EQUINIX INC (EQIX) Stock Fundamental Analysis
NASDAQ:EQIX - US29444U7000 - REIT
786.35 USD
-4.21 (-0.53%)
786.35 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to EQIX. EQIX was compared to 30 industry peers in the Specialized REITs industry. While EQIX is still in line with the averages on profitability rating, there are concerns on its financial health. EQIX is quite expensive at the moment. 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.
Each year in the past 5 years EQIX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.56%, EQIX is in line with its industry, outperforming 56.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.06%, EQIX is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
EQIX has a Return On Invested Capital (4.44%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for EQIX is in line with the industry average of 5.07%.
The 3 year average ROIC (4.06%) for EQIX is below the current ROIC(4.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 7.06% | ||
| ROIC | 4.44% |
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 has a Profit Margin (11.11%) which is in line with its industry peers.
EQIX's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 20.25%, EQIX is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
EQIX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 50.11%, EQIX is doing worse than 73.33% of the companies in the same industry.
EQIX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.25% | ||
| PM (TTM) | 11.11% | ||
| GM | 50.11% |
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
EQIX has a worse debt/assets ratio than last year.
2.2 Solvency
EQIX has an Altman-Z score of 2.12. 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 2.12, EQIX belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
The Debt to FCF ratio of EQIX is 483.69, which is on the high side as it means it would take EQIX, 483.69 years of fcf income to pay off all of its debts.
EQIX has a worse Debt to FCF ratio (483.69) than 76.67% of its industry peers.
EQIX has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.29, EQIX perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 483.69 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.57
WACC7.73%
2.3 Liquidity
A Current Ratio of 1.54 indicates that EQIX should not have too much problems paying its short term obligations.
EQIX's Current ratio of 1.54 is fine compared to the rest of the industry. EQIX outperforms 70.00% of its industry peers.
EQIX has a Quick Ratio of 1.54. This is a normal value and indicates that EQIX is financially healthy and should not expect problems in meeting its short term obligations.
EQIX has a better Quick ratio (1.54) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.51% 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.
Looking at the last year, EQIX shows a small growth in Revenue. The Revenue has grown by 5.74% in the last 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)19.51%
EPS 3Y19.11%
EPS 5Y12.95%
EPS Q2Q%18.99%
Revenue 1Y (TTM)5.74%
Revenue growth 3Y9.65%
Revenue growth 5Y9.48%
Sales Q2Q%4.49%
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 14.46% yearly.
Based on estimates for the next years, EQIX will show a quite strong growth in Revenue. The Revenue will grow by 8.35% on average per year.
EPS Next Y33.69%
EPS Next 2Y18.21%
EPS Next 3Y13.42%
EPS Next 5Y14.46%
Revenue Next Year5.65%
Revenue Next 2Y7.03%
Revenue Next 3Y7.37%
Revenue Next 5Y8.35%
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
EQIX is valuated quite expensively with a Price/Earnings ratio of 60.26.
Based on the Price/Earnings ratio, EQIX is valued a bit more expensive than 60.00% of the companies in the same industry.
EQIX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.17.
With a Price/Forward Earnings ratio of 49.93, EQIX can be considered very expensive at the moment.
EQIX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EQIX is more expensive than 60.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EQIX to the average of the S&P500 Index (22.78), we can say EQIX is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.26 | ||
| Fwd PE | 49.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQIX is valued a bit more expensive than 76.67% of the companies in the same industry.
80.00% 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 | 1832.19 | ||
| EV/EBITDA | 24.4 |
4.3 Compensation for Growth
EQIX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as EQIX's earnings are expected to grow with 13.42% in the coming years.
PEG (NY)1.79
PEG (5Y)4.65
EPS Next 2Y18.21%
EPS Next 3Y13.42%
5. Dividend
5.1 Amount
EQIX has a Yearly Dividend Yield of 2.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.02, EQIX's dividend is way lower than its industry peers. On top of this 86.67% of the companies listed in the same industry pay a better dividend than EQIX!
EQIX's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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 176.46% 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.
DP176.46%
EPS Next 2Y18.21%
EPS Next 3Y13.42%
786.35
-4.21 (-0.53%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.95%
Inst Owner Change6%
Ins Owners0.25%
Ins Owner Change0.9%
Market Cap76.95B
Analysts81.18
Price Target979.48 (24.56%)
Short Float %2.04%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend17.14
Dividend Growth(5Y)11.21%
DP176.46%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.69%
Min EPS beat(2)5.99%
Max EPS beat(2)19.39%
EPS beat(4)3
Avg EPS beat(4)5.68%
Min EPS beat(4)-6.55%
Max EPS beat(4)19.39%
EPS beat(8)6
Avg EPS beat(8)8.85%
EPS beat(12)9
Avg EPS beat(12)8.73%
EPS beat(16)11
Avg EPS beat(16)8.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)-1.94%
Revenue beat(4)0
Avg Revenue beat(4)-2.14%
Min Revenue beat(4)-2.5%
Max Revenue beat(4)-1.94%
Revenue beat(8)0
Avg Revenue beat(8)-2.13%
Revenue beat(12)0
Avg Revenue beat(12)-1.95%
Revenue beat(16)0
Avg Revenue beat(16)-1.99%
PT rev (1m)-0.25%
PT rev (3m)-4.31%
EPS NQ rev (1m)-2.71%
EPS NQ rev (3m)4.13%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.26 | ||
| Fwd PE | 49.93 | ||
| P/S | 8.6 | ||
| P/FCF | 1832.19 | ||
| P/OCF | 22.04 | ||
| P/B | 5.46 | ||
| P/tB | 11.46 | ||
| EV/EBITDA | 24.4 |
EPS(TTM)13.05
EY1.66%
EPS(NY)15.75
Fwd EY2%
FCF(TTM)0.43
FCFY0.05%
OCF(TTM)35.68
OCFY4.54%
SpS91.39
BVpS143.92
TBVpS68.6
PEG (NY)1.79
PEG (5Y)4.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 7.06% | ||
| ROCE | 5.23% | ||
| ROIC | 4.44% | ||
| ROICexc | 5.11% | ||
| ROICexgc | 6.77% | ||
| OM | 20.25% | ||
| PM (TTM) | 11.11% | ||
| GM | 50.11% | ||
| FCFM | 0.47% |
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-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 483.69 | ||
| Debt/EBITDA | 4.81 | ||
| Cap/Depr | 175.04% | ||
| Cap/Sales | 38.58% | ||
| Interest Coverage | 3.7 | ||
| Cash Conversion | 92.33% | ||
| Profit Quality | 4.23% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 2.12 |
F-Score6
WACC7.73%
ROIC/WACC0.57
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)19.51%
EPS 3Y19.11%
EPS 5Y12.95%
EPS Q2Q%18.99%
EPS Next Y33.69%
EPS Next 2Y18.21%
EPS Next 3Y13.42%
EPS Next 5Y14.46%
Revenue 1Y (TTM)5.74%
Revenue growth 3Y9.65%
Revenue growth 5Y9.48%
Sales Q2Q%4.49%
Revenue Next Year5.65%
Revenue Next 2Y7.03%
Revenue Next 3Y7.37%
Revenue Next 5Y8.35%
EBIT growth 1Y19.54%
EBIT growth 3Y13.19%
EBIT growth 5Y6.85%
EBIT Next Year174.06%
EBIT Next 3Y49.24%
EBIT Next 5Y32.65%
FCF growth 1Y-90.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y15.89%
OCF growth 3Y8.45%
OCF growth 5Y10.27%