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QTS

QTS Realty TrustNYSE:QTS Stock Report

Market Cap

US$6.5b

7D

0.2%

1Y

15.5%

Updated

31 Aug, 2021

Data

Company Financials +
QTS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends3/6

QTS Overview

QTS Realty Trust, Inc. (NYSE: QTS) is a leading provider of data center solutions across a diverse footprint spanning more than 7 million square feet of owned data center space throughout primarily North America and Europe.

QTS Realty Trust Competitors

Equinix (REIT)

NasdaqGS:EQIX

US$70.1b

Digital Realty Trust

NYSE:DLR

US$43.8b

CyrusOne

NasdaqGS:CONE

US$9.6b

CoreSite Realty

NYSE:COR

US$6.9b

Price History & Performance

Summary of all time highs, changes and price drops for QTS Realty Trust
Historical stock prices
Current Share PriceUS$77.98
52 Week HighUS$55.91
52 Week LowUS$78.65
Beta0.56
1 Month Change0.35%
3 Month Change21.48%
1 Year Change15.48%
3 Year Change73.25%
5 Year Change41.27%
Change since IPO271.33%

Recent News & Updates

Aug 26

QTS Realty Trust: On Track For A Blackstone Buyout

QTS Realty Trust appears on track to be acquired by Blackstone (through its investment vehicles) following another quarter of solid backlog growth. The favorable data center backdrop validates the investment case, while the sizeable deal premium also makes this a fair deal for QTS shareholders. Shares currently trade in line with the offer price, limiting opportunities for any merger arbitrage plays.

Shareholder Returns

QTSUS REITsUS Market
7D0.2%3.6%2.0%
1Y15.5%31.9%27.6%

Return vs Industry: QTS underperformed the US REITs industry which returned 32.2% over the past year.

Return vs Market: QTS underperformed the US Market which returned 30% over the past year.

Price Volatility

Is QTS's price volatile compared to industry and market?
QTS volatility
QTS Beta0.56
Industry Beta0.84
Market Beta1

Stable Share Price: QTS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: QTS's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2013634Chad Williamshttps://www.qtsdatacenters.com

QTS Realty Trust, Inc. (NYSE: QTS) is a leading provider of data center solutions across a diverse footprint spanning more than 7 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 27 data centers and supports more than 1,200 customers primarily in North America and Europe.

QTS Realty Trust Fundamentals Summary

How do QTS Realty Trust's earnings and revenue compare to its market cap?
QTS fundamental statistics
Market CapUS$6.51b
Earnings (TTM)-US$35.06m
Revenue (TTM)US$583.35m

8.7x

P/S Ratio

-143.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
QTS income statement (TTM)
RevenueUS$583.35m
Cost of RevenueUS$198.17m
Gross ProfitUS$385.18m
ExpensesUS$420.24m
Earnings-US$35.06m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.54
Gross Margin66.03%
Net Profit Margin-6.01%
Debt/Equity Ratio69.5%

How did QTS perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

77%

Payout Ratio

Valuation

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

40.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QTS ($77.98) is trading below our estimate of fair value ($130.37)

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


Price To Earnings Ratio

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

PE vs Market: QTS 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's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: QTS is overvalued based on its PB Ratio (3.5x) compared to the US REITs industry average (1.9x).


Future Growth

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

68.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QTS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

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

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

Revenue vs Market: QTS's revenue (12.9% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: QTS's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: QTS is forecast to be unprofitable in 3 years.


Past Performance

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

-60.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QTS is currently unprofitable.

Growing Profit Margin: QTS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: QTS is unprofitable, and losses have increased over the past 5 years at a rate of 60% per year.

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

Earnings vs Industry: QTS is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (0.9%).


Return on Equity

High ROE: QTS has a negative Return on Equity (0.37%), as it is currently unprofitable.


Financial Health

How is QTS Realty Trust's financial position?


Financial Position Analysis

Short Term Liabilities: QTS's short term assets ($175.2M) do not cover its short term liabilities ($292.4M).

Long Term Liabilities: QTS's short term assets ($175.2M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: QTS's debt to equity ratio (69.5%) is considered high.

Reducing Debt: QTS's debt to equity ratio has reduced from 80.5% to 69.5% over the past 5 years.

Debt Coverage: QTS's debt is well covered by operating cash flow (20.1%).

Interest Coverage: QTS's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Dividend

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

2.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: QTS's dividend (2.57%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: QTS's dividend (2.57%) is low compared to the top 25% of dividend payers in the US market (3.51%).


Stability and Growth of Payments

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

Growing Dividend: QTS's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.1%), QTS's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QTS's dividends in 3 years are forecast to be covered by earnings (63.7% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Chad Williams (50 yo)

8.25yrs

Tenure

US$9,865,225

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 ($USD9.87M) is above average for companies of similar size in the US market ($USD6.43M).

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


Leadership Team

Experienced Management: QTS's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: QTS's board of directors are considered experienced (7.8 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 22.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: QTS Realty Trust, Inc.
  • Ticker: QTS
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$6.508b
  • Market Cap: US$6.007b
  • Shares outstanding: 83.54m
  • Website: https://www.qtsdatacenters.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/31 23:12
End of Day Share Price2021/08/31 00:00
Earnings2021/06/30
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.