DIGITAL REALTY TRUST INC (DLR)
US2538681030 - REIT
We assign a fundamental rating of 3 out of 10 to DLR. DLR was compared to 28 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.
In the past year DLR had a positive cash flow from operations.
DLR had positive earnings in each of the past 5 years.
Each year in the past 5 years DLR had a positive operating cash flow.
1.2 Ratios
DLR has a worse Return On Assets (2.06%) than 60.71% of its industry peers.
DLR has a Return On Equity of 4.76%. This is in the lower half of the industry: DLR underperforms 60.71% of its industry peers.
With a Return On Invested Capital value of 1.41%, DLR is not doing good in the industry: 89.29% of the companies in the same industry are doing better.
DLR had an Average Return On Invested Capital over the past 3 years of 1.55%. This is below the industry average of 5.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 4.76% | ||
| ROIC | 1.41% |
ROA(3y)2.5%
ROA(5y)2.07%
ROE(3y)5.34%
ROE(5y)4.5%
ROIC(3y)1.55%
ROIC(5y)1.72%
1.3 Margins
The Profit Margin of DLR (16.62%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DLR has grown nicely.
DLR's Operating Margin of 12.86% is on the low side compared to the rest of the industry. DLR is outperformed by 89.29% of its industry peers.
In the last couple of years the Operating Margin of DLR has declined.
DLR's Gross Margin of 55.36% is on the low side compared to the rest of the industry. DLR is outperformed by 67.86% of its industry peers.
In the last couple of years the Gross Margin of DLR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.86% | ||
| PM (TTM) | 16.62% | ||
| GM | 55.36% |
OM growth 3Y-9.21%
OM growth 5Y-8.02%
PM growth 3Y34.96%
PM growth 5Y15.11%
GM growth 3Y-4.98%
GM growth 5Y-2.96%
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.
Compared to 5 years ago, DLR has more shares outstanding
Compared to 1 year ago, DLR has an improved debt to assets ratio.
2.2 Solvency
DLR has an Altman-Z score of 1.04. 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 1.04, DLR is in line with its industry, outperforming 57.14% of the companies in the same industry.
DLR has a Debt/Equity ratio of 0.91. This is a neutral value indicating DLR is somewhat dependend on debt financing.
The Debt to Equity ratio of DLR (0.91) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.18
WACC8.03%
2.3 Liquidity
A Current Ratio of 0.78 indicates that DLR may have some problems paying its short term obligations.
DLR has a Current ratio (0.78) which is comparable to the rest of the industry.
DLR has a Quick Ratio of 0.78. This is a bad value and indicates that DLR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.78, DLR perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The earnings per share for DLR have decreased strongly by -36.84% in the last year.
Measured over the past years, DLR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.01% on average per year.
DLR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.74%.
DLR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.45% yearly.
EPS 1Y (TTM)-36.84%
EPS 3Y-19.88%
EPS 5Y-10.01%
EPS growth Q2Q500%
Revenue 1Y (TTM)16.74%
Revenue growth 3Y11.95%
Revenue growth 5Y12.45%
Revenue growth Q2Q11.07%
3.2 Future
The Earnings Per Share is expected to grow by 38.48% on average over the next years. This is a very strong growth
Based on estimates for the next years, DLR will show a small growth in Revenue. The Revenue will grow by 6.02% on average per year.
EPS Next Y73.01%
EPS Next 2Y32.98%
EPS Next 3Y32.9%
EPS Next 5Y38.48%
Revenue Next Year1.89%
Revenue Next 2Y4.09%
Revenue Next 3Y5.09%
Revenue Next 5Y6.02%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DLR is valuated quite expensively with a Price/Earnings ratio of 198.53.
Based on the Price/Earnings ratio, DLR is valued a bit more expensive than the industry average as 78.57% of the companies are valued more cheaply.
DLR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.20.
The Price/Forward Earnings ratio is 114.75, which means the current valuation is very expensive for DLR.
71.43% of the companies in the same industry are cheaper than DLR, based on the Price/Forward Earnings ratio.
DLR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 198.53 | ||
| Fwd PE | 114.75 |
4.2 Price Multiples
DLR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. DLR is more expensive than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DLR's earnings are expected to grow with 32.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.72
PEG (5Y)N/A
EPS Next 2Y32.98%
EPS Next 3Y32.9%
5. Dividend
5.1 Amount
DLR has a Yearly Dividend Yield of 3.57%. Purely for dividend investing, there may be better candidates out there.
DLR's Dividend Yield is slightly below the industry average, which is at 5.03.
Compared to an average S&P500 Dividend Yield of 2.44, DLR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
5.2 History
The dividend of DLR has a limited annual growth rate of 2.18%.
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)2.18%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
167.02% 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.
DP167.02%
EPS Next 2Y32.98%
EPS Next 3Y32.9%
DIGITAL REALTY TRUST INC
NYSE:DLR (4/26/2024, 2:53:10 PM)
142.94
+1.45 (+1.02%)
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 Cap44.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
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 | 198.53 | ||
| Fwd PE | 114.75 | ||
| 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)2.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 4.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.86% | ||
| PM (TTM) | 16.62% | ||
| GM | 55.36% | ||
| 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 Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| 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)-36.84%
EPS 3Y-19.88%
EPS 5Y
EPS growth Q2Q
EPS Next Y73.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.74%
Revenue growth 3Y11.95%
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