NYSE:DLR

Stock Analysis Report

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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

Trading at 25.5% below our estimate of its fair value

Earnings are forecast to grow 15.11% per year

Earnings grew by 152.5% over the past year

Pays a reliable dividend of 3.18%

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer with proven 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

Stable Share Price: DLR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DLR's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

5.7%

DLR

2.6%

US REITs

0.3%

US Market


1 Year Return

11.4%

DLR

-12.0%

US REITs

21.1%

US Market

Return vs Industry: DLR exceeded the US REITs industry which returned -12% over the past year.

Return vs Market: DLR underperformed the US Market which returned 21.1% over the past year.


Shareholder returns

DLRIndustryMarket
7 Day5.7%2.6%0.3%
30 Day4.5%0.3%3.3%
90 Day-7.6%4.7%14.2%
1 Year15.1%11.4%-7.9%-12.0%23.8%21.1%
3 Year41.0%26.9%22.6%7.5%45.0%35.4%
5 Year117.7%82.7%50.3%19.5%127.7%102.3%

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

Valuation

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

25.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DLR ($140.72) is trading below our estimate of fair value ($188.78)

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 (63.7x) compared to the US REITs industry average (38.1x).

PE vs Market: DLR is poor value based on its PE Ratio (63.7x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: DLR is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: DLR is overvalued based on its PB Ratio (2.4x) compared to the US REITs industry average (1.6x).


Next Steps

Future Growth

How is Digital Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLR's forecast earnings growth (15.1% per year) is above the savings rate (2%).

Earnings vs Market: DLR's earnings (15.1% per year) are forecast to grow slower than the US market (21.5% per year).

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

Revenue vs Market: DLR's revenue (8.3% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: DLR's revenue (8.3% 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 (1.9%).


Next Steps

Past Performance

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

21.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLR has a large one-off gain of $386.1M impacting its September 30 2020 financial results.

Growing Profit Margin: DLR's current net profit margins (15.1%) are higher than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: DLR's earnings have grown significantly by 21.7% per year over the past 5 years.

Accelerating Growth: DLR's earnings growth over the past year (152.5%) exceeds its 5-year average (21.7% per year).

Earnings vs Industry: DLR earnings growth over the past year (152.5%) exceeded the REITs industry 2.9%.


Return on Equity

High ROE: DLR's Return on Equity (3.5%) is considered low.


Next Steps

Financial Health

How is Digital Realty Trust's financial position?


Financial Position Analysis

Short Term Liabilities: DLR's short term assets ($2.1B) do not cover its short term liabilities ($2.5B).

Long Term Liabilities: DLR's short term assets ($2.1B) do not cover its long term liabilities ($14.5B).


Debt to Equity History and Analysis

Debt Level: DLR's debt to equity ratio (69.3%) is considered high.

Reducing Debt: DLR's debt to equity ratio has reduced from 118% to 69.3% over the past 5 years.

Debt Coverage: DLR's debt is not well covered by operating cash flow (12.4%).

Interest Coverage: DLR's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

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

3.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DLR's dividend (3.18%) is higher than the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: DLR's dividend (3.18%) is low compared to the top 25% of dividend payers in the US market (3.87%).


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 (94.7%), 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 (70.6% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Bill Stein (66 yo)

6.83yrs

Tenure

US$12,337,700

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 ($USD12.34M) is about average for companies of similar size in the US market ($USD10.54M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Arthur Stein
CEO & Director6.83yrsUS$12.34mno data
Andrew Power
Chief Financial Officer5.67yrsUS$5.62m0%
$ 0
Erich Sanchack
Executive Vice President of Operations2.92yrsUS$2.69m0.00028%
$ 111.4k
Gregory Wright
Chief Investment Officer2yrsUS$5.67m0.0035%
$ 1.4m
Corey Dyer
Executive Vice President of Global Sales & Marketing2yrsUS$4.03mno data
Matt Mercier
Senior Vice President of Finance & Accounting0.83yrno data0.000060%
$ 23.9k
Christopher Sharp
Chief Technology Officer5.42yrsUS$3.49m0.00012%
$ 47.7k
Edward Diver
Chief Information Officer2.33yrsno datano data
John Stewart
Senior Vice President of Investor Relationsno datano datano data
Joshua Mills
Executive VP15.75yrsUS$2.27m0.0015%
$ 592.8k
Cindy Fiedelman
Chief Human Resources Officer5yrsno datano data
Ellen Jacobs
Senior Vice President of Corporate Services5.25yrsno datano data

5.0yrs

Average Tenure

50yo

Average Age

Experienced Management: DLR's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Arthur Stein
CEO & Director6.83yrsUS$12.34mno data
Laurence Chapman
Independent Chairman of the Board3.67yrsUS$411.41k0.020%
$ 7.8m
Dennis Singleton
Director Emeritus1yrUS$281.04k0.0039%
$ 1.5m
Michael Coke
Independent Director3.33yrsUS$267.68k0.0026%
$ 1.0m
Afshin Mohebbi
Independent Director4.42yrsUS$281.25k0%
$ 0
Kevin Kennedy
Independent Director7.83yrsUS$281.23kno data
William LaPerch
Independent Director7.83yrsUS$276.03k0.00097%
$ 385.9k
Alexis Bjorlin
Independent Director1yrno data0%
$ 0
Mark Patterson
Independent Director4.5yrsUS$281.25k0.0018%
$ 704.2k
Mary Preusse
Independent Director3.67yrsUS$257.49k0%
$ 0
VeraLinn Jamieson
Independent Director1yrno data0%
$ 0
Jean Mandeville
Independent Director0.83yrno datano data

3.7yrs

Average Tenure

60yo

Average Age

Experienced Board: DLR's board of directors are considered experienced (3.7 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 32.3%.


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$39.787b
  • Market Cap: US$38.660b
  • Shares outstanding: 288.33m
  • 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
FQIXTRA (XETRA Trading Platform)YesCommon StockDEEUROct 2004
0I9FLSE (London Stock Exchange)YesCommon StockGBUSDOct 2004
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% CUM PF SR LUSUSDOct 2019
D1LR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 23:19
End of Day Share Price2021/01/20 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.