EQUINIX INC (EQIX)

US29444U7000 - REIT

814  -1.31 (-0.16%)

Fundamental Rating

4

EQIX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 28 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 shows excellent growth, but is valued quite expensive already.



5

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.
EQIX had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of EQIX (2.97%) is better than 60.71% of its industry peers.
EQIX has a better Return On Equity (7.76%) than 60.71% of its industry peers.
EQIX's Return On Invested Capital of 4.21% is in line compared to the rest of the industry. EQIX outperforms 46.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EQIX is in line with the industry average of 5.06%.
The 3 year average ROIC (3.85%) for EQIX is below the current ROIC(4.21%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.97%
ROE 7.76%
ROIC 4.21%
ROA(3y)2.36%
ROA(5y)2.11%
ROE(3y)6.16%
ROE(5y)5.54%
ROIC(3y)3.85%
ROIC(5y)3.99%

1.3 Margins

With a Profit Margin value of 11.84%, EQIX perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
EQIX's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 17.72%, EQIX is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of EQIX has declined.
EQIX has a Gross Margin of 48.37%. This is in the lower half of the industry: EQIX underperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of EQIX has remained more or less at the same level.
Industry RankSector Rank
OM 17.72%
PM (TTM) 11.84%
GM 48.37%
OM growth 3Y-1.58%
OM growth 5Y-2.23%
PM growth 3Y24.29%
PM growth 5Y10.44%
GM growth 3Y-0.26%
GM growth 5Y-0.11%

3

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.
Compared to 5 years ago, EQIX has more shares outstanding
Compared to 1 year ago, EQIX has an improved debt to assets ratio.

2.2 Solvency

EQIX has an Altman-Z score of 2.50. 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 (2.50) is better than 92.86% of its industry peers.
The Debt to FCF ratio of EQIX is 36.72, which is on the high side as it means it would take EQIX, 36.72 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EQIX (36.72) is worse than 71.43% of its industry peers.
A Debt/Equity ratio of 1.19 is on the high side and indicates that EQIX has dependencies on debt financing.
EQIX has a worse Debt to Equity ratio (1.19) than 60.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.19
Debt/FCF 36.72
Altman-Z 2.5
ROIC/WACC0.5
WACC8.43%

2.3 Liquidity

A Current Ratio of 1.13 indicates that EQIX should not have too much problems paying its short term obligations.
EQIX has a better Current ratio (1.13) than 64.29% of its industry peers.
A Quick Ratio of 1.13 indicates that EQIX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.13, EQIX is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 1.13

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 34.24% 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 18.14% yearly.
The Revenue has grown by 12.74% in the past year. This is quite good.
EQIX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.05% yearly.
EPS 1Y (TTM)34.24%
EPS 3Y34.79%
EPS 5Y18.14%
EPS growth Q2Q72.66%
Revenue 1Y (TTM)12.74%
Revenue growth 3Y10.93%
Revenue growth 5Y10.05%
Revenue growth Q2Q12.81%

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 16.93% yearly.
The Revenue is expected to grow by 8.84% on average over the next years. This is quite good.
EPS Next Y17.62%
EPS Next 2Y14.08%
EPS Next 3Y12.73%
EPS Next 5Y16.93%
Revenue Next Year8.14%
Revenue Next 2Y8.43%
Revenue Next 3Y8.45%
Revenue Next 5Y8.84%

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.

0

4. Valuation

4.1 Price/Earnings Ratio

EQIX is valuated quite expensively with a Price/Earnings ratio of 78.95.
Compared to the rest of the industry, the Price/Earnings ratio of EQIX indicates a slightly more expensive valuation: EQIX is more expensive than 64.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.42, EQIX is valued quite expensively.
EQIX is valuated quite expensively with a Price/Forward Earnings ratio of 67.12.
EQIX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EQIX is more expensive than 60.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.74. EQIX is valued rather expensively when compared to this.
Industry RankSector Rank
PE 78.95
Fwd PE 67.12

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, EQIX is valued more expensive than 89.29% of the companies in the same industry.
71.43% of the companies in the same industry are cheaper than EQIX, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 176.82
EV/EBITDA 27.62

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EQIX's earnings are expected to grow with 12.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.48
PEG (5Y)4.35
EPS Next 2Y14.08%
EPS Next 3Y12.73%

5

5. Dividend

5.1 Amount

EQIX has a Yearly Dividend Yield of 2.10%.
With a Dividend Yield of 2.10, EQIX pays less dividend than the industry average, which is at 4.65. 89.29% of the companies listed in the same industry pay a better dividend than EQIX!
Compared to an average S&P500 Dividend Yield of 2.34, EQIX has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.1%

5.2 History

On average, the dividend of EQIX grows each year by 9.69%, which is quite nice.
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)9.69%
Div Incr Years7
Div Non Decr Years7

5.3 Sustainability

141.79% of the earnings are spent on dividend by EQIX. This is not a sustainable payout ratio.
The dividend of EQIX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP141.79%
EPS Next 2Y14.08%
EPS Next 3Y12.73%

EQUINIX INC

NASDAQ:EQIX (3/28/2024, 9:56:01 AM)

814

-1.31 (-0.16%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap77.02B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.1%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 78.95
Fwd PE 67.12
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.48
PEG (5Y)4.35
Profitability
Industry RankSector Rank
ROA 2.97%
ROE 7.76%
ROCE
ROIC
ROICexc
ROICexgc
OM 17.72%
PM (TTM) 11.84%
GM 48.37%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 1.19
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.13
Quick Ratio 1.13
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)34.24%
EPS 3Y34.79%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.74%
Revenue growth 3Y10.93%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y