EQUINIX INC (EQIX) Stock Fundamental Analysis
USA - NASDAQ:EQIX - US29444U7000 - REIT
789.085 USD
+3.79 (+0.48%)
Overall EQIX gets a fundamental rating of 4 out of 10. We evaluated EQIX against 29 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
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
EQIX has a Return On Assets of 2.56%. This is comparable to the rest of the industry: EQIX outperforms 55.17% of its industry peers.
The Return On Equity of EQIX (7.06%) is better than 62.07% of its industry peers.
EQIX has a Return On Invested Capital (4.44%) which 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 4.79%.
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 of 11.11%. This is comparable to the rest of the industry: EQIX outperforms 48.28% of its industry peers.
EQIX's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 20.25%, EQIX is doing worse than 72.41% of the companies in the same industry.
EQIX's Operating Margin has declined in the last couple of years.
EQIX's Gross Margin of 50.11% is on the low side compared to the rest of the industry. EQIX is outperformed by 75.86% 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.
EQIX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for EQIX has been increased compared to 5 years ago.
The debt/assets ratio for EQIX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.11 indicates that EQIX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.11, EQIX belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
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 has a Debt to FCF ratio of 483.69. This is in the lower half of the industry: EQIX underperforms 75.86% 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 44.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 483.69 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.59
WACC7.58%
2.3 Liquidity
A Current Ratio of 1.54 indicates that EQIX should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.54, EQIX is doing good in the industry, outperforming 68.97% of the companies in the same industry.
A Quick Ratio of 1.54 indicates that EQIX should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.54, EQIX is doing good in the industry, outperforming 68.97% of the companies in the same industry.
| 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%.
Measured over the past years, EQIX shows a quite strong growth in Revenue. The Revenue has been growing by 9.48% on average per year.
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 Y33.69%
EPS Next 2Y18.21%
EPS Next 3Y13.42%
EPS Next 5Y14.46%
Revenue Next Year5.7%
Revenue Next 2Y6.98%
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
The Price/Earnings ratio is 60.47, which means the current valuation is very expensive for EQIX.
The rest of the industry has a similar Price/Earnings ratio as EQIX.
When comparing the Price/Earnings ratio of EQIX to the average of the S&P500 Index (27.41), we can say EQIX is valued expensively.
Based on the Price/Forward Earnings ratio of 50.11, the valuation of EQIX can be described as expensive.
EQIX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EQIX is more expensive than 62.07% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EQIX to the average of the S&P500 Index (22.88), we can say EQIX is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.47 | ||
| Fwd PE | 50.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQIX is valued a bit more expensive than the industry average as 75.86% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQIX indicates a slightly more expensive valuation: EQIX is more expensive than 79.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1838.57 | ||
| EV/EBITDA | 24.26 |
4.3 Compensation for Growth
The 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)4.67
EPS Next 2Y18.21%
EPS Next 3Y13.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.35%, EQIX has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.35, EQIX pays less dividend than the industry average, which is at 5.99. 86.21% of the companies listed in the same industry pay a better dividend than EQIX!
Compared to an average S&P500 Dividend Yield of 2.38, EQIX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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.
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 176.46% 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.
DP176.46%
EPS Next 2Y18.21%
EPS Next 3Y13.42%
NASDAQ:EQIX (9/19/2025, 3:08:43 PM)
789.085
+3.79 (+0.48%)
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 Change0.73%
Market Cap77.22B
Analysts81.21
Price Target979.48 (24.13%)
Short Float %2.43%
Short Ratio4.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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)0.11%
PT rev (3m)-4.08%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)-2.08%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.47 | ||
| Fwd PE | 50.11 | ||
| P/S | 8.63 | ||
| P/FCF | 1838.57 | ||
| P/OCF | 22.11 | ||
| P/B | 5.48 | ||
| P/tB | 11.5 | ||
| EV/EBITDA | 24.26 |
EPS(TTM)13.05
EY1.65%
EPS(NY)15.75
Fwd EY2%
FCF(TTM)0.43
FCFY0.05%
OCF(TTM)35.68
OCFY4.52%
SpS91.39
BVpS143.92
TBVpS68.6
PEG (NY)1.79
PEG (5Y)4.67
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 | 2.11 |
F-Score6
WACC7.58%
ROIC/WACC0.59
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 Year5.7%
Revenue Next 2Y6.98%
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%