EQIX

Equinix (REIT)NasdaqGS:EQIX Stock Report

Market Cap

US$78.3b

7D

3.4%

1Y

16.0%

Updated

18 Sep, 2021

Data

Company Financials +
EQIX fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance1/6
Financial Health3/6
Dividends2/6

EQIX 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 (REIT) Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Equinix (REIT)
Historical stock prices
Current Share PriceUS$872.58
52 Week HighUS$586.73
52 Week LowUS$885.26
Beta0.30
1 Month Change4.63%
3 Month Change6.05%
1 Year Change16.02%
3 Year Change97.56%
5 Year Change142.53%
Change since IPO107.76%

Recent News & Updates

Aug 30

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.

Shareholder Returns

EQIXUS REITsUS Market
7D3.4%-0.3%-0.6%
1Y16.0%32.5%33.8%

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.

Price Volatility

Is EQIX's price volatile compared to industry and market?
EQIX volatility
EQIX Beta0.30
Industry Beta0.82
Market Beta1

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

FoundedEmployeesCEOWebsite
199810,013Charles 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 (REIT) Fundamentals Summary

How do Equinix (REIT)'s earnings and revenue compare to its market cap?
EQIX fundamental statistics
Market CapUS$78.31b
Earnings (TTM)US$342.38m
Revenue (TTM)US$6.30b

228.7x

P/E Ratio

12.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EQIX income statement (TTM)
RevenueUS$6.30b
Cost of RevenueUS$3.28b
Gross ProfitUS$3.03b
ExpensesUS$2.68b
EarningsUS$342.38m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.84
Gross Margin48.04%
Net Profit Margin5.43%
Debt/Equity Ratio109.7%

How did EQIX perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

74%

Payout Ratio

Valuation

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

18.6%

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).


Future Growth

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

21.9%

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%).


Past Performance

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

24.6%

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.


Financial Health

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).


Balance Sheet


Dividend

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

1.32%

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).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Charles Meyers (55 yo)

3yrs

Tenure

US$25,836,268

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 ($USD25.84M) is above average for companies of similar size in the US market ($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.


Leadership Team

Experienced Management: EQIX's management team is considered experienced (2.9 years average tenure).


Board Members

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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Equinix, Inc. (REIT)'s 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$78.314b
  • Shares outstanding: 89.75m
  • Website: https://www.equinix.com

Number of Employees


Location

  • Equinix, Inc. (REIT)
  • 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 Analysis2021/09/18 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.