CyrusOne Inc. (CONE)
As of 10/25/2017
Industry: REIT – Diversified
P/E: -186.60 & 135.18 (forward)
Market Cap: 5.27B
CyrusOne Inc., a real estate investment trust (REIT), owns, operates, and develops enterprise-class, carrier-neutral, and multi-tenant data center properties. The company provides mission-critical data center facilities that protect and ensure the continued operation of information technology infrastructure. Its customers operate in various industries, including information technology, financial services, energy, oil and gas, mining, medical, and consumer goods and services. As of December 9, 2016, the company’s property portfolio included 35 data centers and 2 recovery centers in the United States, the United Kingdom, and Singapore. The company qualified as a REIT for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2012 and is headquartered in Dallas, Texas.
CyrusOne has seen steady growth in recent years. Net Income was 19.9M at the end of 2016, which is up from -15.4M in 2015 (+35.3M gain). Revenue was also up at the end of 2016; a reported 529.1M, which was up from 399.3M in 2015 (+32.5%). CONE has seen fairly steady growth in revenue in the past year. Revenue is up +16.06% and earnings are up an insane +704.55%. They did suffer a very poor Q1 in 2017; however, they appear to have steadied the ship. CONE also pays out dividends of 2.78% yield, so we can expect some steady cash flows in addition to expected appreciations in market value.
Here is a chart comparing CONE to the iShares ETF for US Financials (IYF). Financials have slowed down in growth since the Trump Bump, but this slowdown has not affected CONE as much although it has been more volatile recently.
In terms of insider trading, CONE has only seen 2 major sales in the past 3 months for a total of only 2,697 shares with no major buys.
19.58% of shares are held by insiders while 102.24% of shares are held by institutions. The two largest institutions are Vanguard and Blackrock with 13.65% and 8.07% respectively. It also has exposure in a wide range of ETFs.
CyrusOne has been developing a lot of data centers recently. They just announced at the end of trading today a $600 million data center in the Dallas/Fort Worth area. The land purchase had already been announced, so it should be priced in slightly; however, it will see a big price bump soon as more people hear the news. It has already seen gains in after hour trading.
Experts are high on CONE. On Yahoo Finance, most of the experts suggest it as a buy, as shown in the graphic below. Analyst for MarketWatch give very favorable opinions as well.