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 30 industry peers in the Specialized REITs industry. EQIX has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
EQIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EQIX (2.57%) is comparable to the rest of the industry.
EQIX has a Return On Equity of 6.67%. This is in the better half of the industry: EQIX outperforms 66.67% of its industry peers.
The Return On Invested Capital of EQIX (4.49%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for EQIX is in line with the industry average of 5.28%.
The last Return On Invested Capital (4.49%) for EQIX is above the 3 year average (4.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 6.67% | ||
| ROIC | 4.49% |
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 10.48% is in line compared to the rest of the industry. EQIX outperforms 50.00% of its industry peers.
EQIX's Profit Margin has been stable in the last couple of years.
EQIX has a worse Operating Margin (19.58%) than 76.67% of its industry peers.
In the last couple of years the Operating Margin of EQIX has declined.
EQIX's Gross Margin of 49.58% is on the low side compared to the rest of the industry. EQIX is outperformed by 70.00% 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 | 19.58% | ||
| PM (TTM) | 10.48% | ||
| GM | 49.58% |
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
EQIX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for EQIX has been increased compared to 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 2.36. 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.
Looking at the Altman-Z score, with a value of 2.36, EQIX belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
EQIX has a debt to FCF ratio of 51.62. This is a negative value and a sign of low solvency as EQIX would need 51.62 years to pay back of all of its debts.
EQIX has a worse Debt to FCF ratio (51.62) than 66.67% of its industry peers.
EQIX has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.20, EQIX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 51.62 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.58
WACC7.77%
2.3 Liquidity
EQIX has a Current Ratio of 1.65. This is a normal value and indicates that EQIX is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.65, EQIX is doing good in the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that EQIX should not have too much problems paying its short term obligations.
EQIX has a better Quick ratio (1.65) than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
EQIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.87%, which is quite impressive.
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 6.36% in the past year.
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)24.87%
EPS 3Y19.11%
EPS 5Y12.95%
EPS Q2Q%48.56%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y9.65%
Revenue growth 5Y9.48%
Sales Q2Q%4.61%
3.2 Future
EQIX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.52% yearly.
The Revenue is expected to grow by 7.63% on average over the next years.
EPS Next Y34.4%
EPS Next 2Y21.99%
EPS Next 3Y18.08%
EPS Next 5Y15.52%
Revenue Next Year5.32%
Revenue Next 2Y6.81%
Revenue Next 3Y7.28%
Revenue Next 5Y7.63%
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 63.89, 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 66.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EQIX to the average of the S&P500 Index (27.21), we can say EQIX is valued expensively.
A Price/Forward Earnings ratio of 47.42 indicates a quite expensive valuation of EQIX.
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 60.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, EQIX is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.89 | ||
| Fwd PE | 47.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQIX is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
EQIX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. EQIX is more expensive than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 221.66 | ||
| EV/EBITDA | 24.79 |
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 18.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.86
PEG (5Y)4.93
EPS Next 2Y21.99%
EPS Next 3Y18.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.52%, EQIX has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.52, EQIX pays less dividend than the industry average, which is at 5.88. 83.33% of the companies listed in the same industry pay a better dividend than EQIX!
Compared to an average S&P500 Dividend Yield of 2.42, EQIX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
The dividend of EQIX is nicely growing with an annual growth rate of 11.21%!
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 183.28% of its income as dividend. This is not a sustainable payout ratio.
EQIX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP183.28%
EPS Next 2Y21.99%
EPS Next 3Y18.08%
795.38
-0.09 (-0.01%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.77%
Inst Owner Change1.34%
Ins Owners0.25%
Ins Owner Change6.04%
Market Cap77.80B
Analysts84.85
Price Target1037.56 (30.45%)
Short Float %1.84%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Yearly Dividend17.14
Dividend Growth(5Y)11.21%
DP183.28%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.42%
Min EPS beat(2)-6.55%
Max EPS beat(2)19.39%
EPS beat(4)3
Avg EPS beat(4)8.2%
Min EPS beat(4)-6.55%
Max EPS beat(4)19.39%
EPS beat(8)6
Avg EPS beat(8)8.76%
EPS beat(12)9
Avg EPS beat(12)10.64%
EPS beat(16)11
Avg EPS beat(16)7.72%
Revenue beat(2)0
Avg Revenue beat(2)-2.22%
Min Revenue beat(2)-2.5%
Max Revenue beat(2)-1.94%
Revenue beat(4)0
Avg Revenue beat(4)-2.12%
Min Revenue beat(4)-2.5%
Max Revenue beat(4)-1.94%
Revenue beat(8)0
Avg Revenue beat(8)-2.12%
Revenue beat(12)0
Avg Revenue beat(12)-1.95%
Revenue beat(16)0
Avg Revenue beat(16)-1.93%
PT rev (1m)1.37%
PT rev (3m)-0.65%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)4.51%
EPS NY rev (1m)0.44%
EPS NY rev (3m)8.49%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.89 | ||
| Fwd PE | 47.42 | ||
| P/S | 8.8 | ||
| P/FCF | 221.66 | ||
| P/OCF | 22.49 | ||
| P/B | 5.6 | ||
| P/tB | 11.33 | ||
| EV/EBITDA | 24.79 |
EPS(TTM)12.45
EY1.57%
EPS(NY)16.77
Fwd EY2.11%
FCF(TTM)3.59
FCFY0.45%
OCF(TTM)35.37
OCFY4.45%
SpS90.43
BVpS141.99
TBVpS70.21
PEG (NY)1.86
PEG (5Y)4.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 6.67% | ||
| ROCE | 5.29% | ||
| ROIC | 4.49% | ||
| ROICexc | 5.05% | ||
| ROICexgc | 6.66% | ||
| OM | 19.58% | ||
| PM (TTM) | 10.48% | ||
| GM | 49.58% | ||
| FCFM | 3.97% |
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 | 1.2 | ||
| Debt/FCF | 51.62 | ||
| Debt/EBITDA | 4.53 | ||
| Cap/Depr | 158.54% | ||
| Cap/Sales | 35.15% | ||
| Interest Coverage | 3.56 | ||
| Cash Conversion | 93.69% | ||
| Profit Quality | 37.86% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 2.36 |
F-Score5
WACC7.77%
ROIC/WACC0.58
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)24.87%
EPS 3Y19.11%
EPS 5Y12.95%
EPS Q2Q%48.56%
EPS Next Y34.4%
EPS Next 2Y21.99%
EPS Next 3Y18.08%
EPS Next 5Y15.52%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y9.65%
Revenue growth 5Y9.48%
Sales Q2Q%4.61%
Revenue Next Year5.32%
Revenue Next 2Y6.81%
Revenue Next 3Y7.28%
Revenue Next 5Y7.63%
EBIT growth 1Y21.11%
EBIT growth 3Y13.19%
EBIT growth 5Y6.85%
EBIT Next Year173.65%
EBIT Next 3Y49.17%
EBIT Next 5Y31.67%
FCF growth 1Y-48.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.58%
OCF growth 3Y8.45%
OCF growth 5Y10.27%