NYSE:QTS.PRA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

QTS Realty Trust, Inc. (NYSE: QTS) is a leading provider of data center solutions across a diverse footprint spanning more than 6 million square feet of owned data center space throughout primarily North America and Europe.


Snowflake Analysis

Reasonable growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has QTS Realty Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: QTS.PRA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.9%

QTS.PRA

5.5%

US REITs

2.7%

US Market


1 Year Return

4.2%

QTS.PRA

-9.8%

US REITs

9.1%

US Market

Return vs Industry: QTS.PRA exceeded the US REITs industry which returned -9.7% over the past year.

Return vs Market: QTS.PRA underperformed the US Market which returned 8.4% over the past year.


Shareholder returns

QTS.PRAIndustryMarket
7 Day1.9%5.5%2.7%
30 Day3.8%1.0%4.5%
90 Day0.9%-10.5%2.3%
1 Year11.5%4.2%-6.0%-9.8%11.5%9.1%
3 Yearn/a10.3%-3.4%30.6%22.0%
5 Yearn/a40.2%11.2%57.2%39.5%

Price Volatility Vs. Market

How volatile is QTS Realty Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

27.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QTS.PRA ($27) is trading below our estimate of fair value ($37.33)

Significantly Below Fair Value: QTS.PRA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: QTS.PRA is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: QTS.PRA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate QTS.PRA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: QTS.PRA is overvalued based on its PB Ratio (4.2x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is QTS Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

77.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QTS.PRA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: QTS.PRA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: QTS.PRA's is expected to become profitable in the next 3 years.

Revenue vs Market: QTS.PRA's revenue (11.6% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: QTS.PRA's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: QTS.PRA's Return on Equity is forecast to be low in 3 years time (3.3%).


Next Steps

Past Performance

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

-52.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QTS.PRA is currently unprofitable.

Growing Profit Margin: QTS.PRA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: QTS.PRA is unprofitable, and losses have increased over the past 5 years at a rate of -52.1% per year.

Accelerating Growth: Unable to compare QTS.PRA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: QTS.PRA is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (5.3%).


Return on Equity

High ROE: QTS.PRA has a negative Return on Equity (1.27%), as it is currently unprofitable.


Next Steps

Financial Health

How is QTS Realty Trust's financial position?


Financial Position Analysis

Short Term Liabilities: QTS.PRA's short term assets ($260.2M) exceed its short term liabilities ($224.6M).

Long Term Liabilities: QTS.PRA's short term assets ($260.2M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: QTS.PRA's debt to equity ratio (114.4%) is considered high.

Reducing Debt: QTS.PRA's debt to equity ratio has increased from 97.3% to 114.4% over the past 5 years.

Debt Coverage: QTS.PRA's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: QTS.PRA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

2.82%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: QTS.PRA's dividend (2.82%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: QTS.PRA's dividend (2.82%) is low compared to the top 25% of dividend payers in the US market (4.45%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, QTS.PRA has been paying a dividend for less than 10 years.

Growing Dividend: QTS.PRA's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.9%), QTS.PRA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QTS.PRA's dividends in 3 years are forecast to be thoroughly covered by earnings (0.8% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Chad Williams (48yo)

7yrs

Tenure

US$7,708,184

Compensation

Mr. Chad L. Williams has been the Chief Executive Officer, President and Chairman of QTS Realty Trust, Inc. since May 2013 and was the Chairman and Chief Executive Officer of predecessor of QTS Realty Trus ...


CEO Compensation Analysis

Compensation vs Market: Chad's total compensation ($USD7.71M) is above average for companies of similar size in the US market ($USD5.90M).

Compensation vs Earnings: Chad's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Chad Williams
Chairman7yrsUS$7.71m0.53% $23.7m
Jeffrey Berson
Chief Financial Officer3.08yrsUS$3.22m0.14% $6.1m
Jon Greaves
Chief Technology Officer4.08yrsUS$1.94m0.058% $2.6m
Shirley Goza
General Counsel6.58yrsUS$1.33m0.046% $2.1m
Steven Bloom
Chief People Officer3.75yrsUS$1.08m0.044% $2.0m
David Robey
Chief Operating Officer2.17yrsno data0.041% $1.8m
William Schafer
Executive Vice President of Finance & Accounting3.08yrsUS$1.82m0.027% $1.2m
Stephen Douglas
Vice President of Finance & Investor Relations5.33yrsno datano data
Thomas Greason
Chief Hyperscale Officer8.42yrsno datano data
Dave Stinson
Executive Vice President of Salesno datano datano data

4.1yrs

Average Tenure

51yo

Average Age

Experienced Management: QTS.PRA's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chad Williams
Chairman7yrsUS$7.71m0.53% $23.7m
William Grabe
Independent Director6.75yrsUS$235.01k0.018% $805.5k
John Barter
Independent Director6.75yrsUS$260.03k0.019% $839.9k
Philip Trahanas
Lead Independent Director6.33yrsUS$320.02k0.026% $1.2m
Catherine Kinney
Independent Director6.75yrsUS$262.54k0.024% $1.1m
Scott Miller
Independent Director6.75yrsUS$257.51k0.021% $955.3k
Jamie Dos Santos
Member of Federal Advisory Board2.42yrsno datano data
Peter Marino
Independent Director6.75yrsUS$260.03k0.027% $1.2m
Stephen Westhead
Independent Director6.75yrsUS$257.53k0.011% $512.5k
Charles Barlow
Member of Federal Advisory Board2.42yrsno datano data

6.8yrs

Average Tenure

66yo

Average Age

Experienced Board: QTS.PRA's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 7.9%.


Top Shareholders

Company Information

QTS Realty Trust, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: QTS Realty Trust, Inc.
  • Ticker: QTS.PRA
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$4.472b
  • Market Cap: US$4.027b
  • Shares outstanding: 67.07m
  • Website: https://www.qtsdatacenters.com

Number of Employees


Location

  • QTS Realty Trust, Inc.
  • 12851 Foster Street
  • Overland Park
  • Kansas
  • 66213
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QTSNYSE (New York Stock Exchange)YesClass A Common Stock USUSDOct 2013
QTS.PRANYSE (New York Stock Exchange)7.12% CUM PFD AUSUSDMar 2018
QTS.PRBNYSE (New York Stock Exchange)6.50% CON PFD BUSUSDJun 2018

Biography

QTS Realty Trust, Inc. (NYSE: QTS) is a leading provider of data center solutions across a diverse footprint spanning more than 6 million square feet of owned data center space throughout primarily North America and Europe. Through its software-defined technology platform, QTS is able to deliver secure, compliant infrastructure solutions, robust connectivity and premium customer service to leading hyperscale technology companies, enterprises, and government entities. QTS owns, operates or manages 24 data centers and supports more than 1,200 customers primarily in North America and Europe. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 05:41
End of Day Share Price2020/05/28 00:00
Earnings2020/03/31
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.