Equinix, Inc. Fundamental Analysis (NASDAQ: EQIX)
Equinix, Inc. (NASDAQ: EQIX) shows moderate financial fundamentals with a PE ratio of 63.59, profit margin of 16.35%, and ROE of 11.49%. The company generates $10.1B in annual revenue with moderate year-over-year growth of 5.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 12.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EQIX's fundamental strength across five key dimensions:
Efficiency Score
WeakEQIX struggles to generate sufficient returns from assets.
Valuation Score
ModerateEQIX shows balanced valuation metrics.
Growth Score
ExcellentEQIX delivers strong and consistent growth momentum.
Financial Health Score
ModerateEQIX shows balanced financial health with some risks.
Profitability Score
WeakEQIX struggles to sustain strong margins.
Key Financial Metrics
Is EQIX Expensive or Cheap?
P/E Ratio
EQIX trades at 63.59 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EQIX's PEG of 1.21 indicates fair valuation.
Price to Book
The market values Equinix, Inc. at 7.23 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.37 times EBITDA. This signals the market has high growth expectations.
How Well Does EQIX Make Money?
Net Profit Margin
For every $100 in sales, Equinix, Inc. keeps $16.35 as profit after all expenses.
Operating Margin
Core operations generate 22.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.49 in profit for every $100 of shareholder equity.
ROA
Equinix, Inc. generates $3.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Equinix, Inc. generates strong operating cash flow of $4.18B, reflecting robust business health.
Free Cash Flow
Equinix, Inc. generates weak or negative free cash flow of $-1.67B, restricting financial flexibility.
FCF Per Share
Each share generates $-16.87 in free cash annually.
FCF Yield
EQIX converts -1.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
63.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How EQIX Stacks Against Its Sector Peers
| Metric | EQIX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 63.59 | 25.26 | Worse (Expensive) |
| ROE | 11.49% | 722.00% | Weak |
| Net Margin | 16.35% | 2077.00% | Weak |
| Debt/Equity | 1.82 | -37.25 (disorted) | Distorted |
| Current Ratio | 1.29 | 91.70 | Neutral |
| ROA | 3.71% | 270.00% | Weak |
EQIX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Equinix, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.31%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
227.10%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
51.71%
Industry Style: Income, Inflation Hedge, REIT
High Growth