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. EQIX has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, EQIX is valued expensive at the moment.
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
EQIX's Return On Assets of 2.56% is in line compared to the rest of the industry. EQIX outperforms 56.67% of its industry peers.
EQIX has a better Return On Equity (7.06%) than 63.33% of its industry peers.
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 5.18%.
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
With a Profit Margin value of 11.11%, 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.
EQIX has a worse Operating Margin (20.25%) than 73.33% of its industry peers.
EQIX's Operating Margin has declined in the last couple of years.
The Gross Margin of EQIX (50.11%) is worse than 70.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EQIX 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.
The debt/assets ratio for EQIX is higher compared to a year ago.
2.2 Solvency
EQIX has an Altman-Z score of 2.09. 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 Altman-Z score of 2.09. This is amongst the best in the industry. EQIX outperforms 86.67% of its industry peers.
EQIX has a debt to FCF ratio of 483.69. This is a negative value and a sign of low solvency as EQIX would need 483.69 years to pay back of all of its debts.
EQIX's Debt to FCF ratio of 483.69 is on the low side compared to the rest of the industry. EQIX is outperformed by 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.
EQIX has a Debt to Equity ratio of 1.29. This is comparable to the rest of the industry: EQIX outperforms 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 483.69 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.58
WACC7.71%
2.3 Liquidity
A Current Ratio of 1.54 indicates that EQIX should not have too much problems paying its short term obligations.
EQIX has a Current ratio of 1.54. This is in the better half of the industry: EQIX outperforms 70.00% of its industry peers.
A Quick Ratio of 1.54 indicates that EQIX should not have too much problems paying its short term obligations.
The Quick ratio of EQIX (1.54) is better 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.
EQIX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.95% yearly.
EQIX shows a small growth in Revenue. In the last year, the Revenue has grown by 5.74%.
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 15.52% on average over the next years. This is quite good.
Based on estimates for the next years, EQIX will show a small growth in Revenue. The Revenue will grow by 7.63% on average per year.
EPS Next Y33.38%
EPS Next 2Y18.49%
EPS Next 3Y13.63%
EPS Next 5Y15.52%
Revenue Next Year5.36%
Revenue Next 2Y6.64%
Revenue Next 3Y7.17%
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.
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 59.56.
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 26.54.
A Price/Forward Earnings ratio of 49.12 indicates a quite expensive valuation of EQIX.
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.
The average S&P500 Price/Forward Earnings ratio is at 35.28. EQIX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.56 | ||
| Fwd PE | 49.12 |
4.2 Price Multiples
80.00% of the companies in the same industry are cheaper than EQIX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EQIX is valued more expensive than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1810.16 | ||
| EV/EBITDA | 24.1 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EQIX's earnings are expected to grow with 13.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.78
PEG (5Y)4.6
EPS Next 2Y18.49%
EPS Next 3Y13.63%
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.
With a Dividend Yield of 2.43, EQIX pays less dividend than the industry average, which is at 5.90. 83.33% 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 2.40.
| 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 been paying a dividend for at least 10 years, so it has 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 2Y18.49%
EPS Next 3Y13.63%
NASDAQ:EQIX (8/8/2025, 1:42:59 PM)
777.21
-2.13 (-0.27%)
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 Change7.83%
Ins Owners0.25%
Ins Owner Change3.04%
Market Cap76.03B
Analysts81.18
Price Target978.42 (25.89%)
Short Float %1.96%
Short Ratio2.83
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)-5.36%
PT rev (3m)-5.2%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)6.05%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)7.69%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.56 | ||
| Fwd PE | 49.12 | ||
| P/S | 8.5 | ||
| P/FCF | 1810.16 | ||
| P/OCF | 21.77 | ||
| P/B | 5.4 | ||
| P/tB | 11.33 | ||
| EV/EBITDA | 24.1 |
EPS(TTM)13.05
EY1.68%
EPS(NY)15.82
Fwd EY2.04%
FCF(TTM)0.43
FCFY0.06%
OCF(TTM)35.7
OCFY4.59%
SpS91.42
BVpS143.98
TBVpS68.63
PEG (NY)1.78
PEG (5Y)4.6
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 | 2.09 |
F-Score6
WACC7.71%
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 Y33.38%
EPS Next 2Y18.49%
EPS Next 3Y13.63%
EPS Next 5Y15.52%
Revenue 1Y (TTM)5.74%
Revenue growth 3Y9.65%
Revenue growth 5Y9.48%
Sales Q2Q%4.49%
Revenue Next Year5.36%
Revenue Next 2Y6.64%
Revenue Next 3Y7.17%
Revenue Next 5Y7.63%
EBIT growth 1Y19.54%
EBIT growth 3Y13.19%
EBIT growth 5Y6.85%
EBIT Next Year174.06%
EBIT Next 3Y49.24%
EBIT Next 5Y31.67%
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%