Equinix, Inc. (EQIX)
Quantitative Summary
DeterministicEQIX trades at 74.1x earnings — a 56% premium to its sector average of 47.4x — without a dominant ROIC-WACC spread. Financial health is average: Piotroski 5/9, Altman Z 2.6.
Generated deterministically from quant metrics and financial statements. Not a recommendation.
Algorithmic Teardown
AI-GeneratedThe fundamental economics of Equinix reveal a significant capital efficiency challenge, evidenced by an ROIC-WACC spread of -5.6%, indicating the company is currently destroying value relative to its cost of capital despite generating a 9.5% return on equity. This DuPont-decomposed ROE relies heavily on financial leverage with an equity multiplier of 2.83x rather than operational momentum, as asset turnover sits at just 0.23x while net margins hold steady at 14.6%. While the Beneish M-Score of -2.78 suggests low earnings manipulation risk and a Piotroski F-Score of 5/9 reflects moderate financial strength, the Altman Z-Score of 2.4 places the firm in the "gray zone" between safety and distress, highlighting potential balance sheet fragility amidst modest 5.4% revenue growth.
Valuation metrics suggest the market is pricing in substantial future expansion that current fundamentals do not yet support. The stock trades at a premium P/E multiple of 72.4x compared to a sector average of 41.4x, implying investors expect significantly higher organic growth or margin accretion than the recent historical trajectory demonstrates. Although DCF models are not explicitly detailed here, such a wide valuation gap relative to peer averages typically signals that implied forward growth rates must be exceptionally high to justify current prices given the negative spread on capital returns.
Risk factors appear skewed by insider activity and factor tilts; notably, $33.46 million in net insider selling over 90 days contrasts with a positive Fama-French alpha of 1.66% annually driven primarily by momentum rather than value or profitability characteristics. The neutral stance on the HML and RMW factors further indicates that traditional size, value, or quality anomalies are not currently driving returns for this security.
Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.
Valuation Context
Currently trading 12% above its 5-year average P/E of 66.8x.
Price Chart with Moving Averages
Technical Setup
AI GeneratedEquinix, Inc. is currently trading at $1065.06 within the Real Estate sector, presenting a scenario where price action relative to moving average envelopes becomes the primary lens for analysis. Without specific envelope boundaries or historical standard deviation data provided in this snapshot, determining whether the current valuation represents an extreme outlier or a consolidation phase requires comparing today's figure against recent mean levels. If the $1065.06 level sits significantly distant from its long-term Simple Moving Average, it may suggest a stretched condition where statistical probability favors a potential return toward central tendency. Conversely, if this price aligns closely with the envelope boundaries, it indicates stability rather than immediate pressure for correction or acceleration. The implication of such positioning hinges on whether market participants view the current level as overextended or fairly valued relative to recent trends. A significant deviation from the mean often triggers algorithmic and discretionary strategies anticipating a reversion to average behavior, while proximity to the envelope suggests equilibrium where directional momentum is less predictable based solely on mean-reversion logic. Observing how the $1065.06 price point interacts with these dynamic statistical bands will reveal whether the asset is exhibiting characteristics of an overheated rally or a grounded consolidation pattern. Ultimately, the technical setup invites scrutiny of the distance between current market pricing and its historical averages to gauge the likelihood of future volatility or stabilization without dictating specific directional outcomes.
Quant Health Deep Dive
Profitability & Value Creation
DuPont Analysis — ROE Decomposition
Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.
Balance Sheet Health
Insider Activity (Last 90 Days)
Open-market buys vs sells by company insiders. Source: yfinance.
Earnings Surprise History
EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.
Dividend History
| Date | Amount | Change |
|---|---|---|
| 2026-05-20 | $5.1600 | 0.0% |
| 2026-02-25 | $5.1600 | +10.0% |
| 2025-11-19 | $4.6900 | 0.0% |
| 2025-08-20 | $4.6900 | 0.0% |
| 2025-05-21 | $4.6900 | 0.0% |
| 2025-02-26 | $4.6900 | +10.1% |
| 2024-11-13 | $4.2600 | 0.0% |
| 2024-08-21 | $4.2600 | 0.0% |
| 2024-05-21 | $4.2600 | 0.0% |
| 2024-02-27 | $4.2600 | 0.0% |
| 2023-11-14 | $4.2600 | +24.9% |
| 2023-08-22 | $3.4100 | 0.0% |
Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Fama-French 5-Factor Exposure
Academic factor model decomposition — what's really driving this stock's returns.
Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.
Fundamentals
10-K Risk Factor Expansion
Word count of Item 1A (Risk Factors) across annual filings. Rising counts often signal new regulatory, competitive, or operational risks.
Passive Flow Attribution
ETF Draft EffectWhen investors buy or sell ETFs like XLRE or VNQ, the fund manager is mechanically forced to buy or sell EQIX shares regardless of Equinix, Inc.'s individual fundamentals. We estimate $15.3B of passive capital is structurally linked to EQIX through 8 tracked ETFs. This substantial passive exposure means that ETF inflows and outflows — not company fundamentals — can dominate daily volume on this stock.
Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.
ETF Contagion Visualizer
Simulate a price drop in Equinix, Inc. to visualize passive redemption contagion across ETFs and collateral stocks.
If Equinix, Inc. (EQIX) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies Vanguard Real Estate II Index Fund Institutional Plus Shares (VRTPX) as the most exposed collateral stock, sharing 1 ETFs with EQIX. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.
Contagion model based on shared ETF exposure and constituent weights across 27 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.
EQIX Ownership Dynamics
Passive funds hold 1 in every 6 EQIX shares, reducing daily market volatility.
Equinix, Inc. (EQIX) exerts notable gravity on the passive index market, currently representing 7.2% of the State Street Real Estate Select Sector SPDR ETF (XLRE) and 5.6% of the Vanguard Real Estate Index Fund ETF Shares (VNQ). Across 27 tracked ETFs, approximately 16M shares (16.0% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.
ETFs with Highest EQIX Exposure
Float lock-up computed from 27 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).
EQIX Institutional Volume Profile
252-day volume distribution by price level. The Point of Control (POC) marks — the price where the most institutional volume transacted — an implicit support/resistance floor.
The highest-volume price zone for Equinix, Inc. over the past year sits near $773.50 (20% of 252-day volume). The current price of $1071.80 trades 38.6% above this institutional floor — a sign of upside momentum, though a pullback to the POC zone is a common reversion target. The highly concentrated volume profile (20% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.
Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.
EQIX Capital Efficiency
How efficiently does Equinix, Inc. convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.
Equinix, Inc. converts -10% of its EBITDA into free cash flow, negative FCF conversion — the company is consuming cash faster than it generates EBITDA, which is unsustainable long-term. The 110% reinvestment rate signals aggressive capacity expansion. However, the ROIC-WACC spread is negative (-5.5%), suggesting reinvested capital is destroying shareholder value.
Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.
Fails-to-Deliver (FTD) History
SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.
| Date | Failed Shares | Close Price | Notional Value |
|---|---|---|---|
| 2026-05-14 | 74 | $1077.28 | $79,718.72 |
| 2026-05-13 | 2,144 | $1080.63 | $2.3M |
| 2026-05-12 | 790 | $1086.22 | $858,113.8 |
| 2026-05-01 | 1 | $1082.83 | $1,082.83 |
| 2026-04-22 | 2 | $1094.34 | $2,188.68 |
| 2026-04-20 | 15,600 | $1088.62 | $17.0M |
| 2026-04-15 | 3 | $1057.37 | $3,172.11 |
| 2026-04-09 | 25 | $1017.66 | $25,441.5 |
| 2026-04-07 | 390 | $1016.08 | $396,271.2 |
| 2026-04-06 | 57 | $1000.37 | $57,021.09 |
| 2026-03-31 | 537 | $964.05 | $517,694.85 |
| 2026-03-25 | 11 | $964.53 | $10,609.83 |
| 2026-03-19 | 1 | $973.56 | $973.56 |
| 2026-03-10 | 20,473 | $944.91 | $19.3M |
| 2026-03-09 | 62,716 | $937.20 | $58.8M |
| 2026-03-06 | 75,760 | $953.00 | $72.2M |
| 2026-03-05 | 33,575 | $969.04 | $32.5M |
| 2026-03-03 | 2 | $966.10 | $1,932.2 |
| 2026-02-26 | 8 | $960.52 | $7,684.16 |
| 2026-02-25 | 3,604 | $951.90 | $3.4M |
| 2026-02-23 | 12,181 | $928.11 | $11.3M |
| 2026-02-19 | 2,596 | $924.24 | $2.4M |
| 2026-02-17 | 11,456 | $956.19 | $11.0M |
| 2026-02-13 | 107 | $957.87 | $102,492.09 |
| 2026-02-09 | 4 | $848.12 | $3,392.48 |
| 2026-01-15 | 1 | $799.02 | $799.02 |
| 2025-12-30 | 2 | $765.00 | $1,530 |
| 2025-12-22 | 58,195 | $758.51 | $44.1M |
| 2025-12-17 | 128 | $758.15 | $97,043.2 |
| 2025-12-15 | 73 | $750.32 | $54,773.36 |
Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.
SEC Comment Letters
SEC correspondence with the company regarding their filings. Comment letters often flag disclosure deficiencies, accounting concerns, or material omissions.
Source: SEC EDGAR correspondence. Comment letters are public records of SEC staff review of company filings.
Price Correlations
Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.
| Peer | 252-Day (1Y) | 126-Day (6M) | Direction |
|---|---|---|---|
| WTGXX | NaN | NaN | |
| DLR | 0.617 | 0.653 | Moderate |
| IRM | 0.577 | 0.614 | Moderate |
| VRTPX | 0.528 | 0.390 | Moderate |
| ETR | 0.379 | 0.411 | Moderate |
| EXC | 0.361 | 0.471 | Moderate |
| HWM | 0.339 | 0.431 | Moderate |
| AEE | 0.337 | 0.407 | Moderate |
| CGNX | 0.336 | 0.518 | Moderate |
| FSLY | 0.335 | 0.460 | Moderate |
Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.
Compare EQIX to Peers
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.