DIGITAL REALTY TRUST INC (DLR)
US2538681030 - REIT
We assign a fundamental rating of 3 out of 10 to DLR. DLR was compared to 28 industry peers in the Specialized REITs industry. Both the profitability and financial health of DLR have multiple concerns. DLR is quite expensive at the moment. 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.
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
DLR has a Return On Assets of 2.63%. This is in the lower half of the industry: DLR underperforms 60.71% of its industry peers.
DLR has a Return On Equity (5.89%) which is in line with its industry peers.
The Return On Invested Capital of DLR (1.41%) is worse than 89.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DLR is below the industry average of 5.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.63% | ||
| ROE | 5.89% | ||
| ROIC | 1.41% |
ROA(3y)2.5%
ROA(5y)2.07%
ROE(3y)5.34%
ROE(5y)4.5%
ROIC(3y)1.54%
ROIC(5y)1.71%
1.3 Margins
DLR's Profit Margin of 20.49% is fine compared to the rest of the industry. DLR outperforms 60.71% of its industry peers.
In the last couple of years the Profit Margin of DLR has grown nicely.
DLR has a Operating Margin of 12.72%. This is amonst the worse of the industry: DLR underperforms 89.29% of its industry peers.
In the last couple of years the Operating Margin of DLR has declined.
DLR has a worse Gross Margin (55.70%) than 67.86% of its industry peers.
DLR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.72% | ||
| PM (TTM) | 20.49% | ||
| GM | 55.7% |
OM growth 3Y-9.21%
OM growth 5Y-8.02%
PM growth 3Y34.96%
PM growth 5Y15.11%
GM growth 3Y-4.98%
GM growth 5Y-2.96%
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.
Compared to 5 years ago, DLR has more shares outstanding
The debt/assets ratio for DLR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that DLR is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.17, DLR is doing good in the industry, outperforming 60.71% of the companies in the same industry.
DLR has a Debt/Equity ratio of 0.89. This is a neutral value indicating DLR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, DLR is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.17 |
ROIC/WACC0.18
WACC7.9%
2.3 Liquidity
DLR has a Current Ratio of 0.82. This is a bad value and indicates that DLR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of DLR (0.82) is comparable to the rest of the industry.
A Quick Ratio of 0.82 indicates that DLR may have some problems paying its short term obligations.
DLR's Quick ratio of 0.82 is fine compared to the rest of the industry. DLR outperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
DLR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.62%, which is quite impressive.
The earnings per share for DLR have been decreasing by -10.01% on average. This is quite bad
DLR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.55%.
Measured over the past years, DLR shows a quite strong growth in Revenue. The Revenue has been growing by 12.45% on average per year.
EPS 1Y (TTM)21.62%
EPS 3Y-19.88%
EPS 5Y-10.01%
EPS Q2Q%331.58%
Revenue 1Y (TTM)11.55%
Revenue growth 3Y11.95%
Revenue growth 5Y12.45%
Sales Q2Q%-0.57%
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 38.48% on average per year.
DLR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.07% yearly.
EPS Next Y129.16%
EPS Next 2Y37.26%
EPS Next 3Y32.05%
EPS Next 5Y38.48%
Revenue Next Year1.46%
Revenue Next 2Y4.19%
Revenue Next 3Y5.05%
Revenue Next 5Y6.07%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 107.66, which means the current valuation is very expensive for DLR.
DLR's Price/Earnings ratio is a bit more expensive when compared to the industry. DLR is more expensive than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.05. DLR is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 107.14 indicates a quite expensive valuation of DLR.
Based on the Price/Forward Earnings ratio, DLR is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of DLR to the average of the S&P500 Index (20.07), we can say DLR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 107.66 | ||
| Fwd PE | 107.14 |
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 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 26.06 |
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 32.05% in the coming years.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y37.26%
EPS Next 3Y32.05%
5. Dividend
5.1 Amount
DLR has a Yearly Dividend Yield of 3.39%.
Compared to an average industry Dividend Yield of 5.12, DLR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.37, DLR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
5.2 History
The dividend of DLR has a limited annual growth rate of 2.18%.
DLR has paid a dividend for at least 10 years, which is 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)2.18%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
140.17% 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.
DP140.17%
EPS Next 2Y37.26%
EPS Next 3Y32.05%
DIGITAL REALTY TRUST INC
NYSE:DLR (5/31/2024, 7:04:00 PM)
After market: 145.34 0 (0%)145.34
+1.3 (+0.9%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap47.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 107.66 | ||
| Fwd PE | 107.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.63% | ||
| ROE | 5.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.72% | ||
| PM (TTM) | 20.49% | ||
| GM | 55.7% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)21.62%
EPS 3Y-19.88%
EPS 5Y
EPS Q2Q%
EPS Next Y129.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.55%
Revenue growth 3Y11.95%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y