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DHT Holdings (DHT)
NYSE:DHT
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DHT Holdings
(NYSE:DHT)
73Outperform
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.
Fleet Operations
DHT's fleet is fully scrubber fitted, which provides an advantage by adding $6-10k per day to VLCC rates.
Market Positioning
DHT primarily trades in the spot market, positioning to take advantage of increasing rates and rate spikes.
Negative Factors
DHT Holdings (DHT) vs. S&P 500 (SPY)
Market Cap
$1.65B
Dividend Yield8.84%
Average Volume (3M)1.94M
Price to Earnings (P/E)9.6
Beta (1Y)-0.03
Revenue Growth-0.16%
EPS Growth-13.20%
CountryUS
Employees1,212
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)1.12
Shares Outstanding161,464,500
10 Day Avg. Volume1,739,431
30 Day Avg. Volume1,940,747
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)N/A
Price to Sales (P/S)3.09
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.23Price Target Upside19.55% 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 Financial Statement Overview
Summary
DHT Holdings has shown strong profitability and cash flow generation, with improved net profit margins and robust operational efficiency. The balance sheet reflects moderate leverage and a strong capital structure, although revenue growth has stabilized.Income Statement
DHT Holdings has demonstrated strong improvements in profitability metrics. The gross profit margin for 2024 stood at 54.82%, up from 37.56% in 2023, indicating efficient cost management. The net profit margin improved to 31.72% in 2024 from 28.79% in 2023, reflecting enhanced bottom-line profitability. Revenue growth was modest at 2.00%, showing stability compared to a significant 23.43% growth the previous year. The EBIT margin increased to 36.84% from 34.44%, while the EBITDA margin slightly decreased to 51.52% from 54.23%. Overall, DHT Holdings shows strong profitability with slight growth in revenue.78
Positive
Balance Sheet
DHT Holdings maintains a stable financial position with a debt-to-equity ratio of 0.39, indicating moderate leverage. The return on equity improved to 17.47% in 2024, up from 15.71% in 2023, demonstrating efficient utilization of equity. The equity ratio stands at 69.86%, slightly up from 68.83%, reflecting a strong capital structure. While the company has managed its debt well, the overall asset base has slightly decreased, requiring attention to future asset management strategies.70
Positive
Cash Flow
Cash flow analysis reveals strong operational cash generation with a 18.78% increase in operating cash flow from 2023 to 2024. Free cash flow also grew significantly by 63.70%, indicating strong cash conversion capabilities. The operating cash flow to net income ratio was 1.65, showcasing robust operational efficiency. The free cash flow to net income ratio improved to 1.11, signaling effective management of capital expenditures and debt obligations. Overall, the cash flow metrics underscore strong liquidity and operational efficiency.82
Very 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 | EBIT |
| 210.64M | 193.11M | 54.27M | -13.02M | 313.59M | EBITDA |
| 294.61M | 304.01M | 210.69M | 124.23M | 450.40M | Net Income Common Stockholders |
| 181.38M | 161.35M | 61.52M | -11.51M | 266.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 78.14M | 74.74M | 125.95M | 60.66M | 68.64M | Total Assets |
| 1.49B | 1.49B | 1.51B | 1.61B | 1.62B | Total Debt |
| 409.42M | 430.14M | 396.69M | 522.30M | 449.96M | Net Debt |
| 331.28M | 355.40M | 270.75M | 461.64M | 381.32M | 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
10.23
Price Trends
10.54
Negative
10.18
Positive
10.45
Negative
Market Momentum
-0.08
Positive
41.92
Neutral
58.57
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 10.23 is below the 20-day moving average (MA) of 10.72, below the 50-day MA of 10.54, and below the 200-day MA of 10.45, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 41.92 is Neutral, neither overbought nor oversold. The STOCH value of 58.57 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.32B | 3.29 | 23.93% | 2.61% | -16.00% | -23.43% | |
74 Outperform | $3.37B | 7.43 | 21.46% | 11.76% | ― | ― | |
73 Outperform | $1.92B | 3.02 | 24.68% | 4.03% | -8.16% | 15.26% | |
73 Outperform | $1.65B | 9.56 | 17.56% | 8.84% | -0.16% | -13.20% | |
70 Outperform | $514.55M | 11.31 | 8.91% | 15.87% | -9.60% | -46.39% | |
63 Neutral | $1.65B | 4.19 | 23.33% | 16.43% | -11.21% | -25.50% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% |
* Energy Sector Average
Performance Comparison
DHT
DHT Holdings
10.23
0.30
3.02%
FRO
Frontline
15.14
-5.56
-26.86%
NAT
Nordic American Tanker
2.43
-1.11
-31.36%
STNG
Scorpio Tankers
38.45
-28.65
-42.70%
TNK
Teekay Tankers
36.65
-13.94
-27.55%
INSW
International Seaways
33.54
-12.51
-27.17%
DHT Holdings Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -11.96% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call depicted a generally positive performance for DHT Holdings, with strong financial metrics and strategic achievements such as successful share repurchases and vessel sales. The positive market outlook and constructive fleet supply story further underscore the company's favorable position. However, challenges related to market volatility, older fleet management, and geopolitical factors were also highlighted.Highlights
Strong Financial Performance
DHT Holdings reported a net income of $54.7 million for Q4 2024, equal to $0.34 per share. After adjustments, net income was $26.8 million, equal to $0.17 per share. The company also had a total liquidity of $258 million at the end of the quarter.
Successful Share Repurchase
DHT repurchased 1.5 million shares at an average price of $8.89, which was accretive to earnings per share and net asset value.
Sale of Older Vessel
DHT sold the DHT Scandinavia, a ship built in 2006, for $43.4 million, generating a book gain of approximately $19.8 million.
Positive Market Outlook
The market for modern VLCCs with exhaust gas cleaning systems is estimated to be in the $55,000 to $60,000 a day range, with strong customer interest in time charter contracts.
Constructive Supply Story
DHT highlighted favorable fleet demographics and a shrinking VLCC fleet, with 444 VLCCs estimated to be older than fifteen years by the end of 2026.
Lowlights
Challenges with Older Fleet
DHT continues to face challenges in divesting older ships, with some vessels in the fleet being built in 2007 and facing limited commercial opportunities.
Market Volatility
The VLCC spot market experienced significant volatility, partly driven by geopolitical factors and sentiment changes rather than consistent demand increases.
Sanction Impacts
Sanctions and fiscal issues, particularly in China, are affecting procurement behaviors and could disrupt trade, although they also present some opportunities for DHT.
Company Guidance
During the Q4 2024 earnings call for DHT Holdings, the company reported a robust financial performance, highlighting a total liquidity of $258 million, including $78 million in cash and $180 million available under revolving credit facilities. The company's financial leverage was 18%, and net debt was $13.8 million per vessel. Revenue on a TCE basis was $85.5 million, with an EBITDA of $60.6 million and a net income of $54.7 million, or $0.34 per share. After adjustments for prior impairment reversals, adjusted net income was $26.8 million, or $0.17 per share. Vessel operating expenses were $20 million, and G&A expenses totaled $5.6 million, including a non-recurring item of $0.7 million. The average TCE for spot market vessels was $38,200 per day, with younger vessels and those on time charter achieving $40,500 per day. For the full year 2024, adjusted net income was $153.6 million, or $0.95 per share. Looking ahead, DHT Holdings plans to allocate proceeds from asset sales to general corporate purposes, including investments and debt prepayment, and anticipates a one-year time charter for DHT China at $40,000 per day. The company declared a Q4 dividend of $0.17 per share and estimated G&A and depreciation expenses for 2025. The market outlook remains positive, with increasing demand and supportive fleet demographics expected to benefit the VLCC segment.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.