Diamond Hill Investment Group (DHIL) AI Stock Analysis

• Market Cap: $385.80M
• Dividend Yield: 4.5%
• Average Volume (3M): 42.08K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.67
• Revenue Growth: 8.34%
• EPS Growth: 21.65%
• Country: US
• Employees: 127
• Sector: Financial
• Sector Strength: 64
• Industry: Asset Management
• EPS (TTM): 5.72
• Shares Outstanding: 2,725,158
• 10 Day Avg. Volume: 28,919
• 30 Day Avg. Volume: 42,076
• 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: 0.98
• Enterprise Value/Revenue: 2.62
• Enterprise Value/Gross Profit: 5.45
• Enterprise Value/Ebitda: 8.30
• 1Y Price Target: $159.00
• Price Target Upside: 13.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: $148.00 ▲(5.20% Upside)

The overall stock score of 60 reflects a mixed outlook. The company's financial stability and strong balance sheet are offset by revenue volatility and negative cash flow concerns. While the stock appears undervalued with a high dividend yield, bearish technical indicators suggest caution. Recent corporate events indicate stability and a positive strategic direction.

Diamond Hill Investment Group Business Overview & Revenue Model

Company Description

Diamond Hill Investment Group (DHIL) is a U.S.-based investment management firm that provides a range of investment solutions to institutional and individual investors. The company is focused on delivering superior investment results through a disciplined process and a long-term perspective. Its core services include managing mutual funds, separate accounts, and private investment funds across various asset classes, including equities and fixed income.

How the Company Makes Money

Diamond Hill Investment Group generates revenue primarily through management fees charged on the assets under management (AUM). These fees are typically a percentage of the AUM and may vary depending on the investment product or client agreement. The company also earns performance-based fees, which are contingent on achieving specific investment returns that exceed predetermined benchmarks. Additionally, Diamond Hill may have partnerships with financial advisors and institutions that help distribute their investment products, contributing to their revenue growth.

Diamond Hill Investment Group Financial Statement Overview

Summary

Diamond Hill Investment Group has a robust balance sheet with strong equity ratios and low debt. However, recent revenue declines and negative free cash flow raise concerns about future profitability and liquidity.

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	143.49M	151.10M	136.72M	154.50M	182.19M	126.39M
Gross Profit	69.01M	68.19M	57.12M	85.10M	97.94M	62.54M
EBITDA	45.35M	45.12M	36.79M	65.71M	77.54M	46.53M
Net Income	47.97M	43.18M	42.23M	40.43M	74.20M	38.66M
Balance Sheet
Total Assets	261.02M	245.13M	232.09M	249.82M	286.15M	263.10M
Cash, Cash Equivalents and Short-Term Investments	49.06M	41.62M	46.99M	63.20M	80.55M	98.48M
Total Debt	6.58M	6.34M	768.92K	0.00	0.00	0.00
Total Liabilities	65.91M	82.56M	71.78M	72.02M	83.97M	69.64M
Stockholders Equity	171.58M	162.32M	160.32M	163.67M	184.42M	184.08M
Cash Flow
Free Cash Flow	-8.52M	15.24M	34.65M	39.38M	25.21M	57.32M
Operating Cash Flow	-6.02M	16.60M	34.67M	39.48M	26.31M	59.77M
Investing Cash Flow	53.86M	30.51M	-4.21M	6.03M	27.26M	8.41M
Financing Cash Flow	-22.23M	-52.48M	-46.67M	-62.87M	-71.50M	-62.88M

Diamond Hill Investment Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 140.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 140.69 is below the 20-day moving average (MA) of 150.12, below the 50-day MA of 145.50, and below the 200-day MA of 146.32, indicating a bearish trend. The MACD of -1.93 indicates Positive momentum. The RSI at 41.35 is Neutral, neither overbought nor oversold. The STOCH value of 15.23 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
SAR	68 Neutral	$359.54M	10.09	9.27%	14.78%	-24.05%	28.25%
SCM	64 Neutral	$398.11M	9.80	10.83%	11.40%	17.67%	128.48%
Sector *	62 Neutral	AU$10.23B	9.27	11.82%	5.04%	33.79%	41.40%
DHIL	60 Neutral	$385.80M	7.99	29.24%	4.50%	8.34%	21.65%
CION	58 Neutral	$515.92M	15.47	-1.88%	16.01%	2.30%	-63.97%
PSBD	57 Neutral	$454.20M	27.89	3.46%	12.80%	0.36%	-80.23%
PNNT	48 Neutral	$472.09M	48.88	1.95%	13.45%	―	-66.59%

Diamond Hill Investment Group Corporate Events

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.

Diamond Hill Reports $30 Billion Assets Under Management

As of June 30, 2025, Diamond Hill Capital Management reported assets under management totaling $30.071 billion. The breakdown of these assets includes significant holdings in large cap strategies, accounting for $16.848 billion, and a notable allocation in short duration securitized bonds at $4.353 billion. This distribution reflects the company’s strategic focus on diverse investment vehicles and strategies, potentially impacting its market positioning and offering insights into its operational priorities.

Diamond Hill Extends CEO Heather Brilliant’s Contract

On June 12, 2025, Diamond Hill Investment Group, Inc. and its subsidiary entered into a new executive employment agreement with CEO Heather E. Brilliant, extending her term until June 30, 2030. The agreement includes a comprehensive compensation package and outlines conditions for termination, reflecting the company’s commitment to retaining leadership stability and potentially impacting its strategic direction and stakeholder relations.

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.