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DLR

Digital Realty TrustNYSE:DLR Stock Report

Last Price

US$154.95

Market Cap

US$45.0b

7D

-0.6%

1Y

10.3%

Updated

23 Jan, 2022

Data

Company Financials +
DLR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance3/6
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

Equinix

NasdaqGS:EQIX

US$65.0b

CyrusOne

NasdaqGS:CONE

US$11.5b

Gaming and Leisure Properties

NasdaqGS:GLPI

US$10.6b

CoreSite Realty

NYSE:COR

US$8.3b

Price History & Performance

Summary of all time highs, changes and price drops for Digital Realty Trust
Historical stock prices
Current Share PriceUS$154.95
52 Week HighUS$178.22
52 Week LowUS$124.65
Beta0.22
1 Month Change-8.75%
3 Month Change-1.13%
1 Year Change10.32%
3 Year Change48.75%
5 Year Change45.59%
Change since IPO1,191.25%

Recent News & Updates

Dec 07

Digital Realty To Gain Back Its Premium Valuation

Digital Realty is a play on the secular trend of digital transformation. The company should be able to deliver above-consensus revenue growth. Its relative valuation looks attractive and could rerate to gain back its historical premium to peers following beating consensus estimates.

Nov 04
If You Like EPS Growth Then Check Out Digital Realty Trust (NYSE:DLR) Before It's Too Late

If You Like EPS Growth Then Check Out Digital Realty Trust (NYSE:DLR) Before It's Too Late

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

DLRUS REITsUS Market
7D-0.6%-3.8%-6.1%
1Y10.3%24.0%4.2%

Return vs Industry: DLR underperformed the US REITs industry which returned 24% over the past year.

Return vs Market: DLR exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is DLR's price volatile compared to industry and market?
DLR volatility
DLR Average Weekly Movement3.1%
REITs Industry Average Movement4.1%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

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

Volatility Over Time: DLR's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20042,878Bill 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$44.98b
Earnings (TTM)US$668.05m
Revenue (TTM)US$4.42b

67.3x

P/E Ratio

10.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DLR income statement (TTM)
RevenueUS$4.42b
Cost of RevenueUS$1.73b
Gross ProfitUS$2.68b
ExpensesUS$2.02b
EarningsUS$668.05m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 17, 2022

Earnings per share (EPS)2.30
Gross Margin60.75%
Net Profit Margin15.13%
Debt/Equity Ratio79.1%

How did DLR perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

76%

Payout Ratio

Valuation

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

32.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DLR ($154.95) is trading below our estimate of fair value ($230.95)

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 (67.3x) compared to the US REITs industry average (43.7x).

PE vs Market: DLR is poor value based on its PE Ratio (67.3x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: DLR is poor value based on its PEG Ratio (14x)


Price to Book Ratio

PB vs Industry: DLR is overvalued based on its PB Ratio (2.7x) compared to the US REITs industry average (2x).


Future Growth

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

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLR's forecast earnings growth (4.8% per year) is above the savings rate (2%).

Earnings vs Market: DLR's earnings (4.8% per year) are forecast to grow slower than the US market (12.9% per year).

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

Revenue vs Market: DLR's revenue (6.5% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: DLR's revenue (6.5% 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%).


Past Performance

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

18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLR has a large one-off gain of $277.8M impacting its September 30 2021 financial results.

Growing Profit Margin: DLR's current net profit margins (15.1%) are higher than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: DLR's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: DLR's earnings growth over the past year (24.9%) exceeds its 5-year average (18.4% per year).

Earnings vs Industry: DLR earnings growth over the past year (24.9%) underperformed the REITs industry 30.5%.


Return on Equity

High ROE: DLR's Return on Equity (4%) 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 ($16.4B).


Debt to Equity History and Analysis

Debt Level: DLR's net debt to equity ratio (78.5%) is considered high.

Reducing Debt: DLR's debt to equity ratio has reduced from 115.9% to 79.1% over the past 5 years.

Debt Coverage: DLR's debt is not well covered by operating cash flow (12.6%).

Interest Coverage: DLR's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Dividend

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

2.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DLR's dividend (2.99%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: DLR's dividend (2.99%) is low compared to the top 25% of dividend payers in the US market (3.61%).


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: At its current payout ratio (76.2%), DLR's 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 (69% payout ratio).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Bill Stein (67 yo)

7.83yrs

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 ($USD16.38M) is above average for companies of similar size in the US market ($USD11.47M).

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


Leadership Team

Experienced Management: DLR's management team is seasoned and experienced (6.1 years average tenure).


Board Members

Experienced Board: DLR's board of directors are considered experienced (5.4 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 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$44.979b
  • Market Cap: US$43.973b
  • Shares outstanding: 290.28m
  • 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 Analysis2022/01/23 23:08
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.