NasdaqGS:EQIX

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Executive Summary

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. More Details


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


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 is less volatile than 75% 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.


Market Performance


7 Day Return

-0.4%

EQIX

-1.2%

US REITs

0.7%

US Market


1 Year Return

22.7%

EQIX

-8.7%

US REITs

22.2%

US Market

Return vs Industry: EQIX exceeded the US REITs industry which returned -7.6% over the past year.

Return vs Market: EQIX matched the US Market which returned 22.7% over the past year.


Shareholder returns

EQIXIndustryMarket
7 Day-0.4%-1.2%0.7%
30 Day-6.5%6.9%11.8%
90 Day-9.4%1.6%8.6%
1 Year24.6%22.7%-4.9%-8.7%25.0%22.2%
3 Year62.5%53.4%19.1%5.0%49.4%39.5%
5 Year155.2%131.6%48.7%18.9%100.2%78.1%

Long-Term 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?

15.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EQIX ($690.62) is trading below our estimate of fair value ($817.51)

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 (135x) compared to the US REITs industry average (38.2x).

PE vs Market: EQIX is poor value based on its PE Ratio (135x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: EQIX is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: EQIX is overvalued based on its PB Ratio (5.8x) compared to the US REITs industry average (1.6x).


Next Steps

Future Growth

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

27.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQIX's forecast earnings growth (27% per year) is above the savings rate (2.2%).

Earnings vs Market: EQIX's earnings (27% per year) are forecast to grow faster than the US market (21.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EQIX's revenue (8.8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: EQIX's revenue (8.8% 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 (10.4%).


Next Steps

Past Performance

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

38.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQIX has a large one-off loss of $164.4M impacting its September 30 2020 financial results.

Growing Profit Margin: EQIX's current net profit margins (7.7%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: EQIX has become profitable over the past 5 years, growing earnings by 38.9% per year.

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 (-9.9%) over the past year, making it difficult to compare to the REITs industry average (2%).


Return on Equity

High ROE: EQIX's Return on Equity (4.2%) 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 ($4.0B) exceed its short term liabilities ($3.8B).

Long Term Liabilities: EQIX's short term assets ($4.0B) do not cover its long term liabilities ($12.1B).


Debt to Equity History and Analysis

Debt Level: EQIX's debt to equity ratio (99.7%) is considered high.

Reducing Debt: EQIX's debt to equity ratio has reduced from 265.7% to 99.7% over the past 5 years.

Debt Coverage: EQIX's debt is well covered by operating cash flow (20.5%).

Interest Coverage: EQIX's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EQIX's dividend (1.54%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: EQIX's dividend (1.54%) is low compared to the top 25% of dividend payers in the US market (4.14%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.7%), 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 (54.1% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Charles Meyers (54 yo)

2.25yrs

Tenure

US$16,575,596

Compensation

Mr. Charles J. Meyers has been President, Director and Chief Executive Officer at Equinix, Inc. and Equinix, Inc. (REIT) since September 12, 2018 also served as its President of Strategy, Services & Innova...


CEO Compensation Analysis

Compensation vs Market: Charles's total compensation ($USD16.58M) is above average for companies of similar size in the US market ($USD10.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charles Meyers
President2.25yrsUS$16.58m0.012%
$ 7.6m
Keith Taylor
Chief Financial Officer15.25yrsUS$7.60m0.033%
$ 20.5m
Brandi Morandi
Chief Legal & HR Officer and Corporate Secretaryno dataUS$6.45m0.015%
$ 9.4m
Sara Baack
Chief Product Officer1.67yrsUS$6.11m0.011%
$ 6.7m
Karl Strohmeyer
Chief Customer & Revenue Officer1.67yrsUS$8.94m0.0059%
$ 3.6m
Peter Van Camp
Executive Chairman15yrsUS$5.73m0.0062%
$ 3.8m
Raouf Abdel
Executive Vice President of Global Operationsno datano datano data
Simon Miller
Chief Accounting Officer2.08yrsno data0.0018%
$ 1.1m
Justin Dustzadeh
Chief Technology Officer1.25yrsno datano data
Milind Wagle
Senior VP & Chief Information Officer4.08yrsno datano data
Katrina Rymill
Vice President of Investor Relationsno datano datano data
Mary Wellman
VP of Legal & Chief Compliance Officer14.83yrsno datano data

2.2yrs

Average Tenure

50yo

Average Age

Experienced Management: EQIX's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Meyers
President2.25yrsUS$16.58m0.012%
$ 7.6m
Peter Van Camp
Executive Chairman15yrsUS$5.73m0.0062%
$ 3.8m
William Luby
Independent Director10.67yrsUS$337.49k0.043%
$ 26.5m
Irving Lyons
Independent Director13.83yrsUS$362.49k0.023%
$ 14.4m
Christopher Paisley
Lead Independent Director8.83yrsUS$413.49k0.021%
$ 13.0m
Nanci Caldwell
Independent Director5yrsUS$339.99k0.0010%
$ 621.5k
Thomas Bartlett
Independent Director7.67yrsUS$347.49k0.0064%
$ 4.0m
Adaire Fox-Martin
Independent Director0.92yrno data0.00015%
$ 92.3k
Sandra Rivera
Independent Director1.17yrsUS$187.26k0.00033%
$ 203.1k

7.7yrs

Average Tenure

61yo

Average Age

Experienced Board: EQIX's board of directors are considered experienced (7.7 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 4.5%.


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$61.535b
  • Shares outstanding: 89.10m
  • 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 80 REP 1 COMBRBRLMay 2019

Biography

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 t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 23:45
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
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.