EQUINIX INC (EQIX) Stock Fundamental Analysis
USA - NASDAQ:EQIX - US29444U7000 - REIT
813.24 USD
-7.8 (-0.95%)
812.8 USD
-0.44 (-0.05%)
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. EQIX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EQIX was profitable.
EQIX had a positive operating cash flow in the past year.
EQIX had positive earnings in each of the past 5 years.
In the past 5 years EQIX always reported a positive cash flow from operatings.
1.2 Ratios
EQIX has a Return On Assets (2.81%) which is in line with its industry peers.
EQIX's Return On Equity of 7.57% is fine compared to the rest of the industry. EQIX outperforms 70.00% of its industry peers.
With a Return On Invested Capital value of 4.52%, EQIX perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EQIX is in line with the industry average of 4.78%.
The last Return On Invested Capital (4.52%) for EQIX is above the 3 year average (4.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 7.57% | ||
| ROIC | 4.52% |
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's Profit Margin of 11.82% is in line compared to the rest of the industry. EQIX outperforms 50.00% of its industry peers.
EQIX's Profit Margin has been stable in the last couple of years.
EQIX's Operating Margin of 20.58% is on the low side compared to the rest of the industry. EQIX is outperformed by 70.00% of its industry peers.
EQIX's Operating Margin has declined in the last couple of years.
EQIX's Gross Margin of 50.25% is on the low side compared to the rest of the industry. EQIX is outperformed by 70.00% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.58% | ||
| PM (TTM) | 11.82% | ||
| GM | 50.25% |
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.
Compared to 1 year ago, EQIX has more shares outstanding
Compared to 5 years ago, EQIX has more shares outstanding
Compared to 1 year ago, EQIX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.26 indicates that EQIX is not a great score, but indicates only limited risk for bankruptcy at the moment.
EQIX has a Altman-Z score of 2.26. This is amongst the best in the industry. EQIX outperforms 90.00% of its industry peers.
EQIX has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
EQIX has a Debt to Equity ratio (1.31) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.26 |
ROIC/WACC0.59
WACC7.67%
2.3 Liquidity
EQIX has a Current Ratio of 1.62. This is a normal value and indicates that EQIX is financially healthy and should not expect problems in meeting its short term obligations.
EQIX has a Current ratio of 1.62. This is in the better half of the industry: EQIX outperforms 80.00% of its industry peers.
EQIX has a Quick Ratio of 1.62. 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 Quick ratio, with a value of 1.62, EQIX belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.44% 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 5.36% in the last year.
The Revenue has been growing by 9.48% on average over the past years. This is quite good.
EPS 1Y (TTM)24.44%
EPS 3Y19.11%
EPS 5Y12.95%
EPS Q2Q%24.19%
Revenue 1Y (TTM)5.36%
Revenue growth 3Y9.65%
Revenue growth 5Y9.48%
Sales Q2Q%5.22%
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 14.31% yearly.
Based on estimates for the next years, EQIX will show a quite strong growth in Revenue. The Revenue will grow by 8.61% on average per year.
EPS Next Y40.92%
EPS Next 2Y20.35%
EPS Next 3Y16.92%
EPS Next 5Y14.31%
Revenue Next Year5.68%
Revenue Next 2Y7.11%
Revenue Next 3Y7.54%
Revenue Next 5Y8.61%
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
With a Price/Earnings ratio of 58.93, EQIX can be considered very expensive at the moment.
EQIX's Price/Earnings ratio is a bit more expensive when compared to the industry. EQIX is more expensive than 66.67% of the companies in the same industry.
EQIX is valuated expensively when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 49.82, the valuation of EQIX can be described as expensive.
Based on the Price/Forward Earnings ratio, EQIX is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, EQIX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.93 | ||
| Fwd PE | 49.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQIX is valued a bit more expensive than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.78 |
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 16.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.44
PEG (5Y)4.55
EPS Next 2Y20.35%
EPS Next 3Y16.92%
5. Dividend
5.1 Amount
EQIX has a Yearly Dividend Yield of 2.29%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.29, EQIX pays less dividend than the industry average, which is at 6.22. 86.67% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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
168.81% of the earnings are spent on dividend by EQIX. This is not a sustainable payout ratio.
EQIX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP168.81%
EPS Next 2Y20.35%
EPS Next 3Y16.92%
813.24
-7.8 (-0.95%)
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-7.46%
Ins Owners0.25%
Ins Owner Change0.85%
Market Cap79.58B
Revenue(TTM)9.06B
Net Income(TTM)1.07B
Analysts81.14
Price Target979.56 (20.45%)
Short Float %1.77%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend17.14
Dividend Growth(5Y)11.21%
DP168.81%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.69%
Min EPS beat(2)3.38%
Max EPS beat(2)5.99%
EPS beat(4)3
Avg EPS beat(4)5.55%
Min EPS beat(4)-6.55%
Max EPS beat(4)19.39%
EPS beat(8)6
Avg EPS beat(8)5.09%
EPS beat(12)9
Avg EPS beat(12)6.81%
EPS beat(16)11
Avg EPS beat(16)8%
Revenue beat(2)0
Avg Revenue beat(2)-2.26%
Min Revenue beat(2)-2.48%
Max Revenue beat(2)-2.04%
Revenue beat(4)0
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-2.5%
Max Revenue beat(4)-1.94%
Revenue beat(8)0
Avg Revenue beat(8)-2.21%
Revenue beat(12)0
Avg Revenue beat(12)-2.02%
Revenue beat(16)0
Avg Revenue beat(16)-2%
PT rev (1m)-0.17%
PT rev (3m)0.12%
EPS NQ rev (1m)-2.41%
EPS NQ rev (3m)-2.95%
EPS NY rev (1m)5.28%
EPS NY rev (3m)5.65%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.93 | ||
| Fwd PE | 49.82 | ||
| P/S | 8.79 | ||
| P/FCF | N/A | ||
| P/OCF | 21.23 | ||
| P/B | 5.62 | ||
| P/tB | 11.57 | ||
| EV/EBITDA | 24.78 |
EPS(TTM)13.8
EY1.7%
EPS(NY)16.32
Fwd EY2.01%
FCF(TTM)-1.16
FCFYN/A
OCF(TTM)38.3
OCFY4.71%
SpS92.56
BVpS144.67
TBVpS70.31
PEG (NY)1.44
PEG (5Y)4.55
Graham Number211.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 7.57% | ||
| ROCE | 5.33% | ||
| ROIC | 4.52% | ||
| ROICexc | 4.93% | ||
| ROICexgc | 6.38% | ||
| OM | 20.58% | ||
| PM (TTM) | 11.82% | ||
| GM | 50.25% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y5.87%
ROICexgc 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 Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.8 | ||
| Cap/Depr | 191.95% | ||
| Cap/Sales | 42.64% | ||
| Interest Coverage | 3.75 | ||
| Cash Conversion | 96.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 2.26 |
F-Score5
WACC7.67%
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)24.44%
EPS 3Y19.11%
EPS 5Y12.95%
EPS Q2Q%24.19%
EPS Next Y40.92%
EPS Next 2Y20.35%
EPS Next 3Y16.92%
EPS Next 5Y14.31%
Revenue 1Y (TTM)5.36%
Revenue growth 3Y9.65%
Revenue growth 5Y9.48%
Sales Q2Q%5.22%
Revenue Next Year5.68%
Revenue Next 2Y7.11%
Revenue Next 3Y7.54%
Revenue Next 5Y8.61%
EBIT growth 1Y18.63%
EBIT growth 3Y13.19%
EBIT growth 5Y6.85%
EBIT Next Year174.78%
EBIT Next 3Y49.23%
EBIT Next 5Y32.99%
FCF growth 1Y-131.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.85%
OCF growth 3Y8.45%
OCF growth 5Y10.27%
EQUINIX INC / EQIX FAQ
What is the ChartMill fundamental rating of EQUINIX INC (EQIX) stock?
ChartMill assigns a fundamental rating of 4 / 10 to EQIX.
What is the valuation status for EQIX stock?
ChartMill assigns a valuation rating of 1 / 10 to EQUINIX INC (EQIX). This can be considered as Overvalued.
What is the profitability of EQIX stock?
EQUINIX INC (EQIX) has a profitability rating of 5 / 10.
What are the PE and PB ratios of EQUINIX INC (EQIX) stock?
The Price/Earnings (PE) ratio for EQUINIX INC (EQIX) is 58.93 and the Price/Book (PB) ratio is 5.62.
Is the dividend of EQUINIX INC sustainable?
The dividend rating of EQUINIX INC (EQIX) is 5 / 10 and the dividend payout ratio is 168.81%.