Equinix Inc (EQIX) Stock Analysis

Equinix Inc (EQIX) Financial Summary

Equinix Inc (EQIX) is a Real Estate company in the REIT - Specialty industry, listed on NASDAQ. The stock currently trades at $1085.03 with a market capitalization of $106.61B.

Key valuation metrics include a P/E ratio of 74.97, price-to-book ratio of 7.53, and EPS of $13.76. The company reports a profit margin of 15.1% and return on equity of 10.0%.

EQIX Key Financial Metrics

EQIX Revenue & Earnings History

Equinix Inc (EQIX) Valuation

Based on GoodMoat's DCF model, Equinix Inc has a fair value estimate of $650.75. At the current price of $1085.03, the stock appears 66.7% overvalued relative to our intrinsic value estimate.

EQIX Quality Indicators

Equinix Inc maintains a profit margin of 15.1% and an operating margin of 20.0%. Return on equity stands at 10.0%. The current ratio is 1.32. Debt-to-equity ratio is 1.61.

About Equinix Inc

Equinix, Inc. shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere. Non-GAAP Financial Measures Equinix provides all information required in accordance with generally accepted accounting principles ("GAAP"), but it believes that evaluating its ongoing results of operations may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix also uses non-GAAP financial measures to evaluate its operations. Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures. As such, Equinix provides a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Investors should note that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as those of other companies. Investors should therefore exercise caution when comparing non-GAAP financial measures used by Equinix to similarly titled non-GAAP financial measures of other companies. Equinix's primary non-GAAP financial measures include Adjusted EBITDA and Adjusted Funds from Operations ("AFFO") as described below. Equinix presents these measures to provide investors with additional tools to evaluate its results in a manner that focuses on what management believes to be its core, ongoing business operations. These measures exclude items which Equinix believes are generally not relevant to assessing its long-term performance. Both measures eliminate the impacts of depreciation and amortization, which are derived from historical costs and which Equinix believes are not indicative of current or future expenditures, and other items for which the frequency and amount of charges can vary based on the timing and significance of individual transactions. Equinix believes that presenting these non-GAAP financial measures provides consistency and comparability with past reports and that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze the company effectively. Adjusted EBITDA is used by management to evaluate the operating strength and performance of its core, ongoing business, without regard to its capital or tax structures. It also aids in assessing the performance of, making operating decisions for, and allocating resources to its operating segments. In addition to the uses described above, Equinix believes this measure provides investors with a better understanding of the operating performance of the business and its ability to perform in subsequent periods. Equinix defines adjusted EBITDA as net income excluding: income tax expense interest income interest expense other income or expense gain or loss on debt extinguishment depreciation, amortization and accretion expense stock-based compensation expense restructuring and other exit charges, which primarily include employee severance, facility closure costs, lease or other contract termination costs and advisory fees related to the realignment of our management structure, operations or products and other exit activities impairment charges transaction costs gain or loss on asset sales AFFO is derived from Funds from Operations ("FFO") calculated in accordance with the standards established by the National Association of Real Estate Investment Trusts. Both FFO and AFFO are non-GAAP measures commonly used in the REIT industry. Although these measures may not be directly comparable to similar measures used by other companies, Equinix believes that the presentation of these measures provides investors with an additional tool for comparing its performance with the performance of other companies in the REIT industry. Additionally, AFFO is a performance measure used in certain of the company's employee incentive programs, and Equinix believes it is a useful measure in assessing its dividend-paying capacity, as it isolates the cash impact of certain income and expense items and considers the impact of recurring capital expenditures. Equinix defines FFO as net income attributable to common stockholders excluding: gain or loss from the disposition of real estate assets depreciation and amortization expense on real estate assets adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items Equinix defines AFFO as FFO adjusted for: depreciation and amortization expense on non-real estate assets accretion expense stock-based compensation expense stock-based charitable contributions restructuring and other exit charges, as described above impairment charges transaction costs an adjustment to remove the impacts of straight-lining installation revenue an adjustment to remove the impacts of straight-lining rent expense an adjustment to remove the impacts of straight-lining contract costs amortization of deferred financing costs and debt discounts and premiums gain or loss from the disposition of non-real estate assets gain or loss on debt extinguishment an income tax expense adjustment, which represents the non-cash tax impact due to changes in valuation allowances, uncertain tax positions and deferred taxes recurring capital expenditures, which represent expenditures to extend the useful life of data centers or other assets that are required to support current revenues net income or loss from discontinued operations, net of tax adjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these items Equinix provides normalized and constant currency growth rates for revenues, adjusted EBITDA, AFFO and AFFO per share. These growth rates assume foreign currency rates remain consistent across comparative periods. Revenue growth rates exclude the impact of net power pass-through, acquisitions, divestitures and the Equinix Metal ® wind-down. Adjusted EBITDA growth rates exclude the impact of acquisitions, divestitures and integration costs. AFFO growth rates exclude the impact of acquisitions and related financing costs, divestitures, integration costs and balance sheet remeasurements. AFFO per share growth rates exclude the impact of integration costs and balance sheet remeasurements. Equinix presents cash cost of revenues and cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A). These measures exclude depreciation, amortization, accretion and stock-based compensation, which are not good indicators of Equinix's current or future operating performance, as described above. Equinix also presents free cash flow and adjusted free cash flow. Free cash flow is defined as net cash provided by (used in) operating activities plus net cash provided by (used in) investing activities excluding the net purchases of and distributions from equity investments. Adjusted free cash flow is defined as free cash flow excluding any real estate and business acquisitions, net of cash and restricted cash acquired. These measures are presented in order for lenders, investors and the industry analysts who review and report on Equinix to better evaluate Equinix's cash spending levels relative to its industry sector and competitors.

EQIX Free Cash Flow

Equinix Inc generated $-1.39B in trailing twelve-month free cash flow, representing an FCF yield of -1.31%. This low FCF yield may reflect heavy reinvestment or growth spending.

EQIX Shares Outstanding

Equinix Inc has 0.10 billion shares outstanding at a share price of $1085.03, giving it a market capitalization of $106.61B.

EQIX Recent Insider Trades

Recent insider transactions at Equinix Inc include: