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 3 out of 10. The analysis compared the fundamentals 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.
1. Profitability
1.1 Basic Checks
In the past year DLR was profitable.
DLR had a positive operating cash flow in the past year.
In the past 5 years DLR has always been profitable.
Each year in the past 5 years DLR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DLR (0.87%) is worse than 63.33% of its industry peers.
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.
DLR has a worse Return On Invested Capital (1.19%) than 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLR 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
DLR has a Profit Margin (6.93%) which is comparable to the rest of the industry.
DLR's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 11.01%, DLR is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
DLR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 57.79%, DLR is doing worse than 66.67% of the companies in the same industry.
DLR's Gross Margin has declined in the last couple of years.
| 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
DLR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for DLR has been increased compared to 1 year ago.
The number of shares outstanding for DLR has been increased compared to 5 years ago.
The debt/assets ratio for DLR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that DLR is in the distress zone and has some risk of bankruptcy.
DLR has a Altman-Z score of 1.42. This is comparable to the rest of the industry: DLR outperforms 60.00% of its industry peers.
DLR has a Debt/Equity ratio of 0.80. This is a neutral value indicating DLR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.80, 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 | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.42 |
ROIC/WACC0.16
WACC7.44%
2.3 Liquidity
DLR has a Current Ratio of 1.14. 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 better Current ratio (1.14) than 66.67% of its industry peers.
A Quick Ratio of 1.14 indicates that DLR should not have too much problems paying its short term obligations.
DLR has a Quick ratio of 1.14. This is in the better half of the industry: DLR outperforms 70.00% 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.
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.
DLR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.96%.
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)-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
The Earnings Per Share is expected to grow by 36.35% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.92% on average over the next years. This is quite good.
EPS Next Y-12.35%
EPS Next 2Y2.32%
EPS Next 3Y12.34%
EPS Next 5Y36.35%
Revenue Next Year5.15%
Revenue Next 2Y8.09%
Revenue Next 3Y9.17%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 158.67, 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 70.00% of the companies in the same industry.
DLR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.60.
With a Price/Forward Earnings ratio of 100.11, 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.
When comparing the Price/Forward Earnings ratio of DLR to the average of the S&P500 Index (22.43), we can say DLR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 158.67 | ||
| Fwd PE | 100.11 |
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 | 29.95 |
4.3 Compensation for Growth
DLR's earnings are expected to grow with 12.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.32%
EPS Next 3Y12.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.91%, DLR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.67, DLR's dividend is way lower than its industry peers. On top of this 83.33% of the companies listed in the same industry pay a better dividend than DLR!
DLR's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector 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 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
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 2Y2.32%
EPS Next 3Y12.34%
NYSE:DLR (5/21/2025, 11:18:56 AM)
169.78
-0.35 (-0.21%)
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 Change1.91%
Ins Owners0.02%
Ins Owner Change0.24%
Market Cap57.17B
Analysts78.62
Price Target189.38 (11.54%)
Short Float %2.53%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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)-1.24%
PT rev (3m)-1.6%
EPS NQ rev (1m)4.13%
EPS NQ rev (3m)17.73%
EPS NY rev (1m)13.05%
EPS NY rev (3m)16.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 158.67 | ||
| Fwd PE | 100.11 | ||
| P/S | 10.15 | ||
| P/FCF | N/A | ||
| P/OCF | 24.77 | ||
| P/B | 2.68 | ||
| P/tB | 5.72 | ||
| EV/EBITDA | 29.95 |
EPS(TTM)1.07
EY0.63%
EPS(NY)1.7
Fwd EY1%
FCF(TTM)-1.93
FCFYN/A
OCF(TTM)6.85
OCFY4.04%
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 | 1.42 |
F-Score6
WACC7.44%
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-12.35%
EPS Next 2Y2.32%
EPS Next 3Y12.34%
EPS Next 5Y36.35%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%5.75%
Revenue Next Year5.15%
Revenue Next 2Y8.09%
Revenue Next 3Y9.17%
Revenue Next 5Y8.92%
EBIT growth 1Y-10.86%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.05%
EBIT Next Year462.64%
EBIT Next 3Y91.76%
EBIT Next 5Y56.07%
FCF growth 1Y42.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.32%
OCF growth 3Y9.93%
OCF growth 5Y8.36%