DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
NYSE:DLR - New York Stock Exchange, Inc. - US2538681030 - REIT - Currency: USD
Taking everything into account, DLR scores 3 out of 10 in our fundamental rating. DLR was compared to 30 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. DLR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
DLR had positive earnings in the past year.
DLR had a positive operating cash flow in the past year.
In the past 5 years DLR has always been profitable.
Each year in the past 5 years DLR had a positive operating cash flow.
1.2 Ratios
DLR has a worse Return On Assets (0.87%) than 63.33% of its industry peers.
Looking at the Return On Equity, with a value of 1.83%, DLR is doing worse than 60.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.19%, DLR is doing worse than 90.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DLR is below the industry average of 5.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.87% | ||
| ROE | 1.83% | ||
| ROIC | 1.19% |
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 (6.93%) which is in line with its industry peers.
DLR's Profit Margin has declined in the last couple of years.
The Operating Margin of DLR (11.01%) is worse than 83.33% of its industry peers.
DLR's Operating Margin has declined in the last couple of years.
DLR has a Gross Margin of 57.79%. This is in the lower half of the industry: DLR underperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of DLR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.01% | ||
| PM (TTM) | 6.93% | ||
| GM | 57.79% |
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
DLR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for DLR has been increased compared to 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 1.43, we must say that DLR is in the distress zone and has some risk of bankruptcy.
DLR has a better Altman-Z score (1.43) than 63.33% 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.
Looking at the Debt to Equity ratio, with a value of 0.80, DLR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.43 |
ROIC/WACC0.16
WACC7.46%
2.3 Liquidity
A Current Ratio of 1.14 indicates that DLR should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.14, DLR is doing good in the industry, outperforming 63.33% of the companies in the same industry.
DLR has a Quick Ratio of 1.14. 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 Quick ratio of 1.14. This is in the better half of the industry: DLR outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for DLR have decreased strongly by -20.74% in the last year.
Measured over the past years, DLR shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.17% on average per year.
Looking at the last year, DLR shows a small growth in Revenue. The Revenue has grown by 2.96% 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)-20.74%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%-67.07%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%5.75%
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 35.25% on average per year.
Based on estimates for the next years, DLR will show a quite strong growth in Revenue. The Revenue will grow by 9.13% on average per year.
EPS Next Y-12.09%
EPS Next 2Y4.7%
EPS Next 3Y13%
EPS Next 5Y35.25%
Revenue Next Year5.03%
Revenue Next 2Y7.95%
Revenue Next 3Y8.98%
Revenue Next 5Y9.13%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 159.93, the valuation of DLR can be described as expensive.
70.00% of the companies in the same industry are cheaper than DLR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DLR to the average of the S&P500 Index (27.19), we can say DLR is valued expensively.
Based on the Price/Forward Earnings ratio of 96.37, 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 66.67% of the companies are valued more cheaply.
DLR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 159.93 | ||
| Fwd PE | 96.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLR is valued more expensive than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 30.06 |
4.3 Compensation for Growth
DLR's earnings are expected to grow with 13.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.7%
EPS Next 3Y13%
5. Dividend
5.1 Amount
DLR has a Yearly Dividend Yield of 6.27%, which is a nice return.
Compared to an average industry Dividend Yield of 5.78, DLR pays a better dividend. On top of this DLR pays more dividend than 83.33% of the companies listed in the same industry.
DLR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.27% |
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
DLR pays out 433.93% of its income as dividend. This is not a sustainable payout ratio.
DLR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP433.93%
EPS Next 2Y4.7%
EPS Next 3Y13%
171.13
+0.2 (+0.12%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.97%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner Change0.26%
Market Cap57.63B
Analysts79.33
Price Target191.34 (11.81%)
Short Float %2.17%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.27% |
Yearly Dividend5.04
Dividend Growth(5Y)0.96%
DP433.93%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)40.76%
Min EPS beat(2)-7.36%
Max EPS beat(2)88.89%
EPS beat(4)1
Avg EPS beat(4)-1.87%
Min EPS beat(4)-68.6%
Max EPS beat(4)88.89%
EPS beat(8)3
Avg EPS beat(8)13.9%
EPS beat(12)4
Avg EPS beat(12)7.62%
EPS beat(16)7
Avg EPS beat(16)78.24%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-2.25%
Revenue beat(4)0
Avg Revenue beat(4)-2.18%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)-1.09%
Revenue beat(8)0
Avg Revenue beat(8)-1.69%
Revenue beat(12)1
Avg Revenue beat(12)-1.67%
Revenue beat(16)3
Avg Revenue beat(16)-1.11%
PT rev (1m)0.58%
PT rev (3m)-0.22%
EPS NQ rev (1m)-3.75%
EPS NQ rev (3m)14.27%
EPS NY rev (1m)0.3%
EPS NY rev (3m)5.41%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 159.93 | ||
| Fwd PE | 96.37 | ||
| P/S | 10.23 | ||
| P/FCF | N/A | ||
| P/OCF | 24.97 | ||
| P/B | 2.71 | ||
| P/tB | 5.77 | ||
| EV/EBITDA | 30.06 |
EPS(TTM)1.07
EY0.63%
EPS(NY)1.78
Fwd EY1.04%
FCF(TTM)-1.93
FCFYN/A
OCF(TTM)6.85
OCFY4.01%
SpS16.72
BVpS63.23
TBVpS29.67
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.87% | ||
| ROE | 1.83% | ||
| ROCE | 1.5% | ||
| ROIC | 1.19% | ||
| ROICexc | 1.26% | ||
| ROICexgc | 1.8% | ||
| OM | 11.01% | ||
| PM (TTM) | 6.93% | ||
| GM | 57.79% | ||
| 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%
ROICexcg growth 3Y-14.91%
ROICexcg 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-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.08 | ||
| Cap/Depr | 165.93% | ||
| Cap/Sales | 52.56% | ||
| Interest Coverage | 1.49 | ||
| Cash Conversion | 96.02% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.43 |
F-Score6
WACC7.46%
ROIC/WACC0.16
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)-20.74%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%-67.07%
EPS Next Y-12.09%
EPS Next 2Y4.7%
EPS Next 3Y13%
EPS Next 5Y35.25%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%5.75%
Revenue Next Year5.03%
Revenue Next 2Y7.95%
Revenue Next 3Y8.98%
Revenue Next 5Y9.13%
EBIT growth 1Y-10.86%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.05%
EBIT Next Year474.1%
EBIT Next 3Y93.38%
EBIT Next 5Y55.98%
FCF growth 1Y42.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.32%
OCF growth 3Y9.93%
OCF growth 5Y8.36%