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. 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.
EQIX had a positive operating cash flow in the past year.
Each year in the past 5 years EQIX has been profitable.
EQIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EQIX has a Return On Assets (2.57%) which 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.
EQIX's Return On Invested Capital of 4.49% is in line compared to the rest of the industry. EQIX outperforms 50.00% of its industry peers.
EQIX had an Average Return On Invested Capital over the past 3 years of 4.06%. This 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
With a Profit Margin value of 10.48%, EQIX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of EQIX has remained more or less at the same level.
The Operating Margin of EQIX (19.58%) is worse than 76.67% of its industry peers.
In the last couple of years the Operating Margin of EQIX has declined.
Looking at the Gross Margin, with a value of 49.58%, EQIX is doing worse than 70.00% of the companies in the same industry.
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.
EQIX has more shares outstanding than it did 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 2.62. 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 (2.62) than 93.33% of its industry peers.
The Debt to FCF ratio of EQIX is 51.62, which is on the high side as it means it would take EQIX, 51.62 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 51.62, EQIX is doing worse than 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.20 is on the high side and indicates that EQIX has dependencies on debt financing.
EQIX has a Debt to Equity ratio (1.20) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 51.62 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.56
WACC7.99%
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.
Looking at the Current ratio, with a value of 1.65, EQIX is in the better half of 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's Quick ratio of 1.65 is fine compared to the rest of the industry. EQIX outperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.87% 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 6.36% 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)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
Based on estimates for the next years, EQIX will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.14% on average per year.
Based on estimates for the next years, EQIX will show a small growth in Revenue. The Revenue will grow by 7.56% on average per year.
EPS Next Y33.82%
EPS Next 2Y21.6%
EPS Next 3Y17.4%
EPS Next 5Y15.14%
Revenue Next Year5.33%
Revenue Next 2Y6.84%
Revenue Next 3Y7.35%
Revenue Next 5Y7.56%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
EQIX is valuated quite expensively with a Price/Earnings ratio of 72.00.
66.67% of the companies in the same industry are cheaper than EQIX, based on the Price/Earnings ratio.
EQIX is valuated expensively when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 53.79, 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 (22.39), we can say EQIX is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72 | ||
| Fwd PE | 53.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQIX is valued more expensive than 86.67% of the companies in the same industry.
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 | 249.82 | ||
| EV/EBITDA | 27.39 |
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 17.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.13
PEG (5Y)5.56
EPS Next 2Y21.6%
EPS Next 3Y17.4%
5. Dividend
5.1 Amount
EQIX has a Yearly Dividend Yield of 2.06%.
Compared to an average industry Dividend Yield of 5.62, 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!
EQIX's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
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.
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
EQIX pays out 183.28% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EQIX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP183.28%
EPS Next 2Y21.6%
EPS Next 3Y17.4%
896.42
+2.72 (+0.3%)
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 Change1.34%
Ins Owners0.23%
Ins Owner Change6.08%
Market Cap87.69B
Analysts84.85
Price Target1021.19 (13.92%)
Short Float %1.92%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
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)-0.23%
PT rev (3m)-2.49%
EPS NQ rev (1m)1.94%
EPS NQ rev (3m)4.82%
EPS NY rev (1m)8.04%
EPS NY rev (3m)9.84%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72 | ||
| Fwd PE | 53.79 | ||
| P/S | 9.91 | ||
| P/FCF | 249.82 | ||
| P/OCF | 25.34 | ||
| P/B | 6.31 | ||
| P/tB | 12.77 | ||
| EV/EBITDA | 27.39 |
EPS(TTM)12.45
EY1.39%
EPS(NY)16.66
Fwd EY1.86%
FCF(TTM)3.59
FCFY0.4%
OCF(TTM)35.37
OCFY3.95%
SpS90.43
BVpS141.99
TBVpS70.21
PEG (NY)2.13
PEG (5Y)5.56
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 | 2.62 |
F-Score5
WACC7.99%
ROIC/WACC0.56
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 Y33.82%
EPS Next 2Y21.6%
EPS Next 3Y17.4%
EPS Next 5Y15.14%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y9.65%
Revenue growth 5Y9.48%
Sales Q2Q%4.61%
Revenue Next Year5.33%
Revenue Next 2Y6.84%
Revenue Next 3Y7.35%
Revenue Next 5Y7.56%
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%