portfolio manager at the company’s subsidiary, Diamond Hill Capital Management, has been with the company since 2008 and brings extensive experience in capital allocation and investment strategy. Although not an independent director due to his employee status, Hawley’s appointment is expected to enhance the company’s strategic direction and client outcomes. His compensation as a portfolio manager includes a base salary and significant incentive awards, reflecting his contributions to the company.