Digital Realty Trust -- The Essentials

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.

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.