DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
NYSE:DLR - New York Stock Exchange, Inc. - US2538681030 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to DLR. DLR was compared to 29 industry peers in the Specialized REITs industry. While DLR seems to be doing ok healthwise, there are quite some concerns on its profitability. DLR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
DLR had positive earnings in the past year.
DLR had a positive operating cash flow in the past year.
DLR had positive earnings in each of the past 5 years.
Each year in the past 5 years DLR had a positive operating cash flow.
1.2 Ratios
DLR has a Return On Assets of 1.24%. This is in the lower half of the industry: DLR underperforms 71.43% of its industry peers.
The Return On Equity of DLR (2.63%) is worse than 64.29% of its industry peers.
DLR has a Return On Invested Capital of 1.09%. This is amonst the worse of the industry: DLR underperforms 89.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLR is below the industry average of 5.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 2.63% | ||
| ROIC | 1.09% |
ROA(3y)1.37%
ROA(5y)1.89%
ROE(3y)3.1%
ROE(5y)4.02%
ROIC(3y)1.29%
ROIC(5y)1.46%
1.3 Margins
Looking at the Profit Margin, with a value of 10.11%, DLR is doing worse than 60.71% of the companies in the same industry.
DLR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.18%, DLR is doing worse than 85.71% of the companies in the same industry.
DLR's Operating Margin has declined in the last couple of years.
DLR has a Gross Margin of 57.41%. This is in the lower half of the industry: DLR underperforms 67.86% of its industry peers.
DLR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.18% | ||
| PM (TTM) | 10.11% | ||
| GM | 57.41% |
OM growth 3Y-15.96%
OM growth 5Y-12.23%
PM growth 3Y-35.66%
PM growth 5Y-8.02%
GM growth 3Y-3.09%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DLR is destroying value.
The number of shares outstanding for DLR has been increased compared to 1 year ago.
The number of shares outstanding for DLR has been increased compared to 5 years ago.
The debt/assets ratio for DLR has been reduced compared to a year ago.
2.2 Solvency
DLR has an Altman-Z score of 1.31. This is a bad value and indicates that DLR is not financially healthy and even has some risk of bankruptcy.
DLR has a Altman-Z score of 1.31. This is in the better half of the industry: DLR outperforms 60.71% of its industry peers.
DLR has a Debt/Equity ratio of 0.78. This is a neutral value indicating DLR is somewhat dependend on debt financing.
DLR has a Debt to Equity ratio of 0.78. This is in the better half of the industry: DLR outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.31 |
ROIC/WACC0.15
WACC7.45%
2.3 Liquidity
DLR has a Current Ratio of 1.33. This is a normal value and indicates that DLR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.33, DLR belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that DLR should not have too much problems paying its short term obligations.
The Quick ratio of DLR (1.33) is better than 89.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 125.00% over the past year.
DLR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.17% yearly.
Looking at the last year, DLR shows a small growth in Revenue. The Revenue has grown by 1.42% in the last year.
The Revenue has been growing by 11.60% on average over the past years. This is quite good.
EPS 1Y (TTM)125%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%537.5%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%4.84%
3.2 Future
Based on estimates for the next years, DLR will show a very strong growth in Earnings Per Share. The EPS will grow by 33.30% on average per year.
DLR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.21% yearly.
EPS Next Y-15.54%
EPS Next 2Y2.33%
EPS Next 3Y10.21%
EPS Next 5Y33.3%
Revenue Next Year6.71%
Revenue Next 2Y8.5%
Revenue Next 3Y9.14%
Revenue Next 5Y9.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 96.49, DLR can be considered very expensive at the moment.
Based on the Price/Earnings ratio, DLR is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 29.98. DLR is valued rather expensively when compared to this.
DLR is valuated quite expensively with a Price/Forward Earnings ratio of 114.25.
Based on the Price/Forward Earnings ratio, DLR is valued a bit more expensive than 71.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.66. DLR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.49 | ||
| Fwd PE | 114.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DLR indicates a rather expensive valuation: DLR more expensive than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 27.68 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.33%
EPS Next 3Y10.21%
5. Dividend
5.1 Amount
DLR has a Yearly Dividend Yield of 3.10%.
The stock price of DLR dropped by -20.12% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
DLR's Dividend Yield is slightly below the industry average, which is at 4.49.
DLR's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
5.2 History
The dividend of DLR has a limited annual growth rate of 0.96%.
DLR has been paying a dividend for at least 10 years, so it has a reliable track record.
DLR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.96%
Div Incr Years0
Div Non Decr Years20
5.3 Sustainability
DLR pays out 290.73% of its income as dividend. This is not a sustainable payout ratio.
DLR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP290.73%
EPS Next 2Y2.33%
EPS Next 3Y10.21%
156.32
-0.95 (-0.6%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.54%
Inst Owner Change1.92%
Ins Owners0.02%
Ins Owner Change0.15%
Market Cap51.85B
Analysts77.33
Price Target193.11 (23.54%)
Short Float %1.79%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Yearly Dividend5.04
Dividend Growth(5Y)0.96%
DP290.73%
Div Incr Years0
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.15%
Min EPS beat(2)-68.6%
Max EPS beat(2)88.89%
EPS beat(4)2
Avg EPS beat(4)54.45%
Min EPS beat(4)-68.6%
Max EPS beat(4)217.9%
EPS beat(8)3
Avg EPS beat(8)13.15%
EPS beat(12)4
Avg EPS beat(12)6.48%
EPS beat(16)8
Avg EPS beat(16)100.83%
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)-1.09%
Revenue beat(4)0
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-1.95%
Revenue beat(12)1
Avg Revenue beat(12)-1.55%
Revenue beat(16)4
Avg Revenue beat(16)-0.8%
PT rev (1m)0.34%
PT rev (3m)7.35%
EPS NQ rev (1m)15.31%
EPS NQ rev (3m)14.8%
EPS NY rev (1m)12.74%
EPS NY rev (3m)12.84%
Revenue NQ rev (1m)-2.3%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)-2.37%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.49 | ||
| Fwd PE | 114.25 | ||
| P/S | 9.33 | ||
| P/FCF | N/A | ||
| P/OCF | 22.93 | ||
| P/B | 2.43 | ||
| P/tB | 5.07 | ||
| EV/EBITDA | 27.68 |
EPS(TTM)1.62
EY1.04%
EPS(NY)1.37
Fwd EY0.88%
FCF(TTM)-1.72
FCFYN/A
OCF(TTM)6.82
OCFY4.36%
SpS16.75
BVpS64.33
TBVpS30.84
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 2.63% | ||
| ROCE | 1.38% | ||
| ROIC | 1.09% | ||
| ROICexc | 1.21% | ||
| ROICexgc | 1.75% | ||
| OM | 10.18% | ||
| PM (TTM) | 10.11% | ||
| GM | 57.41% | ||
| FCFM | N/A |
ROA(3y)1.37%
ROA(5y)1.89%
ROE(3y)3.1%
ROE(5y)4.02%
ROIC(3y)1.29%
ROIC(5y)1.46%
ROICexc(3y)1.35%
ROICexc(5y)1.5%
ROICexgc(3y)1.99%
ROICexgc(5y)2.26%
ROCE(3y)1.63%
ROCE(5y)1.85%
ROICexcg growth 3Y-14.91%
ROICexcg growth 5Y-11.74%
ROICexc growth 3Y-13.59%
ROICexc growth 5Y-12.59%
OM growth 3Y-15.96%
OM growth 5Y-12.23%
PM growth 3Y-35.66%
PM growth 5Y-8.02%
GM growth 3Y-3.09%
GM growth 5Y-1.79%
F-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.15 | ||
| Cap/Depr | 159.82% | ||
| Cap/Sales | 50.98% | ||
| Interest Coverage | 1.29 | ||
| Cash Conversion | 96.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 1.31 |
F-Score6
WACC7.45%
ROIC/WACC0.15
Cap/Depr(3y)178.45%
Cap/Depr(5y)186.27%
Cap/Sales(3y)57.23%
Cap/Sales(5y)61.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)125%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%537.5%
EPS Next Y-15.54%
EPS Next 2Y2.33%
EPS Next 3Y10.21%
EPS Next 5Y33.3%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%4.84%
Revenue Next Year6.71%
Revenue Next 2Y8.5%
Revenue Next 3Y9.14%
Revenue Next 5Y9.21%
EBIT growth 1Y-19.66%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.05%
EBIT Next Year478.04%
EBIT Next 3Y98.86%
EBIT Next 5Y56.01%
FCF growth 1Y69.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y38.34%
OCF growth 3Y9.93%
OCF growth 5Y8.36%