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 (REIT) Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$872.58|
|52 Week High||US$586.73|
|52 Week Low||US$885.26|
|1 Month Change||4.63%|
|3 Month Change||6.05%|
|1 Year Change||16.02%|
|3 Year Change||97.56%|
|5 Year Change||142.53%|
|Change since IPO||107.76%|
Recent News & Updates
Equinix Is A World-Class REIT But Currently Overvalued
Equinix is the largest data center REIT, and one of the best managed in our opinion. Equinix has committed to power 100% of its data centers with renewable energy up from the ~90% it currently is at. According to our discounted cash flow model, shares are currently priced to deliver high-single-digit returns.
|EQIX||US REITs||US Market|
Return vs Industry: EQIX underperformed the US REITs industry which returned 32.5% over the past year.
Return vs Market: EQIX underperformed the US Market which returned 33.8% over the past year.
Stable Share Price: EQIX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: EQIX's weekly volatility (4%) has been stable over the past year.
About the Company
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 (REIT) Fundamentals Summary
|EQIX fundamental statistics|
Is EQIX overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|EQIX income statement (TTM)|
|Cost of Revenue||US$3.28b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||3.84|
|Net Profit Margin||5.43%|
How did EQIX perform over the long term?See historical performance and comparison
1.3%Current Dividend Yield
Is Equinix (REIT) undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EQIX ($872.58) is trading below our estimate of fair value ($1071.42)
Significantly Below Fair Value: EQIX is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: EQIX is poor value based on its PE Ratio (228.7x) compared to the US REITs industry average (50.1x).
PE vs Market: EQIX is poor value based on its PE Ratio (228.7x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: EQIX is poor value based on its PEG Ratio (10.4x)
Price to Book Ratio
PB vs Industry: EQIX is overvalued based on its PB Ratio (7.4x) compared to the US REITs industry average (2x).
How is Equinix (REIT) forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EQIX's forecast earnings growth (21.9% per year) is above the savings rate (2%).
Earnings vs Market: EQIX's earnings (21.9% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: EQIX's revenue (8% per year) is forecast to grow slower than the US market (9.8% 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 (11.2%).
How has Equinix (REIT) performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EQIX has a large one-off loss of $298.4M impacting its June 30 2021 financial results.
Growing Profit Margin: EQIX's current net profit margins (5.4%) are lower than last year (8.8%).
Past Earnings Growth Analysis
Earnings Trend: EQIX's earnings have grown significantly by 24.6% per year over the past 5 years.
Accelerating Growth: EQIX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: EQIX had negative earnings growth (-31.2%) over the past year, making it difficult to compare to the REITs industry average (3.9%).
Return on Equity
High ROE: EQIX's Return on Equity (3.2%) is considered low.
How is Equinix (REIT)'s financial position?
Financial Position Analysis
Short Term Liabilities: EQIX's short term assets ($3.1B) exceed its short term liabilities ($1.7B).
Long Term Liabilities: EQIX's short term assets ($3.1B) do not cover its long term liabilities ($15.6B).
Debt to Equity History and Analysis
Debt Level: EQIX's debt to equity ratio (109.7%) is considered high.
Reducing Debt: EQIX's debt to equity ratio has reduced from 133.4% to 109.7% over the past 5 years.
Debt Coverage: EQIX's debt is not well covered by operating cash flow (18.9%).
Interest Coverage: EQIX's interest payments on its debt are well covered by EBIT (3x coverage).
What is Equinix (REIT) current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EQIX's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: EQIX's dividend (1.32%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, EQIX has been paying a dividend for less than 10 years.
Growing Dividend: EQIX's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (73.6%), EQIX's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: EQIX's dividends in 3 years are forecast to be covered by earnings (58.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Charles Meyers (55 yo)
Mr. Charles J. Meyers serves as an Independent Director of Fastly, Inc. since July 8, 2021. He has been President, Director and Chief Executive Officer at Equinix, Inc. and Equinix, Inc. (REIT) since Septe...
CEO Compensation Analysis
Compensation vs Market: Charles's total compensation ($USD25.84M) is above average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Charles's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: EQIX's management team is considered experienced (2.9 years average tenure).
Experienced Board: EQIX's board of directors are considered experienced (7.7 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Equinix, Inc. (REIT)'s employee growth, exchange listings and data sources
- Name: Equinix, Inc. (REIT)
- Ticker: EQIX
- Exchange: NasdaqGS
- Founded: 1998
- Industry: Specialized REITs
- Sector: Real Estate
- Market Cap: US$78.314b
- Shares outstanding: 89.75m
- Website: https://www.equinix.com
Number of Employees
- Equinix, Inc. (REIT)
- One Lagoon Drive
- Redwood City
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:02|
|End of Day Share Price||2021/09/17 00:00|
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.