DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLR - US2538681030 - REIT
161.57 USD
+2.41 (+1.51%)
161.57 USD
0 (0%)
DLR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. DLR has a bad profitability rating. Also its financial health evaluation is rather negative. DLR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- DLR had positive earnings in the past year.
- DLR had a positive operating cash flow in the past year.
- Each year in the past 5 years DLR has been profitable.
- DLR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of DLR (2.79%) is comparable to the rest of the 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.
- DLR had an Average Return On Invested Capital over the past 3 years of 1.29%. This is below the industry average of 4.86%.
- The 3 year average ROIC (1.29%) for DLR is below the current ROIC(1.52%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- DLR has a Profit Margin of 22.98%. This is comparable to the rest of the industry: DLR outperforms 60.00% of its industry peers.
- 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.
- The Gross Margin of DLR (58.06%) is worse than 63.33% of its industry peers.
- In the last couple of years the Gross Margin of DLR has declined.
| Industry Rank | Sector 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%
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 1.30. This is a bad value and indicates that DLR is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.30, DLR is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
- A Debt/Equity ratio of 0.79 indicates that DLR is somewhat dependend on debt financing.
- The Debt to Equity ratio of DLR (0.79) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACC0.2
WACC7.48%
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.
- Looking at the Quick ratio, with a value of 1.25, DLR is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
- DLR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 225.21%, which is quite impressive.
- 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.
- The Revenue has been growing slightly by 7.75% in the past year.
- The Revenue has been growing by 11.60% on average over the past years. This is quite good.
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
- DLR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.15% yearly.
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 41.75 indicates a quite expensive valuation of DLR.
- DLR's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.25. DLR is valued rather expensively when compared to this.
- DLR is valuated quite expensively with a Price/Forward Earnings ratio of 98.29.
- 66.67% of the companies in the same industry are cheaper than DLR, based on the Price/Forward Earnings ratio.
- DLR is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.75 | ||
| Fwd PE | 98.29 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DLR indicates a slightly more expensive valuation: DLR is more expensive than 76.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.71 |
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)0.32
PEG (5Y)N/A
EPS Next 2Y0.73%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.07%, DLR has a reasonable but not impressive dividend return.
- With a Dividend Yield of 3.07, DLR pays less dividend than the industry average, which is at 5.51. 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 1.82, DLR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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 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
- 127.21% 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.
DP127.21%
EPS Next 2Y0.73%
EPS Next 3Y8.44%
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.