Fundamental analysis: Digital Realty Trust, Inc. (DLR)

Awarener score: 8.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Superb), the business stability (Excellent) and growth (Average), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.5

Business has been growing at a low pace. It's been great when measured against peer companies.
Digital Realty Trust, Inc. business trend stability is excellent. The higher the stability, the lower the risk. It looks somewhat better than rivals.

Margins score: 9.0

DLR profit margins -on goods and services sold- are usually excellent. They stand mediocre against rival companies.
Business profit on sales tends to be excellent. It's weak when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain in a weak position compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still mediocre against similar companies.
Profits -before income taxes- are usually very good considering total sales, and remain below average when measured against rivals.
Total net profit tends to be excellent when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 6.7

Digital Realty Trust, Inc. profit -on goods and services sold- has been growing at a very low pace. It's been close to average when compared to competitors.
In recent years, earnings growth -on operations- have been almost stagnant, which has been mediocre against comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a good pace, which compares great when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at a good tempo. It turns to be a slight improvement compared to similar stocks.
In past years, profits -before income taxes- grew at an excellent speed. It was slightly worse than rivals.
In the previous years, growth trend on total net profit has been excellent, and encouraging in relation to peer companies.
Earnings per share have grown at a very good rhythm in past years. It's been rather normal in relation to industry peers.

Miscellaneous score: 9.0

DLR managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been worse than most peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.2

Digital Realty Trust, Inc. usually gets sufficient returns on the resources it controls. It proves below average when measured against peer firms.
The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
There's usually some profitability -in relation to owned resources-. It ranks below average when measured against competitors.
In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 5.3

DLR usually uses a slight portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is light. It stands encouraging in relation to rival firms.
The company is usually not replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is last-in-rank when measured against industry peers.
In the past twelve months it paid excellent dividends, considering the current stock price. It came somewhat worse than competitors.
In recent years, has slightly cut back dividend payments. The company has behaved rather normal in relation to similar firms.
The company usually uses a portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects are challenged. Sustainability looks somewhat better than comparable companies.
The company usually significantly enlarges the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a very weak position compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 6.2

Digital Realty Trust, Inc. intangible assets (like brands and goodwill) represent a portion of resources controlled, according to accounting books. There could be difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
The company has plenty short-term resources to face short-term obligations. There're no liquidity concerns. It turns to be impressive in relation to similar firms.
All resources are company owned, with virtually no financial debt. Financial position is outstanding. The company could significantly borrow money if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains better than most rival firms.
Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks great when measured against rivals.
For every dollar of short-term obligations, the company has plenty of dollars in cash and short-term receivables. It's impressive in relation to peer firms.
For every dollar of short-term obligations, the company has plenty of dollars in cash and equivalents, which is top-notch against similar enterprises.
Usually, sales are on somewhat less than three months credit. It still ranks encouraging in relation to peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes less than three months from the purchase to charging customers. It happens to be somewhat better than peers.
Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's a disappointment compared to similar companies.
Net interest expenses consume a portion of usual business earnings, but are bearable. It stands somewhat better than rival firms.
There is insufficient data to conclude on the relationship of EBITDA and debt for this company. It ranks unknown against comparable enterprises.
Revenues are modest in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
Resource exploitation is very low when yearly sales are considered, business volume must be greatly increased. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 7.7

Digital Realty Trust, Inc. looks extremely cheap in relation to profits and financial position. It happens to be top tier when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands better than most similar companies.
The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still top tier when measured against industry firms.
In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up in a weak position compared to peer ventures.
This company is sitting in a mountain of cash. It's very well poised to substantially increase stockholder payments, or to fund new business projects. It looks top-notch against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is somewhat high. Improvement expectations are already in the stock price, which presents some risks. It ranks below average when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks in a very weak position compared to rival firms.
The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains worse than most peer firms.
In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still in good shape compared to peer companies.

Total score: 7.2

Company at a glance: Digital Realty Trust, Inc. (DLR)

Sector, industry: Real Estate, REIT—Office

Market Cap: 26.92 billions

Revenues TTM: 4.57 billions

Digital Realty supports the world's leading enterprises and service providers by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITALR, the company's global data center platform, provides customers a trusted foundation and proven Pervasive Datacenter Architecture PDxTM solution methodology for scaling digital business and efficiently managing data gravity challenges. Digital Realty's global data center footprint gives customers access to the connected communities that matter to them with more than 284 facilities in 48 metros across 23 countries on six continents.