📊 DHIL Key Takeaways
Investment Thesis
Diamond Hill demonstrates strong profitability with 33.1% net margins and excellent returns on equity (27.6%), but concerning negative free cash flow (-$9.1M) and declining revenues (-2.6% YoY) raise sustainability questions. The company's balance sheet is clean with no debt, yet operational cash flow deterioration despite net income suggests potential quality of earnings concerns.
DHIL Strengths
- Exceptional net profit margin of 33.1% indicates strong pricing power and operational efficiency
- Robust ROE of 27.6% and ROA of 18.7% demonstrate excellent capital efficiency
- Zero debt with $42.4M cash provides financial flexibility and downside protection
- EPS growth of 14.4% YoY despite flat net income suggests effective share management
DHIL Risks
- Negative free cash flow of -$9.1M in profitable period indicates operational cash generation issues or significant capital outlays
- Revenue decline of 2.6% YoY suggests business contraction in assets under management or fee pressure
- Operating cash flow deficit of -$6.6M despite $48.8M net income raises quality of earnings concerns
- Single Form 4 filing in 90 days suggests minimal insider confidence signals
Key Metrics to Watch
- Operating cash flow trend - critical to confirm earnings quality
- Revenue stabilization or return to growth - indicates AUM stability
- Free cash flow conversion - must turn positive to validate profitability
- Assets under management levels - core driver of fee-based revenue model
DHIL Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
DHIL Profitability Ratios
DHIL vs Default Sector
How DIAMOND HILL INVESTMENT GROUP INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DHIL Balance Sheet & Liquidity
DHIL 5-Year Financial Trend
5-Year Trend Summary: DIAMOND HILL INVESTMENT GROUP INC's revenue has declined by 17% over the 5-year period, indicating business contraction. The most recent EPS of $14.32 reflects profitable operations.
DHIL Growth Metrics (YoY)
DHIL Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $37.4M | $13.6M | $4.99 |
| Q2 2025 | $36.0M | $8.1M | $2.93 |
| Q1 2025 | $36.3M | $10.4M | $3.77 |
| Q3 2024 | $35.6M | $6.5M | $2.20 |
| Q2 2024 | $33.4M | $8.1M | $2.93 |
| Q1 2024 | $34.0M | $12.7M | $4.20 |
| Q3 2023 | $35.6M | $6.5M | $2.20 |
| Q2 2023 | $33.4M | $4.4M | $1.40 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DHIL Capital Allocation
DHIL SEC Filings
Access official SEC EDGAR filings for DIAMOND HILL INVESTMENT GROUP INC (CIK: 0000909108)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DHIL
What is the AI rating for DHIL?
DIAMOND HILL INVESTMENT GROUP INC (DHIL) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DHIL's key strengths?
Claude: Exceptional net profit margin of 33.1% indicates strong pricing power and operational efficiency. Robust ROE of 27.6% and ROA of 18.7% demonstrate excellent capital efficiency.
What are the risks of investing in DHIL?
Claude: Negative free cash flow of -$9.1M in profitable period indicates operational cash generation issues or significant capital outlays. Revenue decline of 2.6% YoY suggests business contraction in assets under management or fee pressure.
What is DHIL's revenue and growth?
DIAMOND HILL INVESTMENT GROUP INC reported revenue of $147.1M.
Does DHIL pay dividends?
DIAMOND HILL INVESTMENT GROUP INC pays dividends, with $27.2M distributed to shareholders in the trailing twelve months.
Where can I find DHIL SEC filings?
Official SEC filings for DIAMOND HILL INVESTMENT GROUP INC (CIK: 0000909108) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DHIL's EPS?
DIAMOND HILL INVESTMENT GROUP INC has a diluted EPS of $17.91.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.