DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLR - US2538681030 - REIT
159.69 USD
+3.19 (+2.04%)
159.69 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. DLR has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, DLR is valued expensive at the moment.
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.
Each year in the past 5 years DLR has been profitable.
Each year in the past 5 years DLR had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.79%, DLR perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
DLR has a Return On Equity of 5.90%. This is comparable to the rest of the industry: DLR outperforms 56.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.52%, DLR is doing worse than 73.33% of the companies in the same industry.
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 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.
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.
In the last couple of years the Operating Margin of DLR has declined.
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.
In the last couple of years the Gross Margin of DLR has declined.
| 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.
Compared to 1 year ago, DLR has more shares outstanding
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 1.30. This is a bad value and indicates that DLR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.30, DLR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
DLR has a Debt/Equity ratio of 0.79. This is a neutral value indicating DLR is somewhat dependend on debt financing.
DLR has a better Debt to Equity ratio (0.79) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACC0.21
WACC7.14%
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's Current ratio of 1.25 is fine compared to the rest of the industry. DLR outperforms 76.67% of its industry peers.
A Quick Ratio of 1.25 indicates that DLR should not have too much problems paying its short term obligations.
DLR's Quick ratio of 1.25 is fine compared to the rest of the industry. DLR outperforms 76.67% of its industry peers.
| 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.
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 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
Based on estimates for the next years, DLR will show a very strong growth in Earnings Per Share. The EPS will grow by 38.15% on average per year.
DLR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.05% yearly.
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 5Y10.05%
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
Based on the Price/Earnings ratio of 41.26, the valuation of DLR can be described as expensive.
DLR's Price/Earnings ratio is in line with the industry average.
DLR is valuated expensively when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 84.28, DLR can be considered very expensive at the moment.
70.00% of the companies in the same industry are cheaper than DLR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.20, DLR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.26 | ||
| Fwd PE | 84.28 |
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 | 25.77 |
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.
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 3.07%, 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 6.00. 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 2.32, DLR pays a bit more dividend than the S&P500 average.
| 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 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
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 2Y8.15%
EPS Next 3Y13.34%
159.69
+3.19 (+2.04%)
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 Cap54.85B
Revenue(TTM)5.91B
Net Income(TTM)1.36B
Analysts78.82
Price Target202.45 (26.78%)
Short Float %2.66%
Short Ratio5.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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)0.15%
PT rev (3m)1.71%
EPS NQ rev (1m)4.49%
EPS NQ rev (3m)0.47%
EPS NY rev (1m)4.15%
EPS NY rev (3m)19.31%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)1.18%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.26 | ||
| Fwd PE | 84.28 | ||
| P/S | 9.28 | ||
| P/FCF | N/A | ||
| P/OCF | 22.27 | ||
| P/B | 2.38 | ||
| P/tB | 4.86 | ||
| EV/EBITDA | 25.77 |
EPS(TTM)3.87
EY2.42%
EPS(NY)1.89
Fwd EY1.19%
FCF(TTM)-1.32
FCFYN/A
OCF(TTM)7.17
OCFY4.49%
SpS17.22
BVpS67.03
TBVpS32.88
PEG (NY)0.31
PEG (5Y)N/A
Graham Number76.4
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 | 1.3 |
F-Score8
WACC7.14%
ROIC/WACC0.21
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 5Y10.05%
EBIT growth 1Y45.74%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.05%
EBIT Next Year486.09%
EBIT Next 3Y94.05%
EBIT Next 5Y58.03%
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 41.26 and the Price/Book (PB) ratio is 2.38.
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%.