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DLR

Digital Realty Trust NYSE:DLR Stock Report

Last Price

US$129.03

Market Cap

US$37.9b

7D

-0.3%

1Y

-18.1%

Updated

11 Aug, 2022

Data

Company Financials +
DLR fundamental analysis
Snowflake Score
Valuation6/6
Future Growth1/6
Past Performance4/6
Financial Health1/6
Dividends5/6

DLR Stock Overview

Digital Realty supports the world's leading enterprises and service providers by delivering the full spectrum of data center, colocation and interconnection solutions.

Digital Realty Trust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Digital Realty Trust
Historical stock prices
Current Share PriceUS$129.03
52 Week HighUS$178.22
52 Week LowUS$119.63
Beta0.32
1 Month Change3.76%
3 Month Change-1.65%
1 Year Change-18.09%
3 Year Change7.03%
5 Year Change11.72%
Change since IPO975.25%

Recent News & Updates

Aug 08

Digital Realty to dispose non-core data center property

Digital Realty (NYSE:DLR) is selling a non-core, mixed-use data center property in a transaction which would value the asset at ~$205M. The deal is expected to close in the third quarter of 2022. Proceeds from the deal will initially be used to pay down debt and will ultimately be used to fund future investment activity. The data center-focused REIT acquired the 370K sq ft facility in 2004, prior to its IPO. The property is expected to generate cash net operating income of ~$10.7M in 2022, representing a 5.2% cap rate. Digital Realty Chief Investment Officer Greg Wright noted, "This disposition opportunistically recycles an operationally mature asset to fund strategic investments aimed at enhancing our longer-term growth profile. Since 2018, Digital Realty has sold approximately $4B of assets and redeployed proceeds into highly connected facilities around the world, providing our customers with a global, full spectrum data center solution."

Shareholder Returns

DLRUS REITsUS Market
7D-0.3%2.9%1.3%
1Y-18.1%-4.6%-11.7%

Return vs Industry: DLR underperformed the US REITs industry which returned -4.3% over the past year.

Return vs Market: DLR underperformed the US Market which returned -11.6% over the past year.

Price Volatility

Is DLR's price volatile compared to industry and market?
DLR volatility
DLR Average Weekly Movement4.6%
REITs Industry Average Movement4.3%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: DLR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DLR's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20043,030Bill Steinhttps://www.digitalrealty.com

Digital Realty supports the world's leading enterprises and service providers by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITALR, the company's global data center platform, provides customers a trusted foundation and proven Pervasive Datacenter Architecture PDxTM solution methodology for scaling digital business and efficiently managing data gravity challenges. Digital Realty's global data center footprint gives customers access to the connected communities that matter to them with more than 284 facilities in 48 metros across 23 countries on six continents.

Digital Realty Trust Fundamentals Summary

How do Digital Realty Trust's earnings and revenue compare to its market cap?
DLR fundamental statistics
Market CapUS$37.92b
Earnings (TTM)US$1.30b
Revenue (TTM)US$4.51b

28.6x

P/E Ratio

8.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DLR income statement (TTM)
RevenueUS$4.51b
Cost of RevenueUS$1.75b
Gross ProfitUS$2.76b
Other ExpensesUS$1.46b
EarningsUS$1.30b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.52
Gross Margin61.24%
Net Profit Margin28.80%
Debt/Equity Ratio80.9%

How did DLR perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

79%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is DLR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DLR?

Other financial metrics that can be useful for relative valuation.

DLR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue12x
Enterprise Value/EBITDA24.5x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does DLR's PE Ratio compare to its peers?

DLR PE Ratio vs Peers
The above table shows the PE ratio for DLR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average50x
SBAC SBA Communications
104.4x12.5%US$37.1b
VICI VICI Properties
53.6x29.3%US$33.5b
EXR Extra Space Storage
31.2x6.2%US$29.1b
WY Weyerhaeuser
11x-44.1%US$27.0b
DLR Digital Realty Trust
28.6x13.6%US$37.9b

Price-To-Earnings vs Peers: DLR is good value based on its Price-To-Earnings Ratio (28.6x) compared to the peer average (50x).


Price to Earnings Ratio vs Industry

How does DLR's PE Ratio compare vs other companies in the US REITs Industry?

Price-To-Earnings vs Industry: DLR is good value based on its Price-To-Earnings Ratio (28.6x) compared to the US REITs industry average (31.8x)


Price to Earnings Ratio vs Fair Ratio

What is DLR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DLR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.6x
Fair PE Ratio48.9x

Price-To-Earnings vs Fair Ratio: DLR is good value based on its Price-To-Earnings Ratio (28.6x) compared to the estimated Fair Price-To-Earnings Ratio (48.9x).


Share Price vs Fair Value

What is the Fair Price of DLR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DLR ($129.03) is trading below our estimate of fair value ($251.47)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Digital Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


13.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLR's forecast earnings growth (13.6% per year) is above the savings rate (1.9%).

Earnings vs Market: DLR's earnings (13.6% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: DLR's revenue (7.4% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: DLR's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DLR's Return on Equity is forecast to be low in 3 years time (5.6%).


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Past Performance

How has Digital Realty Trust performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


40.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DLR has a large one-off gain of $991.6M impacting its June 30 2022 financial results.

Growing Profit Margin: DLR's current net profit margins (28.8%) are higher than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: DLR's earnings have grown significantly by 40% per year over the past 5 years.

Accelerating Growth: DLR's earnings growth over the past year (156.2%) exceeds its 5-year average (40% per year).

Earnings vs Industry: DLR earnings growth over the past year (156.2%) exceeded the REITs industry 47.9%.


Return on Equity

High ROE: DLR's Return on Equity (7.7%) is considered low.


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Financial Health

How is Digital Realty Trust's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DLR's short term assets ($1.5B) do not cover its short term liabilities ($2.6B).

Long Term Liabilities: DLR's short term assets ($1.5B) do not cover its long term liabilities ($15.7B).


Debt to Equity History and Analysis

Debt Level: DLR's net debt to equity ratio (80.3%) is considered high.

Reducing Debt: DLR's debt to equity ratio has reduced from 126.7% to 80.9% over the past 5 years.

Debt Coverage: DLR's debt is not well covered by operating cash flow (11.4%).

Interest Coverage: DLR's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


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Dividend

What is Digital Realty Trust current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.78%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DLR's dividend (3.78%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: DLR's dividend (3.78%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: DLR's dividends per share have been stable in the past 10 years.

Growing Dividend: DLR's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (78.8%), DLR's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (93.2%), DLR's dividend payments are covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Bill Stein (68 yo)

8.42yrs

Tenure

US$17,139,601

Compensation

Mr. Arthur William Stein, also known as Bill, J.D., has been the Chief Executive Officer at Digital Realty Trust Inc. since November 2014. Mr. Stein also served as the Chief Financial Officer of Digital Re...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD17.14M) is above average for companies of similar size in the US market ($USD12.88M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DLR's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: DLR's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DLR insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Digital Realty Trust, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Digital Realty Trust, Inc.
  • Ticker: DLR
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$37.919b
  • Market Cap: US$37.084b
  • Shares outstanding: 293.71m
  • Website: https://www.digitalrealty.com

Number of Employees


Location

  • Digital Realty Trust, Inc.
  • 5707 Southwest Parkway
  • Building 1, Suite 275
  • Austin
  • Texas
  • 78735
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.