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DHT Holdings (DHT)
NYSE:DHT
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DHT Holdings
(NYSE:DHT)
Rating:74Outperform
Price Target:
$12.50
â–²(14.16%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
$1.79B
Dividend Yield7.28%
Average Volume (3M)1.58M
Price to Earnings (P/E)10.0
Beta (1Y)0.27
Revenue Growth-5.32%
EPS Growth5.51%
CountryUS
Employees924
SectorEnergy
Sector Strength48
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.27
Shares Outstanding160,557,980
10 Day Avg. Volume1,078,049
30 Day Avg. Volume1,577,434
Financial Highlights & Ratios
PEG Ratio-5.56
Price to Book (P/B)1.68
Price to Sales (P/S)0.00
P/FCF Ratio10.49
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit10.12
Enterprise Value/Ebitda1.64
Forecast
1Y Price Target
$13.33Price Target Upside21.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
DHT Holdings Business Overview & Revenue Model
Company DescriptionDHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. As of March 17, 2022, it had a fleet of 26 very large crude carriers with a capacity of 8,043,657 deadweight tons. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.
How the Company Makes MoneyDHT Holdings makes money primarily through the chartering of its VLCC fleet to oil companies and traders for the transportation of crude oil. The company employs a mix of spot market charters, where vessels are hired for single voyages at prevailing market rates, and time charters, where vessels are leased for extended periods at fixed rates. This balanced chartering strategy allows DHT Holdings to capitalize on favorable market conditions while ensuring a steady revenue stream. Additionally, the company may enter into partnerships or joint ventures with other shipping companies to optimize fleet utilization and expand its market reach. Factors such as global oil demand, shipping rates, and operational efficiency significantly impact DHT's earnings.
DHT Holdings Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -1.26%|
Next Earnings Date:Aug 06, 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 shows a strong financial position with robust profitability and cash flow generation. Despite a slight revenue decline, the company maintains solid profit margins and effective leverage management.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 571.77M | 560.56M | 454.14M | 295.85M | 691.04M |
| Gross Profit | 313.56M | 210.56M | 71.58M | -3.00M | 344.04M |
| EBITDA | 324.35M | 304.01M | 210.69M | 124.23M | 428.64M |
| Net Income | 181.38M | 161.35M | 61.52M | -11.51M | 266.27M |
Balance Sheet | |||||
| Total Assets | 1.49B | 1.49B | 1.51B | 1.61B | 1.62B |
| Cash, Cash Equivalents and Short-Term Investments | 78.14M | 74.74M | 125.95M | 60.66M | 68.64M |
| Total Debt | 410.81M | 430.14M | 400.63M | 522.30M | 449.96M |
| Total Liabilities | 443.89M | 460.56M | 434.99M | 562.00M | 513.05M |
| Stockholders Equity | 1.04B | 1.03B | 1.07B | 1.05B | 1.11B |
Cash Flow | |||||
| Free Cash Flow | 201.62M | 123.18M | 117.76M | -114.04M | 502.32M |
| Operating Cash Flow | 298.65M | 251.41M | 127.91M | 60.56M | 529.87M |
| Investing Cash Flow | -97.03M | -124.98M | 110.52M | -86.51M | -26.72M |
| Financing Cash Flow | -197.91M | -177.76M | -173.34M | 17.97M | -501.87M |
DHT Holdings Technical Analysis
Negative
10.95
Price Trends
11.33
Negative
10.86
Positive
10.48
Positive
Market Momentum
-0.09
Negative
46.21
Neutral
72.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHT, the sentiment is Negative. The current price of 10.95 is below the 20-day moving average (MA) of 11.00, below the 50-day MA of 11.33, and above the 200-day MA of 10.48, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 72.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DHT.
DHT Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.01B | 6.26 | 17.57% | 9.93% | -18.74% | -39.64% | |
79 Outperform | $2.28B | 3.25 | 24.68% | 3.58% | -7.25% | 31.85% | |
78 Outperform | $1.55B | 4.81 | 18.57% | 4.46% | -21.27% | -34.25% | |
74 Outperform | $1.79B | 10.03 | 17.04% | 7.28% | -5.32% | 5.51% | |
73 Outperform | $4.20B | 12.08 | 14.79% | 7.24% | 0.88% | -45.41% | |
72 Outperform | $35.93B | 30.30 | 46.37% | 1.96% | 6.05% | 11.64% | |
52 Neutral | C$2.96B | -1.54 | -3.48% | 6.52% | 3.05% | -49.39% |
* Energy Sector Average
Performance Comparison
DHT
DHT Holdings
10.95
0.24
2.24%
FRO
Frontline
18.52
-3.39
-15.47%
STNG
Scorpio Tankers
44.09
-26.23
-37.30%
TRGP
Targa Resources
165.60
36.56
28.33%
TNK
Teekay Tankers
44.17
-15.76
-26.30%
INSW
International Seaways
40.27
-9.20
-18.60%
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.