CROWN CASTLE INC (CCI)
US22822V1017 - REIT
Overall CCI gets a fundamental rating of 3 out of 10. We evaluated CCI against 28 industry peers in the Specialized REITs industry. While CCI is still in line with the averages on profitability rating, there are concerns on its financial health. CCI does not seem to be growing, but still is valued expensively. CCI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CCI had positive earnings in the past year.
In the past year CCI had a positive cash flow from operations.
CCI had positive earnings in each of the past 5 years.
Each year in the past 5 years CCI had a positive operating cash flow.
1.2 Ratios
CCI has a Return On Assets of 3.23%. This is in the better half of the industry: CCI outperforms 60.71% of its industry peers.
CCI has a Return On Equity of 23.19%. This is amongst the best in the industry. CCI outperforms 89.29% of its industry peers.
CCI's Return On Invested Capital of 5.05% is fine compared to the rest of the industry. CCI outperforms 64.29% of its industry peers.
CCI had an Average Return On Invested Capital over the past 3 years of 5.05%. This is in line with the industry average of 5.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 23.19% | ||
| ROIC | 5.05% |
ROA(3y)3.67%
ROA(5y)3.11%
ROE(3y)19.77%
ROE(5y)15.4%
ROIC(3y)5.05%
ROIC(5y)4.56%
1.3 Margins
CCI has a Profit Margin (18.63%) which is comparable to the rest of the industry.
CCI's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 34.87%, CCI is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of CCI has grown nicely.
The Gross Margin of CCI (72.15%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.87% | ||
| PM (TTM) | 18.63% | ||
| GM | 72.15% |
OM growth 3Y2.25%
OM growth 5Y5.91%
PM growth 3Y7.94%
PM growth 5Y17.82%
GM growth 3Y2.62%
GM growth 5Y1.76%
2. Health
2.1 Basic Checks
CCI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CCI has more shares outstanding
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 0.55. This is a bad value and indicates that CCI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.55, CCI is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
The Debt to FCF ratio of CCI is 14.75, which is on the high side as it means it would take CCI, 14.75 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.75, CCI is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 4.43 is on the high side and indicates that CCI has dependencies on debt financing.
CCI has a worse Debt to Equity ratio (4.43) than 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 14.75 | ||
| Altman-Z | 0.55 |
ROIC/WACC0.72
WACC6.97%
2.3 Liquidity
A Current Ratio of 0.54 indicates that CCI may have some problems paying its short term obligations.
CCI has a Current ratio of 0.54. This is in the lower half of the industry: CCI underperforms 71.43% of its industry peers.
CCI has a Quick Ratio of 0.54. 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 Quick ratio of 0.54 is on the low side compared to the rest of the industry. CCI is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
CCI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.23%.
CCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.89% yearly.
CCI shows a decrease in Revenue. In the last year, the revenue decreased by -6.76%.
Measured over the past years, CCI shows a small growth in Revenue. The Revenue has been growing by 5.39% on average per year.
EPS 1Y (TTM)-21.23%
EPS 3Y26.24%
EPS 5Y20.89%
EPS Q2Q%14.75%
Revenue 1Y (TTM)-6.76%
Revenue growth 3Y6.13%
Revenue growth 5Y5.39%
Sales Q2Q%-0.9%
3.2 Future
Based on estimates for the next years, CCI will show a small growth in Earnings Per Share. The EPS will grow by 2.28% on average per year.
The Revenue is expected to grow by 1.05% on average over the next years.
EPS Next Y-29.67%
EPS Next 2Y-11.57%
EPS Next 3Y-6.15%
EPS Next 5Y2.28%
Revenue Next Year-5.94%
Revenue Next 2Y-3.66%
Revenue Next 3Y-1.45%
Revenue Next 5Y1.05%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 30.73, which means the current valuation is very expensive for CCI.
CCI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CCI to the average of the S&P500 Index (27.28), we can say CCI is valued inline with the index average.
CCI is valuated quite expensively with a Price/Forward Earnings ratio of 32.04.
CCI's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.53, CCI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.73 | ||
| Fwd PE | 32.04 |
4.2 Price Multiples
64.29% of the companies in the same industry are more expensive than CCI, based on the Enterprise Value to EBITDA ratio.
64.29% of the companies in the same industry are more expensive than CCI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.09 | ||
| EV/EBITDA | 15.24 |
4.3 Compensation for Growth
The decent profitability rating of CCI may justify a higher PE ratio.
CCI's earnings are expected to decrease with -6.15% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.47
EPS Next 2Y-11.57%
EPS Next 3Y-6.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.15%, CCI is a good candidate for dividend investing.
The stock price of CCI dropped by -22.88% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.92, CCI pays a better dividend. On top of this CCI pays more dividend than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, CCI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.15% |
5.2 History
On average, the dividend of CCI grows each year by 6.35%, which is quite nice.
CCI has paid a dividend for at least 10 years, which is a reliable track record.
CCI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.35%
Div Incr Years9
Div Non Decr Years10
5.3 Sustainability
222.15% of the earnings are spent on dividend by CCI. This is not a sustainable payout ratio.
CCI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP222.15%
EPS Next 2Y-11.57%
EPS Next 3Y-6.15%
CROWN CASTLE INC
NYSE:CCI (1/14/2025, 8:04:00 PM)
After market: 87.1542 +0.48 (+0.56%)86.67
+0.94 (+1.1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners93.7%
Inst Owner Change-0.17%
Ins Owners0.1%
Ins Owner Change0.06%
Market Cap37.67B
Analysts65.83
Price Target119.04 (37.35%)
Short Float %1.63%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.15% |
Dividend Growth(5Y)6.35%
DP222.15%
Div Incr Years9
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.03%
Min EPS beat(2)3.98%
Max EPS beat(2)4.08%
EPS beat(4)3
Avg EPS beat(4)4.09%
Min EPS beat(4)-0.64%
Max EPS beat(4)8.92%
EPS beat(8)4
Avg EPS beat(8)-0.58%
EPS beat(12)7
Avg EPS beat(12)-0.02%
EPS beat(16)9
Avg EPS beat(16)-4.97%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-0.31%
Max Revenue beat(2)0.24%
Revenue beat(4)1
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-0.31%
Max Revenue beat(4)0.24%
Revenue beat(8)2
Avg Revenue beat(8)-0.48%
Revenue beat(12)5
Avg Revenue beat(12)-0.12%
Revenue beat(16)6
Avg Revenue beat(16)-0.36%
PT rev (1m)-0.45%
PT rev (3m)4.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-42.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.73 | ||
| Fwd PE | 32.04 | ||
| P/S | 5.71 | ||
| P/FCF | 23.09 | ||
| P/OCF | 12.84 | ||
| P/B | 7.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.24 |
EPS(TTM)2.82
EY3.25%
EPS(NY)2.71
Fwd EY3.12%
FCF(TTM)3.75
FCFY4.33%
OCF(TTM)6.75
OCFY7.79%
SpS15.17
BVpS12.19
TBVpS-17.64
PEG (NY)N/A
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 23.19% | ||
| ROCE | 6.4% | ||
| ROIC | 5.05% | ||
| ROICexc | 5.08% | ||
| ROICexgc | 7.97% | ||
| OM | 34.87% | ||
| PM (TTM) | 18.63% | ||
| GM | 72.15% | ||
| FCFM | 24.74% |
ROA(3y)3.67%
ROA(5y)3.11%
ROE(3y)19.77%
ROE(5y)15.4%
ROIC(3y)5.05%
ROIC(5y)4.56%
ROICexc(3y)5.08%
ROICexc(5y)4.58%
ROICexgc(3y)8.16%
ROICexgc(5y)7.46%
ROCE(3y)6.4%
ROCE(5y)5.77%
ROICexcg growth 3Y7.68%
ROICexcg growth 5Y3.38%
ROICexc growth 3Y9.25%
ROICexc growth 5Y8.41%
OM growth 3Y2.25%
OM growth 5Y5.91%
PM growth 3Y7.94%
PM growth 5Y17.82%
GM growth 3Y2.62%
GM growth 5Y1.76%
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 14.75 | ||
| Debt/EBITDA | 5.81 | ||
| Cap/Depr | 74.89% | ||
| Cap/Sales | 19.76% | ||
| Interest Coverage | 2.6 | ||
| Cash Conversion | 72.64% | ||
| Profit Quality | 132.82% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.55 |
F-Score6
WACC6.97%
ROIC/WACC0.72
Cap/Depr(3y)77.56%
Cap/Depr(5y)92.91%
Cap/Sales(3y)19.51%
Cap/Sales(5y)24.41%
Profit Quality(3y)114.54%
Profit Quality(5y)114.53%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.23%
EPS 3Y26.24%
EPS 5Y20.89%
EPS Q2Q%14.75%
EPS Next Y-29.67%
EPS Next 2Y-11.57%
EPS Next 3Y-6.15%
EPS Next 5Y2.28%
Revenue 1Y (TTM)-6.76%
Revenue growth 3Y6.13%
Revenue growth 5Y5.39%
Sales Q2Q%-0.9%
Revenue Next Year-5.94%
Revenue Next 2Y-3.66%
Revenue Next 3Y-1.45%
Revenue Next 5Y1.05%
EBIT growth 1Y-8.22%
EBIT growth 3Y8.52%
EBIT growth 5Y11.62%
EBIT Next Year69.67%
EBIT Next 3Y20.46%
EBIT Next 5Y14.48%
FCF growth 1Y7.73%
FCF growth 3Y5.95%
FCF growth 5Y17.47%
OCF growth 1Y5.84%
OCF growth 3Y0.77%
OCF growth 5Y4.57%