DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
USA - NYSE:DLR - US2538681030 - REIT
157.7 USD
-0.48 (-0.3%)
157.7 USD
0 (0%)
Taking everything into account, DLR scores 4 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.
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
DLR has a Return On Assets (2.79%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 5.90%, DLR is in line with its industry, outperforming 56.67% of the companies in the same industry.
DLR has a worse Return On Invested Capital (1.52%) than 73.33% of its industry peers.
DLR had an Average Return On Invested Capital over the past 3 years of 1.29%. This is below the industry average of 4.77%.
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's Profit Margin of 22.98% is in line compared to the rest of the industry. DLR outperforms 60.00% of its industry peers.
DLR's Profit Margin has declined in the last couple of years.
DLR has a worse Operating Margin (14.39%) than 80.00% of its industry peers.
DLR's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 58.06%, DLR is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
DLR's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for DLR has been increased compared to 1 year ago.
DLR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DLR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that DLR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.28, DLR is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.21
WACC7.15%
2.3 Liquidity
A Current Ratio of 1.25 indicates that DLR should not have too much problems paying its short term obligations.
DLR has a better Current ratio (1.25) than 76.67% of its industry peers.
DLR has a Quick 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.
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
The Earnings Per Share has grown by an impressive 225.21% over the past 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 7.75%.
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)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
DLR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.08% yearly.
EPS Next Y131%
EPS Next 2Y8.15%
EPS Next 3Y13.34%
EPS Next 5Y38.15%
Revenue Next Year8.15%
Revenue Next 2Y9.53%
Revenue Next 3Y10.05%
Revenue Next 5Y10.08%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 40.75 indicates a quite expensive valuation of DLR.
The rest of the industry has a similar Price/Earnings ratio as DLR.
The average S&P500 Price/Earnings ratio is at 25.56. DLR is valued rather expensively when compared to this.
DLR is valuated quite expensively with a Price/Forward Earnings ratio of 83.23.
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 70.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.62. DLR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.75 | ||
| Fwd PE | 83.23 |
4.2 Price Multiples
DLR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. DLR is more expensive than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.38 |
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.
DLR's earnings are expected to grow with 13.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y8.15%
EPS Next 3Y13.34%
5. Dividend
5.1 Amount
DLR has a Yearly Dividend Yield of 3.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.26, DLR's dividend is way lower than its industry peers. On top of this 80.00% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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
127.21% of the earnings are spent on dividend by DLR. This is not a sustainable payout ratio.
The dividend of DLR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP127.21%
EPS Next 2Y8.15%
EPS Next 3Y13.34%
157.7
-0.48 (-0.3%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.45%
Inst Owner Change2.13%
Ins Owners0.01%
Ins Owner Change0.36%
Market Cap53.78B
Revenue(TTM)5.91B
Net Income(TTM)1.36B
Analysts78.82
Price Target202.16 (28.19%)
Short Float %2.6%
Short Ratio5.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend5.04
Dividend Growth(5Y)0.96%
DP127.21%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)301.72%
Min EPS beat(2)-55.09%
Max EPS beat(2)658.54%
EPS beat(4)2
Avg EPS beat(4)171.24%
Min EPS beat(4)-55.09%
Max EPS beat(4)658.54%
EPS beat(8)3
Avg EPS beat(8)93.11%
EPS beat(12)4
Avg EPS beat(12)49.48%
EPS beat(16)6
Avg EPS beat(16)105.14%
Revenue beat(2)2
Avg Revenue beat(2)2.21%
Min Revenue beat(2)2.2%
Max Revenue beat(2)2.22%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)2.22%
Revenue beat(8)2
Avg Revenue beat(8)-0.9%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)3
Avg Revenue beat(16)-1.05%
PT rev (1m)1.45%
PT rev (3m)1.59%
EPS NQ rev (1m)4.91%
EPS NQ rev (3m)2.17%
EPS NY rev (1m)4.7%
EPS NY rev (3m)162.77%
Revenue NQ rev (1m)1.21%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)1.13%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.75 | ||
| Fwd PE | 83.23 | ||
| P/S | 9.09 | ||
| P/FCF | N/A | ||
| P/OCF | 21.84 | ||
| P/B | 2.34 | ||
| P/tB | 4.76 | ||
| EV/EBITDA | 25.38 |
EPS(TTM)3.87
EY2.45%
EPS(NY)1.89
Fwd EY1.2%
FCF(TTM)-1.32
FCFYN/A
OCF(TTM)7.22
OCFY4.58%
SpS17.34
BVpS67.51
TBVpS33.12
PEG (NY)0.31
PEG (5Y)N/A
Graham Number76.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 5.9% | ||
| ROCE | 1.92% | ||
| ROIC | 1.52% | ||
| ROICexc | 1.64% | ||
| ROICexgc | 2.33% | ||
| OM | 14.39% | ||
| PM (TTM) | 22.98% | ||
| GM | 58.06% | ||
| 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%
ROICexgc growth 3Y-14.91%
ROICexgc 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-Score8
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.73 | ||
| Cap/Depr | 156.98% | ||
| Cap/Sales | 49.28% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 90.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 1.28 |
F-Score8
WACC7.15%
ROIC/WACC0.21
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)225.21%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%66.67%
EPS Next Y131%
EPS Next 2Y8.15%
EPS Next 3Y13.34%
EPS Next 5Y38.15%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%10.2%
Revenue Next Year8.15%
Revenue Next 2Y9.53%
Revenue Next 3Y10.05%
Revenue Next 5Y10.08%
EBIT growth 1Y45.74%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.05%
EBIT Next Year486.09%
EBIT Next 3Y94.05%
EBIT Next 5Y56.8%
FCF growth 1Y73.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y51.19%
OCF growth 3Y9.93%
OCF growth 5Y8.36%
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.
Can you provide the valuation status for DIGITAL REALTY TRUST INC?
ChartMill assigns a valuation rating of 2 / 10 to DIGITAL REALTY TRUST INC (DLR). This can be considered as Overvalued.
How profitable is DIGITAL REALTY TRUST INC (DLR) stock?
DIGITAL REALTY TRUST INC (DLR) has a profitability rating of 3 / 10.
What is the valuation of DIGITAL REALTY TRUST INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DIGITAL REALTY TRUST INC (DLR) is 40.75 and the Price/Book (PB) ratio is 2.34.
Is the dividend of DIGITAL REALTY TRUST INC sustainable?
The dividend rating of DIGITAL REALTY TRUST INC (DLR) is 5 / 10 and the dividend payout ratio is 127.21%.