Equinix Inc (EQIX) stock analysis

P/E below its 5-year median

Equinix's P/E of 64.1 is below its own 5-year median of 84.6.

P/E above the industry

Equinix's P/E of 64.1 is above the Miscellaneous Investing median of 26.3.

EV/EBITDA above its 5-year median

Equinix's EV/EBITDA of 23.0 is above its 5-year median of 22.5.

P/B above the industry

Equinix's price-to-book of 7.27 is above the Miscellaneous Investing median of 1.20.

Trading above fair value

The share price of $1068.06 is above our fair value estimate of $726.51.

Margin of safety under 20%

The price is 47.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 8.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 21.5% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 53.9% over the last twelve months, against a 5-year average of 29.6% a year.

Growing faster than the industry

Revenue grew 11.1% over the last twelve months; the Miscellaneous Investing median is 4.6%.

Guidance raised

Equinix raised its full year of 2026 total revenues outlook on Jul 29, 2026.

Gross margin improving

Gross margin was 51.6% over the last twelve months, against 50.3% a year earlier.

Return on equity under 15%

Return on equity was 11.5% over the last twelve months and averaged 7.0% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 18.2%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Equinix's return on equity of 11.5% is above the Miscellaneous Investing median of 3.1%.

Earnings grew over 5 years

Net income grew 29.6% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 16.4% over the last twelve months, against a 5-year average of 10.6%.

Net margin above the industry

Equinix's net margin of 16.4% is above the Miscellaneous Investing median of 10.3%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest not well covered

Operating income covers interest expense 3.7 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.29 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.79; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Equinix paid dividends worth 1.9% of the share price over the last twelve months.

Yield below Treasuries

The 1.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Equinix yields 1.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Not covered by earnings

Dividends take 122% of net income, leaving little room.

Cash-flow cover

Needs dividends paid and free cash flow.