(DLR) Digital Realty Trust - Overview
Sector: Real Estate | Industry: REIT - Specialty | Exchange: NYSE (USA) | Market Cap: 69.490m USD | Total Return: 17.7% in 12m
Industry Rotation: +4.5
Avg Turnover: 373M
EPS Trend: 38.4%
Qual. Beats: 0
Rev. Trend: 93.8%
Qual. Beats: 0
Warnings
Earnings expected to drop: P/E 51.5 → Forward 109.9
Altman Z'' -0.52 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Confidence
Digital Realty Trust, Inc. is a Maryland-based Real Estate Investment Trust (REIT) that specializes in the ownership, development, and operation of data centers globally. The company provides critical infrastructure for colocation and interconnection services, supporting a diverse client base across sectors such as cloud computing, financial services, and healthcare. As of early 2026, the firm manages a portfolio of 309 facilities across six continents, representing 3.0 gigawatts of active IT capacity and an additional 6.3 gigawatts in development.
The company operates under a REIT structure, which requires it to distribute at least 90% of taxable income to shareholders in exchange for corporate-level tax exemptions. Data center REITs benefit from high barriers to entry due to the significant capital expenditure required for specialized power cooling systems and fiber-optic connectivity. Investors may find it useful to review ValueRay for deeper technical analysis of these infrastructure assets.
- Surge in generative AI demand accelerates multi-gigawatt development pipeline capacity utilization
- High interest rates increase debt servicing costs for capital-intensive data center expansions
- Cloud service provider capital expenditure cycles dictate wholesale colocation leasing velocity
- Global power grid constraints and rising energy costs impact operational margin stability
- Strategic interconnection growth and cross-connect volume drive high-margin recurring service revenue
| Net Income: 1.38b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 3.81 > 1.0 |
| NWC/Revenue: -0.08% < 20% (prev 18.76%; Δ -18.84% < -1%) |
| CFO/TA 0.05 > 3% & CFO 2.55b > Net Income 1.38b |
| Net Debt (18.01b) to EBITDA (3.93b): 4.58 < 3 |
| Current Ratio: 1.00 > 1.5 & < 3 |
| Outstanding Shares: last quarter (353.3m) vs 12m ago 2.48% < -2% |
| Gross Margin: 25.12% > 18% (prev 0.55%; Δ 2.46k% > 0.5%) |
| Asset Turnover: 13.66% > 50% (prev 12.49%; Δ 1.17% > 0%) |
| Interest Coverage Ratio: 4.34 > 6 (EBITDA TTM 3.93b / Interest Expense TTM 455.9m) |
| A: -0.00 (Total Current Assets 3.86b - Total Current Liabilities 3.86b) / Total Assets 48.86b |
| B: -0.14 (Retained Earnings -6.95b / Total Assets 48.86b) |
| C: 0.04 (EBIT TTM 1.98b / Avg Total Assets 46.97b) |
| D: -0.32 (Book Value of Equity -7.46b / Total Liabilities 23.46b) |
| Altman-Z'' = -0.52 = B |
| DSRI: 0.91 (Receivables 1.43b/1.37b, Revenue 6.42b/5.63b) |
| GMI: 2.19 (GM 25.12% / 55.04%) |
| AQI: 1.03 (AQ_t 0.90 / AQ_t-1 0.87) |
| SGI: 1.14 (Revenue 6.42b / 5.63b) |
| TATA: -0.02 (NI 1.38b - CFO 2.55b) / TA 48.86b) |
| Beneish M = -1.92 (Cap -4..+1) = B |
Over the past week, the price has changed by +1.87%, over one month by -4.40%, over three months by +9.79% and over the past year by +17.67%.
- StrongBuy: 12
- Buy: 7
- Hold: 6
- Sell: 2
- StrongSell: 0
| Analysts Target Price | 218.7 | 12.6% |
P/E Forward = 109.8901
P/S = 11.0056
P/B = 3.0157
P/EG = 13.0996
Revenue TTM = 6.42b USD
EBIT TTM = 1.98b USD
EBITDA TTM = 3.93b USD
Long Term Debt = 17.29b USD (from longTermDebt, last quarter)
Short Term Debt = 708.0m USD (from shortLongTermDebt, last quarter)
Debt = 20.43b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.22b
Net Debt = 18.01b USD (calculated: Debt 20.43b - CCE 2.43b)
Enterprise Value = 87.50b USD (69.49b + Debt 20.43b - CCE 2.43b)
Interest Coverage Ratio = 4.34 (Ebit TTM 1.98b / Interest Expense TTM 455.9m)
EV/FCF = 75.84x (Enterprise Value 87.50b / FCF TTM 1.15b)
FCF Yield = 1.32% (FCF TTM 1.15b / Enterprise Value 87.50b)
FCF Margin = 17.98% (FCF TTM 1.15b / Revenue TTM 6.42b)
Net Margin = 21.47% (Net Income TTM 1.38b / Revenue TTM 6.42b)
Gross Margin = 25.12% ((Revenue TTM 6.42b - Cost of Revenue TTM 4.81b) / Revenue TTM)
Gross Margin QoQ = -3.80% (prev -1.41%)
Tobins Q-Ratio = 1.79 (Enterprise Value 87.50b / Total Assets 48.86b)
Interest Expense / Debt = 0.57% (Interest Expense 116.4m / Debt 20.43b)
Taxrate = 8.39% (16.0m / 190.8m)
NOPAT = 1.81b (EBIT 1.98b * (1 - 8.39%))
Current Ratio = 1.00 (Total Current Assets 3.86b / Total Current Liabilities 3.86b)
Debt / Equity = 0.87 (Debt 20.43b / totalStockholderEquity, last quarter 23.37b)
Debt / EBITDA = 4.58 (Net Debt 18.01b / EBITDA 3.93b)
Debt / FCF = 15.61 (Net Debt 18.01b / FCF TTM 1.15b)
Total Stockholder Equity = 23.06b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.93% (Net Income 1.38b / Total Assets 48.86b)
RoE = 4.59% (Net Income TTM 1.38b / Total Stockholder Equity 30.01b)
RoCE = 4.18% (EBIT 1.98b / Capital Employed (Equity 30.01b + L.T.Debt 17.29b))
RoIC = 4.14% (NOPAT 1.81b / Invested Capital 43.72b)
WACC = 6.59% (E(69.49b)/V(89.92b) * Re(8.38%) + D(20.43b)/V(89.92b) * Rd(0.57%) * (1-Tc(0.08)))
Discount Rate = 8.38% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 6.62%
[DCF] Terminal Value 77.62% ; FCFF base≈1.15b ; Y1≈757.5m ; Y5≈346.4m
[DCF] Fair Price = N/A (negative equity: EV 9.29b - Net Debt 18.01b = -8.71b; debt exceeds intrinsic value)
EPS Correlation: 38.36 | EPS CAGR: 11.26% | SUE: 0.38 | # QB: 0
Revenue Correlation: 93.80 | Revenue CAGR: 6.79% | SUE: 0.82 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.49 | Chg30d=+8.23% | Revisions=+53% | Analysts=17
EPS next Quarter (2026-09-30): EPS=0.52 | Chg30d=+9.07% | Revisions=+29% | Analysts=17
EPS current Year (2026-12-31): EPS=3.08 | Chg30d=-12.53% | Revisions=-20% | GrowthEPS=+95.9% | GrowthRev=+10.5%
EPS next Year (2027-12-31): EPS=3.11 | Chg30d=-3.88% | Revisions=-20% | GrowthEPS=+0.9% | GrowthRev=+10.9%
[Analyst] Revisions Ratio: +53%