| Snowflake Score | |
|---|---|
| Valuation | 6/6 |
| Future Growth | 1/6 |
| Past Performance | 4/6 |
| Financial Health | 1/6 |
| Dividends | 5/6 |
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.
Rewards
Risk Analysis
Digital Realty Trust Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$129.03 |
| 52 Week High | US$178.22 |
| 52 Week Low | US$119.63 |
| Beta | 0.32 |
| 1 Month Change | 3.76% |
| 3 Month Change | -1.65% |
| 1 Year Change | -18.09% |
| 3 Year Change | 7.03% |
| 5 Year Change | 11.72% |
| Change since IPO | 975.25% |
Recent News & Updates
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
| DLR | US REITs | US 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
| DLR volatility | |
|---|---|
| DLR Average Weekly Movement | 4.6% |
| REITs Industry Average Movement | 4.3% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2004 | 3,030 | Bill Stein | https://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
| DLR fundamental statistics | |
|---|---|
| Market Cap | US$37.92b |
| Earnings (TTM) | US$1.30b |
| Revenue (TTM) | US$4.51b |
28.6x
P/E Ratio8.2x
P/S RatioIs DLR overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| DLR income statement (TTM) | |
|---|---|
| Revenue | US$4.51b |
| Cost of Revenue | US$1.75b |
| Gross Profit | US$2.76b |
| Other Expenses | US$1.46b |
| Earnings | US$1.30b |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 4.52 |
| Gross Margin | 61.24% |
| Net Profit Margin | 28.80% |
| Debt/Equity Ratio | 80.9% |
How did DLR perform over the long term?
See historical performance and comparisonDividends
3.8%
Current Dividend Yield79%
Payout RatioValuation
Is DLR undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
6/6Valuation 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.
| What is DLR's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$37.92b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 12x |
| Enterprise Value/EBITDA | 24.5x |
| PEG Ratio | 2.1x |
Price to Earnings Ratio vs Peers
How does DLR's PE Ratio compare to its peers?
| DLR PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 50x | ||
SBAC SBA Communications | 104.4x | 12.5% | US$37.1b |
VICI VICI Properties | 53.6x | 29.3% | US$33.5b |
EXR Extra Space Storage | 31.2x | 6.2% | US$29.1b |
WY Weyerhaeuser | 11x | -44.1% | US$27.0b |
DLR Digital Realty Trust | 28.6x | 13.6% | 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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 28.6x |
| Fair PE Ratio | 48.9x |
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
1/6Future 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
4/6Past 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
1/6Financial 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
5/6Dividend 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.
Discover strong dividend paying companies
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/11 00:00 |
| End of Day Share Price | 2022/08/11 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
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.