DHT Holdings (DHT) AI Stock Analysis

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DHT Holdings

(NYSE:DHT)

Rating:79Outperform

Price Target:

$13.50

▲(19.57%Upside)

DHT Holdings is well-positioned with strong financial metrics, positive technical analysis, and an attractive valuation. The earnings call provided additional confidence with positive guidance and strategic moves suggesting future growth. Despite some revenue volatility and potential operational expenses, the overall outlook remains favorable, supporting a high stock score.

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

$1.83B

Dividend Yield7.17%

Average Volume (3M)1.46M

Price to Earnings (P/E)10.3

Beta (1Y)0.37

Revenue Growth-5.32%

EPS Growth5.51%

CountryUS

Employees924

SectorEnergy

Sector Strength42

IndustryOil & Gas Midstream

Share Statistics

EPS (TTM)0.27

Shares Outstanding160,557,980

10 Day Avg. Volume1,462,960

30 Day Avg. Volume1,458,833

Financial Highlights & Ratios

PEG Ratio-0.04

Price to Book (P/B)1.37

Price to Sales (P/S)0.00

P/FCF Ratio12.42

Enterprise Value/Market Cap0.95

Enterprise Value/Revenue0.77

Enterprise Value/Gross Profit8.55

Enterprise Value/Ebitda1.39

Forecast

1Y Price Target

$13.00

Price Target Upside15.15% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

DHT Holdings Business Overview & Revenue Model

Company DescriptionDHT Holdings, Inc. is a leading independent crude oil tanker company primarily engaged in the transportation of crude oil across the globe. The company operates through a fleet of Very Large Crude Carriers (VLCCs), which are one of the largest types of oil tankers used for transporting large quantities of crude oil. DHT Holdings is headquartered in Hamilton, Bermuda, and focuses on providing reliable and efficient maritime logistics services to its clients, including major oil companies and oil trading companies.

How the Company Makes MoneyDHT Holdings makes money primarily through the chartering of its VLCC fleet to customers on the spot market and through fixed-rate contracts. The company earns revenue by leasing its vessels to oil companies and traders who need to transport crude oil from production sites to refineries and other destinations. The spot market involves short-term charters where rates can vary based on global oil demand and supply dynamics, while fixed-rate contracts offer more predictable income over longer periods. DHT Holdings' earnings are influenced by factors such as global oil production levels, the demand for oil transportation, and fluctuations in charter rates. Strategic partnerships with major oil corporations and efficient fleet management also contribute to the company's revenue generation.

DHT Holdings Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: 1.80%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Positive

The earnings call presented a positive outlook for DHT Holdings, highlighting strong financial performance, a robust balance sheet, and successful strategic actions like vessel sales and long-term charters. While there were some moderate operational expenses and potential market challenges, the positive aspects significantly outweighed the negatives.

Q1-2025 Updates

Positive Updates

Strong Financial Performance

DHT reported TCE revenues of $79.3 million and adjusted EBITDA of $56.4 million in Q1 2025. Net income was $44.1 million, or $0.27 per share.

Robust Balance Sheet

DHT has significant liquidity of $277 million and low financial leverage of 16.9%. Net debt stood at $12.3 million per vessel.

Successful Vessel Sale

The sale of DHT Scandinavia resulted in a capital gain of $19.8 million, contributing to a net profit of $24.3 million after adjustments.

Positive Market Outlook

DHT expects an improved spot market with 72% of days booked at $48,700 per day, a meaningful increase from the previous quarter.

Long-term Time Charter Success

DHT Appaloosa entered a 7-year time charter with a major energy company, highlighting long-term earnings visibility and profit-sharing potential.

Negative Updates

Moderate Vessel Operating Expenses

Vessel operating expenses were reported at $17.8 million, which may indicate higher than expected operational costs.

Potential Market Challenges

Ongoing market dynamics and geopolitical factors, such as potential sanctions and OPEC decisions, could pose challenges to market stability.

Company Guidance

During the Q1 2025 earnings call for DHT Holdings, CFO Laila Halvorsen and CEO Svein Moxnes Harfjeld provided a comprehensive financial overview, highlighting a robust performance with revenues on a TCE basis of $79.3 million and an adjusted EBITDA of $56.4 million. The company's net income was reported at $44.1 million, or $0.27 per share, with a net profit of $24.3 million, or $0.15 per share, after adjustments. They reported vessel operating expenses at $17.8 million and G&A expenses at $5.5 million for the quarter. The average TCE rates were $36,300 per day for spot market vessels, $42,700 per day for time charters, and $38,200 per day overall. DHT's balance sheet was noted for its strength, with total liquidity at $277 million, including $80.5 million in cash. Financial leverage stood at 16.9%, and net debt was $12.3 million per vessel. The company allocated $27 million for cash dividends, reflecting their policy of distributing 100% of ordinary net income, marking the 61st consecutive quarterly cash dividend. Additionally, DHT announced vessel sales and time charter contracts, including a noteworthy seven-year charter for the DHT Appaloosa. Looking ahead, they expect improved earnings for Q2 2025 with anticipated time charter and spot market rates. The call concluded with a positive outlook on market dynamics, supported by favorable supply conditions and OPEC's production strategies.

DHT Holdings Financial Statement Overview

Summary

DHT Holdings is in a strong financial position, with robust profitability and cash flow generation. Despite some revenue volatility, the company maintains solid profit margins and efficient leverage, indicating sound financial management.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
542.14M	571.77M	560.56M	454.14M	295.85M	691.04M
	Gross Profit
202.69M	313.56M	210.56M	71.58M	-3.00M	344.04M
	EBIT
204.12M	210.64M	193.11M	74.20M	-13.02M	313.59M
	EBITDA
316.10M	324.35M	304.01M	210.69M	124.23M	428.64M
	Net Income Common Stockholders
178.61M	181.38M	161.35M	61.52M	-11.51M	266.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
58.62M	78.14M	74.74M	125.95M	60.66M	68.64M
	Total Assets
1.58B	1.49B	1.49B	1.51B	1.61B	1.62B
	Total Debt
520.99M	410.81M	430.14M	400.63M	522.30M	449.96M
	Net Debt
462.37M	332.67M	355.40M	274.69M	461.64M	381.32M
	Total Liabilities
549.60M	443.89M	460.56M	434.99M	562.00M	513.05M
	Stockholders Equity
1.03B	1.04B	1.03B	1.07B	1.05B	1.11B
Cash Flow		Free Cash Flow
169.03M	201.62M	123.18M	117.76M	-114.04M	502.32M
	Operating Cash Flow
288.00M	298.65M	251.41M	127.91M	60.56M	529.87M
	Investing Cash Flow
-76.48M	-97.03M	-124.98M	110.52M	-86.51M	-26.72M
	Financing Cash Flow
-204.04M	-197.91M	-177.76M	-173.34M	17.97M	-501.87M

DHT Holdings Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price11.29

Price Trends

50DMA

10.78

Positive

100DMA

10.71

Positive

200DMA

10.34

Positive

Market Momentum

MACD

0.14

Positive

RSI

50.50

Neutral

STOCH

31.15

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHT, the sentiment is Neutral. The current price of 11.29 is below the 20-day moving average (MA) of 11.47, above the 50-day MA of 10.78, and above the 200-day MA of 10.34, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 50.50 is Neutral, neither overbought nor oversold. The STOCH value of 31.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DHT.

DHT Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STNG	80 Outperform	$2.02B	2.88	24.68%	4.03%	-7.25%	31.85%
TRGP	80 Outperform	$36.25B	30.70	46.37%	1.94%	6.05%	11.64%
DHT	79 Outperform	$1.83B	10.27	17.04%	7.17%	-5.32%	5.51%
INSW	78 Outperform	$1.84B	5.77	17.57%	13.79%	-18.74%	-39.64%
FRO	77 Outperform	$3.92B	11.28	14.79%	10.18%	0.88%	-45.41%
TNK	75 Outperform	$1.53B	4.77	18.57%	2.25%	-21.27%	-34.25%
Sector *	57 Neutral	$7.22B	3.15	-4.49%	5.63%	0.82%	-49.15%

* Energy Sector Average

Performance Comparison

DHT

DHT Holdings

11.27

0.53

4.93%

FRO

Frontline

17.55

-6.19

-26.07%

STNG

Scorpio Tankers

39.70

-35.41

-47.14%

TRGP

Targa Resources

165.13

46.36

39.03%

TNK

Teekay Tankers

43.67

-22.09

-33.59%

INSW

International Seaways

37.04

-16.97

-31.42%

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.