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DHT Holdings (DHT)
NYSE:DHT
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DHT Holdings
(NYSE:DHT)
Rating:75Outperform
Price Target:
$12.50
â–²(7.48% Upside)
Positive Factors
Dividend Strategy
DHT's 100% payout of net income dividend strategy and low leverage position it to payout higher dividends as VLCC rates move higher.
Market Positioning
DHT's fleet primarily trades in the spot market, positioning it to take advantage of increasing rates and rate spikes.
Revenue Enhancement
DHT's fleet is fully scrubber fitted, which provides an advantage by adding $6-10k per day to VLCC rates.
Negative Factors
DHT Holdings (DHT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.72B
Dividend Yield6.71%
Average Volume (3M)1.26M
Price to Earnings (P/E)9.1
Beta (1Y)0.26
Revenue Growth-8.89%
EPS Growth21.28%
CountryUS
Employees924
SectorEnergy
Sector Strength49
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.35
Shares Outstanding160,557,980
10 Day Avg. Volume1,397,061
30 Day Avg. Volume1,258,089
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue3.76
Enterprise Value/Gross Profit10.05
Enterprise Value/Ebitda6.07
Forecast
1Y Price Target
$14.50Price Target Upside24.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
DHT Holdings Business Overview & Revenue Model
Company DescriptionDHT Holdings, Inc. is a leading provider of crude oil transportation services, primarily engaged in the ownership and operation of a fleet of very large crude carriers (VLCCs). The company operates in the shipping sector, focusing on the transport of crude oil across major global trade routes. DHT's core services include the safe and efficient transportation of crude oil from production regions to refineries, leveraging its modern fleet and extensive industry experience.
How the Company Makes MoneyDHT Holdings generates revenue primarily through the chartering of its vessels, which are contracted for specific periods to oil companies, traders, and other shipping companies. The company earns income through both time charters and spot market voyages, with time charters providing steady revenue over a specified contract duration, while spot market voyages can yield higher returns based on prevailing market rates. Additionally, DHT may benefit from long-term contracts with key customers, providing stability in revenue streams. Factors such as global oil demand, shipping rates, and operational efficiency significantly impact the company's earnings, along with strategic partnerships that enhance its market presence.
DHT Holdings Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: 3.10%|
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted DHT's strong financial performance, robust balance sheet, successful fleet management, and strategic financial moves. However, it also noted challenges in the VLCC market and a disappointing start to Q3 2025. The highlights, including solid financial metrics and strategic fleet actions, outweigh the lowlights.Q2-2025 Updates
Positive Updates
Strong Financial Performance
In Q2 2025, DHT Holdings achieved revenues on TCE basis of $92.8 million and adjusted EBITDA of $69 million. Net income was $56 million, equal to $0.35 per share.
Robust Balance Sheet
DHT ended Q2 2025 with total liquidity of $299 million and financial leverage of 14.1%. Net debt was $10 million per vessel, well below estimated residual ship values.
Fleet Management and Expansion
DHT sold two vessels for a combined $103 million and acquired a modern secondhand vessel for $107 million. They also secured a 7- to 9-year charter contract for DHT Appaloosa.
Positive Cash Flow and Dividends
DHT generated $69 million in EBITDA and declared a dividend of $0.24 per share, marking the 62nd consecutive quarterly dividend.
New Credit Facility
DHT entered a $308.4 million secured credit facility for newbuildings, priced at SOFR plus an average margin of 132 bps with a 12-year tenure.
Negative Updates
Disappointing Start to Q3 2025
The third quarter began with lower-than-expected performance, attributed to inventory building in China and temporary halts in purchasing.
Temporary Market Challenges
The VLCC market faced challenges due to power generation demands from OPEC and reduced U.S. crude arbitrage opportunities.
Limited Scrapping Activity
High prices for older ships in the shadow fleet have stalled scrapping activities, impacting market dynamics.
Company Guidance
In the Q2 2025 earnings call, DHT Holdings reported robust financial metrics, including revenues of $92.8 million on a TCE basis and an adjusted EBITDA of $69 million. The net income was $56 million, translating to $0.35 per share, but after an adjustment for a $17.5 million gain from the sale of DHT Lotus, net profit was $38.6 million or $0.24 per share. Vessel operating expenses were $19.6 million, and general and administrative expenses were $4.6 million. The average TCE achieved for the quarter was $46,300 per day, with spot market vessels earning $48,700 per day and time charter vessels earning $42,800 per day. DHT declared a dividend of $0.24 per share, following its capital allocation policy of paying out 100% of ordinary net income as dividends. The company ended the quarter with total liquidity of $299 million, including $82.6 million in cash and $216.5 million available under two revolving credit facilities. DHT also outlined strategic moves, including fleet renewals and refinancing agreements, to maintain a strong financial position and shareholder value.DHT Holdings Financial Statement Overview
Summary
DHT Holdings is in a strong financial position with solid profitability, efficient leverage, and robust cash flow generation. Despite a slight revenue decline, profit margins and cash flows remain strong, providing a stable outlook.Income Statement
DHT Holdings shows a stable income performance with a positive TTM (Trailing-Twelve-Months) net profit margin of 32.95% and a gross profit margin of 37.39%. However, revenue has decreased by 5.18% in the most recent annual period, which indicates some volatility. The EBIT margin remains strong at 37.65% in TTM, showcasing effective management of operating expenses.75
Positive
Balance Sheet
The company's balance sheet is solid, with a debt-to-equity ratio of 0.34, indicating a conservative leverage position. ROE is strong at 16.90% in TTM, reflecting efficient use of equity capital. The equity ratio is healthy at 72.50%, indicating strong equity backing for assets, but there is a slight decrease in stockholders' equity over the year.70
Positive
Cash Flow
DHT Holdings demonstrates robust cash flow generation with an operating cash flow to net income ratio of 1.61 in TTM, showing high-quality earnings. Free cash flow has grown by 37.23% annually, reinforcing its capacity to reinvest and return capital to shareholders. The free cash flow to net income ratio of 0.95 indicates efficient cash conversion.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 520.39M | 571.77M | 560.56M | 454.14M | 295.85M | 691.04M |
| Gross Profit | 194.71M | 313.56M | 210.56M | 71.58M | -3.00M | 344.04M |
| EBITDA | 322.53M | 324.35M | 304.01M | 210.69M | 124.23M | 428.64M |
| Net Income | 190.36M | 181.38M | 161.35M | 61.52M | -11.51M | 266.27M |
Balance Sheet | ||||||
| Total Assets | 1.43B | 1.49B | 1.49B | 1.51B | 1.61B | 1.62B |
| Cash, Cash Equivalents and Short-Term Investments | 82.66M | 78.14M | 74.74M | 125.95M | 60.66M | 68.64M |
| Total Debt | 302.81M | 410.81M | 430.14M | 400.63M | 522.30M | 449.96M |
| Total Liabilities | 341.46M | 443.89M | 460.56M | 434.99M | 562.00M | 513.05M |
| Stockholders Equity | 1.09B | 1.04B | 1.03B | 1.07B | 1.05B | 1.11B |
Cash Flow | ||||||
| Free Cash Flow | 182.14M | 201.62M | 123.18M | 117.76M | -114.04M | 502.32M |
| Operating Cash Flow | 288.72M | 298.65M | 251.41M | 127.91M | 60.56M | 529.87M |
| Investing Cash Flow | -13.14M | -97.03M | -124.98M | 110.52M | -86.51M | -26.72M |
| Financing Cash Flow | -265.74M | -197.91M | -177.76M | -173.34M | 17.97M | -501.87M |
DHT Holdings Technical Analysis
Positive
11.63
Price Trends
11.03
Positive
10.80
Positive
10.34
Positive
Market Momentum
0.08
Negative
61.84
Neutral
71.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHT, the sentiment is Positive. The current price of 11.63 is above the 20-day moving average (MA) of 11.11, above the 50-day MA of 11.03, and above the 200-day MA of 10.34, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 61.84 is Neutral, neither overbought nor oversold. The STOCH value of 71.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DHT.
DHT Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.33B | 3.31 | 24.68% | 3.27% | -7.25% | 31.85% | |
79 Outperform | $2.05B | 8.63 | 12.61% | 9.47% | -22.01% | -54.34% | |
79 Outperform | $1.51B | 5.41 | 15.78% | 4.16% | -21.71% | -37.58% | |
77 Outperform | $4.12B | 11.83 | 14.79% | 6.51% | 0.88% | -45.41% | |
75 Outperform | $1.72B | 9.06 | 17.90% | 6.71% | -8.89% | 21.28% | |
66 Neutral | $34.60B | 23.02 | 60.30% | 2.15% | 5.88% | 46.35% | |
65 Neutral | $15.05B | 6.94 | 3.01% | 5.34% | 4.29% | -62.50% |
* Energy Sector Average
Performance Comparison
DHT
DHT Holdings
11.63
1.69
17.00%
FRO
Frontline
20.57
-1.73
-7.76%
STNG
Scorpio Tankers
48.97
-19.01
-27.96%
TRGP
Targa Resources
163.26
21.96
15.54%
TNK
Teekay Tankers
48.11
-5.15
-9.67%
INSW
International Seaways
44.73
-1.17
-2.55%
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.