What Our Analysts Know About Digital Realty Trust

Now trading at a price of $105.11, Digital Realty Trust has moved -0.1% so far today.

Digital Realty Trust returned losses of -17.9% last year, with its stock price reaching a high of $139.14 and a low of $85.76. Over the same period, the stock underperformed the S&P 500 index by -35.0%. As of April 2023, the company's 50-day average price was $97.75. Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL, the company's global data center platform, provides customers with a secure data "meeting place" and a proven Pervasive Datacenter Architecture (PDx) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Based in Austin, TX, the large-cap Real Estate company has 3,412 full time employees. Digital Realty Trust has offered a 4.6% dividend yield over the last 12 months.

The Company Has a Highly Leveraged Balance Sheet and a Declining EPS Growth Trend:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $3,209 $3,904 $4,428 $4,692
Operating Margins 19.7% 17.4% 17.3% 14.6%
Net Margins 18.07% 9.13% 38.6% 8.05%
Net Income (MM) $580 $356 $1,709 $378
Net Interest Expense (MM) -287 -313 -298 -290
Net Interest Expense (MM) -$287 -$313 -$298 -$290
Depreciation & Amort. (MM) -$1,164 -$1,366 -$1,487 -$1,578
Earnings Per Share $2.35 $1.0 $5.94 $1.09
EPS Growth n/a -57.45% 494.0% -81.65%
Diluted Shares (MM) 209 263 283 291
Free Cash Flow (MM) $1,514 $1,707 $1,702 $1,659
Net Current Assets (MM) -$11,793 -$16,876 -$17,031 -$20,752
Current Ratio 0.42 0.25 0.36 0.25
Long Term Debt (MM) $9,888 $12,773 $13,050 $14,446
Net Debt / EBITDA 4.91 6.36 3.73 7.22

Digital Realty Trust's Valuation Is in Line With Its Sector Averages:

Digital Realty Trust has a trailing twelve month P/E ratio of 89.7, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $1.38, the company has a forward P/E ratio of 70.8. The -10.1% compound average growth rate of Digital Realty Trust's historical and projected earnings per share yields a PEG ratio of -8.88. This indicates that its shares are overvalued.In contrast, the market is likely undervaluing Digital Realty Trust in terms of its equity because its P/B ratio is 1.86 while the sector average is 2.24. The company's shares are currently trading 82.7% above their Graham number.

Digital Realty Trust Has an Analyst Consensus of Some Upside Potential:

The 17 analysts following Digital Realty Trust have set target prices ranging from $80.0 to $175.0 per share, for an average of $118.0 with a buy rating. As of April 2023, the company is trading -17.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Digital Realty Trust has an average amount of shares sold short because 6.7% of the company's shares are sold short. Institutions own 102.0% of the company's shares, and the insider ownership rate stands at 0.11%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 16% stake in the company is worth $4,934,810,574.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.