Equinix (EQIX)
Real Estate · $104B market cap · SEC CIK 0001101239
ahead of 49% of the S&P 500 · #14 of 30 in Real Estate
Next reports on Feb 9, 2027, after the close, with analysts expecting $4.14 in earnings per share.
52-week range $720.62 to $1,129. 7% below its 52-week high and 46% above its low.
The case for EQIX
- Revenue growing 11.1% year over year.
- Earnings per share up 52.5%.
- Pays a modest 2.1% dividend.
The case against
- Expensive for its growth: 63.1× earnings, where 8%+ a year of growth would justify about 20×.
- Burned $400M of free cash in FY2025.
- Dividend takes 122% of earnings, leaving little cushion.
- Free-cash-flow yield of −0.4% is lower than 89% of Real Estate companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Real Estate companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 36 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 84 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 36 |
| Momentumhow the price has behaved lately | 70 |
| Stabilityhow violently it moves, what it owes and what it pays you | 57 |
- Each factor except momentum is half fixed thresholds, half rank among the 30 Real Estate companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +11.1% |
|---|---|
| Over 5 years | +9.0% a year |
| FY2025 revenue | $9.2B (+5%) |
Free cash flow
Is it generating real cash? No, it is burning cash
| FY2025 free cash flow | −$400M |
|---|---|
| Of revenue | −4% |
| Of profit | −30% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 52% |
|---|---|
| Operating margin | 23% |
| Net margin, FY24 → FY25 → now | 9.3% → 14.6% → 16.4% |
Debt vs. cash
Is the balance sheet healthy? Stretched
| Cash | $1.7B |
|---|---|
| Long-term debt | n/a |
| Net cash | n/a |
| Years to repay | n/a |
| Debt / equity | 1.72× |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 63.1× |
|---|---|
| Fair P/E for its growth | 20× |
| Price / operating cash flow | 26.6× |
| Forward P/E | 52.7× |
| EV / EBITDA | 28.4× |
At 63.1× earnings it trades well above the 20× that 8%+ a year of growth would justify. At 26.6× operating cash flow it trades above that same mark; for a REIT that counts for more than earnings, since depreciation makes its P/E look worse than the business is.
The financials, five years deep
Pulled from Equinix's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $9.2B | $8.7B | $8.2B | $7.3B | $6.6B |
| Change on the year | +5% | +7% | +13% | +9% | — |
| Free cash flow | |||||
| Free cash flow | −$400M | $183M | $436M | $685M | −$204M |
| Of revenue | −4% | 2% | 5% | 9% | −3% |
| Profit margins | |||||
| Operating margin | 20.0% | 15.2% | 17.6% | 16.5% | 16.7% |
| Net margin | 14.6% | 9.3% | 11.8% | 9.7% | 7.5% |
| Debt vs. cash | |||||
| Cash | $1.7B | $3.1B | $2.1B | $1.9B | $1.5B |
| Long-term debt | — | $15.3B | $13.8B | $12.9B | $11.7B |
| Net cash (debt) | — | −$12.3B | −$11.7B | −$11.0B | −$10.2B |
What Equinix says it does
Overview: Enabling Innovation for the Digital World Equinix (Nasdaq: EQIX) is the world's digital infrastructure company, shortening the path to boundless connectivity anywhere in the world to enable the innovations that enrich our work, life and planet. Equinix combines a global footprint of International Business Exchange TM (IBX ® ) and xScale TM data centers in the Americas, Asia-Pacific, and Europe, the Middle East and Africa ("EMEA") regions, infrastructure and interconnection offerings, and digital ecosystems required to serve a large and diverse set of customers around the world. Equinix was incorporated on June 22, 1998 as a Delaware corporation and operates as a REIT for federal income tax purposes. Since our inception, Equinix has been a network-neutral, multi-tenant data center ("MTDC") provider, where competing networks could connect and share data traffic to help scale the rapid growth of the early internet. The company’s…