SBA COMMUNICATIONS CORP (SBAC) Stock Fundamental Analysis
USA - NASDAQ:SBAC - US78410G1040 - REIT
197.21 USD
+3.26 (+1.68%)
197.21 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SBAC. SBAC was compared to 30 industry peers in the Specialized REITs industry. While SBAC has a great profitability rating, there are quite some concerns on its financial health. SBAC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SBAC had positive earnings in the past year.
SBAC had a positive operating cash flow in the past year.
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
SBAC has a better Return On Assets (7.61%) than 90.00% of its industry peers.
With an excellent Return On Invested Capital value of 12.88%, SBAC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SBAC is significantly above the industry average of 4.77%.
The last Return On Invested Capital (12.88%) for SBAC is above the 3 year average (10.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | N/A | ||
| ROIC | 12.88% |
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 has a better Profit Margin (30.72%) than 76.67% of its industry peers.
In the last couple of years the Profit Margin of SBAC has grown nicely.
Looking at the Operating Margin, with a value of 56.42%, SBAC belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
SBAC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 76.06%, SBAC is doing good in 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 | 56.42% | ||
| PM (TTM) | 30.72% | ||
| GM | 76.06% |
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
SBAC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SBAC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SBAC has less shares outstanding
Compared to 1 year ago, SBAC has an improved debt to assets ratio.
2.2 Solvency
SBAC has an Altman-Z score of 0.50. This is a bad value and indicates that SBAC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SBAC (0.50) is worse than 73.33% of its industry peers.
The Debt to FCF ratio of SBAC is 11.77, which is on the high side as it means it would take SBAC, 11.77 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SBAC (11.77) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.77 | ||
| Altman-Z | 0.5 |
ROIC/WACC1.86
WACC6.91%
2.3 Liquidity
A Current Ratio of 0.50 indicates that SBAC may have some problems paying its short term obligations.
The Current ratio of SBAC (0.50) is worse than 66.67% of its industry peers.
A Quick Ratio of 0.50 indicates that SBAC may have some problems paying its short term obligations.
SBAC has a worse Quick ratio (0.50) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.98% over the past year.
SBAC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.01% yearly.
Looking at the last year, SBAC shows a small growth in Revenue. The Revenue has grown by 4.82% in the last year.
Measured over the past years, SBAC shows a small growth in Revenue. The Revenue has been growing by 5.87% on average per year.
EPS 1Y (TTM)20.98%
EPS 3Y48.25%
EPS 5Y40.01%
EPS Q2Q%-8.33%
Revenue 1Y (TTM)4.82%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%9.7%
3.2 Future
The Earnings Per Share is expected to grow by 9.22% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.24% on average over the next years.
EPS Next Y24.49%
EPS Next 2Y14.93%
EPS Next 3Y10.3%
EPS Next 5Y9.22%
Revenue Next Year5.18%
Revenue Next 2Y3.79%
Revenue Next 3Y3.24%
Revenue Next 5Y4.24%
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
A Price/Earnings ratio of 25.71 indicates a quite expensive valuation of SBAC.
Based on the Price/Earnings ratio, SBAC is valued a bit cheaper than 73.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, SBAC is valued at the same level.
The Price/Forward Earnings ratio is 21.51, 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 80.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. SBAC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 21.51 |
4.2 Price Multiples
SBAC's Enterprise Value to EBITDA is on the same level as the industry average.
73.33% of the companies in the same industry are more expensive than SBAC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.61 | ||
| EV/EBITDA | 18.07 |
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.
PEG (NY)1.05
PEG (5Y)0.64
EPS Next 2Y14.93%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
SBAC has a Yearly Dividend Yield of 2.29%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.29, SBAC pays less dividend than the industry average, which is at 6.26. 90.00% of the companies listed in the same industry pay a better dividend than SBAC!
Compared to an average S&P500 Dividend Yield of 2.44, SBAC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
On average, the dividend of SBAC grows each year by 39.51%, which is quite nice.
SBAC has been paying a dividend for over 5 years, so it has already some track record.
As SBAC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)39.51%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
SBAC pays out 54.40% 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.
DP54.4%
EPS Next 2Y14.93%
EPS Next 3Y10.3%
197.21
+3.26 (+1.68%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.92%
Inst Owner Change-1.47%
Ins Owners0.7%
Ins Owner Change0.04%
Market Cap21.18B
Revenue(TTM)2.79B
Net Income(TTM)856.97M
Analysts75.2
Price Target244.16 (23.81%)
Short Float %1.72%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend3.93
Dividend Growth(5Y)39.51%
DP54.4%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.52%
Min EPS beat(2)-3.21%
Max EPS beat(2)-1.82%
EPS beat(4)0
Avg EPS beat(4)-12.75%
Min EPS beat(4)-23.81%
Max EPS beat(4)-1.82%
EPS beat(8)2
Avg EPS beat(8)-11.06%
EPS beat(12)3
Avg EPS beat(12)-9.43%
EPS beat(16)4
Avg EPS beat(16)-7.32%
Revenue beat(2)2
Avg Revenue beat(2)1.18%
Min Revenue beat(2)0.25%
Max Revenue beat(2)2.11%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)2.11%
Revenue beat(8)2
Avg Revenue beat(8)-1.39%
Revenue beat(12)2
Avg Revenue beat(12)-1.46%
Revenue beat(16)5
Avg Revenue beat(16)-0.9%
PT rev (1m)-4.94%
PT rev (3m)-7.38%
EPS NQ rev (1m)46.11%
EPS NQ rev (3m)46.23%
EPS NY rev (1m)0.39%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 21.51 | ||
| P/S | 7.59 | ||
| P/FCF | 19.61 | ||
| P/OCF | 16.32 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.07 |
EPS(TTM)7.67
EY3.89%
EPS(NY)9.17
Fwd EY4.65%
FCF(TTM)10.06
FCFY5.1%
OCF(TTM)12.08
OCFY6.13%
SpS25.98
BVpS-45.95
TBVpS-71.33
PEG (NY)1.05
PEG (5Y)0.64
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | N/A | ||
| ROCE | 16.31% | ||
| ROIC | 12.88% | ||
| ROICexc | 13.49% | ||
| ROICexgc | 19.15% | ||
| OM | 56.42% | ||
| PM (TTM) | 30.72% | ||
| GM | 76.06% | ||
| FCFM | 38.71% |
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%
ROICexgc growth 3Y18.17%
ROICexgc 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 Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.77 | ||
| Debt/EBITDA | 6.45 | ||
| Cap/Depr | 78.58% | ||
| Cap/Sales | 7.8% | ||
| Interest Coverage | 3.49 | ||
| Cash Conversion | 70.11% | ||
| Profit Quality | 126.01% | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 0.5 |
F-Score6
WACC6.91%
ROIC/WACC1.86
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)20.98%
EPS 3Y48.25%
EPS 5Y40.01%
EPS Q2Q%-8.33%
EPS Next Y24.49%
EPS Next 2Y14.93%
EPS Next 3Y10.3%
EPS Next 5Y9.22%
Revenue 1Y (TTM)4.82%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%9.7%
Revenue Next Year5.18%
Revenue Next 2Y3.79%
Revenue Next 3Y3.24%
Revenue Next 5Y4.24%
EBIT growth 1Y8.35%
EBIT growth 3Y23.01%
EBIT growth 5Y19.96%
EBIT Next Year26.98%
EBIT Next 3Y10.88%
EBIT Next 5Y8.83%
FCF growth 1Y-6.94%
FCF growth 3Y1.57%
FCF growth 5Y6.29%
OCF growth 1Y-7.35%
OCF growth 3Y3.91%
OCF growth 5Y6.59%
SBA COMMUNICATIONS CORP / SBAC FAQ
What is the ChartMill fundamental rating of SBA COMMUNICATIONS CORP (SBAC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SBAC.
What is the valuation status for SBAC stock?
ChartMill assigns a valuation rating of 5 / 10 to SBA COMMUNICATIONS CORP (SBAC). This can be considered as Fairly Valued.
Can you provide the profitability details for SBA COMMUNICATIONS CORP?
SBA COMMUNICATIONS CORP (SBAC) has a profitability rating of 8 / 10.
How financially healthy is SBA COMMUNICATIONS CORP?
The financial health rating of SBA COMMUNICATIONS CORP (SBAC) is 3 / 10.
Is the dividend of SBA COMMUNICATIONS CORP sustainable?
The dividend rating of SBA COMMUNICATIONS CORP (SBAC) is 4 / 10 and the dividend payout ratio is 54.4%.