Digital Realty Trust, Inc.

Digital Realty Trust, Inc.

DLRยทNYSE

$186.26

-0.53%
Real EstateREIT - Specialty

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.

At a Glance

Live Snapshot
Market Cap$65.45B
EPS3.7300
P/E Ratio49.94
Earnings Date07/23/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 49.9).

Valuation inputs: P/E 49.9, earnings yield +2.0%, momentum -0.5%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +5.7%, ROIC +1.3%).

Profitability stack: net margin +21.4%, ROE +5.7%, ROIC +1.3%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +49.7%, momentum -0.5%, net margin +21.4%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Digital Realty Trust, Inc. Market vs Earnings Trajectory

DLR ยท NYSE

Loading price and EPS data...

Digital Realty Trust, Inc.

Digital Realty Trust, Inc. Fair Value Envelope

DLR ยท NYSE

Our analysis suggests that DLR has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $186.26, this represents a potential HIDDEN relative to our calculated worth for Digital Realty Trust, Inc..

Intrinsic Value
Current Price: $186.26
3Y+216.0%
5Y+269.0%
10Y+69.0%
3Y+30.0%
5Y+57.0%
10Y+185.0%
3Y+246.0%
5Y+267.0%
10Y+207.0%
3Y+45.0%
5Y+41.0%
10Y+164.0%
3Y-345.0%
5Y-611.0%
10Y+1649.0%
3Y+19.0%
5Y+37.0%
10Y+305.0%
Digital Realty Trust, Inc.

Digital Realty Trust, Inc. Profit Bridge

DLR ยท NYSE
Revenue6.11B
Cost of Goods Sold (2.73B)
Gross Profit3.39B
Operating Expenses (2.73B)
Operating Income658.49M
Interest Expense (437.95M)
Other Income/Expense686.71M
Pretax Income1.35B
Income Tax (32.04M)
Net Income1.31B
Net Income
1.31B

Profitability Analysis

Gross Margin

55.4%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

10.8%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

21.4%

Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.

Effective Tax Rate

2.4%

Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

55.39%
Gross Profit Margin
1%
3Y-3.0%
5Y-10.0%
10Y-14.0%
10.77%
Operating Profit Margin
27%
3Y-14.0%
5Y-25.0%
10Y-54.0%
21.41%
Net Profit Margin
97%
3Y+166.0%
5Y+134.0%
10Y+8.0%
5.71%
Return on Equity
102%
3Y+166.0%
5Y+184.0%
10Y-32.0%
2.65%
Return on Assets
99%
3Y+191.0%
5Y+168.0%
10Y-24.0%
1.30%
Return on Invested Capital
27%
3Y-7.0%
5Y-11.0%
10Y-70.0%
DLR

Digital Realty Trust, Inc. Cash Conversion Engine

DLR ยท NYSE
Net Income1.31B
Depreciation & Amortization1.89B
Stock-Based Compensation0.00
Change in Working Capital37.26M
Others-828.35M
Capital Expenditures0.00
Free Cash Flow2.41B

Cash Flow Quality Analysis

FCF Conversion Rate

184.3%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

FCF Growth Trend

+523.0%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$37.26M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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Digital Realty Trust, Inc. Funding & Solvency Profile

DLR ยท NYSE
Cash & Cash Equivalents544.51M
Net Receivables1.43B
Inventory0.00
Other Current Assets1.88B
Total Current Assets4 B
Property, Plant & Equipment0.00
Goodwill & Intangible Assets11.64B
Long-Term Investments30.40B
Other Non-Current Assets2.96B
Total Non-Current Assets33 B
Total Assets
48.86B

Financial Health Analysis

Debt-to-Equity Ratio

0.92x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

4 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

8% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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Digital Realty Trust, Inc. Street Expectations Map

DLR ยท NYSE

Wall Street analysts project that DLR stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 208.92, with estimates ranging from a low of 180.00 to a high of 235.00.

Lowest Target
180.00
-3.36%
Consensus Target
208.92
12.17%
Highest Target
235.00
26.17%

The consensus 1-year price target stands at 208.92, with estimates ranging from a low of 180.00 to a high of 235.00.

Analyst Consensus Analysis

Upside Potential

+12.2%

Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.

Analyst Agreement

26.3% spread

Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.

Risk-Reward Profile

7.79x

Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.

Analyst Conviction

High

Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.

Market Sentiment Insight

Asymmetric upside: Strong return potential with favorable risk-reward profile. The limited downside relative to upside makes this an attractive risk-adjusted opportunity for growth-oriented portfolios.

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Digital Realty Trust, Inc. Insider Positioning

DLR ยท NYSE

During the last 12 months, insiders have sold $10.85M worth of DLR shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

62.2K

10.81M

Net Activity

-10.8M

-$10.81M

9-12 Months

Bought

0

0.00

Sold

175

30.89K

Net Activity

-31K

-$31K

Top Buyers

No buying activity

Top Sellers

1
PA

Power Andrew

Director, Officer: President And Ceo

58.0K sharesโ€ข2 transactions

$10.16M

2
PMH

Preusse Mary Hogan

Director

4.2K sharesโ€ข1 transactions

$656K

3
PMR

Patterson Mark R

Director

175 sharesโ€ข1 transactions

$31K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $10.85M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

3 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

1.40%
Dividend Yield
7199%
3Y-46.0%
5Y-18.0%
10Y+46.0%
ย 

dlr Dividend History

DLR
10Y CAGR +3%
Latest $1.22
Annual $4.88
5 year growth trend
Last Period: +0%