EQUINIX INC (EQIX) Stock Fundamental Analysis
USA - NASDAQ:EQIX - US29444U7000 - REIT
819.43 USD
-2.81 (-0.34%)
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. There are concerns on the financial health of EQIX while its profitability can be described as average. 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.
EQIX had a positive operating cash flow in the past year.
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
With a Return On Assets value of 2.56%, EQIX perfoms like the industry average, outperforming 55.17% 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 62.07% of the companies in the same industry.
The Return On Invested Capital of EQIX (4.44%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for EQIX is in line with the industry average of 4.79%.
The last Return On Invested Capital (4.44%) for EQIX is above the 3 year average (4.06%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 11.11%, EQIX perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
EQIX's Profit Margin has been stable in the last couple of years.
EQIX's Operating Margin of 20.25% is on the low side compared to the rest of the industry. EQIX is outperformed by 72.41% of its industry peers.
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 75.86% 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.
EQIX has more shares outstanding than it did 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 2.20. 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.
The Altman-Z score of EQIX (2.20) is better than 89.66% of its industry peers.
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.
With a Debt to FCF ratio value of 483.69, EQIX is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.29 is on the high side and indicates that EQIX has dependencies on debt financing.
EQIX has a Debt to Equity ratio (1.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 483.69 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.58
WACC7.6%
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 68.97% 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's Quick ratio of 1.54 is fine compared to the rest of the industry. EQIX outperforms 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
EQIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.51%, which is quite good.
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
The Earnings Per Share is expected to grow by 14.46% on average over the next years. This is quite good.
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 Y33.86%
EPS Next 2Y18.22%
EPS Next 3Y13.38%
EPS Next 5Y14.46%
Revenue Next Year5.73%
Revenue Next 2Y7.23%
Revenue Next 3Y7.39%
Revenue Next 5Y8.35%
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
The Price/Earnings ratio is 62.79, which means the current valuation is very expensive for EQIX.
65.52% of the companies in the same industry are cheaper than EQIX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EQIX to the average of the S&P500 Index (27.53), we can say EQIX is valued expensively.
The Price/Forward Earnings ratio is 52.02, which means the current valuation is very expensive for 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 62.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.04, EQIX is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.79 | ||
| Fwd PE | 52.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQIX is valued more expensive than 82.76% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EQIX is valued a bit more expensive than the industry average as 79.31% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1909.27 | ||
| EV/EBITDA | 25.22 |
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 13.38% in the coming years.
PEG (NY)1.85
PEG (5Y)4.85
EPS Next 2Y18.22%
EPS Next 3Y13.38%
5. Dividend
5.1 Amount
EQIX has a Yearly Dividend Yield of 2.32%.
With a Dividend Yield of 2.32, EQIX pays less dividend than the industry average, which is at 6.13. 89.66% of the companies listed in the same industry pay a better dividend than EQIX!
Compared to an average S&P500 Dividend Yield of 2.40, EQIX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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 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 2Y18.22%
EPS Next 3Y13.38%
NASDAQ:EQIX (10/16/2025, 2:56:37 PM)
819.43
-2.81 (-0.34%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.12%
Inst Owner Change-0.02%
Ins Owners0.25%
Ins Owner Change0.84%
Market Cap80.19B
Analysts81.21
Price Target981.19 (19.74%)
Short Float %2.37%
Short Ratio4.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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)0.17%
PT rev (3m)-5.43%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-1.69%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.79 | ||
| Fwd PE | 52.02 | ||
| P/S | 8.97 | ||
| P/FCF | 1909.27 | ||
| P/OCF | 22.96 | ||
| P/B | 5.69 | ||
| P/tB | 11.95 | ||
| EV/EBITDA | 25.22 |
EPS(TTM)13.05
EY1.59%
EPS(NY)15.75
Fwd EY1.92%
FCF(TTM)0.43
FCFY0.05%
OCF(TTM)35.68
OCFY4.35%
SpS91.39
BVpS143.92
TBVpS68.6
PEG (NY)1.85
PEG (5Y)4.85
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 | 2.2 |
F-Score6
WACC7.6%
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)19.51%
EPS 3Y19.11%
EPS 5Y12.95%
EPS Q2Q%18.99%
EPS Next Y33.86%
EPS Next 2Y18.22%
EPS Next 3Y13.38%
EPS Next 5Y14.46%
Revenue 1Y (TTM)5.74%
Revenue growth 3Y9.65%
Revenue growth 5Y9.48%
Sales Q2Q%4.49%
Revenue Next Year5.73%
Revenue Next 2Y7.23%
Revenue Next 3Y7.39%
Revenue Next 5Y8.35%
EBIT growth 1Y19.54%
EBIT growth 3Y13.19%
EBIT growth 5Y6.85%
EBIT Next Year174.78%
EBIT Next 3Y49.23%
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%