DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:DLR • US2538681030

165.95 USD
-1.49 (-0.89%)
At close: Jan 30, 2026
165.95 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Fundamental Rating

4

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 valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year DLR was profitable.
  • DLR had a positive operating cash flow in the past year.
  • In the past 5 years DLR has always been profitable.
  • In the past 5 years DLR always reported a positive cash flow from operatings.
DLR Yearly Net Income VS EBIT VS OCF VS FCFDLR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.79%, DLR is in line with its industry, outperforming 56.67% 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.
  • DLR has a Return On Invested Capital of 1.52%. This is in the lower half of the industry: DLR underperforms 70.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for DLR 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 RankSector 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%
DLR Yearly ROA, ROE, ROICDLR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

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.
  • DLR's Profit Margin has declined in the last couple of years.
  • DLR's Operating Margin of 14.39% is on the low side compared to the rest of the industry. DLR is outperformed by 76.67% of its industry peers.
  • In the last couple of years the Operating Margin of DLR has declined.
  • 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 RankSector 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%
DLR Yearly Profit, Operating, Gross MarginsDLR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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3

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DLR is destroying value.
  • Compared to 1 year ago, DLR has more shares outstanding
  • The number of shares outstanding for DLR has been increased compared to 5 years ago.
  • Compared to 1 year ago, DLR has an improved debt to assets ratio.
DLR Yearly Shares OutstandingDLR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
DLR Yearly Total Debt VS Total AssetsDLR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.2 Solvency

  • Based on the Altman-Z score of 1.37, we must say that DLR is in the distress zone and has some risk of bankruptcy.
  • With a decent Altman-Z score value of 1.37, DLR is doing good in the industry, outperforming 70.00% of the companies in the same industry.
  • A Debt/Equity ratio of 0.79 indicates that DLR is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.79, DLR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF N/A
Altman-Z 1.37
ROIC/WACC0.2
WACC7.5%
DLR Yearly LT Debt VS Equity VS FCFDLR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B

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 better Current ratio (1.25) than 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 has a Quick ratio of 1.25. This is in the better half of the industry: DLR outperforms 76.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 1.25
DLR Yearly Current Assets VS Current LiabilitesDLR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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6

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.
  • DLR shows a small growth in Revenue. In the last year, the Revenue has grown by 7.75%.
  • DLR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.60% yearly.
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.
  • Based on estimates for the next years, DLR will show a quite strong growth in Revenue. The Revenue will grow by 10.05% on average per year.
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.
DLR Yearly Revenue VS EstimatesDLR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B
DLR Yearly EPS VS EstimatesDLR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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1

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 42.88, DLR can be considered very expensive at the moment.
  • DLR's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of DLR to the average of the S&P500 Index (28.30), we can say DLR is valued expensively.
  • DLR is valuated quite expensively with a Price/Forward Earnings ratio of 100.96.
  • 66.67% 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 25.57, DLR is valued quite expensively.
Industry RankSector Rank
PE 42.88
Fwd PE 100.96
DLR Price Earnings VS Forward Price EarningsDLR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • DLR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. DLR is more expensive than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 26.76
DLR Per share dataDLR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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%

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5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.91%, DLR has a reasonable but not impressive dividend return.
  • With a Dividend Yield of 2.91, DLR pays less dividend than the industry average, which is at 5.52. 80.00% of the companies listed in the same industry pay a better dividend than DLR!
  • DLR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
Industry RankSector Rank
Dividend Yield 2.91%

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 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
DLR Yearly Dividends per shareDLR Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

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%
DLR Yearly Income VS Free CF VS DividendDLR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B
DLR Dividend Payout.DLR Dividend Payout, showing the Payout Ratio.DLR Dividend Payout.PayoutRetained Earnings

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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.