DHT Holdings, Inc. (NYSE: DHT)

Sector: Energy Industry: Oil & Gas Midstream CIK: 0001331284
Market Cap 2.16 Bn
P/B 1.98
P/E 10.82
P/S 4.46
ROIC (Qtr) 15.75
Div Yield % 4.02
Rev 1y % (Qtr) -24.46
Total Debt (Qtr) 268.53 Mn
Debt/Equity (Qtr) 0.25

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...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 269.47M provides robust 1x coverage of total debt 268.53M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 81.25M provide 2.58x coverage of short-term debt 31.55M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 269.47M provides exceptional 14.76x coverage of interest expenses 18.26M, showing strong debt service capability.
  • Operating cash flow of 269.47M provides strong 52.72x coverage of stock compensation 5.11M, indicating sustainable incentive practices.
  • Strong tangible asset base of 1.40B provides 5.20x coverage of total debt 268.53M, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 269.47M provides thin coverage of dividend payments of (125.49M) with a -2.15 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 295.72M provides weak coverage of capital expenditures of (26.25M), with a -11.26 ratio suggesting additional external financing needs for growth initiatives.
  • Free cash flow of 295.72M represents just -2.07x of debt issuance (143.10M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating earnings of 218.62M show weak coverage of depreciation charges of 107M, with a 2.04 ratio indicating high capital intensity and potential reinvestment needs.
  • Retained earnings of (133.12M) provide limited buffer against comprehensive income items of 477000, which is -279.07x, indicating elevated exposure to market 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 100.05 Bn 24.60 2.15 75.15 Bn
2 WMB Williams Companies, Inc. 73.60 Bn 31.09 6.40 27.99 Bn
3 EPD Enterprise Products Partners L.P. 69.94 Bn 12.09 1.32 33.58 Bn
4 KMI Kinder Morgan, Inc. 60.62 Bn 22.23 3.69 32.58 Bn
5 ET Energy Transfer LP 58.05 Bn 13.46 0.73 63.97 Bn
6 TRP Tc Energy Corp 55.97 Bn 22.78 5.27 44.47 Bn
7 MPLX Mplx Lp 54.03 Bn 11.23 4.22 25.92 Bn
8 OKE Oneok Inc /New/ 44.55 Bn 13.34 1.41 33.73 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.71 3.39
EV to Cash from Ops. EV/CFO 8.85 7.77
EV to Debt EV to Debt 8.88 -68.56
EV to EBIT EV/EBIT 10.91 12.77
EV to EBITDA EV/EBITDA 7.35 7.47
EV to Free Cash Flow [EV/FCF] EV/FCF 8.06 13.20
EV to Market Cap EV to Market Cap 1.10 2.49
EV to Revenue EV/Rev 4.91 4.48
Price to Book Value [P/B] P/B 1.98 94.01
Price to Earnings [P/E] P/E 10.82 12.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.59 -3.60
Dividend Payout Ratio % Div Payout % (Qtr) 43.50 72.05
Dividend per Basic Share Div per Share (Qtr) 0.54 1.46
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 29.36 32.66
Interest Coverage Int. cover (Qtr) 11.97 5.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 130.44 -17.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 10.05 16,113.89
Dividend Growth (1y) % Div 1y % (Qtr) -44.33 -1.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 11.96 -5.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 5.73 -4.54
EBIT Growth (1y) % EBIT 1y % (Qtr) 11.74 -11.94
EBT Growth (1y) % EBT 1y % (Qtr) 23.34 -230.00
EPS Growth (1y) % EPS 1y % (Qtr) 24.00 -44.55
FCF Growth (1y) % FCF 1y % (Qtr) 56.56 -0.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -19.03 -1.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.35 0.76
Cash Payout Ratio Cash Payout (Qtr) 0.52 0.21
Cash Ratio Cash Ratio (Qtr) 1.34 0.81
Current Ratio Curr Ratio (Qtr) 2.41 1.65
Debt to Equity Ratio Debt/Equity (Qtr) 0.25 1.11
Interest Cover Ratio Int Coverage (Qtr) 11.97 5.11
Times Interest Earned Times Interest Earned (Qtr) 11.97 5.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 67.10 35.86
EBIT Margin % EBIT Margin % (Qtr) 45.02 27.76
EBT Margin % EBT Margin % (Qtr) 41.26 17.28
Gross Margin % Gross Margin % (Qtr) 54.10 48.56
Net Profit Margin % Net Margin % (Qtr) 41.20 15.36