Digital Realty Trust
Market Cap
US$45.4b
Last Updated
2021/08/04 23:00 UTC
Data Sources
Company Financials +
Executive Summary
Digital Realty supports the world's leading enterprises and service providers by delivering the full spectrum of data center, colocation and interconnection solutions. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 4.3% per year for the next 3 years
+ 1 more risk
Snowflake Analysis
Established dividend payer and slightly overvalued.
Similar Companies
Share Price & News
How has Digital Realty Trust's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DLR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: DLR's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
1.2%
DLR
-0.5%
US REITs
0.9%
US Market
1 Year Return
-2.3%
DLR
30.1%
US REITs
34.7%
US Market
Return vs Industry: DLR underperformed the US REITs industry which returned 30.1% over the past year.
Return vs Market: DLR underperformed the US Market which returned 34.7% over the past year.
Shareholder returns
| DLR | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.2% | -0.5% | 0.9% |
| 30 Day | 3.8% | 3.2% | 0.2% |
| 90 Day | 4.3% | 10.0% | 4.7% |
| 1 Year | 0.9%-2.3% | 34.4%30.1% | 36.8%34.7% |
| 3 Year | 42.1%28.3% | 44.9%28.7% | 62.5%52.4% |
| 5 Year | 82.3%53.5% | 52.1%22.8% | 123.1%98.4% |
Long-Term Price Volatility Vs. Market
How volatile is Digital Realty Trust's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Has Digital Realty Trust, Inc. (NYSE:DLR) Stock's Recent Performance Got Anything to Do With Its Financial Health?2 months ago | Simply Wall St
Here's Why Shareholders May Want To Be Cautious With Increasing Digital Realty Trust, Inc.'s (NYSE:DLR) CEO Pay Packet2 months ago | Simply Wall St
Have Digital Realty Trust, Inc. (NYSE:DLR) Insiders Been Selling Their Stock?Valuation
Is Digital Realty Trust undervalued compared to its fair value and its price relative to the market?
24.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DLR ($155.97) is trading below our estimate of fair value ($206.16)
Significantly Below Fair Value: DLR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DLR is poor value based on its PE Ratio (85.7x) compared to the US REITs industry average (46.2x).
PE vs Market: DLR is poor value based on its PE Ratio (85.7x) compared to the US market (18x).
Price to Earnings Growth Ratio
PEG Ratio: DLR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: DLR is overvalued based on its PB Ratio (2.6x) compared to the US REITs industry average (1.9x).
Future Growth
How is Digital Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
-4.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DLR's earnings are forecast to decline over the next 3 years (-4.3% per year).
Earnings vs Market: DLR's earnings are forecast to decline over the next 3 years (-4.3% per year).
High Growth Earnings: DLR's earnings are forecast to decline over the next 3 years.
Revenue vs Market: DLR's revenue (7.1% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: DLR's revenue (7.1% 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 (2.9%).
Past Performance
How has Digital Realty Trust performed over the past 5 years?
19.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DLR has a large one-off gain of $164.2M impacting its June 30 2021 financial results.
Growing Profit Margin: DLR's current net profit margins (11.7%) are lower than last year (18.8%).
Past Earnings Growth Analysis
Earnings Trend: DLR's earnings have grown by 19% per year over the past 5 years.
Accelerating Growth: DLR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: DLR had negative earnings growth (-18.5%) over the past year, making it difficult to compare to the REITs industry average (-8.3%).
Return on Equity
High ROE: DLR's Return on Equity (3.2%) is considered low.
Financial Health
How is Digital Realty Trust's financial position?
Financial Position Analysis
Short Term Liabilities: DLR's short term assets ($1.3B) do not cover its short term liabilities ($1.7B).
Long Term Liabilities: DLR's short term assets ($1.3B) do not cover its long term liabilities ($16.2B).
Debt to Equity History and Analysis
Debt Level: DLR's debt to equity ratio (75.7%) is considered high.
Reducing Debt: DLR's debt to equity ratio has reduced from 141.5% to 75.7% over the past 5 years.
Debt Coverage: DLR's debt is not well covered by operating cash flow (13.1%).
Interest Coverage: DLR's interest payments on its debt are not well covered by EBIT (2.6x coverage).
Balance Sheet
Dividend
What is Digital Realty Trust current dividend yield, its reliability and sustainability?
2.97%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DLR's dividend (2.97%) is higher than the bottom 25% of dividend payers in the US market (1.3%).
High Dividend: DLR's dividend (2.97%) is low compared to the top 25% of dividend payers in the US market (3.54%).
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.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (72.8%), DLR's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DLR's dividends in 3 years are forecast to be covered by earnings (68.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.7yrs
Average management tenure
CEO
Bill Stein (67 yo)
7.42yrs
Tenure
US$16,376,552
Compensation
Mr. Arthur William Stein, also known as Bill, J.D., has been the Chief Executive Officer at Digital Realty Trust Inc. since November 2014. Mr. Stein also served as the Chief Financial Officer of Digital Re...
CEO Compensation Analysis
Compensation vs Market: Bill's total compensation ($USD16.38M) is above average for companies of similar size in the US market ($USD11.17M).
Compensation vs Earnings: Bill's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: DLR's management team is seasoned and experienced (5.7 years average tenure).
Board Members
Experienced Board: DLR's board of directors are considered experienced (4.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DLR insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.
Top Shareholders
Company Information
Digital Realty Trust, Inc.'s company bio, 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$45.439b
- Market Cap: US$43.908b
- Shares outstanding: 291.46m
- Website: https://www.digitalrealty.com
Number of Employees
Location
- Digital Realty Trust, Inc.
- Four Embarcadero Center
- Suite 3200
- San Francisco
- California
- 94111
- United States
Listings
Biography
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 globa...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/08/04 23:00 |
| End of Day Share Price | 2021/08/04 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.