EQIX Equinix, Inc. - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
EQIX trades at more than double the sector's average P/E of 32.47, with only PLD (35.71) coming close, suggesting the market is pricing in perfection
- High growth justifies some premium to sector average P/E of 32.47
- Price/Sales of 8.51 reflects high-margin, recurring revenue model
- P/E of 72.47 is extremely elevated, even for a growth-oriented REIT
- Forward P/E of 58.71 still indicates overvaluation relative to projected earnings
Despite solid earnings trajectory and digital infrastructure tailwinds, EQIX's revenue growth is decelerating relative to peers, and short-term price action shows weakening momentum despite positive earnings surprises
- Robust earnings growth of 22.9% YoY and 25.9% Q/Q
- Continued digital transformation tailwinds supporting long-term data center demand
- Revenue growth of 6.6% lags peer average of 8.2%, indicating market share or pricing challenges
- Slowing price momentum with -4.8% 1W return and -9.3% 6M return
EQIX has demonstrated strong earnings consistency over the last two years with improving beat rates, but historical volatility and recent share price weakness highlight sensitivity to macro and rate environments
- Consistent earnings beat rate: 3 out of last 4 quarters above estimates
- High-quality profitability with stable gross (50.35%) and operating margins (21.85%)
- Earnings volatility evident in 2020–2021 with multiple large negative surprises (e.g., -62% in Q1 2021)
- 1Y price return of -11.1% underperforms both 3Y (+26.5%) and 5Y (+14.3%) trends
EQIX maintains manageable leverage compared to sector average (1.48 vs 2.40) and better liquidity than many REITs, though its debt load remains a concern given interest rate exposure and dividend funding needs
- Current ratio of 1.34 and quick ratio of 1.07 indicate adequate short-term liquidity
- Debt/Equity of 1.48 is below sector average of 2.40, suggesting relatively prudent leverage
- Missing EV, debt, and cash data limits full capital structure assessment
- High leverage relative to PLD (0.63) increases refinancing risk in high-rate regime
While the 2.39% yield is appealing, the unsustainable payout ratio of 168.47% raises red flags about long-term dividend integrity, especially given insider selling and high leverage
- Dividend yield of 2.39% is attractive in current rate environment and supports investor demand
- REIT structure mandates distributions, providing policy consistency
- Payout ratio of 168.47% indicates dividends are not covered by earnings, requiring FCF or debt to fund
- No data on dividend growth history or policy clarity increases sustainability risk
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for EQIX and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
EQIX
Equinix, Inc.
Primary
|
+14.3% | +26.5% | -11.1% | -9.3% | -4.5% | -4.8% |
|
SPG
Simon Property Group, Inc.
Peer
|
+202.9% | +79.3% | +7.6% | +13.4% | +2.5% | -0.5% |
|
AMT
American Tower Corporation
Peer
|
-11.4% | -7.7% | -2.5% | -12.5% | -3.4% | +3.2% |
|
DLR
Digital Realty Trust, Inc.
Peer
|
+32.5% | +57.2% | -8.6% | -5.7% | -9.7% | -6.9% |
|
O
Realty Income Corporation
Peer
|
+16.8% | +3.4% | +7.2% | +3.9% | -4.0% | -0.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Real Estate Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
EQIX
Equinix, Inc.
|
NEUTRAL | $77.23B | 72.47 | 7.7% | 11.8% | $785.57 | |
|
SPG
Simon Property Group, Inc.
|
NEUTRAL | $69.25B | 26.6 | 82.5% | 36.5% | $182.73 | |
|
AMT
American Tower Corporation
|
NEUTRAL | $85.95B | 29.23 | 28.8% | 28.1% | $183.59 | |
|
DLR
Digital Realty Trust, Inc.
|
NEUTRAL | $55.29B | 40.98 | 5.8% | 24.0% | $158.18 | |
|
O
Realty Income Corporation
|
NEUTRAL | $52.25B | 53.08 | 2.5% | 17.1% | $56.8 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-03 | MORANDI BRANDI GALVIN | Officer | Sale | 100 | $84,047 |
| 2025-10-07 | PALADIN MICHAEL SHANE | Officer | Stock Award | 824 | - |
| 2025-09-09 | ABDEL RAOUF F | Officer | Sale | 404 | $311,527 |
| 2025-09-03 | PLETCHER KURT | Officer | Sale | 58 | $44,579 |
| 2025-09-03 | MILLER SIMON | Officer | Sale | 561 | $427,931 |
| 2025-09-02 | PLETCHER KURT | Officer | Stock Award | 142 | - |
| 2025-09-02 | MILLER SIMON | Officer | Stock Award | 1,132 | - |
| 2025-08-18 | PAISLEY CHRISTOPHER B. | Director | Sale | 75 | $58,612 |
| 2025-06-03 | FOX-MARTIN ADAIRE | Chief Executive Officer | Sale | 2,949 | $2,609,586 |
| 2025-06-02 | LIN JONATHAN | Officer | Stock Award | 274 | - |
| 2025-06-02 | PLETCHER KURT | Officer | Stock Award | 183 | - |
| 2025-06-02 | FOX-MARTIN ADAIRE | Chief Executive Officer | Stock Award | 5,645 | - |
| 2025-06-02 | ABDEL RAOUF F | Officer | Stock Award | 365 | - |
| 2025-05-23 | PAISLEY CHRISTOPHER B. | Director | Stock Award | 338 | - |
| 2025-05-23 | HROMADKO GARY F | Director | Stock Award | 338 | - |
Wall Street Analysts
Professional analyst ratings and price targets