Now trading at a price of $136.7, Digital Realty Trust has moved 0.1% so far today.
Digital Realty Trust returned gains of 27.3% last year, with its stock price reaching a high of $139.35 and a low of $86.33. Over the same period, the stock outperformed the S&P 500 index by 7.2%. More recently, the company's 50-day average price was $133.59. 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 returned a 3.6% dividend yield over the last 12 months, but this may not be sustainable seen that the company has a choppy cash flow record.
Increasing Revenues but Narrowing Margins:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $3,046 | $3,209 | $3,904 | $4,428 | $4,692 | $5,341 |
| Revenue Growth | n/a | 5.34% | 21.64% | 13.43% | 5.96% | 13.83% |
| Operating Margins | 18% | 19% | 14% | 16% | 13% | 10% |
| Net Margins | 11% | 18% | 9% | 39% | 8% | 17% |
| Net Income (MM) | $331 | $580 | $356 | $1,709 | $378 | $924 |
| Net Interest Expense (MM) | $322 | $353 | $333 | $294 | $299 | $411 |
| Depreciation & Amort. (MM) | $1,187 | $1,164 | $1,366 | $1,487 | $1,578 | $1,705 |
| Earnings Per Share | $1.21 | $2.35 | $1.0 | $5.94 | $1.11 | $2.85 |
| EPS Growth | n/a | 94.21% | -57.45% | 494.0% | -81.31% | 156.76% |
| Diluted Shares (MM) | 207 | 209 | 0 | 0 | 0 | 311 |
| Free Cash Flow (MM) | $60 | $77 | -$358 | -$819 | -$984 | -$1,727 |
| Capital Expenditures (MM) | $1,325 | $1,437 | $2,064 | $2,521 | $2,643 | $3,356 |
| Current Ratio | 1.0 | 1.0 | 1.0 | 1.0 | 1.0 | 1.0 |
Digital Realty Trust's Valuation Is in Line With Its Sector Averages:
Digital Realty Trust has a trailing twelve month P/E ratio of 46.2, compared to an average of 25.55 for the Real Estate sector. Based on its EPS guidance of $1.17, the company has a forward P/E ratio of 114.2. The -0.5% compound average growth rate of Digital Realty Trust's historical and projected earnings per share yields a PEG ratio of -96.48. This indicates that its shares are overvalued.Furthermore, Digital Realty Trust is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.37 is higher than the sector average of 2.1. The company's shares are currently trading 123.3% above their Graham number.
Digital Realty Trust Has an Average Rating of Buy:
The 20 analysts following Digital Realty Trust have set target prices ranging from $97.0 to $170.0 per share, for an average of $132.6 with a buy rating. As of April 2023, the company is trading 0.7% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Digital Realty Trust has an average amount of shares sold short because 4.6% of the company's shares are sold short. Institutions own 107.5% of the company's shares, and the insider ownership rate stands at 0.21%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 16% stake in the company is worth $6,478,328,776.
