DFT  Dupont Fabros Technology Inc.

Exchange

NYSE

Sector

Finance

Industry

Real Estate

Market Cap.

4.21B

Vuru Grade

12.31/100

Current Price

$54.34
-0.67 (-1.22%)

Growth Price

$4.63
Overvalued by 91.49%

Company Metrics

  • P/E 30.98
  • P/S 8.04
  • P/B 5.52
  • EPS 1.75
  • Cash ROIC -0.25%
  • Cash Ratio -
  • Dividend 2 / 3.68%
  • Avg. Vol. 707,114.00
  • Shares 77.48M
  • Market Cap. 4.21B

Company Description

DuPont Fabros Technology, Inc., a real estate investment trust (REIT), engages in the ownership, acquisition, development, operation, management, and lease of large-scale data center facilities in the United States. The company leases its data centers to the American and international technology companies to house, power, and cool the computer servers that support their critical business processes... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

DuPont Fabros Technology (DFT) Q1 2017 Results - Earnings Call Transcript
Seeking Alpha - Apr 27, 2017
Good day, ladies and gentlemen, and welcome to the DuPont Fabros Technology, Inc. First Quarter 2017 Earnings Conference Call.
DuPont Fabros Technology, Inc. (DFT) Downgraded by Stifel Nicolaus - The Cerbat Gem
DuPont Fabros Technology (DFT) Misses Q1 EPS by 1c, Slight Beat on Revenue ... - StreetInsider.com
DuPont Fabros Technology (DFT) Q4 2016 Results - Earnings Call Transcript
Seeking Alpha - Feb 23, 2017
Good day, ladies and gentlemen, and welcome to the DuPont Fabros Technology, Inc. Q4 2016 Earnings Conference Call. At this time, all participants are in a listen-only mode.
DuPont Fabros Technology Eyes Data Center In Mesa, Arizona Tech Corridor
Area Development Online - May 15, 2017
“DuPont Fabros Technology's selection of Mesa for its new data center site puts it squarely in the East Valley's thriving technology hub and close to Phoenix-Mesa Gateway Airport,” Sandra Watson, President & CEO of the Arizona Commerce Authority, said.
Data center developer buys Mesa land for potential 1 million SF campus - Phoenix Business Journal
DuPont Fabros: A Blooming Flower In A Winter Garden
Seeking Alpha - Mar 21, 2017
Wholesale data center company DuPont Fabros Technology, Inc. (NYSE:DFT) has demonstrated a great ability to grow rapidly in an industry that is itself growing quickly.
Earnings Growth Research: DuPont Fabros Technology, Inc. (DFT), Helios and ...
USA Commerce Daily - 21 minutes ago
Shares of DuPont Fabros Technology, Inc. (NYSE:DFT) are making a strong comeback as they have jumped 44.75% since bottoming out at $37.54 on Oct. 06, 2016.
DuPont Fabros Technology, Inc. (DFT) Stake Decreased by Virginia Retirement ... - Sports Perspectives
The Markets Are Undervaluing these stock's: United Bankshares, Inc. (UBSI ... - StockNewsJournal
DuPont Fabros Technology Inc. Affirms Ongoing Commitment to Sustainability ...
GlobeNewswire (press release) - Mar 6, 2017
WASHINGTON, March 06, 2017 (GLOBE NEWSWIRE) -- DuPont Fabros Technology Inc. (NYSE:DFT), a leading owner, developer, operator and manager of enterprise-class, carrier-neutral, large scale, multi-tenant wholesale data centers, today affirmed its ...
DuPont Fabros Technology, Inc. Announces “At-the-Market” Offering Program
GlobeNewswire (press release) - Feb 23, 2017
WASHINGTON, Feb. 23, 2017 (GLOBE NEWSWIRE) -- DuPont Fabros Technology, Inc. (NYSE:DFT) (the “Company”) today announced that it had established an “at-the-market” program through which it may issue and sell, from time to time, up to an ...
Data Center REIT, Dupont Fabros, Is A Good Place To Keep Your Money
Seeking Alpha - Jan 2, 2017
Wholesale data center company DuPont Fabros Technology, Inc. (NYSE: DFT) has demonstrated a great ability to grow rapidly in an industry that is itself growing quickly -- and should therefore hopefully help with the growth of your assets as well.
BRIEF-Dupont Fabros Technology posts Q1 FFO per share of $0.76
Reuters - Jan 31, 2017
MEXICO CITY, April 27 Mexican Coke bottler Arca Continental plans to ramp up its capital expenditures by 43 percent, to 10 billion pesos ($525.6 million), this year as it starts a new U.S.
DuPont Fabros Technology, Inc. Commences Development of CH3 Data Center
GlobeNewswire (press release) - Jan 4, 2017
WASHINGTON, Jan. 04, 2017 (GLOBE NEWSWIRE) -- DuPont Fabros Technology Inc. (NYSE:DFT), a leading, owner, developer, operator and manager of enterprise-class, carrier-neutral, large multi-tenant wholesale data centers, today announced that the ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for DFT to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate DFT's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$54.34 Current Price

$4.63 Growth Price (DCF)

Overvalued by 91.49%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


DFT's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$19.61 Book Price

Overvalued by 63.92%


Very Poor Cash Return on Invested Capital over the past 5 years

DFT has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

DFT has lost $0.25 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 25.32M 40.71M -32.74M 13.31M -94.57M
divided by
Invested Capital 2.53B 2.68B 2.84B 2.82B 3.04B
Cash ROIC 1.00% 1.52% -1.15% 0.47% -3.11%

Poor Return on Equity over the past 5 years

DFT has shown an inability to deliver strong results for shareholders. This could be due to poor management, DFT operating in a highly competitive industry, or having a weak business in general.

DFT has only generated $7.72 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 60.83M 53.61M 124.61M -4.09M 181.45M
divided by
Stockholders' Equity 1.27B 1.25B 1.12B 956.41M 967.00M
Return on Equity 4.80% 4.28% 11.17% -0.43% 18.76%

Poor Business Performance over the past 10 years

DFT's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

DFT has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow -8.06M -275.52M -57.50M -217.33M -266.63M 25.32M 40.71M -32.74M 13.31M -94.57M

Weak Balance Sheet

DFT's financial position is not ideal. The key is to check whether DFT is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 1.45B 1.86B 2.02B 2.40B 2.49B 2.53B 2.68B 2.84B 2.82B 3.04B
Current Liabilities - - - - - - - - - -
Total Liabilities 896.58M 1.31B 1.42B 1.32B 1.28B 1.26B 1.43B 1.72B 1.86B 2.07B
Stockholder' Equity 557.57M 552.17M 605.44M 1.08B 1.21B 1.27B 1.25B 1.12B 956.41M 967.00M
Current Ratio - - - - - - - - - -
TL-to-TA 0.62 0.70 0.70 0.55 0.52 0.50 0.53 0.61 0.66 0.68

Consistent Reinvestment of Profits over the past 10 years

DFT has consistently retained profits. This may put DFT in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, DFT can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings -99.31M -80.22M -78.47M -51.18M -7.08M - - - -79.87M -
Retained Earnings Growth - 19.22% 2.19% 34.78% 86.17% 100.00% - - - 100.00%

Erratic Net Profit Margins over the past 10 years

DFT has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income -99.31M 19.08M 1.75M 30.45M 64.98M 60.83M 53.61M 124.61M -4.09M 181.45M
divided by
Revenue 25.87M 173.66M 200.28M 242.54M 287.44M 332.45M 375.11M 417.59M 452.40M 528.70M
Net Profit Margin -383.85% 10.99% 0.88% 12.55% 22.60% 18.30% 14.29% 29.84% -0.90% 34.32%

Weak Pricing Power over the past 10 years

DFT is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that DFT has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue 25.87M 173.66M 200.28M 242.54M 287.44M 332.45M 375.11M 417.59M 452.40M 528.70M
Gross Margin - - - - - - - - - -

High Capital Intensity over the past 10 years

DFT spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

1,407.35% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure - 334.79M 123.40M 294.01M 391.75M 107.44M 153.05M 277.25M 241.72M 384.53M
divided by
Net Income -99.31M 19.08M 1.75M 30.45M 64.98M 60.83M 53.61M 124.61M -4.09M 181.45M
Capital Expenditure Ratio - 1,754.49% 7,039.19% 965.64% 602.92% 176.62% 285.51% 222.49% -5,915.69% 211.92%

Inconsistent Dividend History over the past 10 years

DFT has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - 47.72M 5.41M 25.04M 58.63M 70.33M 100.06M 132.93M - 161.90M
divided by
Shares Outstanding 35.38M 35.43M 40.64M 54.09M 62.30M 63.75M 65.47M 66.09M 65.18M 73.84M
Dividend Paid Per Share - 1.35 0.13 0.46 0.94 1.10 1.53 2.01 - 2.19
Price at Year End 18.48 1.74 16.92 20.79 24.22 23.88 24.61 33.64 32.28 43.93
Dividend Yield - 77.41% 0.79% 2.23% 3.89% 4.62% 6.21% 5.98% - 4.99%

History of Stock Buybacks over the past 10 years

DFT has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 35.38M 35.43M 40.64M 54.09M 62.30M 63.75M 65.47M 66.09M 65.18M 73.84M
Stock Bought Back - -0.13% -12.82% -24.88% -13.18% -2.27% -2.63% -0.93% 1.38% -11.72%
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