DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
NYSE:DLR - New York Stock Exchange, Inc. - US2538681030 - REIT - Currency: USD
Overall DLR gets a fundamental rating of 3 out of 10. We evaluated DLR against 28 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.
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.
In the past 5 years DLR has always been profitable.
In the past 5 years DLR always reported a positive cash flow from operatings.
1.2 Ratios
DLR's Return On Assets of 0.88% is on the low side compared to the rest of the industry. DLR is outperformed by 71.43% of its industry peers.
DLR has a Return On Equity of 1.89%. This is in the lower half of the industry: DLR underperforms 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.
DLR's Profit Margin has improved in the last couple of years.
DLR has a worse Operating Margin (10.64%) than 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.
DLR has more shares outstanding than it did 1 year ago.
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 1.32, we must say that DLR is in the distress zone and has some risk of bankruptcy.
DLR's Altman-Z score of 1.32 is fine compared to the rest of the industry. DLR outperforms 60.71% 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 Debt to Equity ratio of 0.80. This is in the better half of the industry: DLR outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.15
WACC7.38%
2.3 Liquidity
A Current Ratio of 1.04 indicates that DLR should not have too much problems paying its short term obligations.
DLR's Current ratio of 1.04 is fine compared to the rest of the industry. DLR outperforms 71.43% of its industry peers.
DLR has a Quick 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 Quick ratio (1.04) than 71.43% 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.
Measured over the past years, DLR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.01% on average per year.
DLR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.78%.
Measured over the past years, DLR shows a quite strong growth in Revenue. The Revenue has been growing by 12.45% on average per year.
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
Based on estimates for the next years, DLR will show a very strong growth in Earnings Per Share. The EPS will grow by 51.98% on average per year.
The Revenue is expected to grow by 7.81% on average over the next years.
EPS Next Y97.39%
EPS Next 2Y29.48%
EPS Next 3Y33.16%
EPS Next 5Y51.98%
Revenue Next Year1.67%
Revenue Next 2Y5.4%
Revenue Next 3Y7.24%
Revenue Next 5Y7.81%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 137.34 indicates a quite expensive valuation of DLR.
Compared to the rest of the industry, the Price/Earnings ratio of DLR indicates a slightly more expensive valuation: DLR is more expensive than 75.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.28, DLR is valued quite expensively.
Based on the Price/Forward Earnings ratio of 135.40, the valuation of DLR can be described as expensive.
Based on the Price/Forward Earnings ratio, DLR is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
DLR is valuated rather expensively when we compare the Price/Forward Earnings ratio to 91.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 137.34 | ||
| Fwd PE | 135.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLR is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 29.5 |
4.3 Compensation for Growth
DLR's 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)1.41
PEG (5Y)N/A
EPS Next 2Y29.48%
EPS Next 3Y33.16%
5. Dividend
5.1 Amount
DLR has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
DLR's Dividend Yield is slightly below the industry average, which is at 4.82.
DLR's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
The dividend of DLR has a limited annual growth rate of 2.18%.
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)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 (1/30/2025, 12:29:57 PM)
163.44
+1.71 (+1.06%)
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 Change-0.05%
Ins Owners0.05%
Ins Owner Change0.06%
Market Cap54.21B
Analysts75.33
Price Target185.87 (13.72%)
Short Float %2.39%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend5.05
Dividend Growth(5Y)2.18%
DP407.79%
Div Incr Years0
Div Non Decr Years20
Ex-DateN/A
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)2.4%
PT rev (3m)13.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 137.34 | ||
| Fwd PE | 135.4 | ||
| P/S | 9.88 | ||
| P/FCF | N/A | ||
| P/OCF | 27.74 | ||
| P/B | 2.55 | ||
| P/tB | 5.72 | ||
| EV/EBITDA | 29.5 |
EPS(TTM)1.19
EY0.73%
EPS(NY)1.21
Fwd EY0.74%
FCF(TTM)-3.62
FCFYN/A
OCF(TTM)5.89
OCFY3.6%
SpS16.55
BVpS64.05
TBVpS28.57
PEG (NY)1.41
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 | 1.32 |
F-Score6
WACC7.38%
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 Year1.67%
Revenue Next 2Y5.4%
Revenue Next 3Y7.24%
Revenue Next 5Y7.81%
EBIT growth 1Y-13.01%
EBIT growth 3Y1.64%
EBIT growth 5Y3.42%
EBIT Next Year362.55%
EBIT Next 3Y79.47%
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%