DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLR - US2538681030 - REIT
163.52 USD
+1.95 (+1.21%)
We assign a fundamental rating of 4 out of 10 to DLR. DLR was compared to 30 industry peers in the Specialized REITs industry. DLR may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, DLR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- DLR had positive earnings in the past year.
- In the past year DLR had a positive cash flow from operations.
- 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
- DLR has a Return On Assets of 2.79%. This is comparable to the rest of the industry: DLR outperforms 56.67% of its industry peers.
- Looking at the Return On Equity, with a value of 5.90%, DLR is in line with its industry, outperforming 56.67% of the companies in the same industry.
- 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.
- DLR had an Average Return On Invested Capital over the past 3 years of 1.29%. This 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 Rank | Sector 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%
1.3 Margins
- The Profit Margin of DLR (22.98%) is comparable to the rest of the industry.
- DLR's Profit Margin has declined in the last couple of years.
- DLR has a worse Operating Margin (14.39%) than 76.67% of its industry peers.
- DLR's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 58.06%, DLR is doing worse than 63.33% of the companies in the same industry.
- DLR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DLR 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
- DLR has a better debt/assets ratio than last year.
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.
- Looking at the Altman-Z score, with a value of 1.32, DLR is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
- DLR has a Debt/Equity ratio of 0.79. This is a neutral value indicating DLR is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.79, DLR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.2
WACC7.48%
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's Quick ratio of 1.25 is fine compared to the rest of the industry. DLR outperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 225.21% over the past 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 7.75% in the last year.
- Measured over the past years, DLR shows a quite strong growth in Revenue. The Revenue has been growing by 11.60% on average per year.
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
- The Earnings Per Share is expected to grow by 38.15% on average over the next years. This is a very strong growth
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 42.25 indicates a quite expensive valuation of DLR.
- Compared to the rest of the industry, the Price/Earnings ratio of DLR is on the same level as its industry peers.
- DLR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 99.48, DLR can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, DLR is valued a bit more expensive than 66.67% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DLR to the average of the S&P500 Index (25.98), we can say DLR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.25 | ||
| Fwd PE | 99.48 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DLR is valued more expensive than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 26.01 |
4.3 Compensation for Growth
- The 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%
5. Dividend
5.1 Amount
- DLR has a Yearly Dividend Yield of 3.07%.
- Compared to an average industry Dividend Yield of 5.51, DLR's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than DLR!
- Compared to an average S&P500 Dividend Yield of 1.82, DLR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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
5.3 Sustainability
- 127.21% 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.
DP127.21%
EPS Next 2Y0.73%
EPS Next 3Y8.44%
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.