DIGITAL REALTY TRUST INC (DLR)
US2538681030 - REIT
DLR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 28 industry peers in the Specialized REITs industry. DLR may be in some trouble as it scores bad on both profitability and health. 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.
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.
1.2 Ratios
DLR has a Return On Assets of 2.13%. This is comparable to the rest of the industry: DLR outperforms 50.00% of its industry peers.
DLR's Return On Equity of 4.91% is in line compared to the rest of the industry. DLR outperforms 50.00% of its industry peers.
The Return On Invested Capital of DLR (1.40%) is worse than 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLR is below the industry average of 4.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 4.91% | ||
| ROIC | 1.4% |
ROA(3y)2.06%
ROA(5y)1.87%
ROE(3y)4.25%
ROE(5y)4.05%
ROIC(3y)1.62%
ROIC(5y)1.86%
1.3 Margins
The Profit Margin of DLR (16.73%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DLR has remained more or less at the same level.
DLR has a Operating Margin of 12.57%. This is amonst the worse of the industry: DLR underperforms 89.29% of its industry peers.
In the last couple of years the Operating Margin of DLR has declined.
DLR's Gross Margin of 56.20% is on the low side compared to the rest of the industry. DLR is outperformed by 67.86% of its industry peers.
DLR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.57% | ||
| PM (TTM) | 16.73% | ||
| GM | 56.2% |
OM growth 3Y-10.32%
OM growth 5Y-9.03%
PM growth 3Y-22.39%
PM growth 5Y0.39%
GM growth 3Y-1.49%
GM growth 5Y-1.28%
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.
Compared to 1 year ago, DLR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that DLR is in the distress zone and has some risk of bankruptcy.
DLR has a Altman-Z score (1.02) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.93 indicates that DLR is somewhat dependend on debt financing.
DLR has a Debt to Equity ratio of 0.93. This is comparable to the rest of the industry: DLR outperforms 53.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC0.18
WACC7.96%
2.3 Liquidity
A Current Ratio of 0.75 indicates that DLR may have some problems paying its short term obligations.
DLR has a Current ratio (0.75) which is in line with its industry peers.
DLR has a Quick Ratio of 0.75. This is a bad value and indicates that DLR is not financially healthy enough and could expect problems in meeting its short term obligations.
DLR has a Quick ratio (0.75) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The earnings per share for DLR have decreased strongly by -87.27% in the last year.
DLR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.52% yearly.
Looking at the last year, DLR shows a quite strong growth in Revenue. The Revenue has grown by 16.86% in the last year.
DLR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.80% yearly.
EPS 1Y (TTM)-87.27%
EPS 3Y-21.43%
EPS 5Y-0.52%
EPS growth Q2Q-89.33%
Revenue 1Y (TTM)16.86%
Revenue growth 3Y13.5%
Revenue growth 5Y13.8%
Revenue growth Q2Q17.65%
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 22.47% on average per year.
The Revenue is expected to grow by 8.23% on average over the next years. This is quite good.
EPS Next Y154.54%
EPS Next 2Y1.78%
EPS Next 3Y9.44%
EPS Next 5Y22.47%
Revenue Next Year17.83%
Revenue Next 2Y11.58%
Revenue Next 3Y10.16%
Revenue Next 5Y8.23%
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
A Price/Earnings ratio of 217.34 indicates a quite expensive valuation of DLR.
Based on the Price/Earnings ratio, DLR is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
DLR is valuated expensively when we compare the Price/Earnings ratio to 24.54, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 114.11, which means the current valuation is very expensive for DLR.
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 71.43% of the companies listed in the same industry.
DLR is valuated expensively when we compare the Price/Forward Earnings ratio to 20.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 217.34 | ||
| Fwd PE | 114.11 |
4.2 Price Multiples
78.57% 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 | 23.84 |
4.3 Compensation for Growth
DLR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.41
PEG (5Y)N/A
EPS Next 2Y1.78%
EPS Next 3Y9.44%
5. Dividend
5.1 Amount
DLR has a Yearly Dividend Yield of 3.64%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.67, DLR is paying slightly less dividend.
DLR's Dividend Yield is a higher than the S&P500 average which is at 2.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
5.2 History
The dividend of DLR has a limited annual growth rate of 5.11%.
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)5.11%
Div Incr Years18
Div Non Decr Years19
5.3 Sustainability
170.18% 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.
DP170.18%
EPS Next 2Y1.78%
EPS Next 3Y9.44%
DIGITAL REALTY TRUST INC
NYSE:DLR (12/11/2023, 3:19:02 PM)
After market: 134.75 0 (0%)134.75
-0.06 (-0.04%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 217.34 | ||
| Fwd PE | 114.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 4.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.57% | ||
| PM (TTM) | 16.73% | ||
| GM | 56.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-87.27%
EPS 3Y-21.43%
EPS 5Y
EPS growth Q2Q
EPS Next Y154.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.86%
Revenue growth 3Y13.5%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y