DIGITAL REALTY TRUST INC (DLR) Stock Fundamental Analysis
NYSE:DLR - US2538681030 - REIT
168.85 USD
-0.88 (-0.52%)
DLR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. While DLR is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, DLR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DLR was profitable.
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
DLR has a Return On Assets (2.76%) which is comparable to the rest of the industry.
DLR has a Return On Equity (5.86%) which is comparable to the rest of the industry.
DLR has a worse Return On Invested Capital (1.46%) than 76.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLR is below the industry average of 5.07%.
The last Return On Invested Capital (1.46%) for DLR is above the 3 year average (1.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 5.86% | ||
| ROIC | 1.46% |
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 better Profit Margin (23.27%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of DLR has declined.
The Operating Margin of DLR (14.19%) is worse than 83.33% of its industry peers.
In the last couple of years the Operating Margin of DLR has declined.
DLR's Gross Margin of 57.91% is on the low side compared to the rest of the industry. DLR is outperformed by 66.67% of its industry peers.
In the last couple of years the Gross Margin of DLR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.19% | ||
| PM (TTM) | 23.27% | ||
| GM | 57.91% |
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.
DLR has a better debt/assets ratio than last year.
2.2 Solvency
DLR has an Altman-Z score of 1.39. This is a bad value and indicates that DLR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DLR (1.39) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that DLR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, 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 | 0.81 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACC0.2
WACC7.33%
2.3 Liquidity
A Current Ratio of 1.35 indicates that DLR should not have too much problems paying its short term obligations.
The Current ratio of DLR (1.35) is better than 66.67% of its industry peers.
DLR has a Quick Ratio of 1.35. 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 Quick ratio (1.35) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 222.88% over the past year.
DLR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.17% yearly.
Looking at the last year, DLR shows a small growth in Revenue. The Revenue has grown by 5.64% in the last year.
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)222.88%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%1370%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%10.05%
3.2 Future
DLR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.50% yearly.
Based on estimates for the next years, DLR will show a quite strong growth in Revenue. The Revenue will grow by 9.41% on average per year.
EPS Next Y93.61%
EPS Next 2Y4.59%
EPS Next 3Y10.64%
EPS Next 5Y36.5%
Revenue Next Year6.78%
Revenue Next 2Y8.86%
Revenue Next 3Y9.63%
Revenue Next 5Y9.41%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 44.32, the valuation of DLR can be described as expensive.
DLR's Price/Earnings ratio is in line with the industry average.
DLR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.14.
The Price/Forward Earnings ratio is 95.29, which means the current valuation is very expensive for DLR.
Based on the Price/Forward Earnings ratio, DLR is valued a bit more expensive than 66.67% of the companies in the same industry.
DLR is valuated expensively when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.32 | ||
| Fwd PE | 95.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DLR indicates a rather expensive valuation: DLR more expensive than 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 27.59 |
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)0.47
PEG (5Y)N/A
EPS Next 2Y4.59%
EPS Next 3Y10.64%
5. Dividend
5.1 Amount
DLR has a Yearly Dividend Yield of 2.98%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.98, DLR pays less dividend than the industry average, which is at 6.02. 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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
DLR pays out 127.47% of its income as dividend. This is not a sustainable payout ratio.
DLR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP127.47%
EPS Next 2Y4.59%
EPS Next 3Y10.64%
NYSE:DLR (8/28/2025, 12:34:07 PM)
168.85
-0.88 (-0.52%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.67%
Inst Owner Change-1.2%
Ins Owners0.01%
Ins Owner Change0.26%
Market Cap57.59B
Analysts77.58
Price Target199.04 (17.88%)
Short Float %1.83%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend5.04
Dividend Growth(5Y)0.96%
DP127.47%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)325.59%
Min EPS beat(2)-7.36%
Max EPS beat(2)658.54%
EPS beat(4)2
Avg EPS beat(4)167.87%
Min EPS beat(4)-68.6%
Max EPS beat(4)658.54%
EPS beat(8)3
Avg EPS beat(8)91.49%
EPS beat(12)5
Avg EPS beat(12)65.36%
EPS beat(16)7
Avg EPS beat(16)113.32%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)2.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)2.2%
Revenue beat(8)1
Avg Revenue beat(8)-1.25%
Revenue beat(12)2
Avg Revenue beat(12)-1.29%
Revenue beat(16)3
Avg Revenue beat(16)-1.05%
PT rev (1m)3.65%
PT rev (3m)5.1%
EPS NQ rev (1m)-13.72%
EPS NQ rev (3m)-4.31%
EPS NY rev (1m)120.24%
EPS NY rev (3m)120.9%
Revenue NQ rev (1m)1.85%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)1.67%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.32 | ||
| Fwd PE | 95.29 | ||
| P/S | 9.98 | ||
| P/FCF | N/A | ||
| P/OCF | 24.23 | ||
| P/B | 2.51 | ||
| P/tB | 5.19 | ||
| EV/EBITDA | 27.59 |
EPS(TTM)3.81
EY2.26%
EPS(NY)1.77
Fwd EY1.05%
FCF(TTM)-1.85
FCFYN/A
OCF(TTM)6.97
OCFY4.13%
SpS16.91
BVpS67.19
TBVpS32.56
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 5.86% | ||
| ROCE | 1.84% | ||
| ROIC | 1.46% | ||
| ROICexc | 1.58% | ||
| ROICexgc | 2.26% | ||
| OM | 14.19% | ||
| PM (TTM) | 23.27% | ||
| GM | 57.91% | ||
| 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 | 0.81 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.99 | ||
| Cap/Depr | 165.35% | ||
| Cap/Sales | 52.16% | ||
| Interest Coverage | 2.18 | ||
| Cash Conversion | 90.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 1.39 |
F-Score6
WACC7.33%
ROIC/WACC0.2
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)222.88%
EPS 3Y-35.08%
EPS 5Y-7.17%
EPS Q2Q%1370%
EPS Next Y93.61%
EPS Next 2Y4.59%
EPS Next 3Y10.64%
EPS Next 5Y36.5%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y7.85%
Revenue growth 5Y11.6%
Sales Q2Q%10.05%
Revenue Next Year6.78%
Revenue Next 2Y8.86%
Revenue Next 3Y9.63%
Revenue Next 5Y9.41%
EBIT growth 1Y46.39%
EBIT growth 3Y-9.36%
EBIT growth 5Y-2.05%
EBIT Next Year485.91%
EBIT Next 3Y94.05%
EBIT Next 5Y55.39%
FCF growth 1Y49.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y40.62%
OCF growth 3Y9.93%
OCF growth 5Y8.36%