DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLR - US2538681030 - REIT
158.91 USD
+1.54 (+0.98%)
158.91 USD
0 (0%)
DLR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. Both the profitability and financial health of DLR have multiple concerns. 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.
In the past year DLR had a positive cash flow from operations.
In the past 5 years DLR has always been profitable.
DLR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DLR has a Return On Assets (2.79%) which is comparable to the rest of the industry.
DLR's Return On Equity of 5.90% is in line compared to the rest of the industry. DLR outperforms 56.67% of its industry peers.
DLR has a worse Return On Invested Capital (1.52%) than 73.33% of its industry peers.
DLR had an Average Return On Invested Capital over the past 3 years of 1.29%. This is below the industry average of 4.77%.
The last Return On Invested Capital (1.52%) for DLR is above the 3 year average (1.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 5.9% | ||
| ROIC | 1.52% |
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
With a Profit Margin value of 22.98%, DLR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of DLR has declined.
DLR has a worse Operating Margin (14.39%) than 80.00% of its industry peers.
DLR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 58.06%, DLR is doing worse than 66.67% of the companies in the same industry.
DLR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.39% | ||
| PM (TTM) | 22.98% | ||
| GM | 58.06% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DLR is destroying value.
The number of shares outstanding for DLR has been increased compared to 1 year ago.
DLR has more shares outstanding than it did 5 years ago.
DLR has a better debt/assets ratio than last year.
2.2 Solvency
DLR has an Altman-Z score of 1.29. This is a bad value and indicates that DLR is not financially healthy and even has some risk of bankruptcy.
DLR has a better Altman-Z score (1.29) than 66.67% of its industry peers.
DLR has a Debt/Equity ratio of 0.79. This is a neutral value indicating DLR is somewhat dependend on debt financing.
DLR's Debt to Equity ratio of 0.79 is fine compared to the rest of the industry. DLR outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.22
WACC7.03%
2.3 Liquidity
DLR has a Current Ratio of 1.25. This is a normal value and indicates that DLR is financially healthy and should not expect problems in meeting its short term obligations.
DLR has a better Current ratio (1.25) than 76.67% of its industry peers.
DLR has a Quick Ratio of 1.25. This is a normal value and indicates that DLR is financially healthy and should not expect problems in meeting its short term obligations.
DLR has a better Quick ratio (1.25) than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
DLR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 225.21%, which is quite impressive.
Measured over the past years, DLR shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.17% on average per year.
The Revenue has been growing slightly by 7.75% in the past year.
The Revenue has been growing by 11.60% on average over the past years. This is quite good.
EPS 1Y (TTM)225.21%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%66.67%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%10.2%
3.2 Future
DLR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.15% yearly.
The Revenue is expected to grow by 10.08% on average over the next years. This is quite good.
EPS Next Y131%
EPS Next 2Y8.15%
EPS Next 3Y13.34%
EPS Next 5Y38.15%
Revenue Next Year8.15%
Revenue Next 2Y9.53%
Revenue Next 3Y10.05%
Revenue Next 5Y10.08%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
DLR is valuated quite expensively with a Price/Earnings ratio of 41.06.
DLR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.15, DLR is valued quite expensively.
A Price/Forward Earnings ratio of 83.87 indicates a quite expensive valuation of DLR.
Based on the Price/Forward Earnings ratio, DLR is valued a bit more expensive than 70.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DLR to the average of the S&P500 Index (36.12), we can say DLR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.06 | ||
| Fwd PE | 83.87 |
4.2 Price Multiples
DLR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. DLR is more expensive than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.53 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DLR's earnings are expected to grow with 13.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y8.15%
EPS Next 3Y13.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.10%, DLR has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.10, DLR pays less dividend than the industry average, which is at 6.15. 80.00% of the companies listed in the same industry pay a better dividend than DLR!
DLR's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| 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 paid a dividend for at least 10 years, which is 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 127.21% of its income as dividend. This is not a sustainable payout ratio.
The dividend of DLR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP127.21%
EPS Next 2Y8.15%
EPS Next 3Y13.34%
158.91
+1.54 (+0.98%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.45%
Inst Owner Change2.55%
Ins Owners0.01%
Ins Owner Change0.24%
Market Cap54.20B
Revenue(TTM)5.91B
Net Income(TTM)1.36B
Analysts78.82
Price Target202.45 (27.4%)
Short Float %2.6%
Short Ratio5.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Yearly Dividend5.04
Dividend Growth(5Y)0.96%
DP127.21%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)301.72%
Min EPS beat(2)-55.09%
Max EPS beat(2)658.54%
EPS beat(4)2
Avg EPS beat(4)171.24%
Min EPS beat(4)-55.09%
Max EPS beat(4)658.54%
EPS beat(8)3
Avg EPS beat(8)93.11%
EPS beat(12)4
Avg EPS beat(12)49.48%
EPS beat(16)6
Avg EPS beat(16)105.14%
Revenue beat(2)2
Avg Revenue beat(2)2.21%
Min Revenue beat(2)2.2%
Max Revenue beat(2)2.22%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)2.22%
Revenue beat(8)2
Avg Revenue beat(8)-0.9%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)3
Avg Revenue beat(16)-1.05%
PT rev (1m)1.6%
PT rev (3m)1.71%
EPS NQ rev (1m)6.01%
EPS NQ rev (3m)2.17%
EPS NY rev (1m)4.15%
EPS NY rev (3m)19.31%
Revenue NQ rev (1m)1.4%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)1.18%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.06 | ||
| Fwd PE | 83.87 | ||
| P/S | 9.16 | ||
| P/FCF | N/A | ||
| P/OCF | 22.01 | ||
| P/B | 2.35 | ||
| P/tB | 4.8 | ||
| EV/EBITDA | 25.53 |
EPS(TTM)3.87
EY2.44%
EPS(NY)1.89
Fwd EY1.19%
FCF(TTM)-1.32
FCFYN/A
OCF(TTM)7.22
OCFY4.54%
SpS17.34
BVpS67.51
TBVpS33.12
PEG (NY)0.31
PEG (5Y)N/A
Graham Number76.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 5.9% | ||
| ROCE | 1.92% | ||
| ROIC | 1.52% | ||
| ROICexc | 1.64% | ||
| ROICexgc | 2.33% | ||
| OM | 14.39% | ||
| PM (TTM) | 22.98% | ||
| GM | 58.06% | ||
| 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%
ROICexgc growth 3Y-14.91%
ROICexgc 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-Score8
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.73 | ||
| Cap/Depr | 156.98% | ||
| Cap/Sales | 49.28% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 90.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 1.29 |
F-Score8
WACC7.03%
ROIC/WACC0.22
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)225.21%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%66.67%
EPS Next Y131%
EPS Next 2Y8.15%
EPS Next 3Y13.34%
EPS Next 5Y38.15%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%10.2%
Revenue Next Year8.15%
Revenue Next 2Y9.53%
Revenue Next 3Y10.05%
Revenue Next 5Y10.08%
EBIT growth 1Y45.74%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.05%
EBIT Next Year486.09%
EBIT Next 3Y94.05%
EBIT Next 5Y56.8%
FCF growth 1Y73.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y51.19%
OCF growth 3Y9.93%
OCF growth 5Y8.36%
DIGITAL REALTY TRUST INC / DLR FAQ
Can you provide the ChartMill fundamental rating for DIGITAL REALTY TRUST INC?
ChartMill assigns a fundamental rating of 4 / 10 to DLR.
Can you provide the valuation status for DIGITAL REALTY TRUST INC?
ChartMill assigns a valuation rating of 2 / 10 to DIGITAL REALTY TRUST INC (DLR). This can be considered as Overvalued.
How profitable is DIGITAL REALTY TRUST INC (DLR) stock?
DIGITAL REALTY TRUST INC (DLR) has a profitability rating of 3 / 10.
What is the valuation of DIGITAL REALTY TRUST INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DIGITAL REALTY TRUST INC (DLR) is 41.06 and the Price/Book (PB) ratio is 2.35.
Is the dividend of DIGITAL REALTY TRUST INC sustainable?
The dividend rating of DIGITAL REALTY TRUST INC (DLR) is 5 / 10 and the dividend payout ratio is 127.21%.