NYSE:DLR

Stock Analysis Report

Executive Summary

Digital Realty supports the data center, colocation and interconnection strategies of more than 2,000 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Latin America, Asia and Australia.

Snowflake

Fundamentals

Established dividend payer with questionable track record.


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


Market Performance


7 Day Return

-0.05%

DLR

0.1%

US REITs

2.3%

US Market


1 Year Return

17.7%

DLR

19.1%

US REITs

5.6%

US Market

Return vs Industry: DLR underperformed the US REITs industry which returned 19.1% over the past year.

Return vs Market: DLR exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

DLRIndustryMarket
7 Day-0.05%0.1%2.3%
30 Day3.3%0.8%-1.0%
90 Day8.6%5.3%-0.7%
1 Year22.0%17.7%24.4%19.1%7.9%5.6%
3 Year50.3%35.3%33.7%16.6%45.6%36.3%
5 Year140.4%97.3%63.2%28.8%65.8%47.6%

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

Valuation

Is Digital Realty Trust 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

Undervalued: DLR ($130.6) is trading below our estimate of fair value ($185.65)

Significantly Undervalued: DLR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DLR is poor value based on its PE Ratio (119.6x) compared to the REITs industry average (35.3x).

PE vs Market: DLR is poor value based on its PE Ratio (119.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: DLR is poor value based on its PEG Ratio (6.3x)


Price to Book Ratio

PB vs Industry: DLR is overvalued based on its PB Ratio (3.2x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Digital Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLR's forecast earnings growth (19.1% per year) is above the savings rate (2.7%).

Earnings vs Market: DLR's earnings (19.1% per year) are forecast to grow faster 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 (6.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: DLR's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DLR's Return on Equity is forecast to be low in 3 years time (4.4%).


Next Steps

Past Performance

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

3.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DLR's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: DLR's earnings growth over the past year (12.7%) exceeds its 5-year average (3.7% per year).

Earnings vs Industry: DLR earnings growth over the past year (12.7%) underperformed the REITs industry 17%.


Return on Equity

High ROE: DLR's Return on Equity (3.1%) is considered low.


Return on Assets

ROA vs Industry: DLR's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: DLR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Digital Realty Trust'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: DLR has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

3.31%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.5%markettop25%3.8%industryaverage3.7%forecastin3Years3.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DLR's dividend (3.31%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: DLR's dividend (3.31%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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 (69.1%), 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 thoroughly covered by earnings (0.3% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Bill Stein (65yo)

5.6yrs

Tenure

US$12,502,063

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 ($USD12.50M) is about average for companies of similar size in the US market ($USD11.23M).

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


Management Age and Tenure

4.2yrs

Average Tenure

49yo

Average Age

Experienced Management: DLR's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

63yo

Average Age

Experienced Board: DLR's board of directors are considered experienced (3.2 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.


Ownership Breakdown


Management Team

  • John Stewart

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Bill Stein (65yo)

    CEO & Director

    • Tenure: 5.6yrs
    • Compensation: US$12.50m
  • Edward Sham (60yo)

    Chief Accounting Officer

    • Tenure: 3.4yrs
  • Josh Mills (47yo)

    Executive VP

    • Tenure: 14.5yrs
    • Compensation: US$2.27m
  • Erich Sanchack (49yo)

    Executive Vice President of Operations

    • Tenure: 1.7yrs
    • Compensation: US$3.68m
  • Matt Mercier

    Senior Vice President of Finance

    • Tenure: 13.2yrs
  • Ed Diver

    Chief Information Officer

    • Tenure: 1.1yrs
  • Andy Power (39yo)

    Chief Financial Officer

    • Tenure: 4.4yrs
    • Compensation: US$5.03m
  • Chris Sharp (44yo)

    Chief Technology Officer

    • Tenure: 4.2yrs
    • Compensation: US$3.49m
  • Greg Wright (54yo)

    Chief Investment Officer

    • Tenure: 0.8yrs

Board Members

  • Laurence Chapman (69yo)

    Independent Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: US$394.87k
  • Dennis Singleton (74yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: US$259.93k
  • Mike Coke (51yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$283.66k
  • Afshin Mohebbi (56yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$259.93k
  • Kevin Kennedy (64yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$259.93k
  • Bill LaPerch (63yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$254.93k
  • Bill Stein (65yo)

    CEO & Director

    • Tenure: 5.6yrs
    • Compensation: US$12.50m
  • Mark Patterson (59yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$259.93k
  • Mary Preusse (50yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$254.57k

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$28.257b
  • Market Cap: US$27.210b
  • Shares outstanding: 217.71m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DLRNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2004
FQIDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2004
0I9FLSE (London Stock Exchange)YesCommon StockGBUSDOct 2004
DLR.PRGNYSE (New York Stock Exchange)PFD SER G 5.875%USUSDApr 2013
DLR.PRINYSE (New York Stock Exchange)6.35% PFD I CUMUSUSDAug 2015
DLR.PRJNYSE (New York Stock Exchange)5.250% PFD SER JUSUSDAug 2017
DLR.PRCNYSE (New York Stock Exchange)6.625% PFD SER CUSUSDSep 2017
DLR.PRKNYSE (New York Stock Exchange)5.850 PFD SR KUSUSDMar 2019
DLR.PRLNYSE (New York Stock Exchange)5.2 PFD SER LUSUSDOct 2019

Biography

Digital Realty supports the data center, colocation and interconnection strategies of more than 2,000 firms across its secure, network-rich portfolio of data centers located throughout North America, Europ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:50
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.