Digital Realty Trust, Inc. (DLR) stock analysis

P/E above its 5-year median

Digital Realty Trust's P/E of 75.5 is above its own 5-year median of 49.6.

P/E above the industry

Digital Realty Trust's P/E of 75.5 is above the Miscellaneous Investing median of 26.3.

EV/EBITDA above its 5-year median

Digital Realty Trust's EV/EBITDA of 30.5 is above its 5-year median of 18.7.

P/B above the industry

Digital Realty Trust's price-to-book of 2.44 is above the Miscellaneous Investing median of 1.20.

Trading above fair value

The share price of $181.13 is above our fair value estimate of $88.57.

Margin of safety under 20%

The price is 104% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 9.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 47.7% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -33.8% over the last twelve months, against a 5-year average of 29.7% a year.

Growing faster than the industry

Revenue grew 20.0% over the last twelve months; the Miscellaneous Investing median is 4.6%.

Guidance raised

Digital Realty Trust raised its 2026 Core FFO per share outlook on Apr 23, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 3.6% over the last twelve months and averaged 5.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 0.7%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Digital Realty Trust's return on equity of 3.6% is above the Miscellaneous Investing median of 3.1%.

Earnings grew over 5 years

Net income grew 29.7% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 13.1% over the last twelve months, against a 5-year average of 19.2%.

Net margin above the industry

Digital Realty Trust's net margin of 13.1% is above the Miscellaneous Investing median of 10.3%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest not well covered

Operating income covers interest expense 0.4 times; we look for at least 5.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 1.52; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Digital Realty Trust paid dividends worth 2.7% of the share price over the last twelve months.

Yield below Treasuries

The 2.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Digital Realty Trust yields 2.7%.

Dividend stability

Fewer than five years of dividend history.

Not covered by earnings

Dividends take 196% of net income, leaving little room.

Cash-flow cover

Needs dividends paid and free cash flow.