Digital Realty Trust, Inc. Fundamental Analysis (NYSE: DLR-PL)
Digital Realty Trust, Inc. Fundamental Analysis (NYSE: DLR-PL)
Digital Realty Trust, Inc. (NYSE: DLR-PL) shows moderate financial fundamentals with a PE ratio of 89.44, profit margin of 11.67%, and ROE of 3.30%. The company generates $6.7B in annual revenue with strong year-over-year growth of 10.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DLR-PL's fundamental strength across five key dimensions:
Efficiency Score
WeakDLR-PL struggles to generate sufficient returns from assets.
Valuation Score
ModerateDLR-PL shows balanced valuation metrics.
Growth Score
ModerateDLR-PL shows steady but slowing expansion.
Financial Health Score
ExcellentDLR-PL maintains a strong and stable balance sheet.
Profitability Score
WeakDLR-PL struggles to sustain strong margins.
Key Financial Metrics
Is DLR-PL Expensive or Cheap?
P/E Ratio
DLR-PL trades at 89.44 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DLR-PL's PEG of -1.97 indicates potential undervaluation.
Price to Book
The market values Digital Realty Trust, Inc. at 2.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.25 times EBITDA. This signals the market has high growth expectations.
How Well Does DLR-PL Make Money?
Net Profit Margin
For every $100 in sales, Digital Realty Trust, Inc. keeps $11.67 as profit after all expenses.
Operating Margin
Core operations generate 17.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.30 in profit for every $100 of shareholder equity.
ROA
Digital Realty Trust, Inc. generates $1.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Digital Realty Trust, Inc. generates strong operating cash flow of $2.90B, reflecting robust business health.
Free Cash Flow
Digital Realty Trust, Inc. generates strong free cash flow of $1.33B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.86 in free cash annually.
FCF Yield
DLR-PL converts 1.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
89.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.97
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How DLR-PL Stacks Against Its Sector Peers
| Metric | DLR-PL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 89.44 | 23.47 | Worse (Expensive) |
| ROE | 3.30% | 762.00% | Weak |
| Net Margin | 11.67% | 2485.00% | Weak |
| Debt/Equity | 0.67 | -37.43 (disorted) | Distorted |
| Current Ratio | 1.07 | 34.03 | Neutral |
| ROA | 1.47% | 258.00% | Weak |
DLR-PL outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Digital Realty Trust, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.57%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
178.03%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
7.03%
Industry Style: Income, Inflation Hedge, REIT
Growing