SBA COMMUNICATIONS CORP (SBAC)
US78410G1040 - REIT
SBAC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 industry peers in the Specialized REITs industry. SBAC scores excellent on profitability, but there are concerns on its financial health. SBAC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SBAC was profitable.
SBAC had a positive operating cash flow in the past year.
SBAC had positive earnings in each of the past 5 years.
In the past 5 years SBAC always reported a positive cash flow from operatings.
1.2 Ratios
SBAC has a Return On Assets of 6.72%. This is amongst the best in the industry. SBAC outperforms 92.86% of its industry peers.
SBAC has a Return On Invested Capital of 13.57%. This is amongst the best in the industry. SBAC outperforms 100.00% of its industry peers.
SBAC had an Average Return On Invested Capital over the past 3 years of 9.47%. This is above the industry average of 5.21%.
The last Return On Invested Capital (13.57%) for SBAC is above the 3 year average (9.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | N/A | ||
| ROIC | 13.57% |
ROA(3y)3.9%
ROA(5y)2.7%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.47%
ROIC(5y)8.41%
1.3 Margins
The Profit Margin of SBAC (25.76%) is better than 75.00% of its industry peers.
SBAC's Profit Margin has improved in the last couple of years.
SBAC has a Operating Margin of 54.59%. This is amongst the best in the industry. SBAC outperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of SBAC has grown nicely.
The Gross Margin of SBAC (78.43%) is better than 64.29% of its industry peers.
SBAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 54.59% | ||
| PM (TTM) | 25.76% | ||
| GM | 78.43% |
OM growth 3Y7.45%
OM growth 5Y5.67%
PM growth 3Y151.96%
PM growth 5Y48.69%
GM growth 3Y0.12%
GM growth 5Y0.67%
2. Health
2.1 Basic Checks
SBAC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SBAC has about the same amount of shares outstanding.
The number of shares outstanding for SBAC has been reduced compared to 5 years ago.
The debt/assets ratio for SBAC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.61, we must say that SBAC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SBAC (0.61) is worse than 75.00% of its industry peers.
The Debt to FCF ratio of SBAC is 10.08, which is on the high side as it means it would take SBAC, 10.08 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.08, SBAC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.08 | ||
| Altman-Z | 0.61 |
ROIC/WACC1.97
WACC6.9%
2.3 Liquidity
SBAC has a Current Ratio of 0.67. This is a bad value and indicates that SBAC is not financially healthy enough and could expect problems in meeting its short term obligations.
SBAC's Current ratio of 0.67 is in line compared to the rest of the industry. SBAC outperforms 53.57% of its industry peers.
SBAC has a Quick Ratio of 0.67. This is a bad value and indicates that SBAC is not financially healthy enough and could expect problems in meeting its short term obligations.
SBAC has a Quick ratio (0.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.65% over the past year.
The Earnings Per Share has been growing by 62.25% on average over the past years. This is a very strong growth
The Revenue has decreased by -2.26% in the past year.
Measured over the past years, SBAC shows a small growth in Revenue. The Revenue has been growing by 7.76% on average per year.
EPS 1Y (TTM)39.65%
EPS 3Y43.2%
EPS 5Y62.25%
EPS Q2Q%200%
Revenue 1Y (TTM)-2.26%
Revenue growth 3Y9.19%
Revenue growth 5Y7.76%
Sales Q2Q%-2.19%
3.2 Future
The Earnings Per Share is expected to grow by 23.88% on average over the next years. This is a very strong growth
SBAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.25% yearly.
EPS Next Y64.23%
EPS Next 2Y42.82%
EPS Next 3Y28.56%
EPS Next 5Y23.88%
Revenue Next Year-1.77%
Revenue Next 2Y0.56%
Revenue Next 3Y1.83%
Revenue Next 5Y3.25%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
With a Price/Earnings ratio of 34.80, SBAC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SBAC is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
SBAC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.20, which is the current average of the S&P500 Index.
SBAC is valuated rather expensively with a Price/Forward Earnings ratio of 23.47.
SBAC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SBAC is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.00. SBAC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.8 | ||
| Fwd PE | 23.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SBAC.
Based on the Price/Free Cash Flow ratio, SBAC is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.42 | ||
| EV/EBITDA | 19.52 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SBAC has an outstanding profitability rating, which may justify a higher PE ratio.
SBAC's earnings are expected to grow with 28.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)0.56
EPS Next 2Y42.82%
EPS Next 3Y28.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.79%, SBAC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.54, SBAC's dividend is way lower than its industry peers. On top of this 92.86% of the companies listed in the same industry pay a better dividend than SBAC!
SBAC's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
SBAC has been paying a dividend for over 5 years, so it has already some track record.
SBAC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
SBAC pays out 59.90% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP59.9%
EPS Next 2Y42.82%
EPS Next 3Y28.56%
SBA COMMUNICATIONS CORP
NASDAQ:SBAC (11/22/2024, 8:03:40 PM)
After market: 220.66 0 (0%)220.66
+1.23 (+0.56%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap23.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.8 | ||
| Fwd PE | 23.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.54
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 54.59% | ||
| PM (TTM) | 25.76% | ||
| GM | 78.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)39.65%
EPS 3Y43.2%
EPS 5Y
EPS Q2Q%
EPS Next Y64.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.26%
Revenue growth 3Y9.19%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y