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Equinix Inc EQIX

Morningstar Rating
$872.64 +8.13 (0.94%)
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Company Report

Equinix Earnings: Another Strong Quarter as the Firm Positions Its Portfolio for AI

Equinix remained consistent with another quarter of double-digit sales growth on the back of its continually expanding data center footprint. Company guidance for 2024 calls for a slight deceleration, but still high-single-digit sales growth. Artificial intelligence will undoubtedly lead to a long runway of very strong demand for Equinix, but we think it also brings new challenges, as it generally requires greater power density than Equinix’s data centers have typically offered. We anticipate recent levels of sales growth can be maintained, but we also think Equinix’s investment needs will remain high as the firm optimizes its data center portfolio. We’re raising our fair value estimate to $700 from $630, but believe the stock is overvalued.

Price vs Fair Value

EQIX is trading at a 24% premium.
Price
$864.73
Fair Value
$961.00
Uncertainty
Medium
1-Star Price
$698.00
5-Star Price
$551.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The Internet of Things, artificial intelligence, and other innovations that increase public demand for data and connectivity require more hardware and connections in Equinix's highly connected data centers.

Bears

Equinix is too dependent on cloud service providers, leaving it at the mercy of those companies over the long term.

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News

Trading Information

Previous Close Price
$864.51
Day Range
$869.99882.34
52-Week Range
$661.80882.34
Bid/Ask
$871.36 / $873.79
Market Cap
$82.57 Bil
Volume/Avg
123,112 / 419,805

Key Statistics

Price/Earnings (Normalized)
83.74
Price/Sales
9.56
Dividend Yield (Trailing)
1.68%
Dividend Yield (Forward)
1.97%
Total Yield
1.68%

Company Profile

Equinix operates 260 data centers in 71 markets worldwide. It generates 44% of total revenue in the Americas, 35% in Europe, the Middle East, and Africa, and 21% in Asia-Pacific. The firm has more than 10,000 customers, including 2,100 network providers, that are dispersed over five verticals: cloud and IT services, content providers, network and mobile services, financial services, and enterprise. About 70% of Equinix's revenue comes from renting space to tenants and related services, and more than 15% comes from interconnection. Equinix operates as a real estate investment trust.
Sector
Real Estate
Industry
REIT - Specialty
Stock Style Box
Large Growth
Total Number of Employees
13,151

Competitors

Valuation

Metric
EQIX
DLR
Price/Earnings (Normalized)
83.74205.07
Price/Book Value
6.262.47
Price/Sales
9.568.18
Price/Cash Flow
23.7822.77
Price/Earnings
EQIX
DLR

Financial Strength

Metric
EQIX
DLR
Quick Ratio
1.070.56
Current Ratio
1.130.56
Interest Coverage
3.563.23
Quick Ratio
EQIX
DLR

Profitability

Metric
EQIX
DLR
Return on Assets (Normalized)
4.21%2.85%
Return on Equity (Normalized)
11.07%7.03%
Return on Invested Capital (Normalized)
5.47%4.16%
Return on Assets
EQIX
DLR
See how this stock stacks up to its competitors with Morningstar Investor

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