DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
USA - NYSE:DLR - US2538681030 - REIT
172.92 USD
+0.19 (+0.11%)
172.92 USD
0 (0%)
Overall DLR gets a fundamental rating of 4 out of 10. We evaluated DLR against 30 industry peers in the Specialized REITs industry. While DLR is still in line with the averages on profitability rating, there are concerns on its financial health. DLR is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years DLR always reported a positive cash flow from operatings.
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.
Measured over the past 3 years, the Average Return On Invested Capital for DLR is below the industry average of 4.79%.
The 3 year average ROIC (1.29%) for DLR is below the current ROIC(1.46%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 23.27%, DLR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
DLR's Profit Margin has declined in the last couple of years.
The Operating Margin of DLR (14.19%) is worse than 80.00% of its industry peers.
In the last couple of years the Operating Margin of DLR has declined.
DLR's Gross Margin of 57.91% is on the low side compared to the rest of the industry. DLR is outperformed by 66.67% of its industry peers.
DLR's Gross Margin has declined in the last couple of years.
| 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
DLR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DLR has more shares outstanding
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 1.41, we must say that DLR is in the distress zone and has some risk of bankruptcy.
DLR has a Altman-Z score of 1.41. This is in the better half of the industry: DLR outperforms 63.33% of its industry peers.
DLR has a Debt/Equity ratio of 0.81. This is a neutral value indicating DLR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, 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 | 0.81 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.41 |
ROIC/WACC0.2
WACC7.2%
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.
DLR has a Quick 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.
The Quick ratio of DLR (1.35) is better than 66.67% of its industry peers.
| 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 222.88%, which is quite impressive.
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 5.64% in the last year.
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)222.88%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%1370%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%10.05%
3.2 Future
DLR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.50% yearly.
The Revenue is expected to grow by 9.41% on average over the next years. This is quite good.
EPS Next Y120.63%
EPS Next 2Y4.31%
EPS Next 3Y10.59%
EPS Next 5Y36.5%
Revenue Next Year6.94%
Revenue Next 2Y8.96%
Revenue Next 3Y9.63%
Revenue Next 5Y9.41%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 45.39, 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.
Compared to an average S&P500 Price/Earnings ratio of 27.69, DLR is valued quite expensively.
With a Price/Forward Earnings ratio of 98.09, DLR can be considered very expensive at the moment.
DLR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DLR is more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, DLR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.39 | ||
| Fwd PE | 98.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLR is valued more expensive than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 28 |
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)0.38
PEG (5Y)N/A
EPS Next 2Y4.31%
EPS Next 3Y10.59%
5. Dividend
5.1 Amount
DLR has a Yearly Dividend Yield of 2.81%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.81, DLR pays less dividend than the industry average, which is at 5.76. 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 2.34, DLR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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
127.47% 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.
DP127.47%
EPS Next 2Y4.31%
EPS Next 3Y10.59%
172.92
+0.19 (+0.11%)
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 Change0.1%
Ins Owners0.01%
Ins Owner Change0.17%
Market Cap58.97B
Analysts77.5
Price Target199.27 (15.24%)
Short Float %2.34%
Short Ratio5.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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)0%
PT rev (3m)3.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.48%
EPS NY rev (1m)13.96%
EPS NY rev (3m)150.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.39 | ||
| Fwd PE | 98.09 | ||
| P/S | 10.22 | ||
| P/FCF | N/A | ||
| P/OCF | 24.82 | ||
| P/B | 2.57 | ||
| P/tB | 5.31 | ||
| EV/EBITDA | 28 |
EPS(TTM)3.81
EY2.2%
EPS(NY)1.76
Fwd EY1.02%
FCF(TTM)-1.85
FCFYN/A
OCF(TTM)6.97
OCFY4.03%
SpS16.91
BVpS67.19
TBVpS32.56
PEG (NY)0.38
PEG (5Y)N/A
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%
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 | 0.81 | ||
| 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 | 1.41 |
F-Score6
WACC7.2%
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)222.88%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%1370%
EPS Next Y120.63%
EPS Next 2Y4.31%
EPS Next 3Y10.59%
EPS Next 5Y36.5%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%10.05%
Revenue Next Year6.94%
Revenue Next 2Y8.96%
Revenue Next 3Y9.63%
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%