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Digital Realty Trust Inc DLR

Morningstar Rating
$136.83 +0.17 (0.12%)
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Company Report

Digital Realty Offers a Full Menu of Tenants’ Data Center Needs as It Focuses on Small Deployments

Digital Realty has transformed its business from one that merely provided large companies vast amounts of space and power (a typical wholesale data center that houses few tenants) to one that can offer customers of all sizes the full spectrum of space, power, and connection needs (historically called a co-location data center that has space for many tenants). This positions it well to benefit from three trends that we expect to continue growing: creation and use of data, which is only exacerbated by artificial intelligence; the need for that data to be connected; and reliance on cloud providers.

Price vs Fair Value

DLR is trading at a 1% premium.
Price
$136.83
Fair Value
$893.00
Uncertainty
High
1-Star Price
$144.68
5-Star Price
$78.00
Economic Moat
Cxnsv
Capital Allocation
Rmfjdrc

Bulls Say, Bears Say

Bulls

Digital Realty's shift toward connection and co-location exposes it to the most attractive parts of the data center business and the growth tailwinds of cloud providers and data connectivity.

Bears

Equinix's foray into hyperscale eliminates Digital Realty's distinction as the biggest data center provider offering a full suite of services, from single cabinets to full, hyperscale data centers.

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News

Trading Information

Previous Close Price
$136.66
Day Range
$136.32137.93
52-Week Range
$86.33154.18
Bid/Ask
$134.41 / $138.54
Market Cap
$42.73 Bil
Volume/Avg
1.5 Mil / 2.1 Mil

Key Statistics

Price/Earnings (Normalized)
187.07
Price/Sales
7.72
Dividend Yield (Trailing)
3.57%
Dividend Yield (Forward)
3.57%
Total Yield
3.57%

Company Profile

Digital Realty owns and operates over 300 data centers worldwide. It has nearly 40 million rentable square feet across five continents. Digital's offerings range from retail co-location, where an enterprise may rent a single cabinet and rely on Digital to provide all the accommodations, to "cold shells," where hyperscale cloud service providers can simply rent much, or all, of a barren, power-connected building. In recent years, Digital Realty has de-emphasized cold shells and now primarily provides higher-level service to tenants, which outsource their related IT needs to Digital. The company operates as a real estate investment trust.
Sector
Real Estate
Industry
REIT - Specialty
Stock Style Box
Mid Core
Total Number of Employees
3,664

Competitors

Valuation

Metric
DLR
AJBU
NXT
Price/Earnings (Normalized)
187.0718.72
Price/Book Value
2.321.223.66
Price/Sales
7.7210.0319.03
Price/Cash Flow
20.9915.8869.29
Price/Earnings
DLR
AJBU
NXT

Financial Strength

Metric
DLR
AJBU
NXT
Quick Ratio
0.601.397.49
Current Ratio
0.701.417.83
Interest Coverage
3.342.950.33
Quick Ratio
DLR
AJBU
NXT

Profitability

Metric
DLR
AJBU
NXT
Return on Assets (Normalized)
2.86%2.76%−1.25%
Return on Equity (Normalized)
7.05%4.72%−2.18%
Return on Invested Capital (Normalized)
4.19%4.12%0.13%
Return on Assets
DLR
AJBU
NXT
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