EQUINIX INC (EQIX)
US29444U7000 - REIT
Overall EQIX gets a fundamental rating of 4 out of 10. We evaluated EQIX against 28 industry peers in the Specialized REITs industry. EQIX has only an average score on both its financial health and profitability. While showing a medium growth rate, EQIX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
EQIX had positive earnings in the past year.
In the past year EQIX had a positive cash flow from operations.
In the past 5 years EQIX has always been profitable.
In the past 5 years EQIX always reported a positive cash flow from operatings.
1.2 Ratios
EQIX has a Return On Assets (2.98%) which is in line with its industry peers.
EQIX's Return On Equity of 7.78% is fine compared to the rest of the industry. EQIX outperforms 64.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.33%, EQIX is in line with its industry, outperforming 46.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EQIX is in line with the industry average of 5.21%.
The last Return On Invested Capital (4.33%) for EQIX is above the 3 year average (3.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 7.78% | ||
| ROIC | 4.33% |
ROA(3y)2.36%
ROA(5y)2.11%
ROE(3y)6.16%
ROE(5y)5.54%
ROIC(3y)3.85%
ROIC(5y)3.99%
1.3 Margins
EQIX has a Profit Margin of 12.29%. This is in the lower half of the industry: EQIX underperforms 64.29% of its industry peers.
EQIX's Profit Margin has improved in the last couple of years.
EQIX has a worse Operating Margin (18.28%) than 78.57% of its industry peers.
EQIX's Operating Margin has declined in the last couple of years.
EQIX has a Gross Margin of 49.26%. This is in the lower half of the industry: EQIX underperforms 71.43% of its industry peers.
In the last couple of years the Gross Margin of EQIX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.28% | ||
| PM (TTM) | 12.29% | ||
| GM | 49.26% |
OM growth 3Y-1.58%
OM growth 5Y-2.23%
PM growth 3Y24.29%
PM growth 5Y10.44%
GM growth 3Y-0.26%
GM growth 5Y-0.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EQIX is destroying value.
Compared to 1 year ago, EQIX has more shares outstanding
EQIX has more shares outstanding than it did 5 years ago.
EQIX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.66 indicates that EQIX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of EQIX (2.66) is better than 92.86% of its industry peers.
The Debt to FCF ratio of EQIX is 92.06, which is on the high side as it means it would take EQIX, 92.06 years of fcf income to pay off all of its debts.
EQIX has a worse Debt to FCF ratio (92.06) than 75.00% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that EQIX has dependencies on debt financing.
EQIX has a Debt to Equity ratio of 1.12. This is comparable to the rest of the industry: EQIX outperforms 46.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 92.06 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.53
WACC8.12%
2.3 Liquidity
A Current Ratio of 1.16 indicates that EQIX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, EQIX is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that EQIX should not have too much problems paying its short term obligations.
EQIX's Quick ratio of 1.16 is fine compared to the rest of the industry. EQIX outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.25% over the past year.
The Earnings Per Share has been growing by 18.14% on average over the past years. This is quite good.
The Revenue has grown by 8.17% in the past year. This is quite good.
The Revenue has been growing by 10.05% on average over the past years. This is quite good.
EPS 1Y (TTM)19.25%
EPS 3Y34.79%
EPS 5Y18.14%
EPS Q2Q%5.8%
Revenue 1Y (TTM)8.17%
Revenue growth 3Y10.93%
Revenue growth 5Y10.05%
Sales Q2Q%6.79%
3.2 Future
The Earnings Per Share is expected to grow by 11.11% on average over the next years. This is quite good.
EQIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.06% yearly.
EPS Next Y12.94%
EPS Next 2Y15.06%
EPS Next 3Y15.89%
EPS Next 5Y11.11%
Revenue Next Year7.06%
Revenue Next 2Y7.75%
Revenue Next 3Y8.18%
Revenue Next 5Y9.06%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 84.43, which means the current valuation is very expensive for EQIX.
Compared to the rest of the industry, the Price/Earnings ratio of EQIX indicates a slightly more expensive valuation: EQIX is more expensive than 67.86% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.20. EQIX is valued rather expensively when compared to this.
EQIX is valuated quite expensively with a Price/Forward Earnings ratio of 68.60.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EQIX indicates a slightly more expensive valuation: EQIX is more expensive than 67.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.00. EQIX is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.43 | ||
| Fwd PE | 68.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EQIX indicates a rather expensive valuation: EQIX more expensive than 82.14% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQIX indicates a slightly more expensive valuation: EQIX is more expensive than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 470.63 | ||
| EV/EBITDA | 29.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as EQIX's earnings are expected to grow with 15.89% in the coming years.
PEG (NY)6.53
PEG (5Y)4.65
EPS Next 2Y15.06%
EPS Next 3Y15.89%
5. Dividend
5.1 Amount
EQIX has a Yearly Dividend Yield of 1.90%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.90, EQIX pays less dividend than the industry average, which is at 4.54. 89.29% of the companies listed in the same industry pay a better dividend than EQIX!
Compared to an average S&P500 Dividend Yield of 2.23, EQIX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
On average, the dividend of EQIX grows each year by 9.69%, which is quite nice.
EQIX has been paying a dividend for at least 10 years, so it has a reliable track record.
EQIX has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)9.69%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
154.57% of the earnings are spent on dividend by EQIX. This is not a sustainable payout ratio.
The dividend of EQIX is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP154.57%
EPS Next 2Y15.06%
EPS Next 3Y15.89%
EQUINIX INC
NASDAQ:EQIX (11/22/2024, 8:00:02 PM)
After market: 936.37 0 (0%)936.37
+12.77 (+1.38%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap90.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.43 | ||
| Fwd PE | 68.6 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.53
PEG (5Y)4.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 7.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.28% | ||
| PM (TTM) | 12.29% | ||
| GM | 49.26% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)19.25%
EPS 3Y34.79%
EPS 5Y
EPS Q2Q%
EPS Next Y12.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.17%
Revenue growth 3Y10.93%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y