CONE

CyrusOneNasdaqGS:CONE Stock Report

Market Cap

US$9.6b

7D

0.2%

1Y

6.3%

Updated

18 Sep, 2021

Data

Company Financials +
CONE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health1/6
Dividends3/6

CONE Overview

CyrusOne (NASDAQ: CONE) is a premier global REIT specializing in design, construction and operation of more than 50 high-performance data centers worldwide.

CyrusOne Competitors

Price History & Performance

Summary of all time highs, changes and price drops for CyrusOne
Historical stock prices
Current Share PriceUS$77.19
52 Week HighUS$61.64
52 Week LowUS$82.69
Beta0.44
1 Month Change3.95%
3 Month Change11.05%
1 Year Change6.34%
3 Year Change13.11%
5 Year Change56.19%
Change since IPO264.10%

Recent News & Updates

Jul 18

CyrusOne: Potential M&A Rewards Exist But The Dividend Isn't Currently Attractive Enough

In my last article, I discussed what it might mean that CONE brought on veteran Bruce Duncan and has resulted in a relentless amount of M&A chatter. Typically, I am looking to buy shares when yields are above 3% and we sell off a portion of the position when yields are 2.50% or less. QTS Realty was recently acquired by Blackstone for $78/share, which was a 21% premium to the closing stock price on June 4th. Analysts estimate a takeover price between $95-$106/share for CONE which represents a 27.2%-41.9% premium over the current price.

Jun 17

CyrusOne stock dips after Cowen downgrades to Neutral on dimmer outlook

sdecoret/iStock via Getty Images CyrusOne (CONE) stock drops 4.4% after Cowen analyst Colby Synesael downgrades the data center REIT to Market Perform from Outperform after a disappointing outlook came from its analyst day event. Synesael points to expected FFO/share growth of mid-single digits from 2022 through 2024 vs. consensus of 5.7% growth  in 2022 and 8%-10% in 2023 through 2024. Management now sees GAAP renewal spreads to decline in mid-single digits and cash renewal spreads falling 18%-22% during the 2022-2024 period, he

Shareholder Returns

CONEUS REITsUS Market
7D0.2%-0.3%-0.6%
1Y6.3%32.5%33.8%

Return vs Industry: CONE underperformed the US REITs industry which returned 31% over the past year.

Return vs Market: CONE underperformed the US Market which returned 33.6% over the past year.

Price Volatility

Is CONE's price volatile compared to industry and market?
CONE volatility
CONE Beta0.44
Industry Beta0.82
Market Beta1

Stable Share Price: CONE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CONE's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2012441Dave Ferdmanhttps://www.cyrusone.com

CyrusOne (NASDAQ: CONE) is a premier global REIT specializing in design, construction and operation of more than 50 high-performance data centers worldwide. The Company provides mission-critical facilities that ensure the continued operation of IT infrastructure for approximately 1,000 customers, including approximately 200 Fortune 1000 companies. A leader in hybrid-cloud and multi-cloud deployments, CyrusOne offers colocation, hyperscale, and build-to-suit environments that help customers enhance the strategic connection of their essential data infrastructure and support achievement of sustainability goals.

Valuation

Is CyrusOne undervalued compared to its fair value and its price relative to the market?

44.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CONE ($77.19) is trading below our estimate of fair value ($137.89)

Significantly Below Fair Value: CONE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CONE is poor value based on its PE Ratio (1407.8x) compared to the US REITs industry average (50.8x).

PE vs Market: CONE is poor value based on its PE Ratio (1407.8x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CONE is poor value based on its PEG Ratio (33.2x)


Price to Book Ratio

PB vs Industry: CONE is overvalued based on its PB Ratio (3.6x) compared to the US REITs industry average (2x).


Future Growth

How is CyrusOne forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

42.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CONE's forecast earnings growth (42.3% per year) is above the savings rate (2%).

Earnings vs Market: CONE's earnings (42.3% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CONE's revenue (7% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: CONE's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CONE's Return on Equity is forecast to be low in 3 years time (6.2%).


Past Performance

How has CyrusOne performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CONE has a large one-off gain of $11.0M impacting its June 30 2021 financial results.

Growing Profit Margin: CONE's current net profit margins (0.6%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: CONE has become profitable over the past 5 years, growing earnings by 12.6% per year.

Accelerating Growth: CONE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CONE had negative earnings growth (-65.1%) over the past year, making it difficult to compare to the REITs industry average (3.9%).


Return on Equity

High ROE: CONE's Return on Equity (0.3%) is considered low.


Financial Health

How is CyrusOne's financial position?


Financial Position Analysis

Short Term Liabilities: CONE's short term assets ($825.2M) exceed its short term liabilities ($228.1M).

Long Term Liabilities: CONE's short term assets ($825.2M) do not cover its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: CONE's debt to equity ratio (134.8%) is considered high.

Reducing Debt: CONE's debt to equity ratio has increased from 106.8% to 134.8% over the past 5 years.

Debt Coverage: CONE's debt is not well covered by operating cash flow (13.1%).

Interest Coverage: CONE's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet


Dividend

What is CyrusOne current dividend yield, its reliability and sustainability?

2.69%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 18 2021Ex Dividend DateSep 23 2021Dividend Pay DateOct 08 202115 days from Ex DividendBuy in the next 4 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CONE's dividend (2.69%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: CONE's dividend (2.69%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CONE has been paying a dividend for less than 10 years.

Growing Dividend: CONE's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.6%), CONE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CONE's dividends in 3 years are forecast to be covered by earnings (50.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Dave Ferdman (53 yo)

0.17

Tenure

US$238,801

Compensation

Mr. David H. Ferdman, also known as Dave, is the Co-Founder of CyrusOne Inc. He served as an Independent Director at CyrusOne Inc. since 2013 until July 28, 2021 and serves as its Interim President and CEO...


Leadership Team

Experienced Management: CONE's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: CONE's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.1%.


Top Shareholders

Company Information

CyrusOne Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: CyrusOne Inc.
  • Ticker: CONE
  • Exchange: NasdaqGS
  • Founded: 2012
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$9.573b
  • Shares outstanding: 124.02m
  • Website: https://www.cyrusone.com

Number of Employees


Location

  • CyrusOne Inc.
  • 2850 N Harwood
  • St., Suite 2200
  • Dallas
  • Texas
  • 75201
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 00:53
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.