DIGITAL REALTY TRUST INC (DLR)
US2538681030 - REIT
DLR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 28 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
In the past year DLR was profitable.
DLR had a positive operating cash flow in the past year.
DLR had positive earnings in each of the past 5 years.
DLR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.88%, DLR is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
DLR's Return On Equity of 1.89% is on the low side compared to the rest of the industry. DLR is outperformed by 64.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.12%, DLR is doing worse than 89.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DLR is below the industry average of 5.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 1.89% | ||
| ROIC | 1.12% |
ROA(3y)2.5%
ROA(5y)2.07%
ROE(3y)5.34%
ROE(5y)4.5%
ROIC(3y)1.54%
ROIC(5y)1.71%
1.3 Margins
The Profit Margin of DLR (7.30%) is worse than 71.43% of its industry peers.
In the last couple of years the Profit Margin of DLR has grown nicely.
DLR has a Operating Margin of 10.64%. This is amonst the worse of the industry: DLR underperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of DLR has declined.
With a Gross Margin value of 57.15%, DLR is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
DLR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.64% | ||
| PM (TTM) | 7.3% | ||
| GM | 57.15% |
OM growth 3Y-9.21%
OM growth 5Y-8.02%
PM growth 3Y34.96%
PM growth 5Y15.11%
GM growth 3Y-4.98%
GM growth 5Y-2.96%
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
Compared to 5 years ago, DLR has more shares outstanding
Compared to 1 year ago, DLR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.46, we must say that DLR is in the distress zone and has some risk of bankruptcy.
DLR has a better Altman-Z score (1.46) than 64.29% of its industry peers.
DLR has a Debt/Equity ratio of 0.80. This is a neutral value indicating DLR is somewhat dependend on debt financing.
DLR has a better Debt to Equity ratio (0.80) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.46 |
ROIC/WACC0.15
WACC7.49%
2.3 Liquidity
DLR has a Current Ratio of 1.04. 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 (1.04) than 71.43% of its industry peers.
A Quick Ratio of 1.04 indicates that DLR should not have too much problems paying its short term obligations.
The Quick ratio of DLR (1.04) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 91.94% over the past year.
The earnings per share for DLR have been decreasing by -10.01% on average. This is quite bad
DLR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.78%.
DLR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.45% yearly.
EPS 1Y (TTM)91.94%
EPS 3Y-19.88%
EPS 5Y-10.01%
EPS Q2Q%12.5%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y11.95%
Revenue growth 5Y12.45%
Sales Q2Q%2.05%
3.2 Future
The Earnings Per Share is expected to grow by 51.98% on average over the next years. This is a very strong growth
Based on estimates for the next years, DLR will show a small growth in Revenue. The Revenue will grow by 7.81% on average per year.
EPS Next Y97.39%
EPS Next 2Y29.48%
EPS Next 3Y33.16%
EPS Next 5Y51.98%
Revenue Next Year1.75%
Revenue Next 2Y5.54%
Revenue Next 3Y7.41%
Revenue Next 5Y7.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
DLR is valuated quite expensively with a Price/Earnings ratio of 149.58.
DLR's Price/Earnings ratio is a bit more expensive when compared to the industry. DLR is more expensive than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. DLR is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 147.46, the valuation of DLR can be described as expensive.
Based on the Price/Forward Earnings ratio, DLR is valued a bit more expensive than 71.43% of the companies in the same industry.
DLR is valuated expensively when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 149.58 | ||
| Fwd PE | 147.46 |
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 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 31.9 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DLR's earnings are expected to grow with 33.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.54
PEG (5Y)N/A
EPS Next 2Y29.48%
EPS Next 3Y33.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.76%, DLR has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.76, DLR pays less dividend than the industry average, which is at 4.90. 82.14% of the companies listed in the same industry pay a better dividend than DLR!
DLR's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
The dividend of DLR has a limited annual growth rate of 2.18%.
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)2.18%
Div Incr Years0
Div Non Decr Years20
5.3 Sustainability
DLR pays out 407.79% 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.
DP407.79%
EPS Next 2Y29.48%
EPS Next 3Y33.16%
DIGITAL REALTY TRUST INC
NYSE:DLR (12/23/2024, 9:33:04 AM)
178
-0.57 (-0.32%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.26%
Inst Owner Change0.84%
Ins Owners0.05%
Ins Owner Change-0.11%
Market Cap59.04B
Analysts75.33
Price Target181.51 (1.97%)
Short Float %1.94%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Dividend Growth(5Y)2.18%
DP407.79%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-44.49%
Min EPS beat(2)-68.6%
Max EPS beat(2)-20.39%
EPS beat(4)1
Avg EPS beat(4)14.97%
Min EPS beat(4)-69.01%
Max EPS beat(4)217.9%
EPS beat(8)2
Avg EPS beat(8)-11.4%
EPS beat(12)4
Avg EPS beat(12)83.1%
EPS beat(16)7
Avg EPS beat(16)92.83%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-2.74%
Max Revenue beat(2)-1.09%
Revenue beat(4)0
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)-0.06%
Revenue beat(8)1
Avg Revenue beat(8)-1.52%
Revenue beat(12)1
Avg Revenue beat(12)-1.37%
Revenue beat(16)5
Avg Revenue beat(16)-0.48%
PT rev (1m)10.91%
PT rev (3m)13.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.01%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)-13.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.23%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 149.58 | ||
| Fwd PE | 147.46 | ||
| P/S | 10.76 | ||
| P/FCF | N/A | ||
| P/OCF | 30.21 | ||
| P/B | 2.78 | ||
| P/tB | 6.23 | ||
| EV/EBITDA | 31.9 |
EPS(TTM)1.19
EY0.67%
EPS(NY)1.21
Fwd EY0.68%
FCF(TTM)-3.62
FCFYN/A
OCF(TTM)5.89
OCFY3.31%
SpS16.55
BVpS64.05
TBVpS28.57
PEG (NY)1.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 1.89% | ||
| ROCE | 1.41% | ||
| ROIC | 1.12% | ||
| ROICexc | 1.18% | ||
| ROICexgc | 1.72% | ||
| OM | 10.64% | ||
| PM (TTM) | 7.3% | ||
| GM | 57.15% | ||
| FCFM | N/A |
ROA(3y)2.5%
ROA(5y)2.07%
ROE(3y)5.34%
ROE(5y)4.5%
ROIC(3y)1.54%
ROIC(5y)1.71%
ROICexc(3y)1.57%
ROICexc(5y)1.73%
ROICexgc(3y)2.35%
ROICexgc(5y)2.56%
ROCE(3y)1.95%
ROCE(5y)2.17%
ROICexcg growth 3Y-5.43%
ROICexcg growth 5Y-8.17%
ROICexc growth 3Y-3.5%
ROICexc growth 5Y-7.25%
OM growth 3Y-9.21%
OM growth 5Y-8.02%
PM growth 3Y34.96%
PM growth 5Y15.11%
GM growth 3Y-4.98%
GM growth 5Y-2.96%
F-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.32 | ||
| Cap/Depr | 181.67% | ||
| Cap/Sales | 57.49% | ||
| Interest Coverage | 1.34 | ||
| Cash Conversion | 84.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.46 |
F-Score6
WACC7.49%
ROIC/WACC0.15
Cap/Depr(3y)181.7%
Cap/Depr(5y)180.61%
Cap/Sales(3y)59.21%
Cap/Sales(5y)60.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)91.94%
EPS 3Y-19.88%
EPS 5Y-10.01%
EPS Q2Q%12.5%
EPS Next Y97.39%
EPS Next 2Y29.48%
EPS Next 3Y33.16%
EPS Next 5Y51.98%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y11.95%
Revenue growth 5Y12.45%
Sales Q2Q%2.05%
Revenue Next Year1.75%
Revenue Next 2Y5.54%
Revenue Next 3Y7.41%
Revenue Next 5Y7.81%
EBIT growth 1Y-13.01%
EBIT growth 3Y1.64%
EBIT growth 5Y3.42%
EBIT Next Year364.44%
EBIT Next 3Y80.25%
EBIT Next 5Y48.87%
FCF growth 1Y-37.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.09%
OCF growth 3Y-1.42%
OCF growth 5Y3.37%