EQUINIX INC (EQIX) Stock Fundamental Analysis
NASDAQ:EQIX - Nasdaq - US29444U7000 - REIT - Currency: USD
Taking everything into account, EQIX scores 4 out of 10 in our fundamental rating. EQIX was compared to 29 industry peers in the Specialized REITs industry. Both the profitability and the financial health of EQIX get a neutral evaluation. Nothing too spectacular is happening here. 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.
Each year in the past 5 years EQIX has been profitable.
Each year in the past 5 years EQIX had a positive operating cash flow.
1.2 Ratios
EQIX has a Return On Assets of 2.32%. This is comparable to the rest of the industry: EQIX outperforms 42.86% of its industry peers.
Looking at the Return On Equity, with a value of 6.02%, EQIX is in line with its industry, outperforming 53.57% of the companies in the same industry.
EQIX has a Return On Invested Capital of 4.34%. This is comparable to the rest of the industry: EQIX outperforms 46.43% of its industry peers.
EQIX had an Average Return On Invested Capital over the past 3 years of 4.06%. This is in line with the industry average of 5.33%.
The 3 year average ROIC (4.06%) for EQIX is below the current ROIC(4.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 6.02% | ||
| ROIC | 4.34% |
ROA(3y)2.54%
ROA(5y)2.16%
ROE(3y)6.64%
ROE(5y)5.6%
ROIC(3y)4.06%
ROIC(5y)3.91%
1.3 Margins
EQIX's Profit Margin of 9.32% is on the low side compared to the rest of the industry. EQIX is outperformed by 64.29% of its industry peers.
EQIX's Profit Margin has been stable in the last couple of years.
The Operating Margin of EQIX (18.56%) is worse than 78.57% of its industry peers.
In the last couple of years the Operating Margin of EQIX has declined.
With a Gross Margin value of 48.94%, EQIX is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
EQIX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.56% | ||
| PM (TTM) | 9.32% | ||
| GM | 48.94% |
OM growth 3Y3.22%
OM growth 5Y-2.4%
PM growth 3Y7.31%
PM growth 5Y0.42%
GM growth 3Y0.88%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EQIX is destroying value.
EQIX has more shares outstanding than it did 1 year ago.
EQIX has more shares outstanding than it did 5 years ago.
EQIX has a worse debt/assets ratio than last year.
2.2 Solvency
EQIX has an Altman-Z score of 2.68. This is not the best score and indicates that EQIX is in the grey zone with still only limited risk for bankruptcy at the moment.
EQIX's Altman-Z score of 2.68 is amongst the best of the industry. EQIX outperforms 92.86% of its industry peers.
The Debt to FCF ratio of EQIX is 95.55, which is on the high side as it means it would take EQIX, 95.55 years of fcf income to pay off all of its debts.
EQIX has a Debt to FCF ratio of 95.55. This is in the lower half of the industry: EQIX underperforms 71.43% of its industry peers.
A Debt/Equity ratio of 1.19 is on the high side and indicates that EQIX has dependencies on debt financing.
EQIX has a Debt to Equity ratio of 1.19. This is comparable to the rest of the industry: EQIX outperforms 46.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 95.55 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.55
WACC7.89%
2.3 Liquidity
EQIX has a Current Ratio of 1.63. This is a normal value and indicates that EQIX is financially healthy and should not expect problems in meeting its short term obligations.
EQIX's Current ratio of 1.63 is amongst the best of the industry. EQIX outperforms 89.29% of its industry peers.
A Quick Ratio of 1.63 indicates that EQIX should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.63, EQIX belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.31% over the past year.
Measured over the past years, EQIX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.95% on average per year.
EQIX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.84%.
EQIX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.48% yearly.
EPS 1Y (TTM)9.31%
EPS 3Y19.11%
EPS 5Y12.95%
EPS Q2Q%7.5%
Revenue 1Y (TTM)6.84%
Revenue growth 3Y9.65%
Revenue growth 5Y9.48%
Sales Q2Q%7.13%
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 18.12% on average per year.
The Revenue is expected to grow by 8.77% on average over the next years. This is quite good.
EPS Next Y21.83%
EPS Next 2Y18.07%
EPS Next 3Y16.12%
EPS Next 5Y18.12%
Revenue Next Year5.61%
Revenue Next 2Y6.77%
Revenue Next 3Y7.15%
Revenue Next 5Y8.77%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 80.80, which means the current valuation is very expensive for EQIX.
Based on the Price/Earnings ratio, EQIX is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of EQIX to the average of the S&P500 Index (29.75), we can say EQIX is valued expensively.
Based on the Price/Forward Earnings ratio of 66.32, the valuation of EQIX can be described as expensive.
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.
EQIX's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.8 | ||
| Fwd PE | 66.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQIX is valued expensively inside the industry as 89.29% of the companies are valued cheaper.
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 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 480.12 | ||
| EV/EBITDA | 27.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EQIX's earnings are expected to grow with 16.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.7
PEG (5Y)6.24
EPS Next 2Y18.07%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.06%, EQIX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.49, EQIX's dividend is way lower than its industry peers. On top of this 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 2.30, EQIX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
On average, the dividend of EQIX grows each year by 11.21%, which is quite nice.
EQIX has paid a dividend for at least 10 years, which is 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)11.21%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
EQIX pays out 201.60% 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.
DP201.6%
EPS Next 2Y18.07%
EPS Next 3Y16.12%
910.58
+5.96 (+0.66%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.29%
Inst Owner Change0.57%
Ins Owners0.23%
Ins Owner Change2.73%
Market Cap87.86B
Analysts82.42
Price Target1034.07 (13.56%)
Short Float %1.95%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
Yearly Dividend17.14
Dividend Growth(5Y)11.21%
DP201.6%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.33%
Min EPS beat(2)-6.55%
Max EPS beat(2)3.89%
EPS beat(4)2
Avg EPS beat(4)0.88%
Min EPS beat(4)-9.91%
Max EPS beat(4)16.09%
EPS beat(8)6
Avg EPS beat(8)9.34%
EPS beat(12)8
Avg EPS beat(12)8.7%
EPS beat(16)10
Avg EPS beat(16)6.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-2.5%
Max Revenue beat(2)-2.09%
Revenue beat(4)0
Avg Revenue beat(4)-2.27%
Min Revenue beat(4)-2.52%
Max Revenue beat(4)-1.95%
Revenue beat(8)0
Avg Revenue beat(8)-2.01%
Revenue beat(12)0
Avg Revenue beat(12)-2.01%
Revenue beat(16)0
Avg Revenue beat(16)-1.93%
PT rev (1m)-0.46%
PT rev (3m)4.54%
EPS NQ rev (1m)-4.14%
EPS NQ rev (3m)-4.56%
EPS NY rev (1m)3.26%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)-2.75%
Revenue NQ rev (3m)-3.45%
Revenue NY rev (1m)-1.8%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.8 | ||
| Fwd PE | 66.32 | ||
| P/S | 10.04 | ||
| P/FCF | 480.12 | ||
| P/OCF | 27.04 | ||
| P/B | 6.49 | ||
| P/tB | 13.3 | ||
| EV/EBITDA | 27.7 |
EPS(TTM)11.27
EY1.24%
EPS(NY)13.73
Fwd EY1.51%
FCF(TTM)1.9
FCFY0.21%
OCF(TTM)33.67
OCFY3.7%
SpS90.66
BVpS140.2
TBVpS68.47
PEG (NY)3.7
PEG (5Y)6.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 6.02% | ||
| ROCE | 5.12% | ||
| ROIC | 4.34% | ||
| ROICexc | 4.9% | ||
| ROICexgc | 6.5% | ||
| OM | 18.56% | ||
| PM (TTM) | 9.32% | ||
| GM | 48.94% | ||
| FCFM | 2.09% |
ROA(3y)2.54%
ROA(5y)2.16%
ROE(3y)6.64%
ROE(5y)5.6%
ROIC(3y)4.06%
ROIC(5y)3.91%
ROICexc(3y)4.44%
ROICexc(5y)4.25%
ROICexgc(3y)6.06%
ROICexgc(5y)5.93%
ROCE(3y)4.78%
ROCE(5y)4.61%
ROICexcg growth 3Y5.87%
ROICexcg growth 5Y-3.08%
ROICexc growth 3Y8.33%
ROICexc growth 5Y-0.29%
OM growth 3Y3.22%
OM growth 5Y-2.4%
PM growth 3Y7.31%
PM growth 5Y0.42%
GM growth 3Y0.88%
GM growth 5Y-0.22%
F-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 95.55 | ||
| Debt/EBITDA | 4.43 | ||
| Cap/Depr | 152.61% | ||
| Cap/Sales | 35.05% | ||
| Interest Coverage | 3.34 | ||
| Cash Conversion | 89.43% | ||
| Profit Quality | 22.45% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 2.68 |
F-Score5
WACC7.89%
ROIC/WACC0.55
Cap/Depr(3y)144.84%
Cap/Depr(5y)152.21%
Cap/Sales(3y)33.46%
Cap/Sales(5y)35.98%
Profit Quality(3y)54.9%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.31%
EPS 3Y19.11%
EPS 5Y12.95%
EPS Q2Q%7.5%
EPS Next Y21.83%
EPS Next 2Y18.07%
EPS Next 3Y16.12%
EPS Next 5Y18.12%
Revenue 1Y (TTM)6.84%
Revenue growth 3Y9.65%
Revenue growth 5Y9.48%
Sales Q2Q%7.13%
Revenue Next Year5.61%
Revenue Next 2Y6.77%
Revenue Next 3Y7.15%
Revenue Next 5Y8.77%
EBIT growth 1Y11.94%
EBIT growth 3Y13.19%
EBIT growth 5Y6.85%
EBIT Next Year174.36%
EBIT Next 3Y51.45%
EBIT Next 5Y33.79%
FCF growth 1Y-57.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.01%
OCF growth 3Y8.45%
OCF growth 5Y10.27%