EQUINIX INC (EQIX)
US29444U7000 - REIT
Taking everything into account, EQIX scores 4 out of 10 in our fundamental rating. EQIX was compared to 28 industry peers in the Specialized REITs industry. EQIX has only an average score on both its financial health and profitability. EQIX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EQIX was profitable.
In the past year EQIX had a positive cash flow from operations.
EQIX had positive earnings in each of the past 5 years.
Each year in the past 5 years EQIX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EQIX (2.98%) is comparable to the rest of the industry.
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.
The Return On Invested Capital of EQIX (4.33%) is comparable to the rest of the industry.
EQIX had an Average Return On Invested Capital over the past 3 years of 3.85%. This 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 worse Profit Margin (12.29%) than 60.71% 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.
In the last couple of years the Operating Margin of EQIX has declined.
The Gross Margin of EQIX (49.26%) is worse than 71.43% of its industry peers.
EQIX's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EQIX is destroying value.
The number of shares outstanding for EQIX has been increased compared to 1 year ago.
Compared to 5 years ago, EQIX has more shares outstanding
The debt/assets ratio for EQIX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.73 indicates that EQIX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of EQIX (2.73) is better than 96.43% of its industry peers.
EQIX has a debt to FCF ratio of 92.06. This is a negative value and a sign of low solvency as EQIX would need 92.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 92.06, EQIX is doing worse than 75.00% of the companies in the same industry.
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 (1.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 92.06 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.52
WACC8.27%
2.3 Liquidity
EQIX has a Current Ratio of 1.16. This is a normal value and indicates that EQIX is financially healthy and should not expect problems in meeting 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.
With a decent Quick ratio value of 1.16, EQIX is doing good in the industry, outperforming 78.57% of the companies in the same industry.
| 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.
EQIX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.14% yearly.
EQIX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.17%.
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
Based on estimates for the next years, EQIX will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.47% on average per year.
Based on estimates for the next years, EQIX will show a quite strong growth in Revenue. The Revenue will grow by 8.77% on average per year.
EPS Next Y13.21%
EPS Next 2Y14.91%
EPS Next 3Y16.11%
EPS Next 5Y16.47%
Revenue Next Year7.04%
Revenue Next 2Y7.81%
Revenue Next 3Y8.19%
Revenue Next 5Y8.77%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
With a Price/Earnings ratio of 85.53, EQIX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of EQIX indicates a slightly more expensive valuation: EQIX is more expensive than 71.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. EQIX is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 69.67, the valuation of EQIX can be described as expensive.
EQIX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EQIX is more expensive than 67.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.99. EQIX is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.53 | ||
| Fwd PE | 69.67 |
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 89.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EQIX is valued a bit more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 476.76 | ||
| EV/EBITDA | 29.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EQIX does not grow enough to justify the current Price/Earnings ratio.
EQIX's earnings are expected to grow with 16.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.47
PEG (5Y)4.72
EPS Next 2Y14.91%
EPS Next 3Y16.11%
5. Dividend
5.1 Amount
EQIX has a Yearly Dividend Yield of 1.85%.
Compared to an average industry Dividend Yield of 4.90, EQIX's dividend is way lower than its industry peers. On top of this 92.86% of the companies listed in the same industry pay a better dividend than EQIX!
Compared to the average S&P500 Dividend Yield of 2.36, EQIX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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.
As EQIX did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)9.69%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
EQIX pays out 154.57% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EQIX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP154.57%
EPS Next 2Y14.91%
EPS Next 3Y16.11%
EQUINIX INC
NASDAQ:EQIX (12/26/2024, 1:58:28 PM)
948.57
-1.44 (-0.15%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.49%
Inst Owner Change2.8%
Ins Owners0.23%
Ins Owner Change-3.13%
Market Cap91.53B
Analysts81.82
Price Target998.71 (5.29%)
Short Float %1.71%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Dividend Growth(5Y)9.69%
DP154.57%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.99%
Min EPS beat(2)3.89%
Max EPS beat(2)16.09%
EPS beat(4)3
Avg EPS beat(4)4.62%
Min EPS beat(4)-9.91%
Max EPS beat(4)16.09%
EPS beat(8)6
Avg EPS beat(8)7.44%
EPS beat(12)8
Avg EPS beat(12)8.82%
EPS beat(16)10
Avg EPS beat(16)2.93%
Revenue beat(2)0
Avg Revenue beat(2)-2.02%
Min Revenue beat(2)-2.09%
Max Revenue beat(2)-1.95%
Revenue beat(4)0
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-2.52%
Max Revenue beat(4)-1.95%
Revenue beat(8)0
Avg Revenue beat(8)-1.9%
Revenue beat(12)0
Avg Revenue beat(12)-1.92%
Revenue beat(16)0
Avg Revenue beat(16)-1.89%
PT rev (1m)4.7%
PT rev (3m)7.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.47%
EPS NY rev (1m)0.24%
EPS NY rev (3m)1.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.53 | ||
| Fwd PE | 69.67 | ||
| P/S | 10.65 | ||
| P/FCF | 476.76 | ||
| P/OCF | 28.02 | ||
| P/B | 6.74 | ||
| P/tB | 14.58 | ||
| EV/EBITDA | 29.79 |
EPS(TTM)11.09
EY1.17%
EPS(NY)13.61
Fwd EY1.44%
FCF(TTM)1.99
FCFY0.21%
OCF(TTM)33.86
OCFY3.57%
SpS89.1
BVpS140.82
TBVpS65.04
PEG (NY)6.47
PEG (5Y)4.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 7.78% | ||
| ROCE | 5.06% | ||
| ROIC | 4.33% | ||
| ROICexc | 4.83% | ||
| ROICexgc | 6.55% | ||
| OM | 18.28% | ||
| PM (TTM) | 12.29% | ||
| GM | 49.26% | ||
| FCFM | 2.23% |
ROA(3y)2.36%
ROA(5y)2.11%
ROE(3y)6.16%
ROE(5y)5.54%
ROIC(3y)3.85%
ROIC(5y)3.99%
ROICexc(3y)4.13%
ROICexc(5y)4.3%
ROICexgc(3y)5.77%
ROICexgc(5y)6.21%
ROCE(3y)4.49%
ROCE(5y)4.66%
ROICexcg growth 3Y0.91%
ROICexcg growth 5Y-4.63%
ROICexc growth 3Y3.59%
ROICexc growth 5Y-0.97%
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%
F-Score6
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 92.06 | ||
| Debt/EBITDA | 4.3 | ||
| Cap/Depr | 155.65% | ||
| Cap/Sales | 35.76% | ||
| Interest Coverage | 3.5 | ||
| Cash Conversion | 92.11% | ||
| Profit Quality | 18.17% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 2.73 |
F-Score6
WACC8.27%
ROIC/WACC0.52
Cap/Depr(3y)149.35%
Cap/Depr(5y)154.05%
Cap/Sales(3y)35.6%
Cap/Sales(5y)36.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.25%
EPS 3Y34.79%
EPS 5Y18.14%
EPS Q2Q%5.8%
EPS Next Y13.21%
EPS Next 2Y14.91%
EPS Next 3Y16.11%
EPS Next 5Y16.47%
Revenue 1Y (TTM)8.17%
Revenue growth 3Y10.93%
Revenue growth 5Y10.05%
Sales Q2Q%6.79%
Revenue Next Year7.04%
Revenue Next 2Y7.81%
Revenue Next 3Y8.19%
Revenue Next 5Y8.77%
EBIT growth 1Y12.94%
EBIT growth 3Y9.17%
EBIT growth 5Y7.6%
EBIT Next Year183.53%
EBIT Next 3Y51.76%
EBIT Next 5Y34.36%
FCF growth 1Y-76.8%
FCF growth 3Y151.75%
FCF growth 5YN/A
OCF growth 1Y5.54%
OCF growth 3Y11.67%
OCF growth 5Y12.12%