EQUINIX INC (EQIX) Stock Fundamental Analysis
NASDAQ:EQIX - Nasdaq - US29444U7000 - REIT - Currency: USD
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 an average financial health and profitability rating. EQIX is valied quite expensively at the moment, while it does show a decent growth rate.
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.
EQIX had positive earnings in each of the past 5 years.
EQIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EQIX (2.98%) is comparable to the rest of the industry.
The Return On Equity of EQIX (7.78%) is better than 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 5.22%.
The 3 year average ROIC (3.85%) for EQIX is below the current ROIC(4.33%), indicating increased profibility in the last year.
| 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
The Profit Margin of EQIX (12.29%) is worse than 60.71% of its industry peers.
EQIX's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 18.28%, EQIX is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of EQIX has declined.
EQIX has a worse Gross Margin (49.26%) than 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
Compared to 5 years ago, EQIX has more shares outstanding
EQIX has a better debt/assets ratio than last year.
2.2 Solvency
EQIX has an Altman-Z score of 2.61. 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 has a Altman-Z score of 2.61. This is amongst the best in the industry. EQIX outperforms 92.86% 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.
With a Debt to FCF ratio value of 92.06, EQIX is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
EQIX has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external 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 | 2.61 |
ROIC/WACC0.53
WACC8.21%
2.3 Liquidity
A Current Ratio of 1.16 indicates that EQIX should not have too much problems paying its short term obligations.
The Current ratio of EQIX (1.16) is better than 75.00% of its industry peers.
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.
Looking at the last year, EQIX shows a quite strong growth in Revenue. The Revenue has grown by 8.17% in the last year.
Measured over the past years, EQIX shows a quite strong growth in Revenue. The Revenue has been growing by 10.05% on average per year.
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 Year6.94%
Revenue Next 2Y7.24%
Revenue Next 3Y7.92%
Revenue Next 5Y8.77%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
EQIX is valuated quite expensively with a Price/Earnings ratio of 83.15.
Based on the Price/Earnings ratio, EQIX is valued a bit more expensive than 71.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.51. EQIX is valued rather expensively when compared to this.
EQIX is valuated quite expensively with a Price/Forward Earnings ratio of 67.73.
67.86% of the companies in the same industry are cheaper than EQIX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 93.88. EQIX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.15 | ||
| Fwd PE | 67.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQIX is valued more expensive than 82.14% of the companies in the same industry.
75.00% of the companies in the same industry are cheaper than EQIX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 463.47 | ||
| EV/EBITDA | 28.65 |
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.
A more expensive valuation may be justified as EQIX's earnings are expected to grow with 16.11% in the coming years.
PEG (NY)6.29
PEG (5Y)4.58
EPS Next 2Y14.91%
EPS Next 3Y16.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.81%, EQIX has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.81, EQIX pays less dividend than the industry average, which is at 4.83. 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 2.27, EQIX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of EQIX is nicely growing with an annual growth rate of 9.69%!
EQIX has paid a dividend for at least 10 years, which is 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
154.57% of the earnings are spent on dividend by EQIX. This is not a sustainable payout ratio.
EQIX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP154.57%
EPS Next 2Y14.91%
EPS Next 3Y16.11%
EQUINIX INC
NASDAQ:EQIX (1/30/2025, 8:21:52 PM)
After market: 922.13 0 (0%)922.13
+13.9 (+1.53%)
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 Change0.1%
Ins Owners0.23%
Ins Owner Change0.01%
Market Cap88.98B
Analysts81.82
Price Target1011.57 (9.7%)
Short Float %1.89%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend14.66
Dividend Growth(5Y)9.69%
DP154.57%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
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)1.29%
PT rev (3m)6.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.47%
EPS NY rev (1m)0%
EPS NY rev (3m)1.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.15 | ||
| Fwd PE | 67.73 | ||
| P/S | 10.35 | ||
| P/FCF | 463.47 | ||
| P/OCF | 27.24 | ||
| P/B | 6.55 | ||
| P/tB | 14.18 | ||
| EV/EBITDA | 28.65 |
EPS(TTM)11.09
EY1.2%
EPS(NY)13.61
Fwd EY1.48%
FCF(TTM)1.99
FCFY0.22%
OCF(TTM)33.86
OCFY3.67%
SpS89.1
BVpS140.82
TBVpS65.04
PEG (NY)6.29
PEG (5Y)4.58
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 | 2.61 |
F-Score6
WACC8.21%
ROIC/WACC0.53
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 Year6.94%
Revenue Next 2Y7.24%
Revenue Next 3Y7.92%
Revenue Next 5Y8.77%
EBIT growth 1Y12.94%
EBIT growth 3Y9.17%
EBIT growth 5Y7.6%
EBIT Next Year181.7%
EBIT Next 3Y51.46%
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%