Digital Realty Trust, Inc. (DLR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

VICI Properties, Inc.

Welltower, Inc.

Realty Income Corp.

Simon Property Group, Inc.

Equinix, Inc.

American Tower Corp.

Prologis, Inc.

Public Storage

Extra Space Storage, Inc.

Digital Realty Trust, Inc.

Crown Castle, Inc.

Why is Digital Realty Trust, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate of 11.44%

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 2,376.32 MM
ROCE(HY) Highest at 6.37%
DEBT-EQUITY RATIO (HY) Lowest at 70.68 %

With ROE of 3.21%, it has a very expensive valuation with a 2.80 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -15.17%, its profits have fallen by -49.5%

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Below par performance in long term as well as near term

Along with generating -15.17% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Digital Realty Trust, Inc. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Digital Realty Trust, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Digital Realty Trust, Inc.

4.67%

0.24

27.17%

S&P 500

22.99%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.66%

EBIT Growth (5y)

18.23%

EBIT to Interest (avg)

4.09

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

10.84%

Dividend Payout Ratio

136.30%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

8.25%

ROE (avg)

5.46%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.63

EV to EBIT

56.83

EV to EBITDA

19.63

EV to Capital Employed

2.92

EV to Sales

9.18

PEG Ratio

0.51

Dividend Yield

245.07%

ROCE (Latest)

5.13%

ROE (Latest)

6.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,545.47 MM

INTEREST COVERAGE RATIO(Q)

Highest at 645.39

RAW MATERIAL COST(Y)

Fallen by -4.97% (YoY

-6What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 210.62 MM has Fallen at -50.05%

NET PROFIT(Q)

At USD 197.42 MM has Fallen at -49.15%

Here's what is working for Digital Realty Trust, Inc.

Operating Cash Flow

Highest at USD 2,545.47 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Highest at 645.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Raw Material Cost

Fallen by -4.97% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 499.51 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Digital Realty Trust, Inc.

Pre-Tax Profit

At USD 210.62 MM has Fallen at -50.05%

over average net sales of the previous four periods of USD 421.64 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 197.42 MM has Fallen at -49.15%

over average net sales of the previous four periods of USD 388.25 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)