DHT Holdings, Inc. (NYSE: DHT)

Sector: Energy Industry: Oil & Gas Midstream CIK: 0001331284
Market Cap 2.40 Bn
P/B 2.11
P/E 11.35
P/S 4.81
ROIC (Qtr) 15.33
Div Yield % 2.15
Rev 1y % (Qtr) 9.72
Total Debt (Qtr) 428.74 Mn
Debt/Equity (Qtr) 0.38

About

DHT Holdings, Inc., known on the New York Stock Exchange as DHT, is a company that operates in the crude oil tanker industry. With a primary focus on the spot market and time charter agreements, DHT's main business activities involve transporting crude oil and petroleum products across the globe, with a particular emphasis on the use of Very Large Crude Carriers (VLCCs). DHT's operations span various segments, including the VLCC segment, the Time Charter segment, and the Ship Management segment. The VLCC segment is at the heart of the company's...

Read more

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 276.65M provides robust 0.65x coverage of total debt 428.74M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 79.03M provide 2x coverage of short-term debt 39.50M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 276.65M provides exceptional 19.53x coverage of interest expenses 14.17M, showing strong debt service capability.
  • Operating cash flow of 276.65M provides strong 63.16x coverage of stock compensation 4.38M, indicating sustainable incentive practices.
  • Strong tangible asset base of 1.60B provides 3.74x coverage of total debt 428.74M, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 276.65M barely covers its investment activities of (166.42M), with a coverage ratio of -1.66, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 276.65M provides thin coverage of dividend payments of (118.91M) with a -2.33 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • High receivables of 53.34M relative to inventory of 24.68M (2.16 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 225.67M show weak coverage of depreciation charges of 106.37M, with a 2.12 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 276.65M shows concerning coverage of minority interest expenses of (130000), which is -2128.08x, suggesting complex corporate structure risks.

Peer comparison

Companies in the Oil & Gas Midstream
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ENB Enbridge Inc 110.33 Bn 27.13 2.37 75.15 Bn
2 EPD Enterprise Products Partners L.P. 76.10 Bn 12.98 1.39 33.58 Bn
3 KMI Kinder Morgan, Inc. 68.80 Bn 28.77 4.49 32.58 Bn
4 TRP Tc Energy Corp 62.22 Bn 25.32 5.86 44.47 Bn
5 WMB Williams Companies, Inc. 50.26 Bn -71.19 6.88 27.99 Bn
6 TRGP Targa Resources Corp. 36.23 Bn -86.30 4.92 17.43 Bn
7 OKE Oneok Inc /New/ 35.88 Bn 31.48 3.74 33.73 Bn
8 CQP Cheniere Energy Partners, L.P. 30.34 Bn 27.99 4.44 14.76 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.61 3.64
EV to Cash from Ops. EV/CFO 9.35 35.75
EV to Debt EV to Debt 6.03 -70.28
EV to EBIT EV/EBIT 11.46 14.85
EV to EBITDA EV/EBITDA 7.81 22.44
EV to Free Cash Flow [EV/FCF] EV/FCF 23.47 114.09
EV to Market Cap EV to Market Cap 1.08 2.72
EV to Revenue EV/Rev 5.19 7.62
Price to Book Value [P/B] P/B 2.12 20.25
Price to Earnings [P/E] P/E 11.37 54.32
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.78 -3.70
Dividend Payout Ratio % Div Payout % (Qtr) 24.40 71.27
Dividend per Basic Share Div per Share (Qtr) 0.32 1.48
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 46.65 33.30
Interest Coverage Int. cover (Qtr) 15.93 5.27
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -71.51 -7.43
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1.14 16,427.94
Dividend Growth (1y) % Div 1y % (Qtr) -68.00 -0.84
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 6.41 -1.47
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 2.73 -3.58
EBIT Growth (1y) % EBIT 1y % (Qtr) 6.26 -8.36
EBT Growth (1y) % EBT 1y % (Qtr) 16.22 -232.78
EPS Growth (1y) % EPS 1y % (Qtr) 16.96 -43.63
FCF Growth (1y) % FCF 1y % (Qtr) -45.33 -0.90
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -5.18 -0.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.31 0.77
Cash Payout Ratio Cash Payout (Qtr) 0.27 0.21
Cash Ratio Cash Ratio (Qtr) 1.06 0.80
Current Ratio Curr Ratio (Qtr) 2.80 1.65
Debt to Equity Ratio Debt/Equity (Qtr) 0.38 1.12
Interest Cover Ratio Int Coverage (Qtr) 15.93 5.27
Times Interest Earned Times Interest Earned (Qtr) 15.93 5.27
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 66.60 35.59
EBIT Margin % EBIT Margin % (Qtr) 45.28 27.76
EBT Margin % EBT Margin % (Qtr) 42.44 17.49
Gross Margin % Gross Margin % (Qtr) 59.70 48.68
Net Profit Margin % Net Margin % (Qtr) 42.40 15.46