DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLR - US2538681030 - REIT
155.01 USD
-0.18 (-0.12%)
155.01 USD
0 (0%)
DLR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. Both the profitability and financial health of DLR have multiple concerns. While showing a medium growth rate, DLR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DLR was profitable.
DLR had a positive operating cash flow in the past year.
DLR had positive earnings in each of the past 5 years.
In the past 5 years DLR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DLR (2.79%) is comparable to the rest of the industry.
DLR has a Return On Equity (5.90%) which is comparable to the rest of the industry.
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.
DLR had an Average Return On Invested Capital over the past 3 years of 1.29%. This is below the industry average of 4.78%.
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's Profit Margin of 22.98% is in line compared 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.
The Operating Margin of DLR (14.39%) is worse than 80.00% of its industry peers.
DLR's Operating Margin has declined in the last couple of years.
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.
In the last couple of years the Gross Margin of DLR has declined.
| 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.
DLR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DLR has been increased compared to 5 years ago.
DLR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that DLR is in the distress zone and has some risk of bankruptcy.
DLR's Altman-Z score of 1.27 is fine compared to the rest of the industry. DLR outperforms 66.67% of its industry peers.
DLR has a Debt/Equity ratio of 0.79. This is a neutral value indicating 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 | 1.27 |
ROIC/WACC0.21
WACC7.19%
2.3 Liquidity
DLR has a Current Ratio of 1.25. This is a normal value and indicates that DLR is financially healthy and should not expect problems in meeting its short term obligations.
DLR's Current ratio of 1.25 is fine compared to the rest of the industry. DLR outperforms 76.67% of its industry peers.
DLR has a Quick Ratio of 1.25. 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 better Quick ratio (1.25) than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
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.
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
Based on estimates for the next years, DLR will show a very strong growth in Earnings Per Share. The EPS will grow by 38.15% 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 10.05% on average per year.
EPS Next Y126.36%
EPS Next 2Y5.45%
EPS Next 3Y12.31%
EPS Next 5Y38.15%
Revenue Next Year8.09%
Revenue Next 2Y9.4%
Revenue Next 3Y9.93%
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.
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
With a Price/Earnings ratio of 40.05, DLR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of DLR is on the same level as its industry peers.
DLR is valuated rather expensively when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 86.05, 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 (23.46), we can say DLR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.05 | ||
| Fwd PE | 86.05 |
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 | 25.18 |
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.
A more expensive valuation may be justified as DLR's earnings are expected to grow with 12.31% in the coming years.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y5.45%
EPS Next 3Y12.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.14%, DLR has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.14, DLR pays less dividend than the industry average, which is at 5.73. 80.00% of the companies listed in the same industry pay a better dividend than DLR!
DLR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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 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
127.21% of the earnings are spent on dividend by DLR. This is not a sustainable payout ratio.
DLR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP127.21%
EPS Next 2Y5.45%
EPS Next 3Y12.31%
155.01
-0.18 (-0.12%)
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 Cap53.25B
Revenue(TTM)5.91B
Net Income(TTM)1.36B
Analysts78.82
Price Target200.9 (29.6%)
Short Float %2.88%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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)-0.77%
PT rev (3m)0.82%
EPS NQ rev (1m)-1.89%
EPS NQ rev (3m)1.22%
EPS NY rev (1m)-2.01%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.05 | ||
| Fwd PE | 86.05 | ||
| P/S | 9 | ||
| P/FCF | N/A | ||
| P/OCF | 21.62 | ||
| P/B | 2.31 | ||
| P/tB | 4.71 | ||
| EV/EBITDA | 25.18 |
EPS(TTM)3.87
EY2.5%
EPS(NY)1.8
Fwd EY1.16%
FCF(TTM)-1.32
FCFYN/A
OCF(TTM)7.17
OCFY4.63%
SpS17.22
BVpS67.03
TBVpS32.88
PEG (NY)0.32
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 | 1.27 |
F-Score8
WACC7.19%
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 Y126.36%
EPS Next 2Y5.45%
EPS Next 3Y12.31%
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 2Y9.4%
Revenue Next 3Y9.93%
Revenue Next 5Y10.05%
EBIT growth 1Y45.74%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.05%
EBIT Next Year498.97%
EBIT Next 3Y93.94%
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 40.05 and the Price/Book (PB) ratio is 2.31.
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%.