DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:DLR • US2538681030

165.95 USD
-1.49 (-0.89%)
At close: Jan 30, 2026
165.95 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Fundamental Rating

4

Overall DLR gets a fundamental rating of 4 out of 10. We evaluated DLR against 30 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.


Dividend Valuation Growth Profitability Health

3

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.
DLR Yearly Net Income VS EBIT VS OCF VS FCFDLR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B

1.2 Ratios

  • With a Return On Assets value of 2.79%, DLR perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
  • The Return On Equity of DLR (5.90%) is comparable to the rest of the industry.
  • With a Return On Invested Capital value of 1.52%, DLR is not doing good in the industry: 70.00% 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 4.86%.
  • The last Return On Invested Capital (1.52%) for DLR is above the 3 year average (1.29%), which is a sign of increasing profitability.
Industry RankSector 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%
DLR Yearly ROA, ROE, ROICDLR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

1.3 Margins

  • With a Profit Margin value of 22.98%, DLR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of DLR has declined.
  • DLR has a worse Operating Margin (14.39%) than 76.67% of its industry peers.
  • In the last couple of years the Operating Margin of DLR has declined.
  • DLR's Gross Margin of 58.06% is on the low side compared to the rest of the industry. DLR is outperformed by 63.33% of its industry peers.
  • DLR's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
DLR Yearly Profit, Operating, Gross MarginsDLR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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3

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.
  • 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.
DLR Yearly Shares OutstandingDLR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
DLR Yearly Total Debt VS Total AssetsDLR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.2 Solvency

  • Based on the Altman-Z score of 1.35, we must say that DLR is in the distress zone and has some risk of bankruptcy.
  • DLR's Altman-Z score of 1.35 is fine compared to the rest of the industry. DLR outperforms 70.00% 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's Debt to Equity ratio of 0.79 is fine compared to the rest of the industry. DLR outperforms 80.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF N/A
Altman-Z 1.35
ROIC/WACC0.2
WACC7.5%
DLR Yearly LT Debt VS Equity VS FCFDLR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B

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 has a Current ratio of 1.25. This is in the better half of the industry: DLR outperforms 76.67% of its industry peers.
  • A Quick Ratio of 1.25 indicates that DLR should not have too much problems paying its short term obligations.
  • DLR has a better Quick ratio (1.25) than 76.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 1.25
DLR Yearly Current Assets VS Current LiabilitesDLR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 225.21% over the past year.
  • DLR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.17% yearly.
  • The Revenue has been growing slightly by 7.75% in the past 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)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

  • The Earnings Per Share is expected to grow by 38.15% on average over the next years. This is a very strong growth
  • 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 Y128.67%
EPS Next 2Y0.73%
EPS Next 3Y8.44%
EPS Next 5Y38.15%
Revenue Next Year8.22%
Revenue Next 2Y9.45%
Revenue Next 3Y9.89%
Revenue Next 5Y10.05%

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.
DLR Yearly Revenue VS EstimatesDLR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B
DLR Yearly EPS VS EstimatesDLR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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1

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 42.88 indicates a quite expensive valuation of DLR.
  • DLR's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 28.32. DLR is valued rather expensively when compared to this.
  • DLR is valuated quite expensively with a Price/Forward Earnings ratio of 100.96.
  • 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 (25.57), we can say DLR is valued expensively.
Industry RankSector Rank
PE 42.88
Fwd PE 100.96
DLR Price Earnings VS Forward Price EarningsDLR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

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 RankSector Rank
P/FCF N/A
EV/EBITDA 26.57
DLR Per share dataDLR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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)0.33
PEG (5Y)N/A
EPS Next 2Y0.73%
EPS Next 3Y8.44%

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5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.91%, DLR has a reasonable but not impressive dividend return.
  • With a Dividend Yield of 2.91, DLR pays less dividend than the industry average, which is at 5.52. 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 1.83, DLR pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.91%

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
DLR Yearly Dividends per shareDLR Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

  • DLR pays out 127.21% 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.
DP127.21%
EPS Next 2Y0.73%
EPS Next 3Y8.44%
DLR Yearly Income VS Free CF VS DividendDLR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B
DLR Dividend Payout.DLR Dividend Payout, showing the Payout Ratio.DLR Dividend Payout.PayoutRetained Earnings

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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.


What is the valuation status of DIGITAL REALTY TRUST INC (DLR) stock?

ChartMill assigns a valuation rating of 1 / 10 to DIGITAL REALTY TRUST INC (DLR). This can be considered as Overvalued.


What is the profitability of DLR stock?

DIGITAL REALTY TRUST INC (DLR) has a profitability rating of 3 / 10.


What is the financial health of DIGITAL REALTY TRUST INC (DLR) stock?

The financial health rating of DIGITAL REALTY TRUST INC (DLR) is 3 / 10.


Can you provide the expected EPS growth for DLR stock?

The Earnings per Share (EPS) of DIGITAL REALTY TRUST INC (DLR) is expected to grow by 128.67% in the next year.