DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
NYSE:DLR - New York Stock Exchange, Inc. - US2538681030 - REIT - Currency: USD
Taking everything into account, DLR scores 3 out of 10 in our fundamental rating. DLR was compared to 30 industry peers in the Specialized REITs industry. Both the profitability and financial health of DLR have multiple concerns. DLR is valied quite expensively at the moment, while it does show a decent growth rate. Finally DLR also has an excellent dividend rating.
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.
DLR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.87%, DLR is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
With a Return On Equity value of 1.83%, DLR is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 1.19%, DLR is doing worse than 90.00% 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 5.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.87% | ||
| ROE | 1.83% | ||
| ROIC | 1.19% |
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
With a Profit Margin value of 6.93%, DLR perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
In the last couple of years the Profit Margin of DLR has declined.
Looking at the Operating Margin, with a value of 11.01%, DLR is doing worse than 83.33% of the companies in the same industry.
DLR's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 57.79%, DLR is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of DLR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.01% | ||
| PM (TTM) | 6.93% | ||
| GM | 57.79% |
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
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
DLR has an Altman-Z score of 1.44. This is a bad value and indicates that DLR is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.44, DLR is doing good in the industry, outperforming 63.33% of the companies in the same industry.
A Debt/Equity ratio of 0.80 indicates that DLR is somewhat dependend on debt financing.
DLR's Debt to Equity ratio of 0.80 is fine compared to the rest of the industry. DLR outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.44 |
ROIC/WACC0.16
WACC7.32%
2.3 Liquidity
A Current Ratio of 1.14 indicates that DLR should not have too much problems paying its short term obligations.
DLR's Current ratio of 1.14 is fine compared to the rest of the industry. DLR outperforms 63.33% of its industry peers.
A Quick Ratio of 1.14 indicates that DLR should not have too much problems paying its short term obligations.
The Quick ratio of DLR (1.14) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for DLR have decreased strongly by -20.74% in the last year.
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.
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)-20.74%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%-67.07%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%5.75%
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 35.25% on average per year.
The Revenue is expected to grow by 9.13% on average over the next years. This is quite good.
EPS Next Y-9.91%
EPS Next 2Y4.17%
EPS Next 3Y12%
EPS Next 5Y35.25%
Revenue Next Year5.12%
Revenue Next 2Y8%
Revenue Next 3Y9.03%
Revenue Next 5Y9.13%
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
Based on the Price/Earnings ratio of 160.90, the valuation of DLR can be described as expensive.
Based on the Price/Earnings ratio, DLR is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.28, DLR is valued quite expensively.
With a Price/Forward Earnings ratio of 97.93, DLR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DLR indicates a slightly more expensive valuation: DLR is more expensive than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, DLR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 160.9 | ||
| Fwd PE | 97.93 |
4.2 Price Multiples
90.00% of the companies in the same industry are cheaper than DLR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 30.23 |
4.3 Compensation for Growth
DLR's earnings are expected to grow with 12.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.17%
EPS Next 3Y12%
5. Dividend
5.1 Amount
DLR has a Yearly Dividend Yield of 6.46%, which is a nice return.
DLR's Dividend Yield is rather good when compared to the industry average which is at 5.88. DLR pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, DLR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
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
5.3 Sustainability
433.93% 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.
DP433.93%
EPS Next 2Y4.17%
EPS Next 3Y12%
172.16
+0.91 (+0.53%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.97%
Inst Owner Change1.85%
Ins Owners0.01%
Ins Owner Change0.42%
Market Cap57.97B
Analysts79.33
Price Target191.34 (11.14%)
Short Float %2.21%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
Yearly Dividend5.04
Dividend Growth(5Y)0.96%
DP433.93%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)40.76%
Min EPS beat(2)-7.36%
Max EPS beat(2)88.89%
EPS beat(4)1
Avg EPS beat(4)-1.87%
Min EPS beat(4)-68.6%
Max EPS beat(4)88.89%
EPS beat(8)3
Avg EPS beat(8)13.9%
EPS beat(12)4
Avg EPS beat(12)7.62%
EPS beat(16)7
Avg EPS beat(16)78.24%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-2.25%
Revenue beat(4)0
Avg Revenue beat(4)-2.18%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)-1.09%
Revenue beat(8)0
Avg Revenue beat(8)-1.69%
Revenue beat(12)1
Avg Revenue beat(12)-1.67%
Revenue beat(16)3
Avg Revenue beat(16)-1.11%
PT rev (1m)1.04%
PT rev (3m)-0.24%
EPS NQ rev (1m)14.56%
EPS NQ rev (3m)16.51%
EPS NY rev (1m)2.79%
EPS NY rev (3m)8.02%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 160.9 | ||
| Fwd PE | 97.93 | ||
| P/S | 10.29 | ||
| P/FCF | N/A | ||
| P/OCF | 25.12 | ||
| P/B | 2.72 | ||
| P/tB | 5.8 | ||
| EV/EBITDA | 30.23 |
EPS(TTM)1.07
EY0.62%
EPS(NY)1.76
Fwd EY1.02%
FCF(TTM)-1.93
FCFYN/A
OCF(TTM)6.85
OCFY3.98%
SpS16.72
BVpS63.24
TBVpS29.68
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.87% | ||
| ROE | 1.83% | ||
| ROCE | 1.5% | ||
| ROIC | 1.19% | ||
| ROICexc | 1.26% | ||
| ROICexgc | 1.8% | ||
| OM | 11.01% | ||
| PM (TTM) | 6.93% | ||
| GM | 57.79% | ||
| 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 | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.08 | ||
| Cap/Depr | 165.93% | ||
| Cap/Sales | 52.56% | ||
| Interest Coverage | 1.49 | ||
| Cash Conversion | 96.02% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.44 |
F-Score6
WACC7.32%
ROIC/WACC0.16
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)-20.74%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%-67.07%
EPS Next Y-9.91%
EPS Next 2Y4.17%
EPS Next 3Y12%
EPS Next 5Y35.25%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%5.75%
Revenue Next Year5.12%
Revenue Next 2Y8%
Revenue Next 3Y9.03%
Revenue Next 5Y9.13%
EBIT growth 1Y-10.86%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.05%
EBIT Next Year474.1%
EBIT Next 3Y93.38%
EBIT Next 5Y55.98%
FCF growth 1Y42.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.32%
OCF growth 3Y9.93%
OCF growth 5Y8.36%