NYSE:COR

Stock Analysis Report

Executive Summary

CoreSite Realty Corporation (NYSE:COR) delivers secure, reliable, high-performance data center and interconnection solutions to a growing customer ecosystem across eight key North American markets.

Rewards

Trading at 32% below its fair value

Earnings are forecast to grow 4.89% per year

Earnings have grown 30.4% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Average dividend payer with moderate growth potential.


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Share Price & News

How has CoreSite Realty's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: COR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.6%

COR

2.6%

US REITs

2.0%

US Market


1 Year Return

24.7%

COR

18.5%

US REITs

23.6%

US Market

Return vs Industry: COR exceeded the US REITs industry which returned 17.9% over the past year.

Return vs Market: COR exceeded the US Market which returned 23.2% over the past year.


Shareholder returns

CORIndustryMarket
7 Day3.6%2.6%2.0%
30 Day3.8%3.2%3.9%
90 Day-2.9%-0.3%12.0%
1 Year30.0%24.7%23.4%18.5%26.2%23.6%
3 Year54.3%37.1%35.6%18.5%53.2%43.3%
5 Year222.6%168.3%46.5%16.3%75.7%56.3%

Price Volatility Vs. Market

How volatile is CoreSite Realty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CoreSite Realty undervalued compared to its fair value and its price relative to the market?

29.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COR ($113.74) is trading below our estimate of fair value ($167.29)

Significantly Below Fair Value: COR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: COR is poor value based on its PE Ratio (54.5x) compared to the REITs industry average (37.8x).

PE vs Market: COR is poor value based on its PE Ratio (54.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: COR is poor value based on its PEG Ratio (11.1x)


Price to Book Ratio

PB vs Industry: COR is overvalued based on its PB Ratio (23.8x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is CoreSite Realty forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COR's forecast earnings growth (4.9% per year) is above the savings rate (1.7%).

Earnings vs Market: COR's earnings (4.9% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: COR's earnings are forecast to grow, but not significantly.

Revenue vs Market: COR's revenue (8.9% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: COR's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COR's Return on Equity is forecast to be very high in 3 years time (54.9%).


Next Steps

Past Performance

How has CoreSite Realty performed over the past 5 years?

30.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COR has high quality earnings.

Growing Profit Margin: COR's current net profit margins (13.5%) are lower than last year (13.8%).


Past Earnings Growth Analysis

Earnings Trend: COR's earnings have grown significantly by 30.4% per year over the past 5 years.

Accelerating Growth: COR's earnings growth over the past year (4.2%) is below its 5-year average (30.4% per year).

Earnings vs Industry: COR earnings growth over the past year (4.2%) underperformed the REITs industry 8.1%.


Return on Equity

High ROE: Whilst COR's Return on Equity (41.18%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CoreSite Realty's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: COR has a high level of physical assets or inventory.

Debt Coverage by Assets: COR's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: COR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if COR has a sufficient allowance for bad loans.

Low Risk Liabilities: COR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if COR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: COR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if COR has an appropriate level of bad loans.


Next Steps

Dividend

What is CoreSite Realty's current dividend yield, its reliability and sustainability?

4.15%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: COR's dividend (4.29%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: COR's dividend (4.29%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, COR has been paying a dividend for less than 10 years.

Growing Dividend: COR's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88%), COR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: COR's dividends in 3 years are forecast to be thoroughly covered by earnings (1.9% payout ratio).


Next Steps

Management

What is the CEO of CoreSite Realty's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Paul Szurek (58yo)

3.3yrs

Tenure

US$5,707,523

Compensation

Mr. Paul E. Szurek has been Chief Executive Officer and President of CoreSite Realty Corporation since September 10, 2016. Mr. Szurek served as the Chief Financial Officer of Biltmore Farms, LLC since 2003 ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD5.71M) is about average for companies of similar size in the US market ($USD6.46M).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

49.5yo

Average Age

Experienced Management: COR's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: COR's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$59,57528 May 19
Mark Jones
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares500
Max PriceUS$119.15

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.3%.


Management Team

  • Paul Szurek (58yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$5.71m
  • Jeff Finnin (56yo)

    CFO & Treasurer

    • Tenure: 9yrs
    • Compensation: US$1.76m
  • Greer Aviv

    Vice President of Investor Relations & Corporate Communications

    • Derek McCandless (48yo)

      Senior VP of Legal

      • Tenure: 8.8yrs
      • Compensation: US$1.27m
    • Steve Smith (54yo)

      Chief Revenue Officer

      • Tenure: 6yrs
      • Compensation: US$1.79m
    • Brian Warren (49yo)

      Senior Vice President of Engineering & Product

      • Tenure: 5.8yrs
      • Compensation: US$1.04m
    • Mark Jones (43yo)

      Chief Accounting Officer

      • Tenure: 1.8yrs
    • Juan Font (50yo)

      Senior Vice President of General Management

      • Tenure: 1.8yrs
    • Maile Kaiser (45yo)

      Senior Vice President of Sales

      • Tenure: 1.5yrs
    • Carole Jorgensen

      Vice President of Investor Relations and Corporate Communications

      • Tenure: 2yrs

    Board Members

    • Rob Stuckey (57yo)

      Independent Chairman of the Board

      • Tenure: 10yrs
    • Paul Szurek (58yo)

      President

      • Tenure: 3.3yrs
      • Compensation: US$5.71m
    • Michael Koehler (52yo)

      Independent Director

      • Tenure: 9.3yrs
      • Compensation: US$230.02k
    • Jim Attwood (61yo)

      Independent Director

      • Tenure: 9.3yrs
    • David Wilson (77yo)

      Lead Independent Director

      • Tenure: 3.3yrs
      • Compensation: US$230.02k
    • Jean Bua (60yo)

      Independent Director

      • Tenure: 2.7yrs
      • Compensation: US$220.02k
    • John Thompson (52yo)

      Director

      • Tenure: 9.3yrs
      • Compensation: US$230.02k
    • Kelly Chambliss (48yo)

      Director

      • Tenure: 3.3yrs
      • Compensation: US$220.02k

    Company Information

    CoreSite Realty Corporation's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: CoreSite Realty Corporation
    • Ticker: COR
    • Exchange: NYSE
    • Founded: 2010
    • Industry: Specialized REITs
    • Sector: Real Estate
    • Implied Market Cap: US$5.696b
    • Market Cap: US$4.430b
    • Shares outstanding: 48.46m
    • Website: https://www.CoreSite.com

    Number of Employees


    Location

    • CoreSite Realty Corporation
    • 1001 17th Street
    • Suite 500
    • Denver
    • Colorado
    • 80202
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    CORNYSE (New York Stock Exchange)YesCommon SharesUSUSDSep 2010
    07HDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2010
    0I3TLSE (London Stock Exchange)YesCommon SharesGBUSDSep 2010

    Biography

    CoreSite Realty Corporation (NYSE:COR) delivers secure, reliable, high-performance data center and interconnection solutions to a growing customer ecosystem across eight key North American markets. More than 1,350 of the world’s leading enterprises, network operators, cloud providers, and supporting service providers choose CoreSite to connect, protect and optimize their performance-sensitive data, applications and computing workloads. Our scalable, flexible solutions and 450+ dedicated employees consistently deliver unmatched data center options — all of which leads to a best-in-class customer experience and lasting relationships. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/19 00:14
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.