DIGITAL REALTY TRUST INC (DLR)
US2538681030 - REIT
Overall DLR gets a fundamental rating of 3 out of 10. We evaluated DLR against 28 industry peers in the Specialized REITs industry. DLR has a bad profitability rating. Also its financial health evaluation is rather negative. 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's Return On Assets of 2.48% is on the low side compared to the rest of the industry. DLR is outperformed by 60.71% of its industry peers.
With a Return On Equity value of 5.27%, DLR is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
The Return On Invested Capital of DLR (1.11%) is worse than 89.29% of its industry peers.
DLR had an Average Return On Invested Capital over the past 3 years of 1.54%. This is below the industry average of 5.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 5.27% | ||
| ROIC | 1.11% |
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
DLR's Profit Margin of 19.83% is in line compared to the rest of the industry. DLR outperforms 57.14% of its industry peers.
In the last couple of years the Profit Margin of DLR has grown nicely.
The Operating Margin of DLR (10.24%) is worse than 89.29% of its industry peers.
DLR's Operating Margin has declined in the last couple of years.
The Gross Margin of DLR (56.38%) is worse than 67.86% of its industry peers.
DLR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.24% | ||
| PM (TTM) | 19.83% | ||
| GM | 56.38% |
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
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
Compared to 5 years ago, DLR has more shares outstanding
DLR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.61, we must say that DLR is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.61, DLR is doing good in the industry, outperforming 67.86% of the companies in the same industry.
DLR has a Debt/Equity ratio of 0.80. This is a neutral value indicating DLR is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.80, DLR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.61 |
ROIC/WACC0.15
WACC7.47%
2.3 Liquidity
A Current Ratio of 1.09 indicates that DLR should not have too much problems paying its short term obligations.
DLR's Current ratio of 1.09 is fine compared to the rest of the industry. DLR outperforms 71.43% of its industry peers.
A Quick Ratio of 1.09 indicates that DLR should not have too much problems paying its short term obligations.
DLR's Quick ratio of 1.09 is fine compared to the rest of the industry. DLR outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
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
The Revenue has been growing slightly by 2.78% in the past year.
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 38.48% on average over the next years. This is a very strong growth
DLR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.18% yearly.
EPS Next Y99.31%
EPS Next 2Y30.12%
EPS Next 3Y33.96%
EPS Next 5Y38.48%
Revenue Next Year1.89%
Revenue Next 2Y5.76%
Revenue Next 3Y7.54%
Revenue Next 5Y6.18%
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
The Price/Earnings ratio is 157.45, which means the current valuation is very expensive for DLR.
75.00% of the companies in the same industry are cheaper than DLR, based on the Price/Earnings ratio.
DLR is valuated expensively when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 153.70, which means the current valuation is very expensive for DLR.
DLR's Price/Forward 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.
DLR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 157.45 | ||
| Fwd PE | 153.7 |
4.2 Price Multiples
92.86% of the companies in the same industry are cheaper than DLR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 33.77 |
4.3 Compensation for Growth
DLR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as DLR's earnings are expected to grow with 33.96% in the coming years.
PEG (NY)1.59
PEG (5Y)N/A
EPS Next 2Y30.12%
EPS Next 3Y33.96%
5. Dividend
5.1 Amount
DLR has a Yearly Dividend Yield of 2.74%.
DLR's Dividend Yield is slightly below the industry average, which is at 4.54.
Compared to an average S&P500 Dividend Yield of 2.23, DLR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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 Years19
5.3 Sustainability
148.02% of the earnings are spent on dividend by DLR. This is not a sustainable payout ratio.
The dividend of DLR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP148.02%
EPS Next 2Y30.12%
EPS Next 3Y33.96%
DIGITAL REALTY TRUST INC
NYSE:DLR (11/21/2024, 8:22:52 PM)
After market: 189.14 +1.77 (+0.94%)187.37
+1.46 (+0.79%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap62.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 157.45 | ||
| Fwd PE | 153.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 5.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.24% | ||
| PM (TTM) | 19.83% | ||
| GM | 56.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)91.94%
EPS 3Y-19.88%
EPS 5Y
EPS Q2Q%
EPS Next Y99.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.78%
Revenue growth 3Y11.95%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y