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EQIX

Equinix NasdaqGS:EQIX Stock Report

Last Price

US$671.81

Market Cap

US$61.1b

7D

3.9%

1Y

-8.6%

Updated

24 May, 2022

Data

Company Financials +
EQIX fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance3/6
Financial Health3/6
Dividends3/6

EQIX Stock Overview

Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success.

Equinix Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Equinix
Historical stock prices
Current Share PriceUS$671.81
52 Week HighUS$885.26
52 Week LowUS$621.34
Beta0.45
1 Month Change-9.87%
3 Month Change-0.34%
1 Year Change-8.63%
3 Year Change36.76%
5 Year Change52.72%
Change since IPO59.96%

Recent News & Updates

Shareholder Returns

EQIXUS REITsUS Market
7D3.9%-0.7%-4.0%
1Y-8.6%-1.3%-13.2%

Return vs Industry: EQIX underperformed the US REITs industry which returned -2.1% over the past year.

Return vs Market: EQIX exceeded the US Market which returned -12.3% over the past year.

Price Volatility

Is EQIX's price volatile compared to industry and market?
EQIX volatility
EQIX Average Weekly Movement5.4%
REITs Industry Average Movement4.4%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: EQIX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: EQIX's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199810,944Charles Meyershttps://www.equinix.com

Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix enables today’s businesses to access all the right places, partners and possibilities they need to accelerate advantage. With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value.

Equinix Fundamentals Summary

How do Equinix's earnings and revenue compare to its market cap?
EQIX fundamental statistics
Market CapUS$61.15b
Earnings (TTM)US$491.28m
Revenue (TTM)US$6.40b

124.5x

P/E Ratio

9.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EQIX income statement (TTM)
RevenueUS$6.40b
Cost of RevenueUS$3.58b
Gross ProfitUS$2.82b
Other ExpensesUS$2.33b
EarningsUS$491.28m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.40
Gross Margin44.09%
Net Profit Margin7.68%
Debt/Equity Ratio106.7%

How did EQIX perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

67%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


47.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: EQIX ($671.81) is trading below our estimate of fair value ($1280.99)

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


Price To Earnings Ratio

PE vs Industry: EQIX is poor value based on its Price-To-Earnings Ratio (124.5x) compared to the US REITs industry average (32.4x).

PE vs Market: EQIX is poor value based on its Price-To-Earnings Ratio (124.5x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: EQIX is poor value based on its PEG Ratio (7.1x)


Price to Book Ratio

PB vs Industry: EQIX is overvalued based on its Price-To-Book Ratio (5.6x) compared to the US REITs industry average (1.6x).


Future Growth

How is Equinix forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQIX's forecast earnings growth (17.6% per year) is above the savings rate (1.9%).

Earnings vs Market: EQIX's earnings (17.6% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: EQIX's revenue (8% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: EQIX's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EQIX's Return on Equity is forecast to be low in 3 years time (9.6%).


Past Performance

How has Equinix performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EQIX has a large one-off gain of $298.4M impacting its March 31 2022 financial results.

Growing Profit Margin: EQIX's current net profit margins (7.7%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: EQIX's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: EQIX's earnings growth over the past year (20.6%) exceeds its 5-year average (14.3% per year).

Earnings vs Industry: EQIX earnings growth over the past year (20.6%) underperformed the REITs industry 69.5%.


Return on Equity

High ROE: EQIX's Return on Equity (4.5%) is considered low.


Financial Health

How is Equinix's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EQIX's short term assets ($3.1B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: EQIX's short term assets ($3.1B) do not cover its long term liabilities ($15.5B).


Debt to Equity History and Analysis

Debt Level: EQIX's net debt to equity ratio (91.2%) is considered high.

Reducing Debt: EQIX's debt to equity ratio has reduced from 130.2% to 106.7% over the past 5 years.

Debt Coverage: EQIX's debt is well covered by operating cash flow (23.4%).

Interest Coverage: EQIX's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.85%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EQIX's dividend (1.85%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: EQIX's dividend (1.85%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

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

Growing Dividend: EQIX's dividend payments have increased, but the company has only paid a dividend for 7 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (67.3%), EQIX's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (41.2%), EQIX's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

5.5yrs

Average management tenure


CEO

Charles Meyers (55 yo)

3.67yrs

Tenure

US$23,248,193

Compensation

Mr. Charles J. Meyers serves as an Independent Director of Fastly, Inc. since July 8, 2021. He has been President, Director and Chief Executive Officer at Equinix, Inc. and Equinix, Inc. (REIT) since Septe...


CEO Compensation Analysis

Compensation vs Market: Charles's total compensation ($USD23.25M) is above average for companies of similar size in the US market ($USD13.26M).

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


Leadership Team

Experienced Management: EQIX's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: EQIX's board of directors are considered experienced (6.4 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Equinix, Inc.
  • Ticker: EQIX
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$61.149b
  • Shares outstanding: 91.02m
  • Website: https://www.equinix.com

Number of Employees


Location

  • Equinix, Inc.
  • One Lagoon Drive
  • Redwood City
  • California
  • 94065
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/24 00:00
End of Day Share Price2022/05/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.