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 30 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
In the past year EQIX was profitable.
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 of 2.32%. This is comparable to the rest of the industry: EQIX outperforms 53.33% of its industry peers.
EQIX has a Return On Equity of 6.02%. This is comparable to the rest of the industry: EQIX outperforms 60.00% of its industry peers.
With a Return On Invested Capital value of 4.34%, EQIX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EQIX is in line with the industry average of 5.25%.
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 in line compared to the rest of the industry. EQIX outperforms 43.33% of its industry peers.
In the last couple of years the Profit Margin of EQIX has remained more or less at the same level.
Looking at the Operating Margin, with a value of 18.56%, EQIX is doing worse than 76.67% of the companies in the same industry.
EQIX's Operating Margin has declined in the last couple of years.
EQIX's Gross Margin of 48.94% is on the low side compared to the rest of the industry. EQIX is outperformed by 70.00% of its industry peers.
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
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
Compared to 1 year ago, EQIX has a worse debt to assets ratio.
2.2 Solvency
EQIX has an Altman-Z score of 2.36. 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 better Altman-Z score (2.36) than 93.33% 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 66.67% of its industry peers.
EQIX has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
EQIX's Debt to Equity ratio of 1.19 is in line compared to the rest of the industry. EQIX outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 95.55 | ||
| Altman-Z | 2.36 |
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.
With an excellent Current ratio value of 1.63, EQIX belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
EQIX has a Quick 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.
With an excellent Quick ratio value of 1.63, EQIX belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
EQIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.31%, which is quite good.
The Earnings Per Share has been growing by 12.95% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.84% in the past year.
Measured over the past years, EQIX shows a quite strong growth in Revenue. The Revenue has been growing by 9.48% on average per year.
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
The Earnings Per Share is expected to grow by 15.17% on average over the next years. This is quite good.
EQIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.62% yearly.
EPS Next Y23.86%
EPS Next 2Y18.3%
EPS Next 3Y15.99%
EPS Next 5Y15.17%
Revenue Next Year4.1%
Revenue Next 2Y6.26%
Revenue Next 3Y6.91%
Revenue Next 5Y7.62%
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.
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
With a Price/Earnings ratio of 70.20, EQIX can be considered very expensive at the moment.
66.67% of the companies in the same industry are cheaper than EQIX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.33, EQIX is valued quite expensively.
The Price/Forward Earnings ratio is 56.68, which means the current valuation is very expensive for EQIX.
60.00% of the companies in the same industry are cheaper than EQIX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EQIX to the average of the S&P500 Index (21.37), we can say EQIX is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.2 | ||
| Fwd PE | 56.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQIX is valued more expensive than 80.00% of the companies 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 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 422.88 | ||
| EV/EBITDA | 24.49 |
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 15.99% in the coming years.
PEG (NY)2.94
PEG (5Y)5.42
EPS Next 2Y18.3%
EPS Next 3Y15.99%
5. Dividend
5.1 Amount
EQIX has a Yearly Dividend Yield of 2.37%.
Compared to an average industry Dividend Yield of 5.81, EQIX's dividend is way lower than its industry peers. On top of this 90.00% of the companies listed in the same industry pay a better dividend than EQIX!
Compared to an average S&P500 Dividend Yield of 2.51, EQIX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
The dividend of EQIX is nicely growing with an annual growth rate of 11.21%!
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)11.21%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
201.60% 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.
DP201.6%
EPS Next 2Y18.3%
EPS Next 3Y15.99%
791.12
+17.92 (+2.32%)
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 Change0.92%
Ins Owners0.23%
Ins Owner Change4.89%
Market Cap77.39B
Analysts84.85
Price Target1049.45 (32.65%)
Short Float %1.99%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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)0.21%
PT rev (3m)3.74%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-4.85%
EPS NY rev (1m)1.66%
EPS NY rev (3m)2.53%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-3.32%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-3.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.2 | ||
| Fwd PE | 56.68 | ||
| P/S | 8.85 | ||
| P/FCF | 422.88 | ||
| P/OCF | 23.82 | ||
| P/B | 5.72 | ||
| P/tB | 11.71 | ||
| EV/EBITDA | 24.49 |
EPS(TTM)11.27
EY1.42%
EPS(NY)13.96
Fwd EY1.76%
FCF(TTM)1.87
FCFY0.24%
OCF(TTM)33.21
OCFY4.2%
SpS89.43
BVpS138.29
TBVpS67.54
PEG (NY)2.94
PEG (5Y)5.42
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 | 2.36 |
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 Y23.86%
EPS Next 2Y18.3%
EPS Next 3Y15.99%
EPS Next 5Y15.17%
Revenue 1Y (TTM)6.84%
Revenue growth 3Y9.65%
Revenue growth 5Y9.48%
Sales Q2Q%7.13%
Revenue Next Year4.1%
Revenue Next 2Y6.26%
Revenue Next 3Y6.91%
Revenue Next 5Y7.62%
EBIT growth 1Y11.94%
EBIT growth 3Y13.19%
EBIT growth 5Y6.85%
EBIT Next Year168.23%
EBIT Next 3Y48.82%
EBIT Next 5Y32.01%
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%