SBA COMMUNICATIONS CORP (SBAC) Stock Fundamental Analysis
NASDAQ:SBAC - Nasdaq - US78410G1040 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to SBAC. SBAC was compared to 30 industry peers in the Specialized REITs industry. SBAC has an excellent profitability rating, but there are some minor concerns on its financial health. SBAC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SBAC was profitable.
In the past year SBAC had a positive cash flow from operations.
SBAC had positive earnings in each of the past 5 years.
Each year in the past 5 years SBAC had a positive operating cash flow.
1.2 Ratios
SBAC's Return On Assets of 6.56% is amongst the best of the industry. SBAC outperforms 93.33% of its industry peers.
SBAC has a better Return On Invested Capital (12.89%) than 96.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SBAC is significantly above the industry average of 5.25%.
The 3 year average ROIC (10.28%) for SBAC is below the current ROIC(12.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | N/A | ||
| ROIC | 12.89% |
ROA(3y)5.28%
ROA(5y)3.71%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.28%
ROIC(5y)8.89%
1.3 Margins
SBAC's Profit Margin of 27.97% is fine compared to the rest of the industry. SBAC outperforms 73.33% of its industry peers.
SBAC's Profit Margin has improved in the last couple of years.
SBAC has a Operating Margin of 58.58%. This is amongst the best in the industry. SBAC outperforms 90.00% of its industry peers.
In the last couple of years the Operating Margin of SBAC has grown nicely.
SBAC has a Gross Margin of 78.29%. This is in the better half of the industry: SBAC outperforms 66.67% of its industry peers.
SBAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.58% | ||
| PM (TTM) | 27.97% | ||
| GM | 78.29% |
OM growth 3Y17.06%
OM growth 5Y13.31%
PM growth 3Y39.56%
PM growth 5Y30.83%
GM growth 3Y0.83%
GM growth 5Y0.72%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SBAC is creating some value.
The number of shares outstanding for SBAC has been reduced compared to 1 year ago.
SBAC has less shares outstanding than it did 5 years ago.
SBAC has a better debt/assets ratio than last year.
2.2 Solvency
SBAC has an Altman-Z score of 0.71. This is a bad value and indicates that SBAC is not financially healthy and even has some risk of bankruptcy.
SBAC has a worse Altman-Z score (0.71) than 60.00% of its industry peers.
SBAC has a debt to FCF ratio of 12.28. This is a negative value and a sign of low solvency as SBAC would need 12.28 years to pay back of all of its debts.
SBAC has a better Debt to FCF ratio (12.28) than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.28 | ||
| Altman-Z | 0.71 |
ROIC/WACC1.8
WACC7.17%
2.3 Liquidity
SBAC has a Current Ratio of 1.10. This is a normal value and indicates that SBAC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SBAC (1.10) is better than 70.00% of its industry peers.
SBAC has a Quick Ratio of 1.10. This is a normal value and indicates that SBAC is financially healthy and should not expect problems in meeting its short term obligations.
SBAC has a better Quick ratio (1.10) than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 50.54% over the past year.
The Earnings Per Share has been growing by 40.01% on average over the past years. This is a very strong growth
SBAC shows a decrease in Revenue. In the last year, the revenue decreased by -1.18%.
SBAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.87% yearly.
EPS 1Y (TTM)50.54%
EPS 3Y48.25%
EPS 5Y40.01%
EPS Q2Q%59.41%
Revenue 1Y (TTM)-1.18%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%2.77%
3.2 Future
Based on estimates for the next years, SBAC will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.70% on average per year.
The Revenue is expected to grow by 5.43% on average over the next years.
EPS Next Y25.18%
EPS Next 2Y15.46%
EPS Next 3Y12.01%
EPS Next 5Y17.7%
Revenue Next Year1.87%
Revenue Next 2Y3.38%
Revenue Next 3Y3.72%
Revenue Next 5Y5.43%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SBAC is valuated quite expensively with a Price/Earnings ratio of 33.01.
SBAC's Price/Earnings ratio is in line with the industry average.
SBAC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 26.37, the valuation of SBAC can be described as expensive.
73.33% of the companies in the same industry are more expensive than SBAC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SBAC to the average of the S&P500 Index (21.08), we can say SBAC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.01 | ||
| Fwd PE | 26.37 |
4.2 Price Multiples
73.33% of the companies in the same industry are cheaper than SBAC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SBAC is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.36 | ||
| EV/EBITDA | 20.46 |
4.3 Compensation for Growth
SBAC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 12.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)0.82
EPS Next 2Y15.46%
EPS Next 3Y12.01%
5. Dividend
5.1 Amount
SBAC has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.83, SBAC's dividend is way lower than its industry peers. On top of this 93.33% of the companies listed in the same industry pay a better dividend than SBAC!
SBAC's Dividend Yield is slightly below the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of SBAC is nicely growing with an annual growth rate of 39.51%!
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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)39.51%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
56.59% of the earnings are spent on dividend by SBAC. This is a bit on the high side, but may be sustainable.
SBAC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.59%
EPS Next 2Y15.46%
EPS Next 3Y12.01%
229.06
+3.39 (+1.5%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.94%
Inst Owner Change0%
Ins Owners0.74%
Ins Owner Change8.05%
Market Cap24.75B
Analysts77.6
Price Target254.17 (10.96%)
Short Float %1.82%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend3.93
Dividend Growth(5Y)39.51%
DP56.59%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10%
Min EPS beat(2)-23.81%
Max EPS beat(2)3.8%
EPS beat(4)2
Avg EPS beat(4)-8.37%
Min EPS beat(4)-28.52%
Max EPS beat(4)15.05%
EPS beat(8)3
Avg EPS beat(8)-8.8%
EPS beat(12)4
Avg EPS beat(12)-4.39%
EPS beat(16)5
Avg EPS beat(16)-10.84%
Revenue beat(2)0
Avg Revenue beat(2)-1.25%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-0.22%
Revenue beat(4)0
Avg Revenue beat(4)-2.22%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)-0.22%
Revenue beat(8)0
Avg Revenue beat(8)-2.14%
Revenue beat(12)3
Avg Revenue beat(12)-1.15%
Revenue beat(16)5
Avg Revenue beat(16)-0.89%
PT rev (1m)0.55%
PT rev (3m)-3.87%
EPS NQ rev (1m)3.08%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)-4.3%
EPS NY rev (3m)-5.87%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.4%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.01 | ||
| Fwd PE | 26.37 | ||
| P/S | 9.23 | ||
| P/FCF | 22.36 | ||
| P/OCF | 18.54 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.46 |
EPS(TTM)6.94
EY3.03%
EPS(NY)8.69
Fwd EY3.79%
FCF(TTM)10.24
FCFY4.47%
OCF(TTM)12.36
OCFY5.39%
SpS24.8
BVpS-47.3
TBVpS-69.41
PEG (NY)1.31
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | N/A | ||
| ROCE | 16.32% | ||
| ROIC | 12.89% | ||
| ROICexc | 13.52% | ||
| ROICexgc | 18.27% | ||
| OM | 58.58% | ||
| PM (TTM) | 27.97% | ||
| GM | 78.29% | ||
| FCFM | 41.3% |
ROA(3y)5.28%
ROA(5y)3.71%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.28%
ROIC(5y)8.89%
ROICexc(3y)10.61%
ROICexc(5y)9.2%
ROICexgc(3y)14.63%
ROICexgc(5y)13.14%
ROCE(3y)13.01%
ROCE(5y)11.26%
ROICexcg growth 3Y18.17%
ROICexcg growth 5Y12.75%
ROICexc growth 3Y21.4%
ROICexc growth 5Y18.43%
OM growth 3Y17.06%
OM growth 5Y13.31%
PM growth 3Y39.56%
PM growth 5Y30.83%
GM growth 3Y0.83%
GM growth 5Y0.72%
F-Score8
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.28 | ||
| Debt/EBITDA | 6.74 | ||
| Cap/Depr | 84.65% | ||
| Cap/Sales | 8.51% | ||
| Interest Coverage | 3.97 | ||
| Cash Conversion | 72.58% | ||
| Profit Quality | 147.65% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 0.71 |
F-Score8
WACC7.17%
ROIC/WACC1.8
Cap/Depr(3y)49.33%
Cap/Depr(5y)36.98%
Cap/Sales(3y)8.46%
Cap/Sales(5y)7.47%
Profit Quality(3y)213.48%
Profit Quality(5y)1044.71%
High Growth Momentum
Growth
EPS 1Y (TTM)50.54%
EPS 3Y48.25%
EPS 5Y40.01%
EPS Q2Q%59.41%
EPS Next Y25.18%
EPS Next 2Y15.46%
EPS Next 3Y12.01%
EPS Next 5Y17.7%
Revenue 1Y (TTM)-1.18%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%2.77%
Revenue Next Year1.87%
Revenue Next 2Y3.38%
Revenue Next 3Y3.72%
Revenue Next 5Y5.43%
EBIT growth 1Y40.82%
EBIT growth 3Y23.01%
EBIT growth 5Y19.96%
EBIT Next Year26.33%
EBIT Next 3Y11.53%
EBIT Next 5Y10.52%
FCF growth 1Y-15.37%
FCF growth 3Y1.57%
FCF growth 5Y6.29%
OCF growth 1Y-13.57%
OCF growth 3Y3.91%
OCF growth 5Y6.59%