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

Mediocre balance sheet 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


Market Performance


7 Day Return

-0.3%

NasdaqGS:CONE

-1.6%

US REITs

1.3%

US Market


1 Year Return

8.0%

NasdaqGS:CONE

10.0%

US REITs

2.0%

US Market

CONE underperformed the REITs industry which returned 10.1% over the past year.

CONE outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

CONEIndustryMarket
7 Day-0.3%-1.6%1.3%
30 Day5.2%0.3%3.9%
90 Day21.3%0.6%3.4%
1 Year11.6%8.0%14.9%10.0%4.2%2.0%
3 Year65.2%50.0%29.3%12.4%47.2%37.6%
5 Year254.0%199.1%66.4%31.2%60.5%42.9%

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 based on future cash flows and its price relative to the stock market?

47%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

CyrusOne's share price is below the future cash flow value, and at a moderate discount (> 20%).

CyrusOne's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

CyrusOne is loss making, we can't compare its value to the US REITs industry average.

CyrusOne is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for CyrusOne, we can't assess if its growth is good value.


Price Based on Value of Assets

CyrusOne is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

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

-15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CyrusOne's revenue is expected to grow by 13% yearly, however this is not considered high growth (20% yearly).

CyrusOne's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

CyrusOne's revenue growth is expected to exceed the United States of America market average.

CyrusOne's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

CyrusOne's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if CyrusOne will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has CyrusOne performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

CyrusOne does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare CyrusOne's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare CyrusOne's 1-year growth to the US REITs industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if CyrusOne has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

CyrusOne used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if CyrusOne improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is CyrusOne's financial position?


Financial Position Analysis

CyrusOne is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CyrusOne's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

CyrusOne's level of debt (109.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (70% vs 109.8% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x 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.

Whilst loss making CyrusOne has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making CyrusOne has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -22.7% per year.


Next Steps

Dividend

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

2.97%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

CyrusOne's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

CyrusOne's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, CyrusOne has been paying a dividend for less than 10 years.

Dividend payments have increased, but CyrusOne only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (230.4x coverage).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Gary Wojtaszek (53yo)

7.2yrs

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

Gary's remuneration is about average for companies of similar size in United States of America.

Gary's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

53.5yo

Average Age

The tenure for the CyrusOne management team is about average.


Board Age and Tenure

6.0yrs

Average Tenure

58.5yo

Average Age

The tenure for the CyrusOne board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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


Management Team

  • Diane Morefield (60yo)

    Executive VP & CFO

    • Tenure: 2.8yrs
    • Compensation: US$2.31m
  • Robert Jackson (51yo)

    Executive VP

    • Tenure: 4.1yrs
    • Compensation: US$1.53m
  • Gary Wojtaszek (53yo)

    President

    • Tenure: 7.2yrs
    • Compensation: US$6.87m
  • Kevin Timmons (54yo)

    Executive VP & Chief Technology Officer

    • Tenure: 7.9yrs
    • Compensation: US$2.12m
  • Tesh Durvasula (52yo)

    Executive VP & President of Europe

    • Tenure: 6.9yrs
    • Compensation: US$2.24m
  • Mark Skomal (59yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1yrs
  • Bill Williams

    Chief Information Officer

    • Tenure: 0.2yrs
  • Kellie Teal-Guess

    Chief People Officer and Executive Vice President

    • Tenure: 3.5yrs
  • John Gould

    Executive VP & Chief Commercial Officer

    • Tenure: 2.9yrs
  • Michael Schafer

    Vice President

    • Tenure: 0yrs

Board Members

  • Bill Sullivan (64yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$224.99k
  • T. Nielsen (53yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$219.99k
  • Alex Shumate (69yo)

    Non-Executive Chairman & Lead Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$307.49k
  • John Gamble (56yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$209.99k
  • Lynn Wentworth (61yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$242.49k
  • Michael Klayko (64yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$232.49k
  • Gary Wojtaszek (53yo)

    President

    • Tenure: 7.2yrs
    • Compensation: US$6.87m
  • David Ferdman (51yo)

    Independent Director

    • Tenure: 6.7yrs
    • 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$8.334b
  • Shares outstanding: 113.16m
  • 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 Analysis2019/09/16 00:18
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
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.