SBA COMMUNICATIONS CORP (SBAC) Stock Fundamental Analysis
NASDAQ:SBAC - Nasdaq - US78410G1040 - REIT - Currency: USD
Overall SBAC gets a fundamental rating of 5 out of 10. We evaluated SBAC against 30 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.
In the past year SBAC had a positive cash flow from operations.
Each year in the past 5 years SBAC has been profitable.
Each year in the past 5 years SBAC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.81%, SBAC belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
SBAC has a better Return On Invested Capital (13.67%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SBAC is significantly above the industry average of 5.28%.
The 3 year average ROIC (10.28%) for SBAC is below the current ROIC(13.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | N/A | ||
| ROIC | 13.67% |
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
Looking at the Profit Margin, with a value of 30.37%, SBAC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SBAC has grown nicely.
The Operating Margin of SBAC (58.62%) is better than 90.00% of its industry peers.
In the last couple of years the Operating Margin of SBAC has grown nicely.
Looking at the Gross Margin, with a value of 77.76%, SBAC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of SBAC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.62% | ||
| PM (TTM) | 30.37% | ||
| GM | 77.76% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SBAC is creating value.
SBAC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SBAC has less shares outstanding
SBAC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.73, we must say that SBAC is in the distress zone and has some risk of bankruptcy.
SBAC has a worse Altman-Z score (0.73) than 63.33% of its industry peers.
The Debt to FCF ratio of SBAC is 11.04, which is on the high side as it means it would take SBAC, 11.04 years of fcf income to pay off all of its debts.
SBAC has a better Debt to FCF ratio (11.04) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.73 |
ROIC/WACC1.92
WACC7.12%
2.3 Liquidity
A Current Ratio of 0.69 indicates that SBAC may have some problems paying its short term obligations.
With a Current ratio value of 0.69, SBAC perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
SBAC has a Quick Ratio of 0.69. This is a bad value and indicates that SBAC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SBAC (0.69) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
SBAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.94%, which is quite impressive.
Measured over the past years, SBAC shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.01% on average per year.
SBAC shows a decrease in Revenue. In the last year, the revenue decreased by -0.29%.
The Revenue has been growing slightly by 5.87% on average over the past years.
EPS 1Y (TTM)42.94%
EPS 3Y48.25%
EPS 5Y40.01%
EPS Q2Q%24.65%
Revenue 1Y (TTM)-0.29%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%0.97%
3.2 Future
The Earnings Per Share is expected to grow by 18.38% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.39% on average over the next years.
EPS Next Y23.6%
EPS Next 2Y16.94%
EPS Next 3Y12.33%
EPS Next 5Y18.38%
Revenue Next Year2.9%
Revenue Next 2Y3.8%
Revenue Next 3Y3.83%
Revenue Next 5Y5.39%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 32.09 indicates a quite expensive valuation of SBAC.
63.33% of the companies in the same industry are more expensive than SBAC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.45, SBAC is valued at the same level.
The Price/Forward Earnings ratio is 24.65, which indicates a rather expensive current valuation of SBAC.
SBAC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SBAC is cheaper than 76.67% of the companies in the same industry.
SBAC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.09 | ||
| Fwd PE | 24.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBAC is valued a bit more expensive than 63.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SBAC is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.34 | ||
| EV/EBITDA | 20.29 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as SBAC's earnings are expected to grow with 12.33% in the coming years.
PEG (NY)1.36
PEG (5Y)0.8
EPS Next 2Y16.94%
EPS Next 3Y12.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.92%, SBAC has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.92, SBAC pays less dividend than the industry average, which is at 5.88. 90.00% of the companies listed in the same industry pay a better dividend than SBAC!
Compared to the average S&P500 Dividend Yield of 2.42, SBAC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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
SBAC pays out 53.74% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SBAC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.74%
EPS Next 2Y16.94%
EPS Next 3Y12.33%
233.93
-3.66 (-1.54%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.97%
Inst Owner Change-0.82%
Ins Owners0.7%
Ins Owner Change11.54%
Market Cap25.14B
Analysts76.8
Price Target260.55 (11.38%)
Short Float %2.16%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend3.93
Dividend Growth(5Y)39.51%
DP53.74%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.99%
Min EPS beat(2)-23.81%
Max EPS beat(2)-22.17%
EPS beat(4)1
Avg EPS beat(4)-17.67%
Min EPS beat(4)-28.52%
Max EPS beat(4)3.8%
EPS beat(8)3
Avg EPS beat(8)-8.38%
EPS beat(12)3
Avg EPS beat(12)-12.01%
EPS beat(16)5
Avg EPS beat(16)-3.97%
Revenue beat(2)0
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-0.22%
Revenue beat(4)0
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)-0.22%
Revenue beat(8)0
Avg Revenue beat(8)-2.1%
Revenue beat(12)2
Avg Revenue beat(12)-1.35%
Revenue beat(16)5
Avg Revenue beat(16)-0.98%
PT rev (1m)0.84%
PT rev (3m)3.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.33%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)-1.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.09 | ||
| Fwd PE | 24.65 | ||
| P/S | 9.36 | ||
| P/FCF | 22.34 | ||
| P/OCF | 18.74 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.29 |
EPS(TTM)7.29
EY3.12%
EPS(NY)9.49
Fwd EY4.06%
FCF(TTM)10.47
FCFY4.48%
OCF(TTM)12.49
OCFY5.34%
SpS25
BVpS-46.26
TBVpS-68.62
PEG (NY)1.36
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | N/A | ||
| ROCE | 17.3% | ||
| ROIC | 13.67% | ||
| ROICexc | 14.81% | ||
| ROICexgc | 20.75% | ||
| OM | 58.62% | ||
| PM (TTM) | 30.37% | ||
| GM | 77.76% | ||
| FCFM | 41.89% |
ROA(3y)5.28%
ROA(5y)3.71%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.28%
ROIC(5y)8.89%
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-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.04 | ||
| Debt/EBITDA | 6.36 | ||
| Cap/Depr | 83.96% | ||
| Cap/Sales | 8.06% | ||
| Interest Coverage | 3.88 | ||
| Cash Conversion | 73.22% | ||
| Profit Quality | 137.93% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.73 |
F-Score6
WACC7.12%
ROIC/WACC1.92
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)42.94%
EPS 3Y48.25%
EPS 5Y40.01%
EPS Q2Q%24.65%
EPS Next Y23.6%
EPS Next 2Y16.94%
EPS Next 3Y12.33%
EPS Next 5Y18.38%
Revenue 1Y (TTM)-0.29%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%0.97%
Revenue Next Year2.9%
Revenue Next 2Y3.8%
Revenue Next 3Y3.83%
Revenue Next 5Y5.39%
EBIT growth 1Y27.75%
EBIT growth 3Y23.01%
EBIT growth 5Y19.96%
EBIT Next Year26.39%
EBIT Next 3Y11.73%
EBIT Next 5Y10.39%
FCF growth 1Y4.29%
FCF growth 3Y1.57%
FCF growth 5Y6.29%
OCF growth 1Y2.85%
OCF growth 3Y3.91%
OCF growth 5Y6.59%