NasdaqGS:CONE

Stock Analysis Report

Executive Summary

CyrusOne (NASDAQ: CONE) is a real estate investment trust (REIT) specializing in highly reliable enterprise-class, carrier-neutral data center properties.

Rewards

Trading at 53.7% below its fair value

Earnings are forecast to grow 16.33% per year

Earnings grew by 40600% over the past year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Proven track record with moderate growth potential.


Similar Companies

Share Price & News

How has CyrusOne's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CONE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.9%

CONE

-7.4%

US REITs

-2.0%

US Market


1 Year Return

11.8%

CONE

-26.6%

US REITs

-15.1%

US Market

Return vs Industry: CONE exceeded the US REITs industry which returned -26.6% over the past year.

Return vs Market: CONE exceeded the US Market which returned -15.1% over the past year.


Shareholder returns

CONEIndustryMarket
7 Day6.9%-7.4%-2.0%
30 Day0.7%-30.5%-19.7%
90 Day-5.6%-29.8%-23.2%
1 Year15.4%11.8%-23.5%-26.6%-13.4%-15.1%
3 Year31.3%19.2%-8.7%-20.1%10.9%3.7%
5 Year131.0%95.6%7.3%-15.0%28.4%14.4%

Price Volatility Vs. Market

How volatile is CyrusOne's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CONE ($61.85) is trading below our estimate of fair value ($133.67)

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 (170.4x) compared to the REITs industry average (22.7x).

PE vs Market: CONE is poor value based on its PE Ratio (170.4x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: CONE is poor value based on its PEG Ratio (10.4x)


Price to Book Ratio

PB vs Industry: CONE is overvalued based on its PB Ratio (2.9x) compared to the US REITs industry average (1.2x).


Next Steps

Future Growth

How is CyrusOne forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CONE's forecast earnings growth (16.3% per year) is above the savings rate (1.7%).

Earnings vs Market: CONE's earnings (16.3% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: CONE's earnings are forecast to grow, but not significantly.

Revenue vs Market: CONE's revenue (8.3% per year) is forecast to grow faster than the US market (7.1% per year).

High Growth Revenue: CONE's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CONE is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has CyrusOne performed over the past 5 years?

18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CONE has a large one-off gain of $51.0M impacting its December 31 2019 financial results.

Growing Profit Margin: CONE's current net profit margins (4.1%) are higher than last year (0.01%).


Past Earnings Growth Analysis

Earnings Trend: CONE has become profitable over the past 5 years, growing earnings by 18.5% per year.

Accelerating Growth: CONE's earnings growth over the past year (40600%) exceeds its 5-year average (18.5% per year).

Earnings vs Industry: CONE earnings growth over the past year (40600%) exceeded the REITs industry 4.3%.


Return on Equity

High ROE: CONE's Return on Equity (1.7%) is considered low.


Next Steps

Financial Health

How is CyrusOne's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CONE has a high level of physical assets or inventory.

Debt Coverage by Assets: CONE's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CONE is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: CONE is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: CONE's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CONE has a sufficient allowance for bad loans.

Low Risk Liabilities: CONE reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CONE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CONE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CONE has an appropriate level of bad loans.


Next Steps

Dividend

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

3.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CONE's dividend (3.23%) is higher than the bottom 25% of dividend payers in the US market (2.05%).

High Dividend: CONE's dividend (3.23%) is low compared to the top 25% of dividend payers in the US market (5.71%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.7%), CONE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CONE's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Tesh Durvasula (52yo)

0.17

Tenure

US$3,189,441

Compensation

Mr. Venkatesh S. Durvasula, also known as Tesh, serves as Chief Commercial Officer of CyrusOne GP. Mr. Durvasula served as the Executive Vice President and President, Europe at CyrusOne Inc. since December ...


CEO Compensation Analysis

Compensation vs Market: Tesh's total compensation ($USD3.19M) is below average for companies of similar size in the US market ($USD7.63M).

Compensation vs Earnings: Tesh's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Venkatesh Durvasula
Interim President & CEO0.17yrUS$3.19m0.094% $6.7m
Diane Morefield
Executive VP & CFO3.42yrsUS$2.33m0.037% $2.6m
Kevin Timmons
Executive VP & Chief Technology Officer8.5yrsUS$2.59m0.029% $2.1m
Robert Jackson
Executive VP4.67yrsUS$1.66m0.025% $1.8m
Mark Skomal
Senior VP & Chief Accounting Officer1.58yrsno data0.00014% $10.0k
Bill Williams
Chief Information Officer0.75yrno datano data
Michael Schafer
Vice Presidentno datano datano data
Kellie Teal-Guess
Executive VP & Chief People Officer4.08yrsno datano data
John Gould
Executive VP & Chief Commercial Officer3.5yrsno datano data
Jonathan Schildkraut
Executive VP & Chief Strategy Officer3yrsno datano data

3.4yrs

Average Tenure

54yo

Average Age

Experienced Management: CONE's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Sullivan
Independent Director7.25yrsUS$225.01k0.027% $1.9m
T. Nielsen
Independent Director7.25yrsUS$220.01k0.021% $1.5m
Alex Shumate
Non-Executive Chairman & Lead Independent Director5.83yrsUS$307.51k0.026% $1.9m
John Gamble
Independent Director5.92yrsUS$210.01k0.018% $1.3m
Lynn Wentworth
Independent Director5.92yrsUS$242.51k0.018% $1.3m
Michael Klayko
Independent Director3.92yrsUS$232.51k0.011% $759.6k
David Ferdman
Independent Director7.25yrsUS$207.51k0.080% $5.7m

5.9yrs

Average Tenure

61yo

Average Age

Experienced Board: CONE's board of directors are considered experienced (5.9 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 12.3%.


Top Shareholders

Company Information

CyrusOne Inc.'s company bio, 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$7.112b
  • Shares outstanding: 115.00m
  • Website: https://www.cyrusone.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CONENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 2013
RCYDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2013
RCYBRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 2013

Biography

CyrusOne (NASDAQ: CONE) is a real estate investment trust (REIT) specializing in highly reliable enterprise-class, carrier-neutral data center properties. The Company provides mission-critical data center facilities that protect and ensure the continued operation of IT infrastructure for approximately 1,000 customers, including more than 200 Fortune 1000 companies. With a track record of meeting and surpassing the aggressive speed-to-market demands of hyperscale cloud providers, as well as the expanding IT infrastructure requirements of the enterprise, CyrusOne provides the flexibility, reliability, security, and connectivity that foster business growth. CyrusOne offers a tailored, customer service-focused platform and is committed to full transparency in communication, management, and service delivery throughout its nearly 50 data centers worldwide. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 08:19
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.