Diamond Hill Investment Group, Inc. (DHIL) | Investment Case

1. Company Snapshot

1.a. 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 related services to its clients through pooled investment vehicles, including the Diamond Hill Funds, separately managed accounts, and model delivery programs.The company also provides fund administration services, including portfolio and regulatory compliance, treasury and financial oversight, and general business management and governance of the mutual fund complex, as well as oversight of back-office service providers, such as the custodian, fund accountant, and transfer agent.

The company was founded in 1990 and is based in Columbus, Ohio.

Show Full description

1.b. Last Insights on DHIL

Diamond Hill Investment Group, Inc.'s recent performance was driven by its announced acquisition by First Eagle Investments for $175.00 per share, a substantial premium to its recent trading range. The deal includes a 35-day "go-shop" clause, allowing Diamond Hill to solicit competing bids. Multiple law firms, including Halper Sadeh LLC, The M&A Class Action Firm, and Kahn Swick & Foti, LLC, are investigating the proposed sale to determine if the price and process are fair to shareholders. The acquisition will take Diamond Hill private, ending its public listing.

1.c. Company Highlights

Last Price	172.03
Change Percentage	-0.39%
Open	172
Previous Close	172.71
Market Cap ( Millions)	465
Volume	19495.36
Year High	173
Year Low	114.11
M A 50	170.53
M A 200	147.78

FCF Yield	9553.20%
Dividend Yield	5.81%
ROE	0.11%
Debt / Equity	3.63%
Net Debt / EBIDTA	-52615.75%
Price To Book	0.0
Price Earnings Ratio	9.61
Price To FCF	0.01
Price To sales	2.95
EV / EBITDA	-519.36

2. Transcript Summary

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3. NewsRoom

DIAMOND HILL INVESTMENT GROUP, INC. REPORTS 2025 FINANCIAL RESULTS

Feb -26

Source: prnewswire.com

Flushing Financial Investor Alert: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Flushing Financial Corp. - FFIC

Jan -24

Source: prnewswire.com

BRODSKY & SMITH SHAREHOLDER UPDATE: Notifying Investors of the Following Investigations: Clearwater Analytics Holdings, Inc. (NYSE - CWAN), Katapult Holdings, Inc. (Nasdaq - KPLT), Janus Henderson Group plc (NYSE - JHG), Amicus Therapeutics, Inc. (Nasdaq - FOLD)

Dec -23

Source: globenewswire.com

Diamond Hill Investment Group, Inc. (DHIL) M&A Call Transcript

Dec -23

Source: seekingalpha.com

Comparing Merriman (OTCMKTS:MERR) & Diamond Hill Investment Group (NASDAQ:DHIL)

Dec -23

Source: defenseworld.net

Diamond Hill Investor Alert By The Former Attorney General Of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Diamond Hill Investment Group, Inc. - DHIL

Dec -15

Source: businesswire.com

Why Diamond Hill Stock Soared Today

Dec -11

Source: fool.com

$HAREHOLDER ALERT: The M&A Class Action Firm Announces An Investigation of Diamond Hill Investment Group, Inc. (NASDAQ: DHIL)

Dec -11

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.27%)

6. Segments

Investment Advisory

Expected Growth: 8.5%

Growing demand for personalized investment management services, increasing adoption of tailored portfolios, and strategic guidance drive growth in the investment advisory market.

Mutual Fund Administration, Net

Expected Growth: 4.5%

Growing demand for outsourced administrative services, increasing complexity of regulatory compliance, and rising adoption of mutual funds among individual investors drive growth in the Mutual Fund Administration market.

7. Detailed Products

Equity Strategies

Diamond Hill Investment Group offers a range of equity strategies that focus on long-term capital appreciation, income generation, and risk management.

Fixed Income Strategies

The company's fixed income strategies aim to provide income generation, capital preservation, and risk management through a diversified portfolio of bonds and other debt securities.

Alternative Strategies

Diamond Hill's alternative strategies include hedge funds, private equity, and real assets, designed to provide diversification and risk management benefits.

Mutual Funds

The company offers a range of mutual funds that cater to different investment objectives, risk tolerance, and time horizons.

Separately Managed Accounts

Diamond Hill's separately managed accounts offer customized investment portfolios tailored to individual investors' or institutions' specific needs and objectives.

Institutional Investment Management

The company provides institutional investment management services to pension funds, endowments, and other institutional clients.

8. Diamond Hill Investment Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Diamond Hill Investment Group, Inc. is medium due to the presence of alternative investment options for clients.

Bargaining Power Of Customers

The bargaining power of customers for Diamond Hill Investment Group, Inc. is low due to the company's strong brand reputation and diversified client base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Diamond Hill Investment Group, Inc. is medium due to the company's dependence on a few key suppliers for its operations.

Threat Of New Entrants

The threat of new entrants for Diamond Hill Investment Group, Inc. is high due to the relatively low barriers to entry in the investment management industry.

Intensity Of Rivalry

The intensity of rivalry for Diamond Hill Investment Group, Inc. is high due to the highly competitive nature of the investment management industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.10%
Debt Cost	3.95%
Equity Weight	99.90%
Equity Cost	8.52%
WACC	8.51%
Leverage	0.10%

11. Quality Control: Diamond Hill Investment Group, Inc. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stellus Capital

A-Score: 6.6/10

Value: 5.8

Growth: 5.6

Quality: 5.3

Yield: 10.0

Momentum: 3.5

Volatility: 9.7

1-Year Total Return ->

Diamond Hill Investment

A-Score: 5.9/10

Value: 7.8

Growth: 3.2

Quality: 7.9

Yield: 10.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

BlackRock TCP Capital

A-Score: 5.7/10

Value: 8.6

Growth: 3.2

Quality: 3.4

Yield: 10.0

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

Virtus Investment Partners

A-Score: 5.6/10

Value: 6.2

Growth: 5.1

Quality: 5.3

Yield: 8.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

WisdomTree

A-Score: 5.5/10

Value: 3.8

Growth: 6.3

Quality: 7.0

Yield: 3.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

PhenixFIN

A-Score: 5.1/10

Value: 5.7

Growth: 5.0

Quality: 5.6

Yield: 3.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-14.22%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.51%

Diamond Hill Investment Group, Inc. - US25264R2076

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on DHIL

1.c. Company Highlights

Expensive

Higher Yield

Weak Momentum

Better Quality

Average Quality

Stable Momentum

Medium Volatility

Higher Growth

Cheaper

Less Volatile

Lower Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.27%)

6. Segments

Investment Advisory

Expected Growth: 8.5%

Mutual Fund Administration, Net

Expected Growth: 4.5%

7. Detailed Products

Equity Strategies

Fixed Income Strategies

Alternative Strategies

Mutual Funds

Separately Managed Accounts

Institutional Investment Management

8. Diamond Hill Investment Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Diamond Hill Investment Group, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

172.03$

Current Price

172.03$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA