CROWN CASTLE INC (CCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CCI - US22822V1017 - REIT
84.89 USD
-1.86 (-2.14%)
84.89 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to CCI. CCI was compared to 30 industry peers in the Specialized REITs industry. There are concerns on the financial health of CCI while its profitability can be described as average. CCI has a expensive valuation and it also scores bad on growth. Finally CCI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- CCI had positive earnings in the past year.
- CCI had a positive operating cash flow in the past year.
- CCI had positive earnings in 4 of the past 5 years.
- In the past 5 years CCI always reported a positive cash flow from operatings.
1.2 Ratios
- CCI has a Return On Assets of -14.66%. This is amonst the worse of the industry: CCI underperforms 83.33% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.22%, CCI is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CCI is in line with the industry average of 4.86%.
- The last Return On Invested Capital (6.22%) for CCI is above the 3 year average (5.58%), which is a sign of increasing profitability.
| 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
- The Operating Margin of CCI (44.22%) is better than 73.33% of its industry peers.
- CCI's Operating Margin has improved in the last couple of years.
- CCI has a Gross Margin (73.36%) which is comparable to the rest of the industry.
- CCI's Gross Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CCI is destroying value.
- The number of shares outstanding for CCI has been increased compared to 1 year ago.
- Compared to 5 years ago, CCI has more shares outstanding
- CCI has a worse debt/assets ratio than last year.
2.2 Solvency
- CCI has an Altman-Z score of 0.06. This is a bad value and indicates that CCI is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.06, CCI is doing worse than 83.33% of the companies in the same industry.
- 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.
- CCI has a better Debt to FCF ratio (9.13) than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.13 | ||
| Altman-Z | 0.06 |
ROIC/WACC0.84
WACC7.4%
2.3 Liquidity
- A Current Ratio of 0.26 indicates that CCI may have some problems paying its short term obligations.
- With a Current ratio value of 0.26, CCI is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
- 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.
- With a Quick ratio value of 0.26, CCI is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
- CCI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.70%.
- 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.
- The Revenue for CCI has decreased by -26.56% in the past year. This is quite bad
- 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.
- CCI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.29% yearly.
EPS Next Y-65.84%
EPS Next 2Y10.94%
EPS Next 3Y12.74%
EPS Next 5Y19.34%
Revenue Next Year-35.16%
Revenue Next 2Y-19.15%
Revenue Next 3Y-12.67%
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
- A Price/Earnings ratio of 110.25 indicates a quite expensive valuation of CCI.
- Based on the Price/Earnings ratio, CCI is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
- CCI is valuated expensively when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 28.50, which means the current valuation is very expensive for CCI.
- The rest of the industry has a similar Price/Forward Earnings ratio as CCI.
- CCI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 110.25 | ||
| Fwd PE | 28.5 |
4.2 Price Multiples
- CCI's Enterprise Value to EBITDA is on the same level as the industry average.
- 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 | 13.87 | ||
| EV/EBITDA | 20.03 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as CCI's earnings are expected to grow with 12.74% in the coming years.
PEG (NY)N/A
PEG (5Y)26.25
EPS Next 2Y10.94%
EPS Next 3Y12.74%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.93%, CCI is a good candidate for dividend investing.
- CCI's Dividend Yield is comparable with the industry average which is at 5.51.
- Compared to an average S&P500 Dividend Yield of 1.82, CCI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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
- CCI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- CCI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-49.7%
EPS Next 2Y10.94%
EPS Next 3Y12.74%
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 110.25 and the Price/Book (PB) ratio is -24.76.
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.