DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLR - US2538681030 - REIT
164.75 USD
+1.54 (+0.94%)
Overall DLR gets a fundamental rating of 4 out of 10. We evaluated DLR 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
- In the past year DLR was profitable.
- In the past year DLR had a positive cash flow from operations.
- Each year in the past 5 years DLR has been profitable.
- In the past 5 years DLR always reported a positive cash flow from operatings.
1.2 Ratios
- DLR has a Return On Assets of 2.79%. This is comparable to the rest of the industry: DLR outperforms 56.67% of its industry peers.
- Looking at the Return On Equity, with a value of 5.90%, DLR is in line with its industry, outperforming 56.67% of the companies in the same industry.
- The Return On Invested Capital of DLR (1.52%) is worse than 70.00% 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 4.86%.
- The 3 year average ROIC (1.29%) for DLR is below the current ROIC(1.52%), indicating increased profibility in the last year.
| 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
- DLR has a Profit Margin (22.98%) which is comparable to the rest of the industry.
- DLR's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 14.39%, DLR is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
- DLR's Operating Margin has declined in the last couple of years.
- The Gross Margin of DLR (58.06%) is worse than 63.33% of its industry peers.
- 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
- 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.
- Compared to 5 years ago, DLR has more shares outstanding
- DLR has a better debt/assets ratio than last year.
2.2 Solvency
- DLR has an Altman-Z score of 1.33. This is a bad value and indicates that DLR is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of DLR (1.33) is better than 70.00% 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 | 1.33 |
ROIC/WACC0.2
WACC7.47%
2.3 Liquidity
- A Current Ratio of 1.25 indicates that DLR should not have too much problems paying its short term obligations.
- DLR has a Current ratio of 1.25. This is in the better half of the industry: DLR outperforms 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.
- Looking at the Quick ratio, with a value of 1.25, DLR is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 225.21% over the past year.
- 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.
- Looking at the last year, DLR shows a small growth in Revenue. The Revenue has grown by 7.75% 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)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 10.05% on average over the next years. This is quite good.
EPS Next Y128.67%
EPS Next 2Y0.73%
EPS Next 3Y8.44%
EPS Next 5Y38.15%
Revenue Next Year8.22%
Revenue Next 2Y9.45%
Revenue Next 3Y9.89%
Revenue Next 5Y10.05%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 42.57, the valuation of DLR can be described as expensive.
- DLR's Price/Earnings ratio is in line with the industry average.
- DLR's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.60.
- A Price/Forward Earnings ratio of 100.23 indicates a quite expensive valuation of DLR.
- 66.67% of the companies in the same industry are cheaper than DLR, based on the Price/Forward Earnings ratio.
- DLR is valuated expensively when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.57 | ||
| Fwd PE | 100.23 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DLR is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 26.22 |
4.3 Compensation for Growth
- DLR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y0.73%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.07%, DLR has a reasonable but not impressive dividend return.
- With a Dividend Yield of 3.07, DLR pays less dividend than the industry average, which is at 5.51. 80.00% of the companies listed in the same industry pay a better dividend than DLR!
- Compared to an average S&P500 Dividend Yield of 1.82, DLR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.96%
Div Incr Years0
Div Non Decr Years20
5.3 Sustainability
- 127.21% of the earnings are spent on dividend by DLR. This is not a sustainable payout ratio.
- DLR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP127.21%
EPS Next 2Y0.73%
EPS Next 3Y8.44%
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.
What is the valuation status of DIGITAL REALTY TRUST INC (DLR) stock?
ChartMill assigns a valuation rating of 1 / 10 to DIGITAL REALTY TRUST INC (DLR). This can be considered as Overvalued.
What is the profitability of DLR stock?
DIGITAL REALTY TRUST INC (DLR) has a profitability rating of 3 / 10.
What is the financial health of DIGITAL REALTY TRUST INC (DLR) stock?
The financial health rating of DIGITAL REALTY TRUST INC (DLR) is 3 / 10.
Can you provide the expected EPS growth for DLR stock?
The Earnings per Share (EPS) of DIGITAL REALTY TRUST INC (DLR) is expected to grow by 128.67% in the next year.