Equinix, Inc. (EQIX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

VICI Properties, Inc.

Welltower, Inc.

Realty Income Corp.

Simon Property Group, Inc.

Equinix, Inc.

American Tower Corp.

Prologis, Inc.

Extra Space Storage, Inc.

Public Storage

Digital Realty Trust, Inc.

Crown Castle, Inc.

Why is Equinix, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate of -4.79%

With a growth in Net Profit of 20.99%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at USD 3,819 MM
ROCE(HY) Highest at 10.09%
DIVIDEND PER SHARE(HY) Highest at USD 8.59

With ROE of 10.26%, it has a very expensive valuation with a 6.70 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 25.39%, its profits have risen by 27% ; the PEG ratio of the company is 2.6

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.52% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Equinix, Inc. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Equinix, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Equinix, Inc.

25.39%

1.72

26.91%

S&P 500

22.24%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.96%

EBIT Growth (5y)

-4.79%

EBIT to Interest (avg)

3.31

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

19.32%

Dividend Payout Ratio

136.36%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

15.00%

ROE (avg)

6.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.70

EV to EBIT

190.39

EV to EBITDA

33.97

EV to Capital Employed

8.59

EV to Sales

9.92

PEG Ratio

2.64

Dividend Yield

1.90%

ROCE (Latest)

4.51%

ROE (Latest)

10.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 3,819 MM

ROCE(HY)

Highest at 10.09%

DIVIDEND PER SHARE(HY)

Highest at USD 8.59

NET SALES(Q)

Highest at USD 2,444 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 8.59 times

PRE-TAX PROFIT(Q)

Highest at USD 487 MM

NET PROFIT(Q)

Highest at USD 429.1 MM

EPS(Q)

Highest at USD 4.2

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 122.75%

RAW MATERIAL COST(Y)

Grown by 35.49% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 141.44 %

Here's what is working for Equinix, Inc.

Operating Cash Flow

Highest at USD 3,819 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 2,444 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Dividend per share

Highest at USD 8.59 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Pre-Tax Profit

Highest at USD 487 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 429.1 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 4.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Highest at 8.59 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Equinix, Inc.

Debt-Equity Ratio

Highest at 141.44 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio

Lowest at 122.75%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 35.49% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales