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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Equinix, Inc. (XNAS:EQIX) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
EQIX
Name:
EQUINIX, INC. (XNAS:EQIX)
Sector:
168.61M
Industry:
REIT�Specialty
CEO:
Mr. Charles Meyers
Total Employees:
10,944
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is 18.43% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF EQUINIX, INC.(EQIX) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND REIT�SPECIALTY INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
631.16
One Month Price Target:
$632.93
Six Month Price Target :
$641.8
Likely Price in One Year's Time:
Ticker:
$652.44
Likely Trading Range Today Under (Normal Volatility)
$629.12
Price Upper limit ($) :
$633.71
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$603.69
This week:
$569.74
This month :
$508.31
Other Primary facts
Market Cap:
57.54B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
91.08M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
11.6%
-12.66%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$758.62
$700.11
$503.70
$562.21
Medium risk (<10%) entry points
Buy Call
Sell Call
$681.06
Buy Put:
Sell Put:
$668.57
$581.10
$593.75
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
EQIX
Sharpe Ratio:
1.48%
Comparison:
EQIX, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is -25.03% lower than the industry
& is -35.10% lower than the market/S&P 500 average
Average Returns/Yield of
EQIX
Daily returns:
0.04%
Weekly returns:
0.20%
Monthly returns:
0.81%
Yearly returns:
14.77%
Comparison of returns:
Average annual returns/yield (last 3 years) is -34.22% below industry average
Classification:
EQIX, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.71
Statistical test of Returns:
EQIX has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.14%
Weekly Volatility:
4.78%
Monthly Volatility:
9.57%
Yearly Volatility:
33.13%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.89%
Volatility in last five trading days has been -11.60% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.35%
Weekly VaR:
-9.73%
Monthly VaR:
-19.46%
How Much Can the price of
EQIX
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-17%
Worst case (decline):
-67.42%
This translates to price declining to:
$525.45
This translates to price declining to:
$205.61
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
EQIX is a 37.37% riskier investment compared to the market/S&P 500 & is 17.69% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -23.83% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
EQIX
Beta in relation to market/S&P 500--0.50
Expected beta in 1 year's time:
0.549
Expected beta in 3 year's time:
0.776
Unlevered (debt free) Beta:
0.239
Beta in relation to Nasdaq (XNAS):
0.561
Beta in relation to all global stocks::
0.704
Beta Comparison & Analysis
Beta of competitors/peers::
0.928
Beta is -45.92% lower than peers
Average Industry Beta:
0.954
Beta is -47.38% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
0.031
Alpha is -38.50% below industry average alpha yield
Alpha is 199% higher than market/& is unsustainably high
Analysis of Cost of Capital of
EQIX
Equity cost of capital:
0.066
Equity cost of capital is -31.97% below industry mean WACC
Unlevered (without debt) cost of capital:
3.13%
Before-tax cost of debt:
2.17%
After-tax cost of debt:
1.71%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
1.71%
WACC is -34.40% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$74.38
Revenue growth rate per share of (3Y):
5.25
Annual revenue growth rate is -5.12% below industry average
EPS:
$5.41
Expected Annual growth rate of EPS (3Y):
-2.84%
Expected future EPS growth rate is -110.57% lower than the REIT�Specialty industry
Free cash flow (FCF) per share:
$1.47
Balance sheet equity growth per share: 25.36%
Equity growth rate per share is 104.39% higher than the industry
Debt per share
$161.76
EBITDA per share
$28.81
Valuation Analysis Today of
EQIX
P/E Ratio:
89.85
P/E Ratio of Competitors/Peers:
113.82
P/E ratio is -21.06% lower than main peers & is 8.10% higher than the industry
Stock price/value with industry average P/E ratio: $449.66
EQIX is 40.36% overvalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $310.70
Present value of the expected future dividends only: $291.99
P/S (Price to Sales ratio):
8.49
Price to sales ratio is 16.55% above the industry mean
P/B (Price to book value ratio):
5.25
Price to free cash flow: 429.19
-
Net income growth rate (3Y):
21.55%
Net income growth rate is -91.95% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 58.96%
Dividend yeild: 1.89%
Previous Dividend: $3.10
Previous adjusted dividend: $3.10
Previous Dividend: $11.94
Expected next dividend best case: $3.27
Expected next dividend worst case: $2.93
Average dividend payment (long-term): $2.80
Average dividend increase/decrease (growth rate) % per period: 2.40%
Expected next dividend payment date: 13/09/2022
Expected next dividend record date: 16/08/2022
Expected next dividend declaration date: 26/07/2022
Previous dividend payment date: 15/06/2022
Previous dividend record date: 18/05/2022
Previous dividend declaration date: 27/04/2022
Dividend History:
2022-05-17--$3.10
2021-11-16--$2.87
2021-05-18--$2.87
2022-03-04--$3.10
2021-08-17--$2.87
2021-02-23--$2.87
Dividend growth rate is -95.34% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
134.63%
Net debt to equity ratio:
122.13%
Debt to assets ratio:
52.57%
Net debt to assets ratio:
47.69%
Debt-to-asset ratio is -31.71% below industry average
Ability to repay debt:
Interest coverage ratio:
8.04
Interest coverage ratio is 52.38% more than industry average
Looking forward:
Debt growth rate:
38.44%
Annual debt growth is 1180% higher than industry average debt growth rate
Debt repayment rate in last quarter: 3.87%
Analysis of Key Statistics
Correlation of price movement with the market:
0.497
Statistical significance of correlation:
EQIX has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.604
Stock price is -17.70% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.604
Correlation of price movement with Nasdaq (^IXIC):
-0.034
Covariance of price movement with the market:
-0.042
Kurtosis
4.806
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.141
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
EQIX
Gross Profit Margin Ratio:
189%
Operating Profit Margin Ratio:
15.91%
Operating profit margin is -11.97% lower than the industry
Net Profit Margin Ratio:
189%
Effective Tax Rate:
18.20%
Effective tax rate is 70.60% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
4.49%
Return on equity (ROE) is -75.50% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
1.75%
Return on assets (ROA) is -65.69% lower than the industry
Financial Leverage:
2.1x
Current Ratio:
1.91
Current ratio is 8.27% above industry average
Cash Conversion Cycle (days):
38.1
Cash conversion cycle is -15.25% below industry average
The remaining useful life of property plant & equipment is: 8.1 years
Stock based compensation to net income ratio:
18.31%
In-depth Efficiency Analysis
Revenue generated per employee:
619.0K
Each employee generates -92% less revenue than industry average revenue per employee
EBITDA generated per employee:
239.7K
Each employee generates -96% less EBITDA than industry average revenue per employee
Profit generated per employee:
44.9K
Each employee generates -98% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
15.4K
Each employee generates -99% less free cash flow than industry average revenue per employee
Assets/Capital per employee
2.3M
Each employee generates -99% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
EQIX
SBA Communications Corporation (XNAS:SBAC)
COSTAR GROUP, INC. (XNAS:CSGP)
BPY
REGENCY CENTERS CORPORATION (XNAS:REG)
LAMAR ADVERTISING COMPANY (XNAS:LAMR)
CYRUSONE INC. (XNAS:CONE)
Gaming and Leisure Properties, Inc. (XNAS:GLPI)
AGNC INVESTMENT CORP. (XNAS:AGNCM)
AGNC INVESTMENT CORP. (XNAS:AGNCN)
Current Analyst Ratings
Strong buy�29%
Buy�58%
Hold�17%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
6.77B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
3.58B
3.20B
-
1.35B
2.10B
750.92M
-
2.10B
4.02M
326.37M
1.70B
2.62B
1.08B
491.28M
600.69M
109.34M
491.28M
Statement of Cash Flow
Date:
Period:
435.34M
Differed Income Tax :
-
Stock Based Compensation :
89.95M
Change in Working Capital :
- 104451.00K
Accounts Receivables:
- 100727.00K
Other Working Capital:
13.88M
Other Non-Cash Items:
12.59M
Net Cash Provided by Operating Activities:
581.12M
Investments in PP&E:
- 412518.00K
Net Acquisitions:
-
Purchases of Investments:
- 38558.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
1.70B
-
1.70B
780.40M
-
587.09M
3.06B
16.75B
5.32B
1.88B
-
-
1.02B
24.96B
-
28.02B
811.16M
326.64M
-
-
469.21M
1.61B
14.73B
740.75M
15.47B
-
17.08B
91.00K
- 4041767.00K
- 1052914.0K
-
March 31, 2022 at 6:00:00 AM
5.68B
10.94B
28.02B
-
15.06B
13.4B
-
192.32M
- 258759.00K
- 592606.00K
-
-
- 289669.00K
713.36M
- 168915.00K
4.59M
158.04M
1.71B
1.55B
581.12M
- 412518.00K
168.61M
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
EQIX
2023
2024
2025
2026
2027
$675.40
$698.18
$721.72
$746.06
$771.21