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1. Company Snapshot

1.a. Company Description

Equinix (Nasdaq: EQIX) is the world's digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success.Equinix enables today's businesses to access all the right places, partners and possibilities they need to accelerate advantage.With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value.

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1.b. Last Insights on EQIX

Equinix's recent performance was negatively impacted by high interest expenses, despite growing demand for data centers driven by increasing digitization. The company's Q3 earnings beat, with $3.89 EPS surpassing estimates, but was overshadowed by lower revenue guidance. Investor sentiment was also affected by changes in institutional holdings, with World Investment Advisors and B&I Capital AG reducing their stakes, while Aviso Financial Inc. and Capital Fund Management S.A. increased theirs. Additionally, the company appointed Yang Song as SVP, Chief Data Science and AI Officer, expanding its AI capabilities.

1.c. Company Highlights

2. Equinix Delivers Strong Q3 with Revenue Growth and Improved Profitability

Equinix reported a robust third quarter, driven by top-line growth, improved profitability, and strategic expansion. Revenue accelerated by 8% year-over-year, with MRR growth of 8% on a normalized and constant currency basis. The company's adjusted EPS came in at $9.83, beating estimates of $9.26. Adjusted EBITDA margins are expected to range between 49% and 50% for the full year, indicating strong financial performance. The company's AFFO is expected to grow between 11% and 13%, while AFFO per share growth is expected to range between 8% and 10%.

Publication Date: Oct -31

📋 Highlights
  • Revenue & MRR Growth:: Revenue accelerated 8% YoY, with MRR growth of 8% on normalized and constant currency basis, driven by strong demand and strategic initiatives.
  • Annualized Gross Bookings:: Record $394M in annualized gross bookings (25% YoY increase) and $185M presold balance highlight customer confidence and capacity demand.
  • Guidance Upgrades:: Adjusted EBITDA margins projected at 49-50%, AFFO growth expected at 11-13%, and AFFO per share growth at 8-10% for 2024.
  • Capital & Expansion:: $9.5B green bonds issued ($7B allocated to green projects) and 188 stabilized assets contributing 4% YoY revenue growth on constant currency.

Strategic Expansion and Customer Demand

Adaire Fox-Martin, CEO, attributed the success to the company's strategic moves, including Serve Better, Solve Smarter, and Build Bolder. The company has secured land acquisitions in several high-demand markets, supporting over 900 megawatts of incremental capacity. The presold balance of $185 million demonstrates customer demand and confidence in the business, with 40% of the total presales balance signed in Q3 2025.

Valuation and Growth Prospects

With a P/E Ratio of 76.22 and an EV/EBITDA of 31.65, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 8.5%. The company's strong balance sheet and robust pipeline of potential xScale customers position it for continued growth. The dividend yield of 2.2% provides a relatively stable return for investors.

Operational Highlights and Future Plans

The company is focused on executing against its Q4 expectations and building momentum for 2026. Equinix plans to double its overall capacity, inclusive of retail and xScale, by 2029. The company is also exploring opportunities to co-locate xScale with retail on a single campus, increasing efficiency and capacity utilization. With a strong presence in AI magnets and a growing pipeline of potential customers, Equinix is well-positioned for continued success.

Financial Flexibility and Capital Management

Keith Taylor, CFO, highlighted the company's strong financial performance, with capital investments continuing to generate strong returns. The company has issued $9.5 billion in green bonds, with $7 billion in net proceeds allocated to eligible green projects. The company's cost to borrow is lower, and they're getting a good return on their cash, with a Net Debt / EBITDA ratio of 5.6.

3. NewsRoom

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Equinix, Inc. $EQIX Holdings Boosted by Groupe la Francaise

Dec -04

Source: defenseworld.net

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Equinix Implements Finance Leadership Succession Plan as CFO Keith Taylor Plans to Retire

Dec -03

Source: prnewswire.com

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AI needs power desperately. Here's how to invest in companies profiting from the pain.

Dec -03

Source: marketwatch.com

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Here Are Wednesday’s Top Wall Street Analyst Upgrades and Downgrades: American Eagle Outfitters, Equinix, Garmin, Honeywell, Uber, Wendy’s and More

Dec -03

Source: 247wallst.com

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SoftBank’s 40% Slide Raises New Questions About the AI Capital Cycle

Dec -02

Source: 247wallst.com

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HALPER SADEH LLC ENCOURAGES LIVE NATION ENTERTAINMENT, INC. SHAREHOLDERS TO CONTACT THE FIRM TO DISCUSS THEIR RIGHTS

Nov -30

Source: prnewswire.com

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Doves Take The Wheel

Nov -30

Source: seekingalpha.com

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Capital Fund Management S.A. Has $27.69 Million Stock Holdings in Equinix, Inc. $EQIX

Nov -28

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.80%)

6. Segments

Design, Build-Out and Operation of IBX Data Centers

Expected Growth: 11.8%

Increasing demand for cloud computing, big data, IoT, and cybersecurity drives growth. Equinix’s interconnection platform and global footprint provide a strong competitive edge.

7. Detailed Products

Colocation

Equinix's colocation services provide secure, reliable and high-density data center space for customers to deploy their IT infrastructure.

Interconnection

Equinix's interconnection services enable customers to directly and securely connect to a wide range of networks, clouds and services.

Edge Services

Equinix's edge services provide a distributed edge computing platform that enables customers to deploy and manage edge infrastructure and applications.

Network Edge

Equinix's network edge services provide a scalable and secure platform for network functions virtualization (NFV) and software-defined networking (SDN).

Fabric

Equinix's fabric services provide a software-defined interconnection platform that enables customers to connect to multiple clouds, networks and services.

Metal

Equinix's metal services provide a fully automated, on-demand infrastructure provisioning platform for bare metal servers.

8. Equinix, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Equinix, Inc. operates in the data center and colocation industry, which has a moderate threat of substitutes. While there are some alternatives to data centers, such as cloud computing, they are not yet a significant threat to Equinix's business.

Bargaining Power Of Customers

Equinix, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's data centers are critical to its customers' operations, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Equinix, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company also has long-term contracts with its suppliers, which helps to mitigate the risk of price increases.

Threat Of New Entrants

The data center and colocation industry has high barriers to entry, including significant capital expenditures and regulatory hurdles. This makes it difficult for new entrants to enter the market and compete with established players like Equinix, Inc.

Intensity Of Rivalry

The data center and colocation industry is highly competitive, with several established players competing for market share. Equinix, Inc. faces intense competition from companies like Digital Realty, Interxion, and NTT Communications, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.85%
Debt Cost 3.95%
Equity Weight 47.15%
Equity Cost 7.04%
WACC 5.40%
Leverage 112.11%

11. Quality Control: Equinix, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Crown Castle

A-Score: 5.9/10

Value: 7.3

Growth: 2.3

Quality: 5.6

Yield: 8.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Extra Space Storage

A-Score: 5.6/10

Value: 2.9

Growth: 6.0

Quality: 6.3

Yield: 8.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Digital Realty Trust

A-Score: 5.5/10

Value: 2.4

Growth: 3.6

Quality: 5.9

Yield: 7.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
American Tower

A-Score: 5.2/10

Value: 1.8

Growth: 4.8

Quality: 5.5

Yield: 7.0

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Iron Mountain

A-Score: 5.2/10

Value: 4.7

Growth: 4.1

Quality: 4.2

Yield: 7.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Equinix

A-Score: 4.4/10

Value: 0.9

Growth: 6.0

Quality: 4.6

Yield: 4.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

741.58$

Current Price

741.58$

Potential

-0.00%

Expected Cash-Flows