DFT  Dupont Fabros Technology Inc.

Exchange

NYSE

Sector

Finance

Industry

Real Estate

Market Cap.

5.14B

Vuru Grade

12.31/100

Current Price

$66.31
-1.57 (-2.31%)

Growth Price

$4.62
Overvalued by 93.03%

Company Metrics

  • P/E 40.38
  • P/S 9.67
  • P/B 8.35
  • EPS 1.64
  • Cash ROIC -0.25%
  • Cash Ratio -
  • Dividend 0.00 / 0.00 %
  • Avg. Vol. 607,050.00
  • Shares 77.51M
  • Market Cap. 5.14B

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. Announces Dividend on Shares of Its Preferred Stock
GlobeNewswire (press release) - Aug 30, 2017
WASHINGTON, Aug. 30, 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 announced ...
Digital Realty Agrees to Buy DuPont Fabros for $4.95 Billion
Bloomberg - Jun 9, 2017
Investors in Washington-based DuPont Fabros will get 0.545 Digital Realty shares for each of their shares, the real estate investment trusts said in a statement Friday.
Digital Realty expands data center reach with DuPont Fabros buy - Reuters
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., Announces Date of Second Quarter 2017 Earnings ...
GlobeNewswire (press release) - Jul 20, 2017
WASHINGTON, July 20, 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 ...
Were Analysts Bearish DuPont Fabros Technology, Inc. (NYSE:DFT) This Week? - Finance News Daily
Digital Realty to Acquire DuPont Fabros in $7.6 Billion Deal
Nasdaq - Jun 12, 2017
In a major development in the data center REIT market, Digital Realty Trust, Inc. DLR announced on Jun 9 that it is set to acquire DuPont Fabros Technology, Inc. DFT . The buyout will be an all-stock transaction for an enterprise value of about $7.6 ...
Digital Realty, DuPont Fabros to Merge - Commercial Property Executive
2 Big Reasons To Like The Digital Realty/DuPont Deal - Benzinga
Dupont Fabros Technology, Inc. (DFT) Ex-Dividend Date Scheduled for June 29, 2017
Nasdaq - Jun 28, 2017
Dupont Fabros Technology, Inc. ( DFT ) will begin trading ex-dividend on June 29, 2017. A cash dividend payment of $0.5 per share is scheduled to be paid on July 17, 2017.
Balyasny Asset Management LLC Invests $330000 in DuPont Fabros Technology, Inc ...
The Ledger Gazette - 23 hours ago
DuPont Fabros Technology logo Balyasny Asset Management LLC acquired a new stake in shares of DuPont Fabros Technology, Inc. (NYSE:DFT) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm ...
DuPont Fabros Technology (DFT) & Its Competitors Head-To-Head Contrast - Dispatch Tribunal
DuPont Fabros Technology, Inc. (DFT) Analysts See $0.78 EPS; Last Week Seres ... - FlintDaily.com
DuPont Fabros Technology, Inc. (DFT) Analysts See $0.78 EPS
WeeklyHub - Oct 18, 2017
Investors sentiment decreased to 0.96 in 2017 Q2. Its down 0.21, from 1.17 in 2017Q1. It is negative, as 35 investors sold DuPont Fabros Technology, Inc. shares while 91 reduced holdings. 54 funds opened positions while 67 raised stakes. 74.92 million ...
Could Dupont Fabros Tech Incorporated (NYSE:DFT) Change Direction After Less ...
BZ Weekly - Oct 19, 2017
Investors sentiment decreased to 0.96 in Q2 2017. Its down 0.21, from 1.17 in 2017Q1. It fall, as 35 investors sold DuPont Fabros Technology, Inc. shares while 91 reduced holdings. 54 funds opened positions while 67 raised stakes. 74.92 million shares ...
DuPont Fabros Technology, Inc. (DFT) Shares Bought by Public Employees ... - Dispatch Tribunal
Boston Advisors Lowered Its Dupont Fabros Technology C (DFT) Holding; APPLIED ...
Key Gazette - 1 hour ago
Boston Advisors Llc decreased Dupont Fabros Technology Inc C (DFT) stake by 39.49% reported in 2017Q2 SEC filing. Boston Advisors Llc sold 131,762 shares as Dupont Fabros Technology Inc C (DFT)'s stock rose 5.21%. The Boston Advisors Llc holds ...
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.

$66.31 Current Price

$4.62 Growth Price (DCF)

Overvalued by 93.03%


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 70.43%


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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