NasdaqGS:CONE

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Executive Summary

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


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.1%

CONE

-5.9%

US REITs

-1.9%

US Market


1 Year Return

-8.8%

CONE

-15.6%

US REITs

13.1%

US Market

Return vs Industry: CONE exceeded the US REITs industry which returned -15.6% over the past year.

Return vs Market: CONE underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

CONEIndustryMarket
7 Day-6.1%-5.9%-1.9%
30 Day-12.2%-3.9%-2.9%
90 Day-4.6%0.1%8.2%
1 Year-5.8%-8.8%-12.2%-15.6%15.7%13.1%
3 Year34.4%22.2%11.5%-1.7%38.4%29.1%
5 Year153.1%115.7%43.5%15.1%89.3%68.0%

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?

47.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CONE ($70.43) is trading below our estimate of fair value ($134.26)

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 (412.8x) compared to the US REITs industry average (33.2x).

PE vs Market: CONE is poor value based on its PE Ratio (412.8x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CONE is poor value based on its PEG Ratio (16.3x)


Price to Book Ratio

PB vs Industry: CONE is overvalued based on its PB Ratio (3.3x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is CyrusOne forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

25.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CONE's forecast earnings growth (25.3% per year) is above the savings rate (2.2%).

Earnings vs Market: CONE's earnings (25.3% per year) are forecast to grow faster than the US market (23% per year).

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

Revenue vs Market: CONE's revenue (9.8% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: CONE's revenue (9.8% 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 (4.4%).


Next Steps

Past Performance

How has CyrusOne performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CONE has a large one-off gain of $12.0M impacting its June 30 2020 financial results.

Growing Profit Margin: CONE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CONE has become profitable over the past 5 years, growing earnings by 14.1% per year.

Accelerating Growth: CONE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CONE has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (3.3%).


Return on Equity

High ROE: CONE's Return on Equity (0.8%) is considered low.


Next Steps

Financial Health

How is CyrusOne's financial position?


Financial Position Analysis

Short Term Liabilities: CONE's short term assets ($402.3M) exceed its short term liabilities ($200.9M).

Long Term Liabilities: CONE's short term assets ($402.3M) do not cover its long term liabilities ($3.8B).


Debt to Equity History and Analysis

Debt Level: CONE's debt to equity ratio (129%) is considered high.

Reducing Debt: CONE's debt to equity ratio has increased from 85% to 129% over the past 5 years.

Debt Coverage: CONE's debt is not well covered by operating cash flow (13%).

Interest Coverage: CONE's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CONE's dividend (2.9%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: CONE's dividend (2.9%) is low compared to the top 25% of dividend payers in the US market (4.89%).


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 8 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 (51.4% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Bruce Duncan (68 yo)

0.17

Tenure

Mr. Bruce W. Duncan serves as Senior Advisor at KKR & Co. Inc. He had been Director of Marriott International, Inc., since September 23, 2016 until July 22, 2020. Mr. Duncan serves as President, Chief Exec ...


Leadership Team

NamePositionTenureCompensationOwnership
Diane Morefield
Executive VP & CFO3.83yrsUS$2.33m0.024%
$ 2.0m
Robert Jackson
Executive VP5.08yrsUS$1.66m0.014%
$ 1.1m
Bruce Duncan
President0.17yrno data0.073%
$ 6.0m
Mark Skomal
Senior VP & Chief Accounting Officer2yrsno data0.00014%
$ 11.5k
Bill Williams
Chief Information Officer1.17yrsno datano data
Michael Schafer
Vice Presidentno datano datano data
Brent Behrman
Executive Vice President of Sales0.083yrno datano data
Jonathan Schildkraut
Executive VP & Chief Strategy Officer3.42yrsno datano data
Matthew Pullen
Executive VP & MD of Europe2.08yrsno datano data
Brian Doricko
Vice President for Strategic Accounts2.42yrsno datano data

2.1yrs

Average Tenure

53yo

Average Age

Experienced Management: CONE's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bruce Duncan
President0.17yrno data0.073%
$ 6.0m
William Sullivan
Independent Director7.67yrsUS$225.01k0.029%
$ 2.4m
T. Nielsen
Independent Director7.67yrsUS$220.01k0.022%
$ 1.8m
Alex Shumate
Non-Executive Chairman & Lead Independent Director6.25yrsUS$307.51k0.028%
$ 2.3m
John Gamble
Independent Director6.33yrsUS$210.01k0.020%
$ 1.6m
Lynn Wentworth
Independent Director6.33yrsUS$242.51k0.019%
$ 1.6m
Michael Klayko
Independent Director4.33yrsUS$232.51k0.0077%
$ 633.0k
David Ferdman
Independent Director7.67yrsUS$207.51k0.081%
$ 6.7m

6.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CONE's board of directors are considered experienced (6.3 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 3.3%.


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$8.231b
  • Shares outstanding: 116.87m
  • 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

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 06:17
End of Day Share Price2020/09/23 00:00
Earnings2020/06/30
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.