CROWN CASTLE INC (CCI) Stock Fundamental Analysis
NYSE:CCI - New York Stock Exchange, Inc. - US22822V1017 - REIT - Currency: USD
Overall CCI gets a fundamental rating of 3 out of 10. We evaluated CCI against 29 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 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.
In the past 5 years CCI has always been profitable.
CCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CCI has a better Return On Assets (3.23%) than 60.71% of its industry peers.
Looking at the Return On Equity, with a value of 23.19%, CCI belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
CCI's Return On Invested Capital of 5.05% is fine compared to the rest of the industry. CCI outperforms 60.71% 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 5.40%.
| 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
The Profit Margin of CCI (18.63%) is comparable to the rest of the industry.
CCI's Profit Margin has improved in the last couple of years.
CCI has a Operating Margin of 34.87%. This is in the lower half of the industry: CCI underperforms 60.71% of its industry peers.
CCI's Operating Margin has improved in the last couple of years.
CCI has a Gross Margin (72.15%) 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 | 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
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.
Compared to 1 year ago, CCI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.59, we must say that CCI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CCI (0.59) is worse than 71.43% of its industry peers.
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.
CCI has a Debt to FCF ratio (14.75) which is comparable to the rest of the industry.
CCI has a Debt/Equity ratio of 4.43. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CCI (4.43) is worse than 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 14.75 | ||
| Altman-Z | 0.59 |
ROIC/WACC0.67
WACC7.56%
2.3 Liquidity
A Current Ratio of 0.54 indicates that CCI may have some problems paying its short term obligations.
With a Current ratio value of 0.54, CCI is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
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 has a worse Quick ratio (0.54) than 67.86% 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.
The Revenue has decreased by -6.76% in the past year.
The Revenue has been growing slightly by 5.39% on average over the past years.
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
CCI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.28% yearly.
The Revenue is expected to grow by 1.05% on average over the next years.
EPS Next Y-29.74%
EPS Next 2Y-11.37%
EPS Next 3Y-6.16%
EPS Next 5Y2.28%
Revenue Next Year-5.94%
Revenue Next 2Y-3.78%
Revenue Next 3Y-1.54%
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 32.37, which means the current valuation is very expensive for CCI.
The rest of the industry has a similar Price/Earnings ratio as CCI.
The average S&P500 Price/Earnings ratio is at 30.30. CCI is around the same levels.
With a Price/Forward Earnings ratio of 33.58, CCI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CCI is on the same level as its industry peers.
CCI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 33.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CCI indicates a somewhat cheap valuation: CCI is cheaper than 67.86% of the companies listed in the same industry.
67.86% 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 | 24.32 | ||
| EV/EBITDA | 15.73 |
4.3 Compensation for Growth
CCI has a very decent profitability rating, which may justify a higher PE ratio.
CCI's earnings are expected to decrease with -6.16% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.55
EPS Next 2Y-11.37%
EPS Next 3Y-6.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.97%, CCI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.50, CCI pays a better dividend. On top of this CCI pays more dividend than 96.43% of the companies listed in the same industry.
CCI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.97% |
5.2 History
The dividend of CCI is nicely growing with an annual growth rate of 6.35%!
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
CCI pays out 222.15% of its income as dividend. 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-11.37%
EPS Next 3Y-6.16%
NYSE:CCI (2/21/2025, 11:12:04 AM)
91.285
+0.05 (+0.06%)
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-0.46%
Ins Owners0.1%
Ins Owner Change0.47%
Market Cap39.67B
Analysts65.6
Price Target111.6 (22.25%)
Short Float %1.32%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.97% |
Yearly Dividend6.28
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)-6.25%
PT rev (3m)-6.34%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)-0.89%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 33.58 | ||
| P/S | 6.02 | ||
| P/FCF | 24.32 | ||
| P/OCF | 13.52 | ||
| P/B | 7.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.73 |
EPS(TTM)2.82
EY3.09%
EPS(NY)2.72
Fwd EY2.98%
FCF(TTM)3.75
FCFY4.11%
OCF(TTM)6.75
OCFY7.4%
SpS15.17
BVpS12.19
TBVpS-17.64
PEG (NY)N/A
PEG (5Y)1.55
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 | 0.59 |
F-Score6
WACC7.56%
ROIC/WACC0.67
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-29.74%
EPS Next 2Y-11.37%
EPS Next 3Y-6.16%
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-3.78%
Revenue Next 3Y-1.54%
Revenue Next 5Y1.05%
EBIT growth 1Y-8.22%
EBIT growth 3Y8.52%
EBIT growth 5Y11.62%
EBIT Next Year69.71%
EBIT Next 3Y20.3%
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%