Switch
Market Cap
US$4.4b
Last Updated
2021/04/16 22:55 UTC
Data Sources
Company Financials +
Executive Summary
Switch, Inc., through its subsidiary, Switch, Ltd., provides colocation space and related services in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with proven track record.
Similar Companies
Share Price & News
How has Switch's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SWCH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: SWCH's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
2.4%
SWCH
1.0%
US IT
1.3%
US Market
1 Year Return
2.8%
SWCH
58.8%
US IT
53.9%
US Market
Return vs Industry: SWCH underperformed the US IT industry which returned 58.8% over the past year.
Return vs Market: SWCH underperformed the US Market which returned 53.9% over the past year.
Shareholder returns
| SWCH | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | 1.0% | 1.3% |
| 30 Day | 13.2% | 3.3% | 3.3% |
| 90 Day | 7.2% | 10.5% | 8.9% |
| 1 Year | 3.9%2.8% | 60.3%58.8% | 56.6%53.9% |
| 3 Year | 25.1%21.9% | 108.3%100.8% | 64.4%53.6% |
| 5 Year | n/a | 211.5%190.4% | 120.4%95.7% |
Long-Term Price Volatility Vs. Market
How volatile is Switch's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
I Ran A Stock Scan For Earnings Growth And Switch (NYSE:SWCH) Passed With Ease3 weeks ago | Simply Wall St
Should You Be Worried About Switch, Inc.'s (NYSE:SWCH) 6.3% Return On Equity?1 month ago | Simply Wall St
Is Switch (NYSE:SWCH) Using Too Much Debt?Valuation
Is Switch undervalued compared to its fair value and its price relative to the market?
120.74x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SWCH ($17.73) is trading above our estimate of fair value ($4.61)
Significantly Below Fair Value: SWCH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SWCH is poor value based on its PE Ratio (120.7x) compared to the US IT industry average (39.7x).
PE vs Market: SWCH is poor value based on its PE Ratio (120.7x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: SWCH is poor value based on its PEG Ratio (4.2x)
Price to Book Ratio
PB vs Industry: SWCH is overvalued based on its PB Ratio (7.9x) compared to the US IT industry average (5.3x).
Future Growth
How is Switch forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
28.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SWCH's forecast earnings growth (28.7% per year) is above the savings rate (2%).
Earnings vs Market: SWCH's earnings (28.7% per year) are forecast to grow faster than the US market (18.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SWCH's revenue (9.6% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: SWCH's revenue (9.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SWCH's Return on Equity is forecast to be low in 3 years time (9.9%).
Past Performance
How has Switch performed over the past 5 years?
-27.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SWCH has high quality earnings.
Growing Profit Margin: SWCH's current net profit margins (3%) are higher than last year (1.9%).
Past Earnings Growth Analysis
Earnings Trend: SWCH's earnings have declined by 27.8% per year over the past 5 years.
Accelerating Growth: SWCH's earnings growth over the past year (74.7%) exceeds its 5-year average (-27.8% per year).
Earnings vs Industry: SWCH earnings growth over the past year (74.7%) exceeded the IT industry 8.4%.
Return on Equity
High ROE: SWCH's Return on Equity (6.3%) is considered low.
Financial Health
How is Switch's financial position?
Financial Position Analysis
Short Term Liabilities: SWCH's short term assets ($122.8M) exceed its short term liabilities ($103.6M).
Long Term Liabilities: SWCH's short term assets ($122.8M) do not cover its long term liabilities ($1.4B).
Debt to Equity History and Analysis
Debt Level: SWCH's debt to equity ratio (167.1%) is considered high.
Reducing Debt: SWCH's debt to equity ratio has increased from 103.1% to 167.1% over the past 5 years.
Debt Coverage: SWCH's debt is well covered by operating cash flow (23.1%).
Interest Coverage: SWCH's interest payments on its debt are not well covered by EBIT (1.8x coverage).
Balance Sheet
Dividend
What is Switch current dividend yield, its reliability and sustainability?
1.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SWCH's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: SWCH's dividend (1.13%) is low compared to the top 25% of dividend payers in the US market (3.46%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, SWCH has been paying a dividend for less than 10 years.
Growing Dividend: SWCH's dividend payments have increased, but the company has only paid a dividend for 3 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (108.1%), SWCH's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SWCH's dividends in 3 years are forecast to be covered by earnings (72.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Rob Roy (51 yo)
3.83yrs
Tenure
US$7,500,429
Compensation
Mr. Rob Roy founded Switch, Inc. in June 13, 2017 and has been its Chief Executive Officer and Chairman since June 13, 2017. Mr. Roy has been Chief Executive Officer and as Chairman of the Board of Switch,...
CEO Compensation Analysis
Compensation vs Market: Rob's total compensation ($USD7.50M) is above average for companies of similar size in the US market ($USD5.13M).
Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: SWCH's management team is considered experienced (3.8 years average tenure).
Board Members
Experienced Board: SWCH's board of directors are considered experienced (3.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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
Switch, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Switch, Inc.
- Ticker: SWCH
- Exchange: NYSE
- Founded: 2000
- Industry: Internet Services and Infrastructure
- Sector: Software
- Implied Market Cap: US$4.375b
- Market Cap: US$2.285b
- Shares outstanding: 247.38m
- Website: https://www.switch.com
Number of Employees
Location
- Switch, Inc.
- 7135 South Decatur Boulevard
- Las Vegas
- Nevada
- 89118
- United States
Listings
Biography
Switch, Inc., through its subsidiary, Switch, Ltd., provides colocation space and related services in the United States. It develops and operates data centers in Nevada, Michigan, and Georgia. The company ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/16 22:55 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.