Switch, Inc.

NYSE:SWCH Stock Report

Market Cap: US$8.4b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Switch Past Earnings Performance

Past criteria checks 4/6

Key information

82.93%

Earnings growth rate

81.37%

EPS growth rate

IT Industry Growth22.43%
Revenue growth rate11.94%
Return on equity37.36%
Net Margin56.70%
Last Earnings Update30 Sep 2022

Recent past performance updates

Recent updates

Seeking Alpha • Aug 18

Switch declares goes ex-dividend tomorrow

Switch (NYSE:SWCH) declares $0.0525/share quarterly dividend, in line with previous. Forward yield 0.62% Payable Sept. 1; for shareholders of record Aug. 22; ex-div Aug. 19. See SWCH Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Apr 16

Switch: Likely To Be Acquired But Not By Digital Realty Or Equinix

Switch is a Las Vegas-based data center play, smaller than the likes of Digital Realty and Equinix, but growing much more rapidly. Some news updates mention that it is open to a takeover bid. Consolidation trends in the data center industry and the change in its corporate status tend to confirm the takeover route. A look at recent deals helps in valuations and it is more likely to be acquired by an infrastructure management company rather than constitute a strategic buy-out by a data center play. Switch is a buy with a 15%-16% upside potential considering that it makes for an appropriate acquisition target.
Seeking Alpha • Jan 27

Switch: This Small Data Center Company Doesn't Look That Special

Switch says they have superior technology in their data centers, a claim that I investigate in this article. I partnered with another Seeking Alpha writer to consider Switch's valuation and the implications of their upcoming REIT conversion. We can't recommend Switch because we don't see any sustainable competitive advantage that it has over larger competitors.
Seeking Alpha • Dec 14

Switch Has Superior Data Center Growth

Switch has proprietary data center designs which make their developments more accretive than usual. This accretion is amplified by a large development pipeline relative to their existing footprint. Switch builds very high-end data centers capable of supplying more power than most current equipment uses.

Revenue & Expenses Breakdown

How Switch makes and spends money. Based on latest reported earnings, on an LTM basis.

Earnings and Revenue History

NYSE:SWCH Revenue, expenses and earnings (USD Millions)
DateRevenueEarningsG+A ExpensesR&D Expenses
30 Sep 226693791530
30 Jun 226523791600
31 Mar 2262671500
31 Dec 2159251420
30 Sep 21558221360
30 Jun 21529281310
31 Mar 21514281280
31 Dec 20512161320
30 Sep 20504131380
30 Jun 20498111410
31 Mar 2048371410
31 Dec 1946291360
30 Sep 1944571290
30 Jun 1942541260
31 Mar 1941641250
31 Dec 1840641220
30 Sep 18402-651210
30 Jun 18397-491110
31 Mar 18387-351010
31 Dec 17378-15870
30 Sep 1736132790
30 Jun 1734531770
31 Mar 1733435740
31 Dec 1631831710
31 Dec 1526673450

Quality Earnings: SWCH has a large one-off gain of $327.0M impacting its September 30 2022 financial results.

Growing Profit Margin: SWCH's current net profit margins (56.7%) are higher than last year (4%).

Free Cash Flow vs Earnings Analysis

Past Earnings Growth Analysis

Earnings Trend: SWCH's earnings have grown significantly by 82.9% per year over the past 5 years.

Accelerating Growth: SWCH's earnings growth over the past year (1616.8%) exceeds its 5-year average (82.9% per year).

Earnings vs Industry: SWCH earnings growth over the past year (1616.8%) exceeded the IT industry 16.1%.

Return on Equity

High ROE: Whilst SWCH's Return on Equity (37.36%) is high, this metric is skewed due to their high level of debt.

Return on Assets

Return on Capital Employed

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2022/12/06 01:58
End of Day Share Price 2022/12/05 00:00
Earnings2022/09/30
Annual Earnings2021/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Switch, Inc. is covered by 18 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Brendan LynchBarclays
Timothy LongBarclays
Nathan CrossettBerenberg