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

Fundamentals

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


Market Performance


7 Day Return

1.7%

EQIX

1.5%

US REITs

0.4%

US Market


1 Year Return

39.1%

EQIX

19.9%

US REITs

6.9%

US Market

Return vs Industry: EQIX exceeded the US REITs industry which returned 19.9% over the past year.

Return vs Market: EQIX exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

EQIXIndustryMarket
7 Day1.7%1.5%0.4%
30 Day1.8%1.6%-1.1%
90 Day13.8%7.8%-0.5%
1 Year42.1%39.1%25.2%19.9%9.3%6.9%
3 Year65.8%55.8%36.0%18.6%45.8%36.4%
5 Year241.1%195.8%64.7%30.0%62.9%45.1%

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?

22.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: EQIX ($576.41) is trading below our estimate of fair value ($746.02)

Significantly Undervalued: 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 (94.8x) compared to the REITs industry average (36.2x).

PE vs Market: EQIX is poor value based on its PE Ratio (94.8x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: EQIX is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: EQIX is overvalued based on its PB Ratio (5.6x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Equinix (REIT) forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQIX's forecast earnings growth (18.3% per year) is above the savings rate (2.7%).

Earnings vs Market: EQIX's earnings (18.3% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: EQIX's revenue (8.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: EQIX's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: EQIX's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

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

49.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EQIX's earnings have grown significantly by 49.4% per year over the past 5 years.

Accelerating Growth: EQIX's earnings growth over the past year (80.1%) exceeds its 5-year average (49.4% per year).

Earnings vs Industry: EQIX earnings growth over the past year (80.1%) exceeded the REITs industry 17.6%.


Return on Equity

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


Return on Assets

ROA vs Industry: EQIX's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: EQIX has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Equinix (REIT)'s financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: EQIX has a high level of physical assets or inventory.

Debt Coverage by Assets: EQIX's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: EQIX's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if EQIX has a sufficient allowance for bad loans.

Low Risk Liabilities: EQIX reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if EQIX has an acceptable proportion of non-loan assets held.

Low Risk Deposits: EQIX has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if EQIX has an appropriate level of bad loans.


Next Steps

Dividend

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

1.71%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years2.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EQIX's dividend (1.71%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: EQIX's dividend (1.71%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (57.9%), 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 (0.7% payout ratio).


Next Steps

Management

What is the CEO of Equinix (REIT)'s salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Charles Meyers (53yo)

1.1yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.0yrs

Average Tenure

52.5yo

Average Age

Experienced Management: EQIX's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

9.5yrs

Average Tenure

61yo

Average Age

Experienced Board: EQIX's board of directors are considered experienced (9.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$1,045,71829 Aug 19
Karl Strohmeyer
EntityIndividual
Role
Senior Key Executive
Chief Customer & Revenue Officer
Shares1,896
Max PriceUS$551.54
SellUS$1,754,34412 Aug 19
Peter Van Camp
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares3,191
Max PriceUS$552.05
SellUS$198,76206 Aug 19
Simon Miller
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares385
Max PriceUS$516.27
SellUS$491,61520 May 19
Michael Campbell
EntityIndividual
Role
Head of Sales
Chief Sales Officer
Shares1,000
Max PriceUS$491.62
SellUS$592,50006 Dec 18
Michael Campbell
EntityIndividual
Role
Head of Sales
Chief Sales Officer
Shares1,500
Max PriceUS$395.00
SellUS$1,068,95616 Nov 18
Yau Lee
EntityIndividual
Shares2,792
Max PriceUS$382.86

Ownership Breakdown


Management Team

  • Charles Meyers (53yo)

    President

    • Tenure: 1.1yrs
    • Compensation: US$11.96m
  • Peter Van Camp (63yo)

    Executive Chairman

    • Tenure: 13.8yrs
    • Compensation: US$5.73m
  • Mike Campbell (53yo)

    Chief Sales Officer

    • Tenure: 3.3yrs
    • Compensation: US$4.03m
  • Keith Taylor (57yo)

    Chief Financial Officer

    • Tenure: 14.1yrs
    • Compensation: US$6.33m
  • Raouf Abdel (51yo)

    Executive Vice President of Global Operations

    • Tenure: 0yrs
  • Eric Schwartz (52yo)

    Chief Strategy & Development Officer

    • Tenure: 0.5yrs
    • Compensation: US$4.60m
  • Karl Strohmeyer (47yo)

    Chief Customer & Revenue Officer

    • Tenure: 0.5yrs
    • Compensation: US$4.24m
  • Milind Wagle

    Senior VP & Chief Information Officer

    • Tenure: 2.9yrs
  • Simon Miller (46yo)

    Chief Accounting Officer

    • Tenure: 0.9yrs
  • Justin Dustzadeh

    Chief Technology Officer

    • Tenure: 0.08yrs

Board Members

  • Bill Luby (59yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$327.48k
  • Charles Meyers (53yo)

    President

    • Tenure: 1.1yrs
    • Compensation: US$11.96m
  • Scott Kriens (61yo)

    Independent Director

    • Tenure: 19.3yrs
    • Compensation: US$334.98k
  • Bud Lyons (69yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$355.31k
  • Peter Van Camp (63yo)

    Executive Chairman

    • Tenure: 13.8yrs
    • Compensation: US$5.73m
  • Chris Paisley (66yo)

    Lead Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$390.31k
  • Gary Hromadko (66yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$349.98k
  • Nanci Caldwell (61yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$320.64k
  • Tom Bartlett (60yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$333.31k

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$48.891b
  • Shares outstanding: 84.82m
  • 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, co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:24
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.