DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
NYSE:DLR - New York Stock Exchange, Inc. - US2538681030 - REIT - Currency: USD
DLR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. While DLR seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
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
Looking at the Return On Assets, with a value of 1.24%, DLR is doing worse than 63.33% of the companies in the same industry.
DLR has a Return On Equity (2.63%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 1.09%, DLR is doing worse than 86.67% 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 5.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 2.63% | ||
| ROIC | 1.09% |
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 (10.11%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DLR has declined.
Looking at the Operating Margin, with a value of 10.18%, DLR is doing worse than 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of DLR has declined.
DLR's Gross Margin of 57.41% is on the low side compared to the rest of the industry. DLR is outperformed by 66.67% of its industry peers.
In the last couple of years the Gross Margin of DLR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.18% | ||
| PM (TTM) | 10.11% | ||
| GM | 57.41% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DLR 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 1.36, we must say that DLR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DLR (1.36) is comparable to the rest of the industry.
DLR has a Debt/Equity ratio of 0.78. This is a neutral value indicating DLR is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.78, DLR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.36 |
ROIC/WACC0.15
WACC7.24%
2.3 Liquidity
A Current Ratio of 1.33 indicates that DLR should not have too much problems paying its short term obligations.
DLR has a Current ratio of 1.33. This is amongst the best in the industry. DLR outperforms 83.33% of its industry peers.
DLR has a Quick Ratio of 1.33. This is a normal value and indicates that DLR is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.33, DLR belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
DLR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 90.37%, 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 2.96% 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)90.37%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%115.85%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%5.75%
3.2 Future
DLR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.35% yearly.
The Revenue is expected to grow by 8.92% on average over the next years. This is quite good.
EPS Next Y-22.47%
EPS Next 2Y-4.29%
EPS Next 3Y6.79%
EPS Next 5Y36.35%
Revenue Next Year5.21%
Revenue Next 2Y8.06%
Revenue Next 3Y9.08%
Revenue Next 5Y8.92%
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
With a Price/Earnings ratio of 62.21, DLR can be considered very expensive at the moment.
66.67% of the companies in the same industry are cheaper than DLR, based on the Price/Earnings ratio.
DLR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.78.
With a Price/Forward Earnings ratio of 107.74, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, DLR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.21 | ||
| Fwd PE | 107.74 |
4.2 Price Multiples
DLR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. DLR is more expensive than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 28.52 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.29%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
DLR has a Yearly Dividend Yield of 3.17%. Purely for dividend investing, there may be better candidates out there.
DLR's Dividend Yield is slightly below the industry average, which is at 5.80.
Compared to an average S&P500 Dividend Yield of 2.46, DLR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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
DLR pays out 290.73% 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.
DP290.73%
EPS Next 2Y-4.29%
EPS Next 3Y6.79%
159.88
+6.13 (+3.99%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.54%
Inst Owner Change-49.24%
Ins Owners0.02%
Ins Owner Change0.24%
Market Cap53.82B
Analysts78.62
Price Target187.83 (17.48%)
Short Float %3.18%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
Yearly Dividend5.04
Dividend Growth(5Y)0.96%
DP290.73%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.15%
Min EPS beat(2)-68.6%
Max EPS beat(2)88.89%
EPS beat(4)2
Avg EPS beat(4)54.45%
Min EPS beat(4)-68.6%
Max EPS beat(4)217.9%
EPS beat(8)3
Avg EPS beat(8)13.15%
EPS beat(12)4
Avg EPS beat(12)6.48%
EPS beat(16)8
Avg EPS beat(16)100.83%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-1.09%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-1.94%
Revenue beat(12)1
Avg Revenue beat(12)-1.54%
Revenue beat(16)4
Avg Revenue beat(16)-0.8%
PT rev (1m)-2.62%
PT rev (3m)1.05%
EPS NQ rev (1m)-9.59%
EPS NQ rev (3m)1%
EPS NY rev (1m)-7.04%
EPS NY rev (3m)4.05%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-2.64%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-3.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.21 | ||
| Fwd PE | 107.74 | ||
| P/S | 9.69 | ||
| P/FCF | N/A | ||
| P/OCF | 23.8 | ||
| P/B | 2.52 | ||
| P/tB | 5.26 | ||
| EV/EBITDA | 28.52 |
EPS(TTM)2.57
EY1.61%
EPS(NY)1.48
Fwd EY0.93%
FCF(TTM)-1.69
FCFYN/A
OCF(TTM)6.72
OCFY4.2%
SpS16.5
BVpS63.39
TBVpS30.39
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 2.63% | ||
| ROCE | 1.38% | ||
| ROIC | 1.09% | ||
| ROICexc | 1.21% | ||
| ROICexgc | 1.75% | ||
| OM | 10.18% | ||
| PM (TTM) | 10.11% | ||
| GM | 57.41% | ||
| 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 | 0.78 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.15 | ||
| Cap/Depr | 159.82% | ||
| Cap/Sales | 50.98% | ||
| Interest Coverage | 1.29 | ||
| Cash Conversion | 96.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 1.36 |
F-Score6
WACC7.24%
ROIC/WACC0.15
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)90.37%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%115.85%
EPS Next Y-22.47%
EPS Next 2Y-4.29%
EPS Next 3Y6.79%
EPS Next 5Y36.35%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%5.75%
Revenue Next Year5.21%
Revenue Next 2Y8.06%
Revenue Next 3Y9.08%
Revenue Next 5Y8.92%
EBIT growth 1Y-19.66%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.05%
EBIT Next Year462.64%
EBIT Next 3Y91.76%
EBIT Next 5Y56.07%
FCF growth 1Y69.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y38.34%
OCF growth 3Y9.93%
OCF growth 5Y8.36%