NasdaqGS:CONE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable 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

-6.3%

CONE

-2.0%

US REITs

0.5%

US Market


1 Year Return

18.6%

CONE

12.0%

US REITs

12.8%

US Market

Return vs Industry: CONE exceeded the US REITs industry which returned 13.1% over the past year.

Return vs Market: CONE exceeded the US Market which returned 12.5% over the past year.


Shareholder returns

CONEIndustryMarket
7 Day-6.3%-2.0%0.5%
30 Day-14.7%-2.9%4.3%
90 Day-0.4%0.9%8.0%
1 Year22.5%18.6%16.7%12.0%15.3%12.8%
3 Year74.9%59.0%37.2%20.2%48.3%38.7%
5 Year183.9%140.4%54.5%22.5%62.6%44.5%

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 ($64.44) is trading below our estimate of fair value ($133.55)

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


Price To Earnings Ratio

PE vs Industry: CONE is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: CONE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CONE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CONE is overvalued based on its PB Ratio (3x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is CyrusOne forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-47.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CONE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: CONE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CONE's is expected to become profitable in the next 3 years.

Revenue vs Market: CONE's revenue (12.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: CONE's revenue (12.8% 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 (0.1%).


Next Steps

Past Performance

How has CyrusOne performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CONE has a high level of non-cash earnings.

Growing Profit Margin: CONE's current net profit margins (-1.4%) are lower than last year (13.9%).


Past Earnings Growth Analysis

Earnings Trend: CONE is unprofitable, but has reduced losses over the past 5 years at a rate of 12% per year.

Accelerating Growth: Unable to compare CONE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CONE is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (8.3%).


Return on Equity

High ROE: CONE has a negative Return on Equity (-0.51%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


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: Whilst unprofitable CONE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CONE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 24% per year.


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?

3.10%

Current Dividend Yield


Upcoming Dividend Payment

Purchase CyrusOne before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.7%industryaverage3.8%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: CONE's dividend (3.1%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: CONE's dividend (3.1%) is low compared to the top 25% of dividend payers in the US market (3.67%).


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 reasonable payout ratio (52.3%), 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 thoroughly covered by earnings (0.4% payout ratio).


Next Steps

Management

What is the CEO of CyrusOne's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Gary Wojtaszek (53yo)

7.3yrs

Tenure

US$6,871,858

Compensation

Mr. Gary J. Wojtaszek serves as the Chief Executive Officer of Cyrus Networks LLC and has been its President since August 2011. Mr. Wojtaszek has been the Chief Executive Officer and President of CyrusOne  ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD6.87M) is about average for companies of similar size in the US market ($USD6.77M).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.7yrs

Average Tenure

53.5yo

Average Age

Experienced Management: CONE's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

6.2yrs

Average Tenure

58.5yo

Average Age

Experienced Board: CONE's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

Insider Buying: CONE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$74,15307 Nov 19
Mark Skomal
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Chief Accounting Officer
Shares1,083
Max PriceUS$68.47
SellUS$2,108,23206 Nov 19
Venkatesh Durvasula
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Europe
Shares29,911
Max PriceUS$70.48
SellUS$1,692,72006 Nov 19
Kevin Timmons
EntityIndividual
Role
Chief Technology Officer
Executive VP & Chief Technology Officer
Shares24,000
Max PriceUS$70.53
BuyUS$99,90111 Mar 19
Michael Klayko
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,955
Max PriceUS$51.10
BuyUS$50,07028 Feb 19
Gary Wojtaszek
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceUS$50.07
SellUS$489,94428 Feb 19
Kevin Timmons
EntityIndividual
Role
Chief Technology Officer
Executive VP & Chief Technology Officer
Shares9,800
Max PriceUS$49.99
SellUS$1,002,25727 Feb 19
Kevin Timmons
EntityIndividual
Role
Chief Technology Officer
Executive VP & Chief Technology Officer
Shares19,600
Max PriceUS$51.56
BuyUS$199,43627 Feb 19
Gary Wojtaszek
EntityIndividual
Role
Chief Executive Officer
President
Shares4,000
Max PriceUS$49.86

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.9%.


Management Team

  • Diane Morefield (60yo)

    Executive VP & CFO

    • Tenure: 3yrs
    • Compensation: US$2.31m
  • Robert Jackson (51yo)

    Executive VP

    • Tenure: 4.3yrs
    • Compensation: US$1.53m
  • Gary Wojtaszek (53yo)

    President

    • Tenure: 7.3yrs
    • Compensation: US$6.87m
  • Kevin Timmons (54yo)

    Executive VP & Chief Technology Officer

    • Tenure: 8.1yrs
    • Compensation: US$2.12m
  • Tesh Durvasula (52yo)

    Executive VP & President of Europe

    • Tenure: 7.1yrs
    • Compensation: US$2.24m
  • Mark Skomal (59yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1.2yrs
  • Bill Williams

    Chief Information Officer

    • Tenure: 0.3yrs
  • Kellie Teal-Guess

    Chief People Officer and Executive Vice President

    • Tenure: 3.7yrs
  • John Gould

    Executive VP & Chief Commercial Officer

    • Tenure: 3.1yrs
  • Michael Schafer

    Vice President

    • Tenure: 0yrs

Board Members

  • Bill Sullivan (64yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$224.99k
  • T. Nielsen (53yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$219.99k
  • Alex Shumate (69yo)

    Non-Executive Chairman & Lead Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$307.49k
  • John Gamble (56yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$209.99k
  • Lynn Wentworth (61yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$242.49k
  • Michael Klayko (64yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$232.49k
  • Gary Wojtaszek (53yo)

    President

    • Tenure: 7.3yrs
    • Compensation: US$6.87m
  • David Ferdman (51yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$207.49k

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$7.292b
  • Shares outstanding: 113.17m
  • Website: https://www.cyrusone.com

Number of Employees


Location

  • CyrusOne Inc.
  • 2101 Cedar Springs Road
  • Suite 900
  • 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 high-growth real estate investment trust (REIT) specializing in highly reliable enterprise-class, carrier-neutral data center properties. The Company provides mission-critical  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 00:24
End of Day Share Price2019/11/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.