DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLR - US2538681030 - REIT
164.73 USD
+3.71 (+2.3%)
164.73 USD
0 (0%)
Taking everything into account, DLR scores 4 out of 10 in our fundamental rating. DLR was compared to 30 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.
DLR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DLR has a Return On Assets (2.79%) which is comparable to the rest of the industry.
DLR has a Return On Equity (5.90%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 1.52%, DLR is doing worse than 73.33% 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 4.77%.
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
DLR has a Profit Margin of 22.98%. This is comparable to the rest of the industry: DLR outperforms 60.00% of its industry peers.
DLR's Profit Margin has declined in the last couple of years.
DLR has a Operating Margin of 14.39%. This is amonst the worse of the industry: DLR underperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of DLR has declined.
DLR has a Gross Margin of 58.06%. This is in the lower half of the industry: DLR underperforms 66.67% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DLR is destroying value.
The number of shares outstanding for DLR has been increased compared to 1 year ago.
DLR has more shares outstanding than it did 5 years ago.
DLR has a better debt/assets ratio than last year.
2.2 Solvency
DLR has an Altman-Z score of 1.34. This is a bad value and indicates that DLR is not financially healthy and even has some risk of bankruptcy.
DLR's Altman-Z score of 1.34 is fine compared to the rest of the industry. DLR outperforms 70.00% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that DLR is somewhat dependend on debt financing.
DLR has a better Debt to Equity ratio (0.79) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.34 |
ROIC/WACC0.21
WACC7.2%
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 Current ratio of 1.25. This is in the better half of the industry: DLR outperforms 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.
The Quick ratio of DLR (1.25) is better than 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.
DLR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.17% yearly.
DLR shows a small growth in Revenue. In the last year, the Revenue has grown by 7.75%.
DLR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.60% yearly.
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
DLR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.15% yearly.
DLR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.05% yearly.
EPS Next Y130.28%
EPS Next 2Y6.64%
EPS Next 3Y12.95%
EPS Next 5Y38.15%
Revenue Next Year8.09%
Revenue Next 2Y9.42%
Revenue Next 3Y9.99%
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 42.57 indicates a quite expensive valuation of DLR.
DLR's Price/Earnings is on the same level as the industry average.
DLR is valuated expensively when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 89.41, 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 70.00% 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 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.57 | ||
| Fwd PE | 89.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLR is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 26.41 |
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.
A more expensive valuation may be justified as DLR's earnings are expected to grow with 12.95% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y6.64%
EPS Next 3Y12.95%
5. Dividend
5.1 Amount
DLR has a Yearly Dividend Yield of 3.03%.
Compared to an average industry Dividend Yield of 6.05, 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 2.32, DLR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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
DLR pays out 127.21% 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.
DP127.21%
EPS Next 2Y6.64%
EPS Next 3Y12.95%
164.73
+3.71 (+2.3%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.38%
Inst Owner Change2.57%
Ins Owners0.01%
Ins Owner Change-0.02%
Market Cap56.58B
Revenue(TTM)5.91B
Net Income(TTM)1.36B
Analysts78.82
Price Target202.49 (22.92%)
Short Float %2.66%
Short Ratio5.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend5.04
Dividend Growth(5Y)0.96%
DP127.21%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)301.72%
Min EPS beat(2)-55.09%
Max EPS beat(2)658.54%
EPS beat(4)2
Avg EPS beat(4)171.24%
Min EPS beat(4)-55.09%
Max EPS beat(4)658.54%
EPS beat(8)3
Avg EPS beat(8)93.11%
EPS beat(12)4
Avg EPS beat(12)49.48%
EPS beat(16)6
Avg EPS beat(16)105.14%
Revenue beat(2)2
Avg Revenue beat(2)2.21%
Min Revenue beat(2)2.2%
Max Revenue beat(2)2.22%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)2.22%
Revenue beat(8)2
Avg Revenue beat(8)-0.9%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)3
Avg Revenue beat(16)-1.05%
PT rev (1m)0.17%
PT rev (3m)1.62%
EPS NQ rev (1m)-3.95%
EPS NQ rev (3m)0.77%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)18.94%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.57 | ||
| Fwd PE | 89.41 | ||
| P/S | 9.57 | ||
| P/FCF | N/A | ||
| P/OCF | 22.98 | ||
| P/B | 2.46 | ||
| P/tB | 5.01 | ||
| EV/EBITDA | 26.41 |
EPS(TTM)3.87
EY2.35%
EPS(NY)1.84
Fwd EY1.12%
FCF(TTM)-1.32
FCFYN/A
OCF(TTM)7.17
OCFY4.35%
SpS17.22
BVpS67.03
TBVpS32.88
PEG (NY)0.33
PEG (5Y)N/A
Graham Number76.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 5.9% | ||
| ROCE | 1.92% | ||
| ROIC | 1.52% | ||
| ROICexc | 1.64% | ||
| ROICexgc | 2.33% | ||
| OM | 14.39% | ||
| PM (TTM) | 22.98% | ||
| GM | 58.06% | ||
| 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%
ROICexgc growth 3Y-14.91%
ROICexgc 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-Score8
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.73 | ||
| Cap/Depr | 156.98% | ||
| Cap/Sales | 49.28% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 90.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 1.34 |
F-Score8
WACC7.2%
ROIC/WACC0.21
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)225.21%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%66.67%
EPS Next Y130.28%
EPS Next 2Y6.64%
EPS Next 3Y12.95%
EPS Next 5Y38.15%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%10.2%
Revenue Next Year8.09%
Revenue Next 2Y9.42%
Revenue Next 3Y9.99%
Revenue Next 5Y10.05%
EBIT growth 1Y45.74%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.05%
EBIT Next Year498.79%
EBIT Next 3Y94.14%
EBIT Next 5Y58.03%
FCF growth 1Y73.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y51.19%
OCF growth 3Y9.93%
OCF growth 5Y8.36%
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.
Can you provide the valuation status for DIGITAL REALTY TRUST INC?
ChartMill assigns a valuation rating of 2 / 10 to DIGITAL REALTY TRUST INC (DLR). This can be considered as Overvalued.
How profitable is DIGITAL REALTY TRUST INC (DLR) stock?
DIGITAL REALTY TRUST INC (DLR) has a profitability rating of 3 / 10.
What is the valuation of DIGITAL REALTY TRUST INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DIGITAL REALTY TRUST INC (DLR) is 42.57 and the Price/Book (PB) ratio is 2.46.
Is the dividend of DIGITAL REALTY TRUST INC sustainable?
The dividend rating of DIGITAL REALTY TRUST INC (DLR) is 5 / 10 and the dividend payout ratio is 127.21%.