Diamond Hill Investment Group (DHIL) AI Stock Analysis

• Market Cap: $315.76M
• Dividend Yield: 4.92%
• Average Volume (3M): 28.64K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.77
• 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: 2,705,296
• 10 Day Avg. Volume: 27,838
• 30 Day Avg. Volume: 28,641
• 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: 1.09
• 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: 66 Neutral
• Price Target: $139.00 ▲(1.47% Upside)

Diamond Hill Investment Group's strong valuation metrics, including a low P/E ratio and high dividend yield, are significant positives. However, the stock's weak technical indicators and challenges in cash flow management and revenue growth weigh on its overall score.

Diamond Hill Investment Group Business Overview & Revenue Model

Company Description

Diamond Hill Investment Group (DHIL) is an investment management firm based in the United States, specializing in providing a range of investment strategies for institutional and retail clients. The company primarily focuses on equity and fixed-income investments, utilizing a value-oriented approach to asset management. DHIL aims to deliver long-term capital appreciation while maintaining a disciplined investment process through its various mutual funds and separate accounts, catering to diverse investment needs across different sectors.

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: Negative
• Last Price: 136.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 136.99 is above the 20-day moving average (MA) of 123.00, above the 50-day MA of 129.04, and above the 200-day MA of 133.20, indicating a bearish trend. The MACD of -2.96 indicates Positive momentum. The RSI at 26.22 is Positive, neither overbought nor oversold. The STOCH value of 7.31 is Positive, 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
TSLX	70 Outperform	$2.01B	10.40	11.91%	9.27%	-6.44%	-1.18%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DHIL	66 Neutral	$315.76M	6.77	26.98%	4.92%	7.47%	-2.12%
VRTS	66 Neutral	$1.08B	8.22	15.07%	5.71%	-3.07%	18.00%
SCM	64 Neutral	$347.37M	11.02	8.20%	13.33%	90.34%	-44.25%
PSBD	51 Neutral	$380.77M	27.74	2.72%	14.09%	-2.38%	-75.49%
PNNT	48 Neutral	$393.74M	12.03	6.83%	15.92%	-35.46%	-67.15%

Diamond Hill Investment Group Corporate Events

Diamond Hill Reports Q3 Earnings and Special Dividend

Diamond Hill Investment Group, Inc. is an independent active asset manager based in Columbus, Ohio, specializing in valuation-driven investment strategies across U.S. and international equity, alternative long-short equity, and fixed income markets.

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.

The most recent analyst rating on (DHIL) stock is a Hold with a $150.00 price target. To see the full list of analyst forecasts on Diamond Hill Investment Group stock, see the DHIL Stock Forecast page.

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.

The most recent analyst rating on (DHIL) stock is a Hold with a $153.00 price target. To see the full list of analyst forecasts on Diamond Hill Investment Group stock, see the DHIL Stock Forecast page.

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.

The most recent analyst rating on (DHIL) stock is a Hold with a $153.00 price target. To see the full list of analyst forecasts on Diamond Hill Investment Group stock, see the DHIL Stock Forecast page.

Diamond Hill Reports $31.02 Billion in Assets

As of August 31, 2025, Diamond Hill Capital Management reported assets under management totaling $31.02 billion. The assets are diversified across multiple investment strategies, with significant holdings in large cap and short duration securitized bond strategies. This financial update reflects the company’s strategic focus on diverse investment options, potentially impacting its market positioning and offering insights into its operational priorities.

The most recent analyst rating on (DHIL) stock is a Hold with a $154.00 price target. To see the full list of analyst forecasts on Diamond Hill Investment Group stock, see the DHIL Stock Forecast page.

Diamond Hill Reports $30.186 Billion in Assets

As of July 31, 2025, Diamond Hill Capital Management reported total assets under management of $30.186 billion. The assets are distributed across various investment vehicles and strategies, with a significant portion in large-cap investments, highlighting the company’s robust market presence and strategic focus on diversified asset management.