Digital Realty Trust, Inc. (DLR)
Quantitative Summary
DeterministicDLR trades at 50.5x earnings, roughly in line with its sector average of 47.4x. Financial health is average: Piotroski 6/9, Altman Z 1.9.
Generated deterministically from quant metrics and financial statements. Not a recommendation.
Algorithmic Teardown
AI-GeneratedThe fundamental economics of this real estate platform reveal a significant divergence between operational profitability and capital efficiency. While the DuPont decomposition highlights robust margin expansion with a 21.4% net margin supported by steady revenue growth, the negative ROIC-WACC spread of -6.9% indicates that returns on invested capital are materially below the cost of equity at 10.1%. This structural inefficiency is compounded by an Altman Z-Score of 1.8, suggesting elevated financial distress risk relative to historical norms, even as a Piotroski score of 6/9 and negative Beneish M-Score point to decent operational stability without obvious earnings manipulation signals. The equity multiplier of nearly 2x suggests the company relies on leverage to drive its 5.3% ROE, yet this leverage appears insufficient to cover the high cost of capital effectively.
Valuation metrics reflect a substantial premium over historical and peer benchmarks, with a current P/E ratio of 50.8x significantly exceeding the sector average of 41.4x. This pricing implies that the market is anticipating sustained growth rates well above the observed 10% year-over-year revenue expansion to justify such multiples given the negative spread between returns and cost of capital. The disconnect suggests investors are paying for future operational improvements or asset appreciation rather than current cash flow generation efficiency, as the existing return profile fails to meet standard value creation thresholds required by a WACC hurdle rate in excess of 10%.
Risk-adjusted performance data presents a mixed picture with notable Fama-French alpha of 2.67% annually, indicating outperformance relative to size and book-to-market factors despite neutral exposure to the value factor (HML) and profitability tilt (RMW). However, this momentum is counterbalanced by an insider flow status marked as neutral over the past 90 days, offering no clear directional signal from management regarding future capital allocation or confidence in near-term execution. The combination of high valuation multiples, negative ROIC-WACC spread, and moderate distress indicators creates a scenario where potential alpha must be weighed against heightened sensitivity to interest rate fluctuations and leverage constraints inherent to the real estate sector.
Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.
Valuation Context
Currently trading 20% above its 5-year average P/E of 43.9x.
Price Chart with Moving Averages
Technical Setup
AI GeneratedDigital Realty Trust, Inc. is currently trading at $188.50 within the Real Estate sector. To assess momentum and trend direction, one must compare this current price level against its historical moving averages; if the stock trades above these averages, it suggests an uptrend where buyers have recently maintained control over sellers. Conversely, a position below these lines would indicate a downtrend or consolidation phase characterized by selling pressure. The Relative Strength Index (RSI) serves as a critical gauge for short-term momentum intensity without indicating future direction; readings near the upper threshold typically signal that the asset may be approaching overbought conditions where upward velocity could slow, while values in the lower zone suggest oversold states where downward force might diminish. In this specific instance, observing whether $188.50 sits relative to key moving averages reveals the prevailing market sentiment for DLR at this moment. If the price hovers above these benchmarks, it reflects sustained bullish momentum typical of assets experiencing positive growth phases in the real estate infrastructure space. However, if technical indicators show divergence where price makes new highs while RSI fails to confirm strength with similar peaks, it could hint at weakening internal momentum despite an apparent upward trajectory. The interplay between the current valuation and these dynamic averages provides a snapshot of market participation, allowing analysts to evaluate whether short-term forces are supporting or resisting the broader trend established by long-term price actions.
Quant Health Deep Dive
Profitability & Value Creation
DuPont Analysis — ROE Decomposition
Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.
Balance Sheet Health
Earnings Surprise History
EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.
Dividend History
| Date | Amount | Change |
|---|---|---|
| 2026-03-13 | $1.2200 | 0.0% |
| 2025-12-15 | $1.2200 | 0.0% |
| 2025-09-15 | $1.2200 | 0.0% |
| 2025-06-13 | $1.2200 | 0.0% |
| 2025-03-14 | $1.2200 | 0.0% |
| 2024-12-13 | $1.2200 | 0.0% |
| 2024-09-13 | $1.2200 | 0.0% |
| 2024-06-14 | $1.2200 | 0.0% |
| 2024-03-14 | $1.2200 | 0.0% |
| 2023-12-14 | $1.2200 | 0.0% |
| 2023-09-14 | $1.2200 | 0.0% |
| 2023-06-14 | $1.2200 | 0.0% |
Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Fama-French 5-Factor Exposure
Academic factor model decomposition — what's really driving this stock's returns.
Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.
Fundamentals
10-K Risk Factor Expansion
Word count of Item 1A (Risk Factors) across annual filings. Rising counts often signal new regulatory, competitive, or operational risks.
Passive Flow Attribution
ETF Draft EffectWhen investors buy or sell ETFs like CLOU or IYR, the fund manager is mechanically forced to buy or sell DLR shares regardless of Digital Realty Trust, Inc.'s individual fundamentals. We estimate $11.8B of passive capital is structurally linked to DLR through 8 tracked ETFs. This substantial passive exposure means that ETF inflows and outflows — not company fundamentals — can dominate daily volume on this stock.
Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.
ETF Contagion Visualizer
Simulate a price drop in Digital Realty Trust, Inc. to visualize passive redemption contagion across ETFs and collateral stocks.
If Digital Realty Trust, Inc. (DLR) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies Vanguard Real Estate II Index Fund Institutional Plus Shares (VRTPX) as the most exposed collateral stock, sharing 1 ETFs with DLR. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.
Contagion model based on shared ETF exposure and constituent weights across 30 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.
DLR Ownership Dynamics
Passive funds hold 1 in every 6 DLR shares, reducing daily market volatility.
Digital Realty Trust, Inc. (DLR) exerts notable gravity on the passive index market, currently representing 5.3% of the CLOU (CLOU) and 4.6% of the iShares U.S. Real Estate ETF (IYR). Across 29 tracked ETFs, approximately 63M shares (17.9% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.
ETFs with Highest DLR Exposure
Float lock-up computed from 29 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).
DLR Institutional Volume Profile
252-day volume distribution by price level. The Point of Control (POC) marks — the price where the most institutional volume transacted — an implicit support/resistance floor.
The highest-volume price zone for Digital Realty Trust, Inc. over the past year sits near $172.54 (12% of 252-day volume). The current price of $187.26 trades 8.5% above this institutional floor — a sign of upside momentum, though a pullback to the POC zone is a common reversion target. The highly concentrated volume profile (12% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.
Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.
Fails-to-Deliver (FTD) History
SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.
| Date | Failed Shares | Close Price | Notional Value |
|---|---|---|---|
| 2026-05-13 | 70,449 | $195.27 | $13.8M |
| 2026-05-07 | 1,218,251 | $199.68 | $243.3M |
| 2026-05-06 | 15 | $196.69 | $2,950.35 |
| 2026-05-05 | 341 | $198.51 | $67,691.91 |
| 2026-05-04 | 256 | $200.70 | $51,379.2 |
| 2026-04-20 | 87 | $203.62 | $17,714.94 |
| 2026-04-15 | 3 | $195.79 | $587.37 |
| 2026-04-09 | 193,999 | $185.63 | $36.0M |
| 2026-04-06 | 2,736 | $181.69 | $497,103.84 |
| 2026-04-02 | 6 | $180.45 | $1,082.7 |
| 2026-03-26 | 6,874 | $176.43 | $1.2M |
| 2026-03-25 | 32 | $174.71 | $5,590.72 |
| 2026-03-24 | 5,433 | $176.47 | $958,761.51 |
| 2026-03-20 | 443 | $179.85 | $79,673.55 |
| 2026-03-18 | 1,143,999 | $180.39 | $206.4M |
| 2026-03-16 | 1 | $179.61 | $179.61 |
| 2026-03-13 | 37 | $180.40 | $6,674.8 |
| 2026-03-11 | 4,730 | $180.86 | $855,467.8 |
| 2026-03-10 | 7,786 | $179.65 | $1.4M |
| 2026-03-03 | 449 | $178.69 | $80,231.81 |
| 2026-02-27 | 78 | $176.37 | $13,756.86 |
| 2026-02-26 | 8 | $179.59 | $1,436.72 |
| 2026-02-23 | 100 | $175.68 | $17,568 |
| 2026-02-20 | 4,946 | $176.90 | $874,947.4 |
| 2026-02-13 | 55 | $180.31 | $9,917.05 |
| 2026-02-11 | 55 | $172.53 | $9,489.15 |
| 2026-02-05 | 79,712 | $166.79 | $13.3M |
| 2026-01-29 | 126 | $163.21 | $20,564.46 |
| 2026-01-28 | 936 | $163.16 | $152,717.76 |
| 2026-01-20 | 73,785 | $163.60 | $12.1M |
Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.
SEC Comment Letters
SEC correspondence with the company regarding their filings. Comment letters often flag disclosure deficiencies, accounting concerns, or material omissions.
Source: SEC EDGAR correspondence. Comment letters are public records of SEC staff review of company filings.
Price Correlations
Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.
| Peer | 252-Day (1Y) | 126-Day (6M) | Direction |
|---|---|---|---|
| WTGXX | NaN | NaN | |
| IRM | 0.704 | 0.708 | High co-movement |
| EQIX | 0.617 | 0.653 | Moderate |
| VRTPX | 0.598 | 0.560 | Moderate |
| ETR | 0.466 | 0.481 | Moderate |
| SRE | 0.444 | 0.465 | Moderate |
| PWR | 0.425 | 0.477 | Moderate |
| ETN | 0.413 | 0.404 | Moderate |
| TSM | 0.409 | 0.447 | Moderate |
| ORCL | 0.409 | 0.361 | Moderate |
Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.
Compare DLR to Peers
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.