Diamond Hill Investment Group (DHIL)
NASDAQ:DHIL
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Diamond Hill Investment Group
(NASDAQ:DHIL)
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Rating:71Outperform
Price Target:
$191.00
â–²(12.27% Upside)
Action:ReiteratedDate:03/04/26
The score is driven primarily by solid profitability and a strong, low-leverage balance sheet, offset by meaningful cash-flow volatility (including negative 2025 cash flow). Valuation is attractive (low P/E and solid yield), while technicals are tempered by overbought signals. Ongoing merger progress is a net positive but still carries completion risk.
Positive Factors
High, consistent profitability and returns
Diamond Hill's historically high net margins and mid-20%+ ROE indicate durable earnings power from its fee-based asset management model. Persistent margin strength supports cash distributions, reinvestment in capabilities, and resilience to AUM swings, underpinning long-term shareholder returns.
Negative Factors
Weakening cash generation; negative 2025 cash flow
The swing to negative operating and free cash flow in 2025 undermines the quality of reported earnings and strains the firm's ability to fund dividends, retention awards, or integration costs from internal cash. Persistent cash weakness raises financing and sustainability concerns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High, consistent profitability and returns
Diamond Hill's historically high net margins and mid-20%+ ROE indicate durable earnings power from its fee-based asset management model. Persistent margin strength supports cash distributions, reinvestment in capabilities, and resilience to AUM swings, underpinning long-term shareholder returns.
Read all positive factors
Diamond Hill Investment Group (DHIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$465.05M
Dividend Yield3.38%
Average Volume (3M)41.44K
Price to Earnings (P/E)9.5
Beta (1Y)0.56
Revenue Growth7.47%
EPS Growth-2.12%
CountryUS
Employees127
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)3.43
Shares Outstanding2,705,375
10 Day Avg. Volume71,630
30 Day Avg. Volume41,442
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)2.62
Price to Sales (P/S)2.92
P/FCF Ratio-0.05
Enterprise Value/Market Cap-76.46
Enterprise Value/Revenue-225.26
Enterprise Value/Gross Profit-234.63
Enterprise Value/Ebitda-519.37
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 re...
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 perform...
Diamond Hill Investment Group Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
48
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 157.86M | 151.10M | 136.72M | 154.50M | 182.19M |
| Gross Profit | 151.56M | 68.19M | 57.12M | 85.10M | 97.94M |
| EBITDA | 68.47M | 45.12M | 36.79M | 65.71M | 77.54M |
| Net Income | 48.76M | 43.18M | 42.23M | 40.43M | 74.20M |
Balance Sheet | |||||
| Total Assets | 260.40M | 245.13M | 232.09M | 249.82M | 286.15M |
| Cash, Cash Equivalents and Short-Term Investments | 42.42B | 41.62M | 46.99M | 63.20M | 80.55M |
| Total Debt | 6.40B | 6.34M | 768.92K | 0.00 | 0.00 |
| Total Liabilities | 83.97M | 82.56M | 71.78M | 72.02M | 83.97M |
| Stockholders Equity | 176.43M | 162.32M | 160.32M | 163.67M | 184.42M |
Cash Flow | |||||
| Free Cash Flow | -9.05B | 15.24M | 34.65M | 39.38M | 25.21M |
| Operating Cash Flow | -6.62B | 16.60M | 34.67M | 39.48M | 26.31M |
| Investing Cash Flow | 2.51M | 30.51M | -4.21M | 6.03M | 27.26M |
| Financing Cash Flow | -48.08M | -52.48M | -46.67M | -62.87M | -71.50M |
Diamond Hill Investment Group Technical Analysis
Neutral
170.12
Price Trends
171.87
Positive
161.62
Positive
148.63
Positive
Market Momentum
0.10
Positive
48.54
Neutral
27.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHIL, the sentiment is Neutral. The current price of 170.12 is below the 20-day moving average (MA) of 172.42, below the 50-day MA of 171.87, and above the 200-day MA of 148.63, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 48.54 is Neutral, neither overbought nor oversold. The STOCH value of 27.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DHIL.
Diamond Hill Investment Group Risk Analysis
Diamond Hill Investment Group disclosed 32 risk factors in its most recent earnings report. Diamond Hill Investment Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Diamond Hill Investment Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $465.05M | 9.47 | 27.96% | 3.38% | 7.47% | -2.12% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $1.70B | 12.06 | 10.58% | 9.64% | -6.44% | -1.18% | |
58 Neutral | $291.22M | 10.64 | 5.42% | 16.61% | -3.09% | 200.66% | |
55 Neutral | $920.30M | 8.05 | 15.20% | 5.41% | -3.07% | 18.00% | |
55 Neutral | $270.66M | 13.30 | 0.03% | 12.83% | 90.34% | -44.25% | |
53 Neutral | $315.42M | -123.58 | >-0.01% | 14.10% | -2.38% | -75.49% |
* Financial Sector Average
DHIL
Diamond Hill Investment Group
171.90
47.02
37.65%
PNNT
Pennantpark Investment
4.46
-0.85
-15.94%
VRTS
Virtus Investment Partners
137.45
-5.66
-3.96%
SCM
Stellus Capital
9.35
-1.47
-13.58%
TSLX
Sixth Street Specialty Lending
18.06
0.02
0.11%
PSBD
Palmer Square Capital BDC Inc.
10.11
-1.21
-10.65%
Diamond Hill Investment Group Corporate Events
Delistings and Listing ChangesM&A TransactionsShareholder Meetings
Diamond Hill Shareholders Approve Merger with First Eagle
Positive
Mar 4, 2026
Diamond Hill shareholders convened on March 3, 2026, to vote on proposals tied to the planned merger with First Eagle Investment Management’s subsidiary, Soar Christopher Holdings. With approximately 70.82% of outstanding common shares repre...
Executive/Board ChangesM&A Transactions
Diamond Hill Grants Retention Award to Chief Financial Officer
Neutral
Feb 25, 2026
Diamond Hill Investment Group, Inc. entered into a merger agreement on December 10, 2025, under which Soar Christopher Holdings, Inc., a subsidiary of First Eagle Investment Management, will merge with Diamond Hill, leaving Diamond Hill as a wholl...
Legal ProceedingsM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Diamond Hill Issues Supplemental Disclosures on First Eagle Merger
Negative
Feb 24, 2026
Diamond Hill Investment Group has filed a definitive proxy statement for a March 3, 2026 special shareholder meeting to vote on its previously announced merger with First Eagle Investment Management, under a December 10, 2025 agreement that would ...
M&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Diamond Hill Gains Key Antitrust Clearance for First Eagle Merger
Positive
Feb 17, 2026
On February 10, 2026, Diamond Hill Investment Group and acquirer First Eagle Investment Management received early termination of the Hart-Scott-Rodino Act waiting period from the U.S. Federal Trade Commission in connection with their planned merge...
Financial Disclosures
Diamond Hill reports $28.7 billion in assets under management
Neutral
Feb 3, 2026
As of January 31, 2026, Diamond Hill Capital Management reported total assets under management of $28.7 billion, with $18.2 billion in proprietary funds, $4.9 billion in separately managed accounts, $1.8 billion in collective investment trusts, an...
Executive/Board ChangesM&A Transactions
Diamond Hill Grants CFO Retention Bonus Amid Merger
Neutral
Jan 28, 2026
On December 10, 2025, Diamond Hill Investment Group, Inc. agreed to be acquired by First Eagle Investment Management, LLC through a merger in which a First Eagle subsidiary will be merged into Diamond Hill, leaving Diamond Hill as a wholly owned s...
Business Operations and StrategyFinancial Disclosures
Diamond Hill Reports $29.4 Billion in Assets Under Management
Neutral
Jan 5, 2026
As of December 31, 2025, Diamond Hill Capital Management reported total assets under management of $29.4 billion, with $18.8 billion in proprietary funds, $5.1 billion in separately managed accounts, $1.7 billion in collective investment trusts, a...
Business Operations and StrategyM&A Transactions
Diamond Hill Announces Merger with First Eagle
Positive
Dec 11, 2025
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 Dia...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.