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Switch

NYSE:SWCH
Snowflake Description

Reasonable growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SWCH
NYSE
$3B
Imp Market Cap
  1. Home
  2. US
  3. Software
Company description

Switch, Inc., through its subsidiary, Switch, Ltd., provides colocation space and related services primarily to technology and digital media companies in the United States. The last earnings update was 41 days ago. More info.


Add to Portfolio Compare Print
  • Switch has significant price volatility in the past 3 months.
SWCH Share Price and Events
7 Day Returns
5.3%
NYSE:SWCH
-0.1%
US IT
1.2%
US Market
1 Year Returns
4.6%
NYSE:SWCH
19.9%
US IT
2.3%
US Market
SWCH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Switch (SWCH) 5.3% 5.6% 31.5% 4.6% - -
US IT -0.1% 3.9% 8.7% 19.9% 88.8% 110.7%
US Market 1.2% 2% 2% 2.3% 37.9% 39.8%
1 Year Return vs Industry and Market
  • SWCH underperformed the IT industry which returned 19.9% over the past year.
  • SWCH outperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Switch undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Switch to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Switch.

NYSE:SWCH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:SWCH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.01
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.012 (1 + (1- 21%) (18.87%))
1.109
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.109 * 5.96%)
9.34%

Discounted Cash Flow Calculation for NYSE:SWCH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Switch is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:SWCH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.34%)
2019 -32.11 Analyst x4 -29.37
2020 -38.75 Analyst x3 -32.41
2021 -19.18 Analyst x1 -14.67
2022 14.78 Analyst x1 10.34
2023 53.47 Analyst x1 34.22
2024 90.79 Est @ 69.79% 53.13
2025 135.89 Est @ 49.67% 72.73
2026 184.25 Est @ 35.59% 90.20
2027 231.67 Est @ 25.73% 103.72
2028 275.30 Est @ 18.83% 112.72
Present value of next 10 years cash flows $400.61
NYSE:SWCH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $275.30 × (1 + 2.73%) ÷ (9.34% – 2.73%)
$4,278.49
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,278.49 ÷ (1 + 9.34%)10
$1,751.85
NYSE:SWCH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $400.61 + $1,751.85
$2,152.46
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,152.46 / 243.32
$8.85
NYSE:SWCH Discount to Share Price
Calculation Result
Value per share (USD) From above. $8.85
Current discount Discount to share price of $13.49
= -1 x ($13.49 - $8.85) / $8.85
-52.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Switch is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Switch's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Switch's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:SWCH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.08
NYSE:SWCH Share Price ** NYSE (2019-06-19) in USD $13.49
United States of America IT Industry PE Ratio Median Figure of 77 Publicly-Listed IT Companies 34.87x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Switch.

NYSE:SWCH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:SWCH Share Price ÷ EPS (both in USD)

= 13.49 ÷ 0.08

167.15x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Switch is overvalued based on earnings compared to the US IT industry average.
  • Switch is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Switch's expected growth come at a high price?
Raw Data
NYSE:SWCH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 167.15x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
49.7%per year
United States of America IT Industry PEG Ratio Median Figure of 66 Publicly-Listed IT Companies 2.45x
United States of America Market PEG Ratio Median Figure of 2,128 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:SWCH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 167.15x ÷ 49.7%

3.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Switch is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Switch's assets?
Raw Data
NYSE:SWCH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $2.58
NYSE:SWCH Share Price * NYSE (2019-06-19) in USD $13.49
United States of America IT Industry PB Ratio Median Figure of 128 Publicly-Listed IT Companies 4.4x
United States of America Market PB Ratio Median Figure of 5,246 Publicly-Listed Companies 1.8x
NYSE:SWCH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:SWCH Share Price ÷ Book Value per Share (both in USD)

= 13.49 ÷ 2.58

5.23x

* Primary Listing of Switch.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Switch is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess Switch's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Switch has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Switch expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
49.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Switch expected to grow at an attractive rate?
  • Switch's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Switch's earnings growth is expected to exceed the United States of America market average.
  • Switch's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:SWCH Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:SWCH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 49.7%
NYSE:SWCH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 11%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.9%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 10.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:SWCH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:SWCH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 708 328 109 1
2022-12-31 629 287 81 1
2021-12-31 550 257 56 6
2020-12-31 492 225 22 11
2019-12-31 443 203 10 11
NYSE:SWCH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 415 191 4
2018-12-31 406 178 4
2018-09-30 402 180 -65
2018-06-30 397 172 -49
2018-03-31 387 141 -35
2017-12-31 378 145 -15
2017-09-30 361 151 32
2017-06-30 345 150 31
2017-03-31 334 168 35
2016-12-31 318 166 31

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Switch's earnings are expected to grow significantly at over 20% yearly.
  • Switch's revenue is expected to grow by 11% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:SWCH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Switch Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SWCH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.43 0.43 0.43 1.00
2022-12-31 0.32 0.32 0.32 1.00
2021-12-31 0.24 0.25 0.23 2.00
2020-12-31 0.21 0.31 0.15 5.00
2019-12-31 0.31 0.89 0.15 5.00
NYSE:SWCH Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.08
2018-12-31 0.09
2018-09-30 -1.26
2018-06-30 -0.99
2018-03-31 -1.76
2017-12-31 -1.88
2017-09-30 0.16
2017-06-30 0.16
2017-03-31 0.18
2016-12-31 0.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Switch is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Switch's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Switch has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Switch performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Switch's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Switch's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Switch has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Switch has become profitable in the last year making it difficult to compare the US IT industry average.
Earnings and Revenue History
Switch's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Switch Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SWCH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 415.18 4.08 125.00
2018-12-31 405.86 4.05 124.20
2018-09-30 401.97 -65.48 123.17
2018-06-30 396.90 -49.00 114.41
2018-03-31 386.84 -34.87 101.51
2017-12-31 378.28 -15.21 87.40
2017-09-30 360.84 31.99 78.82
2017-06-30 344.81 31.44 76.58
2017-03-31 333.54 35.02 73.99
2016-12-31 318.35 31.37 70.89
2015-12-31 265.87 73.47 45.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Switch has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Switch used its assets less efficiently than the US IT industry average last year based on Return on Assets.
  • Switch's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Switch's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Switch has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Switch's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Switch's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Switch is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Switch's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Switch's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Switch Company Filings, last reported 2 months ago.

NYSE:SWCH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 710.40 609.72 86.96
2018-12-31 708.35 606.03 81.56
2018-09-30 692.79 607.66 104.51
2018-06-30 748.75 610.94 184.00
2018-03-31 757.56 612.24 238.56
2017-12-31 742.13 613.54 264.67
2017-09-30 161.72 847.03 7.99
2017-06-30 146.77 848.36 49.79
2017-03-31 297.68 563.20 21.71
2016-12-31 278.36 495.53 22.71
2015-12-31 284.69 311.98 14.19
  • Switch's level of debt (85.8%) compared to net worth is high (greater than 40%).
  • Unable to establish if Switch's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (31.3%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Switch's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Switch has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Switch's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.87%
Current annual income from Switch dividends. Estimated to be 0.95% next year.
If you bought $2,000 of Switch shares you are expected to receive $17 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Switch's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Switch's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:SWCH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:SWCH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.24 1.00
2022-12-31 0.16 2.00
2021-12-31 0.12 4.00
2020-12-31 0.11 4.00
2019-12-31 0.11 4.00
NYSE:SWCH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-10 0.118 0.940
2019-05-08 0.118 1.053
2019-03-18 0.118 1.106
2019-03-12 0.118 1.159
2018-11-13 0.059 0.753
2018-08-14 0.059 0.581
2018-08-13 0.059 0.481
2018-05-15 0.059 0.456
2018-05-14 0.059 0.413
2018-04-02 0.059 0.402
2017-12-07 0.056 0.348

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Switch has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Switch only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Switch's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess Switch's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Switch afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Switch has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Switch's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rob Roy
COMPENSATION $8,242,618
AGE 49
TENURE AS CEO 2 years
CEO Bio

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, Ltd. since 2003. Mr. Roy first began developing data center facilities in 2000, merging several predecessor companies into Switch, Ltd. after its formation.

CEO Compensation
  • Rob's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Rob's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Switch management team in years:

2
Average Tenure
49
Average Age
  • The tenure for the Switch management team is about average.
Management Team

Rob Roy

TITLE
Founder
COMPENSATION
$8M
AGE
49
TENURE
2 yrs

Erin Morton

TITLE
President
COMPENSATION
$4M
AGE
49
TENURE
2 yrs

Gabe Nacht

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
57
TENURE
2 yrs

Eddie Shutter

TITLE
Chief Technology Officer

Missy Young

TITLE
Chief Information Officer

Matt Heinz

TITLE
Vice President of Investor Relations and Financial Planning & Analysis

Dave Glover

TITLE
General Manager of EAST Campus

Brian Boles

TITLE
Executive Vice President of Network Operations

Chris Donnelly

TITLE
Chief Connectivity Officer

Joe McDonald

TITLE
Chief Security Officer
Board of Directors Tenure

Average tenure and age of the Switch board of directors in years:

2
Average Tenure
54
Average Age
  • The average tenure for the Switch board of directors is less than 3 years, this suggests a new board.
Board of Directors

Rob Roy

TITLE
Founder
COMPENSATION
$8M
AGE
49
TENURE
2 yrs

Donald Snyder

TITLE
Lead Independent Director
COMPENSATION
$313K
AGE
71

Tom Thomas

TITLE
Non-Employee Director
COMPENSATION
$290K
AGE
59
TENURE
2 yrs

Kim Sheehy

TITLE
Director
COMPENSATION
$296K
AGE
53
TENURE
1.5 yrs

Bryan Wolf

TITLE
Non-Employee Director
COMPENSATION
$83K
AGE
54
TENURE
2 yrs

Zareh Sarrafian

TITLE
Non-Employee Director
COMPENSATION
$284K
AGE
54
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
18. Jun 19 Sell Balelo Family Limited Partnership Company 13. Jun 19 17. Jun 19 -27,276 $13.28 $-353,725
09. May 19 Sell Gragson Data Ss Llc Company 07. May 19 08. May 19 -104,350 $11.07 $-1,154,415
07. May 19 Sell Gragson Data Ss Llc Company 03. May 19 03. May 19 -138,200 $10.94 $-1,511,355
03. May 19 Sell Gragson Data Ss Llc Company 01. May 19 01. May 19 -11,800 $11.00 $-129,800
19. Mar 19 Sell Donald Snyder Individual 15. Mar 19 18. Mar 19 -300,000 $10.73 $-3,126,047
14. Feb 19 Sell Peter Thomas Individual 19. Sep 18 28. Nov 18 -16,000 $11.48 $-140,780
14. Feb 19 Buy Peter Thomas Individual 11. Sep 18 14. Dec 18 48,500 $11.21 $455,507
14. Feb 19 Sell Peter Thomas Individual 04. Jan 19 08. Jan 19 -4,000 $7.84 $-30,020
14. Feb 19 Buy Steven Thomas Individual 15. May 18 15. Nov 18 188,000 $13.16 $1,940,558
22. Jan 19 Buy Thomas Thomas Individual 20. Nov 18 20. Nov 18 15,000 $8.00 $119,925
06. Dec 18 Sell Donald Snyder Individual 04. Dec 18 04. Dec 18 -50,000 $7.25 $-362,500
24. Sep 18 Sell Intel Capital Company 20. Sep 18 20. Sep 18 -1,727,555 $10.98 $-18,968,554
04. Sep 18 Buy Thomas Thomas Individual 30. Aug 18 30. Aug 18 22,000 $11.52 $253,330
14. Aug 18 Sell Gragson Data Ss Llc Company 10. Aug 18 10. Aug 18 -189,022 $14.00 $-2,647,215
13. Aug 18 Sell Gragson Data Ss Llc Company 09. Aug 18 09. Aug 18 -250,000 $13.76 $-3,441,125
10. Aug 18 Sell William Balelo Individual 09. Aug 18 09. Aug 18 -50,986 $13.74 $-700,548
10. Aug 18 Sell Balelo Holdings Llc Company 09. Aug 18 09. Aug 18 -42,156 $13.72 $-578,380
08. Aug 18 Sell William Balelo Individual 06. Aug 18 07. Aug 18 -47,704 $13.51 $-644,231
08. Aug 18 Sell Balelo Holdings Llc Company 06. Aug 18 07. Aug 18 -50,000 $13.50 $-675,000
23. Jul 18 Sell Gragson Data Ss Llc Company 19. Jul 18 19. Jul 18 -189,500 $13.55 $-2,567,270
19. Jul 18 Sell William Balelo Individual 17. Jul 18 19. Jul 18 -100,310 $13.50 $-1,339,822
19. Jul 18 Sell Balelo Holdings Llc Company 17. Jul 18 19. Jul 18 -106,844 $13.60 $-1,444,973
18. Jul 18 Sell Gragson Data Ss Llc Company 17. Jul 18 17. Jul 18 -100,000 $13.15 $-1,314,820
26. Jun 18 Sell Gragson Data Ss Llc Company 22. Jun 18 22. Jun 18 -106,785 $13.05 $-1,393,854
25. Jun 18 Sell Intel Capital Company 21. Jun 18 21. Jun 18 -98,468 $13.02 $-1,282,053
X
Management checks
We assess Switch's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Switch has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Switch, Inc. (NYSE:SWCH) Have A Place In Your Dividend Stock Portfolio?

On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … Switch has only been paying a dividend for a year or so, so investors might be curious about its 1.1% yield. … NYSE:SWCH Historical Dividend Yield, May 3rd 2019

Simply Wall St -

What You Should Know About Switch, Inc.'s (NYSE:SWCH) Financial Strength

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

Simply Wall St -

Why Switch, Inc.’s (NYSE:SWCH) Use Of Investor Capital Doesn’t Look Great

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Those Who Purchased Switch (NYSE:SWCH) Shares A Year Ago Have A 45% Loss To Show For It

(NYSE:SWCH) shareholders should be happy to see the share price up 14% in the last quarter. … But in truth the last year hasn't been good for the share price. … During the last year Switch saw its earnings per share drop below zero.

Simply Wall St -

How Much Are Switch, Inc. (NYSE:SWCH) Insiders Taking Off The Table?

We often see insiders buying up shares in companies that perform well over the long term. … (NYSE:SWCH), you may well want to know whether insiders have been buying or selling. … Although we don't gain confidence from insider selling, we note that this large sale was at well above current price of US$6.49.

Simply Wall St -

What Investors Should Know About Switch Inc's (NYSE:SWCH) Financial Strength

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Switch Inc (NYSE:SWCH) with a market-capitalization of US$2.2b, rarely draw their attention. … Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

How Financially Strong Is Switch Inc (NYSE:SWCH)?

Mid-caps stocks, like Switch Inc (NYSE:SWCH) with a market capitalization of US$3.10b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … Despite this, commonly overlooked mid-caps have historically produced better risk-adjusted returns than their small and large-cap counterparts. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis.

Simply Wall St -

Is Switch Inc's (NYSE:SWCH) Balance Sheet Strong Enough To Weather A Storm?

See our latest analysis for Switch How does SWCH’s operating cash flow stack up against its debt? … On top of this, SWCH has generated cash from operations of US$145.10M during the same period of time, leading to an operating cash to total debt ratio of 23.65%, meaning that SWCH’s debt is appropriately covered by operating cash. … Next Steps: SWCH’s debt and cash flow levels indicate room for improvement.

Simply Wall St -

Stock Pick Of The Day: Switch Inc (NYSE:SWCH)

There's no stopping the Switch Inc (NYSE:SWCH) growth train, with analysts forecasting high top-line growth in the near future. … I will touched on some key aspects you should know on a high level, around its financials and growth prospects going forward. … SWCH has high near term liquidity, with short term assets (cash and other liquid assets) amply covering upcoming one-year liabilities.

Simply Wall St -

Does Switch Inc's (SWCH) -40.8% EPS Decline Reflect A Long-Term Trend?

Today I will assess SWCH's recent performance announced on 30 June 2017 and compare these figures to its historical trend and industry movements. … For the purpose of this commentary, I like to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … Switch's most recent twelve-month earnings is $31M, which compared to the prior year's level, has declined by a large -40.16%.

Simply Wall St -

Company Info

Description

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.

Details
Name: Switch, Inc.
SWCH
Exchange: NYSE
Founded: 2000
$3,231,320,382
$1,052,288,933
243,322,318
Website: http://www.switch.com
Address: Switch, Inc.
7135 South Decatur Boulevard,
Las Vegas,
Nevada, 89118,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE SWCH Class A Common Shares New York Stock Exchange US USD 06. Oct 2017
DB 821 Class A Common Shares Deutsche Boerse AG DE EUR 06. Oct 2017
Number of employees
Current staff
Staff numbers
731
Switch employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/20 00:50
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/05
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.