Switch
Market Cap
US$4.2b
Last Updated
2020/02/17 01:25 UTC
Data Sources
Company Financials +
Executive Summary
Switch, Inc., through its subsidiary, Switch, Ltd., provides colocation space and related services primarily to technology and digital media companies in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with questionable 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
7.6%
SWCH
2.1%
US IT
1.5%
US Market
1 Year Return
98.4%
SWCH
37.2%
US IT
20.1%
US Market
Return vs Industry: SWCH exceeded the US IT industry which returned 37.2% over the past year.
Return vs Market: SWCH exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| SWCH | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.6% | 2.1% | 1.5% |
| 30 Day | 8.5% | 4.4% | 1.4% |
| 90 Day | 9.0% | 13.9% | 8.7% |
| 1 Year | 100.2%98.4% | 38.6%37.2% | 22.7%20.1% |
| 3 Year | n/a | 112.3%103.1% | 50.1%40.5% |
| 5 Year | n/a | 148.0%125.8% | 73.1%54.1% |
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
2 weeks ago | Simply Wall St
Switch (NYSE:SWCH) Shareholders Have Enjoyed A 92% Share Price Gain1 month ago | Simply Wall St
Based On Its ROE, Is Switch, Inc. (NYSE:SWCH) A High Quality Stock?2 months ago | Simply Wall St
Why Switch, Inc.’s (NYSE:SWCH) Use Of Investor Capital Doesn’t Look GreatValuation
Is Switch undervalued compared to its fair value and its price relative to the market?
181.35x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SWCH ($17.4) is trading above our estimate of fair value ($9.71)
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 (181.4x) compared to the IT industry average (33.1x).
PE vs Market: SWCH is poor value based on its PE Ratio (181.4x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: SWCH is poor value based on its PEG Ratio (4.8x)
Price to Book Ratio
PB vs Industry: SWCH is overvalued based on its PB Ratio (7x) compared to the US IT industry average (4.3x).
Next Steps
Future Growth
How is Switch forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
38.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SWCH's forecast earnings growth (38.1% per year) is above the savings rate (1.7%).
Earnings vs Market: SWCH's earnings (38.1% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SWCH's revenue (10.1% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: SWCH's revenue (10.1% 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 (13.9%).
Next Steps
Past Performance
How has Switch performed over the past 5 years?
-70.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SWCH has high quality earnings.
Growing Profit Margin: SWCH became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: SWCH's earnings have declined by -70% per year over the past 5 years.
Accelerating Growth: SWCH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: SWCH has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (12%).
Return on Equity
High ROE: SWCH's Return on Equity (3.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Switch's financial position?
Financial Position Analysis
Short Term Liabilities: SWCH's short term assets ($80.6M) do not cover its short term liabilities ($105.1M).
Long Term Liabilities: SWCH's short term assets ($80.6M) do not cover its long term liabilities ($853.0M).
Debt to Equity History and Analysis
Debt Level: SWCH's debt to equity ratio (98.4%) is considered high.
Reducing Debt: Insufficient data to determine if SWCH's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: SWCH's debt is well covered by operating cash flow (31.4%).
Interest Coverage: SWCH's interest payments on its debt are not well covered by EBIT (1.6x coverage).
Balance Sheet
Inventory Level: SWCH has a high level of physical assets or inventory.
Debt Coverage by Assets: SWCH's debt is not covered by short term assets (assets are 0.1x debt).
Next Steps
Dividend
What is Switch's current dividend yield, its reliability and sustainability?
0.67%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SWCH's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: SWCH's dividend (0.68%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: SWCH is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: SWCH is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: SWCH is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SWCH's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
Average management tenure
CEO
Rob Roy (50yo)
2.7yrs
Tenure
US$8,242,618
Compensation
Mr. Rob Roy founded Switch, Inc. in June 13, 2017 and has been its Chief Executive Officer and Chairman since June 13, 2017. Mr. Roy has been Chief Executive Officer and as Chairman of the Board of Switch, ...
CEO Compensation Analysis
Compensation vs Market: Rob's total compensation ($USD8.24M) is above average for companies of similar size in the US market ($USD4.88M).
Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 2.7yrs | US$8.24m | 0.94% $39.9m | |
| President | 2.7yrs | US$4.04m | 0.41% $17.2m | |
| Chief Financial Officer | 2.7yrs | US$2.40m | 0.042% $1.8m | |
| Chief Technology Officer | 0yrs | no data | no data | |
| Chief Information Officer | 0yrs | no data | no data | |
| Vice President of Investor Relations and Financial Planning & Analysis | 0yrs | no data | no data | |
| General Manager of EAST Campus | 0yrs | no data | no data | |
| Executive Vice President of Network Operations | 0yrs | no data | no data | |
| Chief Connectivity Officer | 0yrs | no data | no data | |
| Chief Security Officer | 0yrs | no data | no data |
2.7yrs
Average Tenure
50yo
Average Age
Experienced Management: SWCH's management team is considered experienced (2.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 2.7yrs | US$8.24m | 0.94% $39.9m | |
| Lead Independent Director | 0yrs | US$313.04k | 0.15% $6.2m | |
| Non-Employee Director | 2.7yrs | US$82.50k | 0.018% $753.1k | |
| Non-Employee Director | 2.7yrs | US$284.01k | 0.035% $1.5m | |
| Independent Director | 2.2yrs | US$296.12k | 0.035% $1.5m | |
| Non-Employee Director | 2.7yrs | US$289.60k | 1.0% $42.3m |
2.7yrs
Average Tenure
55yo
Average Age
Experienced Board: SWCH's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SWCH 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 30.2%.
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$4.243b
- Market Cap: US$1.562b
- Shares outstanding: 243.82m
- Website: https://www.switch.com
Number of Employees
Location
- Switch, Inc.
- 7135 South Decatur Boulevard
- Las Vegas
- Nevada
- 89118
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SWCH | NYSE (New York Stock Exchange) | Yes | Class A Common Shares | US | USD | Oct 2017 |
| 821 | DB (Deutsche Boerse AG) | Yes | Class A Common Shares | DE | EUR | Oct 2017 |
Biography
Switch, Inc., through its subsidiary, Switch, Ltd., provides colocation space and related services primarily to technology and digital media companies in the United States. It develops and operates data centers in Nevada and Michigan. The company also serves cloud and managed service providers, financial institutions, IT and software providers, government agencies, network and telecommunications providers, and others that conduct critical business on the Internet. Switch, Inc. was founded in 2000 and is headquartered in Las Vegas, Nevada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 01:25 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.