CROWN CASTLE INC (CCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CCI - US22822V1017 - REIT
86.6 USD
+0.41 (+0.48%)
86.6 USD
0 (0%)
Taking everything into account, CCI scores 3 out of 10 in our fundamental rating. CCI was compared to 30 industry peers in the Specialized REITs industry. CCI has a medium profitability rating, but doesn't score so well on its financial health evaluation. CCI does not seem to be growing, but still is valued expensively. Finally CCI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year CCI was profitable.
- CCI had a positive operating cash flow in the past year.
- CCI had positive earnings in 4 of the past 5 years.
- CCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of CCI (-14.66%) is worse than 83.33% of its industry peers.
- The Return On Invested Capital of CCI (6.22%) is better than 76.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CCI is in line with the industry average of 4.86%.
- The 3 year average ROIC (5.58%) for CCI is below the current ROIC(6.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.66% | ||
| ROE | N/A | ||
| ROIC | 6.22% |
ROA(3y)-1.24%
ROA(5y)0.33%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.58%
ROIC(5y)5.04%
1.3 Margins
- With a decent Operating Margin value of 44.22%, CCI is doing good in the industry, outperforming 73.33% of the companies in the same industry.
- CCI's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 73.36%, CCI is in line with its industry, outperforming 56.67% of the companies in the same industry.
- In the last couple of years the Gross Margin of CCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.22% | ||
| PM (TTM) | N/A | ||
| GM | 73.36% |
OM growth 3Y2.8%
OM growth 5Y4.66%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.59%
GM growth 5Y1.86%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CCI is destroying value.
- Compared to 1 year ago, CCI has more shares outstanding
- The number of shares outstanding for CCI has been increased compared to 5 years ago.
- The debt/assets ratio for CCI is higher compared to a year ago.
2.2 Solvency
- CCI has an Altman-Z score of 0.05. This is a bad value and indicates that CCI is not financially healthy and even has some risk of bankruptcy.
- CCI has a worse Altman-Z score (0.05) than 83.33% of its industry peers.
- The Debt to FCF ratio of CCI is 9.13, which is on the high side as it means it would take CCI, 9.13 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CCI (9.13) is better than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.13 | ||
| Altman-Z | 0.05 |
ROIC/WACC0.84
WACC7.43%
2.3 Liquidity
- CCI has a Current Ratio of 0.26. This is a bad value and indicates that CCI is not financially healthy enough and could expect problems in meeting its short term obligations.
- CCI's Current ratio of 0.26 is on the low side compared to the rest of the industry. CCI is outperformed by 83.33% of its industry peers.
- CCI has a Quick Ratio of 0.26. This is a bad value and indicates that CCI is not financially healthy enough and could expect problems in meeting its short term obligations.
- CCI has a Quick ratio of 0.26. This is amonst the worse of the industry: CCI underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
- The earnings per share for CCI have decreased strongly by -72.70% in the last year.
- Measured over the past 5 years, CCI shows a small growth in Earnings Per Share. The EPS has been growing by 4.20% on average per year.
- Looking at the last year, CCI shows a very negative growth in Revenue. The Revenue has decreased by -26.56% in the last year.
- Measured over the past years, CCI shows a small growth in Revenue. The Revenue has been growing by 2.65% on average per year.
EPS 1Y (TTM)-72.7%
EPS 3Y-3.22%
EPS 5Y4.2%
EPS Q2Q%5.71%
Revenue 1Y (TTM)-26.56%
Revenue growth 3Y1.18%
Revenue growth 5Y2.65%
Sales Q2Q%-35.11%
3.2 Future
- The Earnings Per Share is expected to grow by 19.34% on average over the next years. This is quite good.
- The Revenue is expected to decrease by -5.29% on average over the next years.
EPS Next Y-65.84%
EPS Next 2Y11.07%
EPS Next 3Y13.03%
EPS Next 5Y19.34%
Revenue Next Year-35.16%
Revenue Next 2Y-18.89%
Revenue Next 3Y-12.37%
Revenue Next 5Y-5.29%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 112.47, the valuation of CCI can be described as expensive.
- 70.00% of the companies in the same industry are cheaper than CCI, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, CCI is valued quite expensively.
- A Price/Forward Earnings ratio of 29.01 indicates a quite expensive valuation of CCI.
- The rest of the industry has a similar Price/Forward Earnings ratio as CCI.
- CCI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.47 | ||
| Fwd PE | 29.01 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as CCI.
- Based on the Price/Free Cash Flow ratio, CCI is valued cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.15 | ||
| EV/EBITDA | 19.95 |
4.3 Compensation for Growth
- CCI's earnings are expected to grow with 13.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)26.77
EPS Next 2Y11.07%
EPS Next 3Y13.03%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.70%, CCI is a good candidate for dividend investing.
- CCI's Dividend Yield is comparable with the industry average which is at 5.65.
- CCI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
5.2 History
- The dividend of CCI has a limited annual growth rate of 5.20%.
- CCI has paid a dividend for at least 10 years, which is a reliable track record.
- CCI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.2%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
- The earnings of CCI are negative and hence is the payout ratio. CCI will probably not be able to sustain this dividend level.
- The dividend of CCI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-49.7%
EPS Next 2Y11.07%
EPS Next 3Y13.03%
CROWN CASTLE INC / CCI FAQ
Can you provide the ChartMill fundamental rating for CROWN CASTLE INC?
ChartMill assigns a fundamental rating of 3 / 10 to CCI.
What is the valuation status of CROWN CASTLE INC (CCI) stock?
ChartMill assigns a valuation rating of 3 / 10 to CROWN CASTLE INC (CCI). This can be considered as Overvalued.
How profitable is CROWN CASTLE INC (CCI) stock?
CROWN CASTLE INC (CCI) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for CCI stock?
The Price/Earnings (PE) ratio for CROWN CASTLE INC (CCI) is 112.47 and the Price/Book (PB) ratio is -25.26.
What is the earnings growth outlook for CROWN CASTLE INC?
The Earnings per Share (EPS) of CROWN CASTLE INC (CCI) is expected to decline by -65.84% in the next year.