Equinix Beneish M Score

EQIX Stock

USD 683.05 4.57 0.66%

This module uses fundamental data of Equinix to approximate the value of its Beneish M Score. Equinix M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Equinix Piotroski F Score and Equinix Altman Z Score analysis. For more information on how to buy Equinix Stock please use our How to Invest in Equinix guide.

Equinix Debt Current is fairly stable at the moment as compared to the past year. Equinix reported Debt Current of 300.81 Million in 2022. Long Term Debt to Equity is likely to rise to 1.52 in 2023, whereas Total Debt is likely to drop slightly above 14.2 B in 2023. Equinix Cash Flow Per Share is fairly stable at the moment as compared to the past year. Equinix reported Cash Flow Per Share of 31.99 in 2022. Revenue to Assets is likely to rise to 0.28 in 2023, whereas Total Assets Per Share are likely to drop 259.22 in 2023.

At this time, it appears that Equinix is an unlikely manipulator. The earnings manipulation may begin if Equinix's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Equinix executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Equinix's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.

-2.87

Beneish M Score - Unlikely Manipulator

Elasticity of Receivables

0.99

Focus

Asset Quality

1.01

Focus

Expense Coverage

0.98

Focus

Gross Margin Strengs

0.95

Focus

Accruals Factor

0.98

Focus

Depreciation Resistance

0.99

Focus

Net Sales Growth

0.87

Focus

Financial Leverage Condition

1.01

Focus

Equinix Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Equinix's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.

Current Value

Last Year

Change From Last Year

10 Year Trend

Selling General and Administrative Expense

2 B

2.3 B

Fairly Down

Slightly volatile

Revenues

6.3 B

7.3 B

Fairly Down

Slightly volatile

Trade and Non Trade Receivables

734.9 M

855.4 M

Fairly Down

Slightly volatile

Property Plant and Equipment Net

15.4 B

18.1 B

Fairly Down

Slightly volatile

Operating Income

1.1 B

1.2 B

Significantly Down

Slightly volatile

Net Cash Flow from Operations

2.4 B

3 B

Significantly Down

Slightly volatile

Liabilities Non Current

14.6 B

17 B

Fairly Down

Slightly volatile

Current Liabilities

1.7 B

1.8 B

Notably Down

Slightly volatile

Total Liabilities

16.3 B

18.8 B

Fairly Down

Slightly volatile

Investments Non Current

8.5 M

8.3 M

Fairly Up

Down

Slightly volatile

Investments Current

4.2 M

4.1 M

Fairly Up

Down

Slightly volatile

Investments

4.2 M

4.1 M

Fairly Up

Down

Slightly volatile

Gross Margin

0.46

0.483

Sufficiently Down

Down

Slightly volatile

Depreciation Amortization and Accretion

1.5 B

1.7 B

Fairly Down

Slightly volatile

Debt Non Current

13.8 B

16.2 B

Fairly Down

Slightly volatile

Debt Current

370.5 M

300.8 M

Fairly Up

Slightly volatile

Total Debt

14.2 B

16.5 B

Fairly Down

Slightly volatile

Assets Non Current

23.1 B

27 B

Fairly Down

Slightly volatile

Current Assets

3 B

3.3 B

Moderately Down

Slightly volatile

Total Assets

26.1 B

30.3 B

Fairly Down

Slightly volatile

Equinix Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Equinix's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Equinix in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Equinix's degree of accounting gimmicks and manipulations.

About Equinix Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

1.5 Billion

Equinix Depreciation Amortization and Accretion is fairly stable at the moment as compared to the past year. Equinix reported Depreciation Amortization and Accretion of 1.74 Billion in 2022

Equinix Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Equinix. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.

	2018	2019	2020	2021	2022	2023 (projected)
Revenues	5.07 B	5.56 B	6 B	6.64 B	7.26 B	6.33 B
Total Assets	20.24 B	23.97 B	27.01 B	27.92 B	30.31 B	26.09 B
Current Assets	1.52 B	2.87 B	2.61 B	2.96 B	3.31 B	2.96 B
Assets Non Current	18.73 B	21.09 B	24.4 B	24.96 B	27.01 B	23.12 B
Total Liabilities	13.03 B	15.13 B	16.37 B	17.04 B	18.8 B	16.33 B
Current Liabilities	1.52 B	2.16 B	2.02 B	1.61 B	1.84 B	1.75 B
Total Debt	11.33 B	13.29 B	13.92 B	14.99 B	16.47 B	14.2 B
Debt Current	451.97 M	941.67 M	524.37 M	324.96 M	300.81 M	370.49 M
Debt Non Current	10.88 B	12.35 B	13.4 B	14.67 B	16.17 B	13.83 B
Operating Income	977.38 M	1.17 B	1.05 B	1.11 B	1.2 B	1.1 B
Investments	37.51 M	4.54 M	10.36 M	4.53 M	4.08 M	4.19 M
Investments Current	28.27 M	4.54 M	10.36 M	4.53 M	4.08 M	4.19 M

Equinix ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Equinix's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Equinix's managers, analysts, and investors.

Environment Score

Governance Score

Social Score

About Equinix Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Equinix's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Equinix using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Equinix based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

Equinix is the worlds digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value. Equinix operates under REITSpecialty classification in the United States and is traded on NASDAQ Exchange. It employs 11800 people.

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Our tools can tell you how much better you can do entering a position in Equinix without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Analyst recommendations and target price estimates broken down by several categories

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Pair Trading with Equinix

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Equinix position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Equinix will appreciate offsetting losses from the drop in the long position's value.

Moving together with Equinix

	+	0.84	DLR	Digital Realty Trust		Fiscal Quarter End 31st of March 2023	Pair Corr
	+	0.78	EPR	EPR Properties		Fiscal Quarter End 31st of March 2023	Pair Corr

The ability to find closely correlated positions to Equinix could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Equinix when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Equinix - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Equinix to buy it.

The correlation of Equinix is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Equinix moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Equinix moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Equinix can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

Check out Equinix Piotroski F Score and Equinix Altman Z Score analysis. For more information on how to buy Equinix Stock please use our How to Invest in Equinix guide. You can also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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When running Equinix price analysis, check to measure Equinix's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Equinix is operating at the current time. Most of Equinix's value examination focuses on studying past and present price action to predict the probability of Equinix's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Equinix's price. Additionally, you may evaluate how the addition of Equinix to your portfolios can decrease your overall portfolio volatility.

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Is Equinix's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Equinix. If investors know Equinix will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Equinix listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

0.024

Dividend Share

12.4

Earnings Share

7.7

Revenue Per Share

73.422

Quarterly Revenue Growth

0.071

The market value of Equinix is measured differently than its book value, which is the value of Equinix that is recorded on the company's balance sheet. Investors also form their own opinion of Equinix's value that differs from its market value or its book value, called intrinsic value, which is Equinix's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Equinix's market value can be influenced by many factors that don't directly affect Equinix's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Equinix's value and its price as these two are different measures arrived at by different means. Investors typically determine Equinix value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Equinix's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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Equinix Beneish M Score

Equinix Beneish M-Score Indicator Trends

Equinix Beneish M-Score Driver Matrix

About Equinix Beneish M Score

Depreciation Amortization and Accretion

1.5 Billion

Equinix Earnings Manipulation Drivers

Equinix ESG Sustainability

About Equinix Fundamental Analysis

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Analyst Recommendations

Pair Trading with Equinix

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