DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
USA - NYSE:DLR - US2538681030 - REIT
166.52 USD
-1.75 (-1.04%)
166.75 USD
+0.23 (+0.14%)
DLR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
Each year in the past 5 years DLR has been profitable.
Each year in the past 5 years DLR had a positive operating cash flow.
1.2 Ratios
DLR has a Return On Assets (2.76%) which is comparable to the rest of the industry.
DLR has a Return On Equity (5.86%) which is in line with its industry peers.
With a Return On Invested Capital value of 1.46%, DLR is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
DLR had an Average Return On Invested Capital over the past 3 years of 1.29%. This is below the industry average of 4.81%.
The last Return On Invested Capital (1.46%) for DLR is above the 3 year average (1.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 5.86% | ||
| ROIC | 1.46% |
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 (23.27%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DLR has declined.
The Operating Margin of DLR (14.19%) is worse than 80.00% 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 57.91%, DLR is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of DLR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.19% | ||
| PM (TTM) | 23.27% | ||
| GM | 57.91% |
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.
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 1.36, 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 1.36, DLR is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
DLR has a Debt/Equity ratio of 0.81. This is a neutral value indicating DLR is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.81, DLR is doing good in the industry, outperforming 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.36 |
ROIC/WACC0.2
WACC7.16%
2.3 Liquidity
DLR has a Current Ratio of 1.35. This is a normal value and indicates that DLR is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.35, DLR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that DLR should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.35, DLR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
DLR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 225.21%, which is quite impressive.
The Earnings Per Share has been decreasing by -7.17% on average over the past years.
The Revenue has been growing slightly by 7.75% in the past year.
The Revenue has been growing by 11.60% on average over the past years. This is quite good.
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
Based on estimates for the next years, DLR will show a very strong growth in Earnings Per Share. The EPS will grow by 36.50% on average per year.
DLR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.41% yearly.
EPS Next Y121.79%
EPS Next 2Y4.14%
EPS Next 3Y11.03%
EPS Next 5Y36.5%
Revenue Next Year6.89%
Revenue Next 2Y8.85%
Revenue Next 3Y9.5%
Revenue Next 5Y9.41%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
DLR is valuated quite expensively with a Price/Earnings ratio of 43.03.
The rest of the industry has a similar Price/Earnings ratio as DLR.
When comparing the Price/Earnings ratio of DLR to the average of the S&P500 Index (26.13), we can say DLR is valued expensively.
A Price/Forward Earnings ratio of 94.78 indicates a quite expensive valuation of 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 is valuated expensively when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.03 | ||
| Fwd PE | 94.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DLR indicates a rather expensive valuation: DLR more expensive than 86.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 27.18 |
4.3 Compensation for Growth
DLR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y4.14%
EPS Next 3Y11.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.86%, DLR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.97, 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 2.39, DLR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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 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 127.47% 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.
DP127.47%
EPS Next 2Y4.14%
EPS Next 3Y11.03%
166.52
-1.75 (-1.04%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.45%
Inst Owner Change-0.09%
Ins Owners0.01%
Ins Owner Change0.17%
Market Cap56.79B
Revenue(TTM)5.91B
Net Income(TTM)1.34B
Analysts77.5
Price Target202.16 (21.4%)
Short Float %2.42%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend5.04
Dividend Growth(5Y)0.96%
DP127.47%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)325.59%
Min EPS beat(2)-7.36%
Max EPS beat(2)658.54%
EPS beat(4)2
Avg EPS beat(4)167.87%
Min EPS beat(4)-68.6%
Max EPS beat(4)658.54%
EPS beat(8)3
Avg EPS beat(8)91.49%
EPS beat(12)5
Avg EPS beat(12)65.36%
EPS beat(16)7
Avg EPS beat(16)113.32%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)2.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)2.2%
Revenue beat(8)1
Avg Revenue beat(8)-1.25%
Revenue beat(12)2
Avg Revenue beat(12)-1.29%
Revenue beat(16)3
Avg Revenue beat(16)-1.05%
PT rev (1m)1.45%
PT rev (3m)5.27%
EPS NQ rev (1m)-1.17%
EPS NQ rev (3m)0.04%
EPS NY rev (1m)0.53%
EPS NY rev (3m)152.31%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.03 | ||
| Fwd PE | 94.78 | ||
| P/S | 9.85 | ||
| P/FCF | N/A | ||
| P/OCF | 23.9 | ||
| P/B | 2.48 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 27.18 |
EPS(TTM)3.87
EY2.32%
EPS(NY)1.76
Fwd EY1.06%
FCF(TTM)-1.85
FCFYN/A
OCF(TTM)6.97
OCFY4.18%
SpS16.91
BVpS67.19
TBVpS32.56
PEG (NY)0.35
PEG (5Y)N/A
Graham Number76.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 5.86% | ||
| ROCE | 1.84% | ||
| ROIC | 1.46% | ||
| ROICexc | 1.58% | ||
| ROICexgc | 2.26% | ||
| OM | 14.19% | ||
| PM (TTM) | 23.27% | ||
| GM | 57.91% | ||
| 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-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.99 | ||
| Cap/Depr | 165.35% | ||
| Cap/Sales | 52.16% | ||
| Interest Coverage | 2.18 | ||
| Cash Conversion | 90.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 1.36 |
F-Score6
WACC7.16%
ROIC/WACC0.2
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 Y121.79%
EPS Next 2Y4.14%
EPS Next 3Y11.03%
EPS Next 5Y36.5%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%10.2%
Revenue Next Year6.89%
Revenue Next 2Y8.85%
Revenue Next 3Y9.5%
Revenue Next 5Y9.41%
EBIT growth 1Y46.39%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.05%
EBIT Next Year486.09%
EBIT Next 3Y94.05%
EBIT Next 5Y55.39%
FCF growth 1Y49.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y40.62%
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 1 / 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 43.03 and the Price/Book (PB) ratio is 2.48.
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 127.47%.