NasdaqGS:EQIX

Stock Analysis Report

Executive Summary

Equinix, Inc. (Nasdaq: EQIX) connects the world’s leading businesses to their customers, employees and partners inside the most interconnected data centers.


Snowflake Analysis

Proven track record with moderate growth potential.


Similar Companies

Share Price & News

How has Equinix (REIT)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.7%

EQIX

0.3%

US REITs

2.4%

US Market


1 Year Return

35.2%

EQIX

-20.3%

US REITs

-10.0%

US Market

Return vs Industry: EQIX exceeded the US REITs industry which returned -23.9% over the past year.

Return vs Market: EQIX exceeded the US Market which returned -13.3% over the past year.


Shareholder returns

EQIXIndustryMarket
7 Day4.7%0.3%2.4%
30 Day8.6%-22.2%-11.0%
90 Day5.9%-24.2%-19.4%
1 Year37.7%35.2%-16.9%-20.3%-8.1%-10.0%
3 Year65.6%56.0%-2.8%-15.0%17.3%9.6%
5 Year198.6%158.6%15.9%-7.9%36.1%21.1%

Price Volatility Vs. Market

How volatile is Equinix (REIT)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

33.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EQIX ($652.22) is trading below our estimate of fair value ($943.54)

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 PE Ratio (108.1x) compared to the REITs industry average (23x).

PE vs Market: EQIX is poor value based on its PE Ratio (108.1x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: EQIX is poor value based on its PEG Ratio (6.2x)


Price to Book Ratio

PB vs Industry: EQIX is overvalued based on its PB Ratio (6.3x) compared to the US REITs industry average (1.2x).


Next Steps

Future Growth

How is Equinix (REIT) forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQIX's forecast earnings growth (17.5% per year) is above the savings rate (1.7%).

Earnings vs Market: EQIX's earnings (17.5% per year) are forecast to grow faster than the US market (13.4% per year).

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

Revenue vs Market: EQIX's revenue (8.4% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: EQIX's revenue (8.4% 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 (11.7%).


Next Steps

Past Performance

How has Equinix (REIT) performed over the past 5 years?

56.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQIX has high quality earnings.

Growing Profit Margin: EQIX's current net profit margins (9.3%) are higher than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: EQIX has become profitable over the past 5 years, growing earnings by 56.9% per year.

Accelerating Growth: EQIX's earnings growth over the past year (38.9%) is below its 5-year average (56.9% per year).

Earnings vs Industry: EQIX earnings growth over the past year (38.9%) exceeded the REITs industry 4.3%.


Return on Equity

High ROE: EQIX's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is Equinix (REIT)'s financial position?


Financial Position Analysis

Short Term Liabilities: EQIX's short term assets ($2.9B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: EQIX's short term assets ($2.9B) do not cover its long term liabilities ($13.0B).


Debt to Equity History and Analysis

Debt Level: EQIX's debt to equity ratio (116.7%) is considered high.

Reducing Debt: EQIX's debt to equity ratio has reduced from 152.5% to 116.7% over the past 5 years.

Debt Coverage: EQIX's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: EQIX's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Equinix (REIT)'s current dividend yield, its reliability and sustainability?

1.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EQIX's dividend (1.63%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: EQIX's dividend (1.63%) is low compared to the top 25% of dividend payers in the US market (5.66%).


Stability and Growth of Payments

Stable Dividend: EQIX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EQIX's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.6%), EQIX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EQIX's dividends in 3 years are forecast to be thoroughly covered by earnings (0.6% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Charles Meyers (53yo)

1.58s

Tenure

US$11,960,430

Compensation

Mr. Charles Meyers has been President, Director and Chief Executive Officer at Equinix, Inc. since September 12, 2018 also served as its President of Strategy, Services & Innovation from August 1, 2017 to  ...


CEO Compensation Analysis

Compensation vs Market: Charles's total compensation ($USD11.96M) is about average for companies of similar size in the US market ($USD11.96M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Van Camp
Executive Chairman14.33yrsUS$5.73m0.0069% $3.7m
Charles Meyers
President1.58yrsUS$11.96m0.013% $6.8m
Keith Taylor
Chief Financial Officer14.58yrsUS$6.33m0.038% $20.2m
Michael Campbell
Chief Sales Officer3.75yrsUS$4.03m0.0068% $3.6m
Eric Schwartz
Chief Strategy & Development Officer1yrUS$4.60m0.0041% $2.2m
Karl Strohmeyer
Chief Customer & Revenue Officer1yrUS$4.24m0.0060% $3.2m
Raouf Abdel
Executive Vice President of Global Operationsno datano datano data
Simon Miller
Chief Accounting Officer1.42yrsno data0.0023% $1.2m
Justin Dustzadeh
Chief Technology Officer0.58yrno datano data
Milind Wagle
Senior VP & Chief Information Officer3.42yrsno datano data

1.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: EQIX's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Peter Van Camp
Executive Chairman14.33yrsUS$5.73m0.0069% $3.7m
Charles Meyers
President1.58yrsUS$11.96m0.013% $6.8m
William Luby
Independent Director10yrsUS$327.48k0.045% $24.0m
Scott Kriens
Independent Director19.75yrsUS$334.98k0.094% $50.2m
Irving Lyons
Independent Director13.17yrsUS$355.31k0.024% $13.0m
Christopher Paisley
Lead Independent Director8.17yrsUS$390.31k0.022% $11.8m
Gary Hromadko
Independent Director16.83yrsUS$349.98k0.20% $105.9m
Nanci Caldwell
Independent Director4.33yrsUS$320.64k0.0020% $1.1m
Thomas Bartlett
Independent Director7yrsUS$333.31k0.0067% $3.6m
Adaire Fox-Martin
Director0.25yrno datano data

9.1yrs

Average Tenure

61yo

Average Age

Experienced Board: EQIX's board of directors are considered experienced (9.1 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 been diluted in the past year, with total shares outstanding growing by 5.5%.


Top Shareholders

Company Information

Equinix, Inc. (REIT)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Equinix, Inc. (REIT)
  • Ticker: EQIX
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$53.285b
  • Shares outstanding: 85.44m
  • Website: https://www.equinix.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EQIXNasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDAug 2000
EQN2DB (Deutsche Boerse AG)YesNew Common StockDEEURAug 2000
0II4LSE (London Stock Exchange)YesNew Common StockGBUSDAug 2000
EQIX *BMV (Bolsa Mexicana de Valores)YesNew Common StockMXMXNAug 2000
EQIX34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.2 COM USD0.001BRBRLMay 2019

Biography

Equinix, Inc. (Nasdaq: EQIX) connects the world’s leading businesses to their customers, employees and partners inside the most interconnected data centers. On this global platform for digital business, companies come together across more than 50 markets on five continents to reach everywhere, interconnect everyone and integrate everything they need to create their digital futures. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 07:17
End of Day Share Price2020/04/07 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.