DFT  Dupont Fabros Technology Inc.

Exchange

NYSE

Sector

Finance

Industry

Real Estate

Market Cap.

3.77B

Vuru Grade

7.50/100

Current Price

$50.07
+0.03 (+0.06%)

Growth Price

$15.99
Overvalued by 68.07%

Company Metrics

  • P/E 362.83
  • P/S 7.63
  • P/B 4.75
  • EPS 0.14
  • Cash ROIC -1.77%
  • Cash Ratio -
  • Dividend 2.00 / 4.06 %
  • Avg. Vol. 731,216.00
  • Shares 65.18M
  • Market Cap. 3.77B

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 Inc. (DFT) Breaks into New 52-Week High on February ...
Equities.com - 6 hours ago
Shares of Dupont Fabros Technology Inc. (DFT) broke into a new 52-week high yesterday, hitting a peak of $50.37. Shares closed at $50.07 after opening at $50.02 for a move of 0.06%.
DuPont Fabros Technology Inc. Announces First Quarter 2017 Dividends on Shares ... - GlobeNewswire (press release)
Dupont Fabros Technology Inc. - Receive News & Ratings Daily - BBNS
DUPONT FABROS TECHNOLOGY, INC. (NYSE:DFT) Files An 8-K Departure of Directors ...
Market Exclusive - 13 hours ago
DuPont Fabros Technology, Inc. (DFT) is a real estate investment trust (REIT). The Company is a self-administered and self-managed company that owns, acquires, develops and operates wholesale data centers.
Dupont Fabros Technology Inc. (DFT) Breaks into New 52-Week High on February ...
Equities.com - Feb 8, 2017
Shares of Dupont Fabros Technology Inc. (DFT) broke into a new 52-week high yesterday, hitting a peak of $49.28. Shares closed at $48.99 after opening at $48.25 for a move of 1.51%.
DUPONT FABROS TECHNOLOGY, INC.
StreetInsider.com - 14 hours ago
On February 16, 2017, the Compensation Committee (the “Compensation Committee”) of the Board of Directors of DuPont Fabros Technology, Inc. (the “Company”) adopted the Company's 2017 Short-Term Incentive Compensation Plan (the “2017 STIC ...
DuPont Fabros Technology, Inc. Announces Purchase of Shell Building in the ...
GlobeNewswire (press release) - Oct 27, 2016
WASHINGTON, Oct. 27, 2016 (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 announced today that it has ...
DuPont Fabros Technology, Inc. Names Robert S. O'Keefe As Senior Vice ...
PR Newswire (press release) - Nov 2, 2015
WASHINGTON, Nov. 2, 2015 /PRNewswire/ -- DuPont Fabros Technology, Inc. (NYSE: DFT) today announced that Robert S. O'Keefe has joined the DuPont Fabros Technology (DFT) executive team as senior vice president and chief marketing officer.
DuPont Fabros Technology, Inc. Reports Third Quarter 2015 Results
PR Newswire (press release) - Oct 29, 2015
ACC2 is the Company's smallest data center facility and, primarily for that reason, has the highest cost of operations and cooling.
DuPont Fabros Technology, Inc. Announces Successful Achievement of Its Sales ...
GlobeNewswire (press release) - Oct 3, 2016
WASHINGTON, Oct. 03, 2016 (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 ...
DuPont Fabros Technology, Inc. Names Brian Doricko Senior Vice President And ...
PR Newswire (press release) - Nov 17, 2015
WASHINGTON, Nov. 17, 2015 /PRNewswire/ -- DuPont Fabros Technology, Inc. (NYSE: DFT) today announced that Brian Doricko has joined the company's executive team as senior vice president and chief revenue officer.
DuPont Fabros Technology, Inc. Announces Over $2 Billion Invested In Ashburn ...
PR Newswire (press release) - Sep 29, 2015
29, 2015 /PRNewswire/ -- DuPont Fabros Technology, Inc. (NYSE: DFT) today announced that the sales and use tax exemption on its Ashburn, VA, campus is encouraging investment and making Virginia more competitive in creating and retaining high-tech ...
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.

$50.07 Current Price

$15.99 Growth Price (DCF)

Overvalued by 68.07%


Growth Rate Assumed by Market: 79.70%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$20.62 Book Price

Overvalued by 58.82%


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 $1.77 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow -266.63M 25.32M 40.71M -32.74M 13.31M
divided by
Invested Capital 2.49B 2.53B 2.68B 2.84B 2.82B
Cash ROIC -10.70% 1.00% 1.52% -1.15% 0.47%

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 $5.04 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 64.98M 60.83M 53.61M 124.61M -4.09M
divided by
Stockholders' Equity 1.21B 1.27B 1.25B 1.12B 956.41M
Return on Equity 5.38% 4.80% 4.28% 11.17% -0.43%

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
2006200720082009201020112012201320142015
Free Cash Flow -81.80M -8.06M -275.52M -57.50M -217.33M -266.63M 25.32M 40.71M -32.74M 13.31M

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
2006200720082009201020112012201320142015
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 364.67M 1.45B 1.86B 2.02B 2.40B 2.49B 2.53B 2.68B 2.84B 2.82B
Current Liabilities - - - - - - - - - -
Total Liabilities 368.88M 896.58M 1.31B 1.42B 1.32B 1.28B 1.26B 1.43B 1.72B 1.86B
Stockholder' Equity -4.21M 557.57M 552.17M 605.44M 1.08B 1.21B 1.27B 1.25B 1.12B 956.41M
Current Ratio - - - - - - - - - -
TL-to-TA 1.01 0.62 0.70 0.70 0.55 0.52 0.50 0.53 0.61 0.66

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
2006200720082009201020112012201320142015
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% - - -

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
2006200720082009201020112012201320142015
Net Income 788,000.00 -99.31M 19.08M 1.75M 30.45M 64.98M 60.83M 53.61M 124.61M -4.09M
divided by
Revenue 54.78M 25.87M 173.66M 200.28M 242.54M 287.44M 332.45M 375.11M 417.59M 452.40M
Net Profit Margin 1.44% -383.85% 10.99% 0.88% 12.55% 22.60% 18.30% 14.29% 29.84% -0.90%

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
2006200720082009201020112012201320142015
Gross Profit - - - - - - - - - -
divided by
Revenue 54.78M 25.87M 173.66M 200.28M 242.54M 287.44M 332.45M 375.11M 417.59M 452.40M
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.

2,721.36% 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
2006200720082009201020112012201320142015
Capital Expenditure 84.51M - 334.79M 123.40M 294.01M 391.75M 107.44M 153.05M 277.25M 241.72M
divided by
Net Income 788,000.00 -99.31M 19.08M 1.75M 30.45M 64.98M 60.83M 53.61M 124.61M -4.09M
Capital Expenditure Ratio 10,723.98% - 1,754.49% 7,039.19% 965.64% 602.92% 176.62% 285.51% 222.49% -5,915.69%

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
2006200720082009201020112012201320142015
Dividend Paid 48.22M - 47.72M 5.41M 25.04M 58.63M 70.33M 100.06M 132.93M -
divided by
Shares Outstanding - 35.38M 35.43M 40.64M 54.09M 62.30M 63.75M 65.47M 66.09M 65.18M
Dividend Paid Per Share - - 1.35 0.13 0.46 0.94 1.10 1.53 2.01 -
Price at Year End - 18.48 1.74 16.92 20.79 24.22 23.88 24.61 33.64 32.28
Dividend Yield - - 77.41% 0.79% 2.23% 3.89% 4.62% 6.21% 5.98% -

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
2006200720082009201020112012201320142015
Shares Outstanding - 35.38M 35.43M 40.64M 54.09M 62.30M 63.75M 65.47M 66.09M 65.18M
Stock Bought Back - -100.00% -0.13% -12.82% -24.88% -13.18% -2.27% -2.63% -0.93% 1.38%
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