SBA COMMUNICATIONS CORP (SBAC)
US78410G1040 - REIT
We assign a fundamental rating of 5 out of 10 to SBAC. SBAC was compared to 28 industry peers in the Specialized REITs industry. SBAC scores excellent on profitability, but there are concerns on its financial health. SBAC has a decent growth rate and is not valued too expensively.
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.
SBAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SBAC (6.72%) is better than 92.86% of its industry peers.
With an excellent Return On Invested Capital value of 13.57%, SBAC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
In the last couple of years the Profit Margin of SBAC has grown nicely.
SBAC's Operating Margin of 54.59% is amongst the best of 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.
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 | 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.
The number of shares outstanding for SBAC remains at a similar level compared to 1 year ago.
SBAC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SBAC has been reduced compared to a year ago.
2.2 Solvency
SBAC has an Altman-Z score of 0.54. This is a bad value and indicates that SBAC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.54, SBAC is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
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.
SBAC's Debt to FCF ratio of 10.08 is fine compared to the rest of the industry. SBAC outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.08 | ||
| Altman-Z | 0.54 |
ROIC/WACC1.98
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.67 indicates that SBAC may have some problems paying its short term obligations.
SBAC has a Current ratio of 0.67. This is comparable to the rest of the industry: SBAC outperforms 53.57% of its industry peers.
A Quick Ratio of 0.67 indicates that SBAC may have some problems paying its short term obligations.
SBAC has a Quick ratio (0.67) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
SBAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.65%, 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 62.25% on average per year.
SBAC shows a decrease in Revenue. In the last year, the revenue decreased by -2.26%.
SBAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.76% yearly.
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
Based on estimates for the next years, SBAC will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.16% on average per year.
Based on estimates for the next years, SBAC will show a small growth in Revenue. The Revenue will grow by 4.42% on average per year.
EPS Next Y64.02%
EPS Next 2Y41.49%
EPS Next 3Y27.94%
EPS Next 5Y18.16%
Revenue Next Year-1.77%
Revenue Next 2Y0.54%
Revenue Next 3Y1.86%
Revenue Next 5Y4.42%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SBAC is valuated quite expensively with a Price/Earnings ratio of 31.38.
The rest of the industry has a similar Price/Earnings ratio as SBAC.
SBAC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.48, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.55, the valuation of SBAC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SBAC is valued a bit cheaper than 75.00% 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 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.38 | ||
| Fwd PE | 21.55 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SBAC.
SBAC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SBAC is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.5 | ||
| EV/EBITDA | 18.49 |
4.3 Compensation for Growth
SBAC's 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 27.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)0.5
EPS Next 2Y41.49%
EPS Next 3Y27.94%
5. Dividend
5.1 Amount
SBAC has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.96, SBAC pays less dividend than the industry average, which is at 4.85. 89.29% of the companies listed in the same industry pay a better dividend than SBAC!
Compared to an average S&P500 Dividend Yield of 2.33, SBAC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
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)N/A
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
59.90% of the earnings are spent on dividend by SBAC. This is a bit on the high side, but may be sustainable.
DP59.9%
EPS Next 2Y41.49%
EPS Next 3Y27.94%
SBA COMMUNICATIONS CORP
NASDAQ:SBAC (1/6/2025, 4:34:51 PM)
After market: 198.93 0 (0%)198.93
-2.87 (-1.42%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.79%
Inst Owner Change0%
Ins Owners0.73%
Ins Owner Change-12.63%
Market Cap21.39B
Analysts78.33
Price Target264.4 (32.91%)
Short Float %1.21%
Short Ratio1.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Dividend Growth(5Y)N/A
DP59.9%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-12.36%
Min EPS beat(2)-28.52%
Max EPS beat(2)3.8%
EPS beat(4)2
Avg EPS beat(4)-9.37%
Min EPS beat(4)-28.52%
Max EPS beat(4)15.05%
EPS beat(8)3
Avg EPS beat(8)-7.77%
EPS beat(12)4
Avg EPS beat(12)-5.5%
EPS beat(16)6
Avg EPS beat(16)-4.55%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-2.29%
Revenue beat(4)0
Avg Revenue beat(4)-2.91%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)-2.29%
Revenue beat(8)0
Avg Revenue beat(8)-2.26%
Revenue beat(12)3
Avg Revenue beat(12)-1.24%
Revenue beat(16)5
Avg Revenue beat(16)-0.92%
PT rev (1m)-1.04%
PT rev (3m)5.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.38 | ||
| Fwd PE | 21.55 | ||
| P/S | 8.04 | ||
| P/FCF | 17.5 | ||
| P/OCF | 14.68 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.49 |
EPS(TTM)6.34
EY3.19%
EPS(NY)9.23
Fwd EY4.64%
FCF(TTM)11.37
FCFY5.71%
OCF(TTM)13.55
OCFY6.81%
SpS24.75
BVpS-48.13
TBVpS-71.31
PEG (NY)0.49
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | N/A | ||
| ROCE | 15.24% | ||
| ROIC | 13.57% | ||
| ROICexc | 13.86% | ||
| ROICexgc | 18.92% | ||
| OM | 54.59% | ||
| PM (TTM) | 25.76% | ||
| GM | 78.43% | ||
| FCFM | 45.92% |
ROA(3y)3.9%
ROA(5y)2.7%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.47%
ROIC(5y)8.41%
ROICexc(3y)9.72%
ROICexc(5y)8.63%
ROICexgc(3y)13.78%
ROICexgc(5y)12.95%
ROCE(3y)10.63%
ROCE(5y)9.44%
ROICexcg growth 3Y10.06%
ROICexcg growth 5Y-4.63%
ROICexc growth 3Y15.61%
ROICexc growth 5Y5.47%
OM growth 3Y7.45%
OM growth 5Y5.67%
PM growth 3Y151.96%
PM growth 5Y48.69%
GM growth 3Y0.12%
GM growth 5Y0.67%
F-Score7
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.08 | ||
| Debt/EBITDA | 6.73 | ||
| Cap/Depr | 62.6% | ||
| Cap/Sales | 8.84% | ||
| Interest Coverage | 3.77 | ||
| Cash Conversion | 79.7% | ||
| Profit Quality | 178.28% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 0.54 |
F-Score7
WACC6.85%
ROIC/WACC1.98
Cap/Depr(3y)27.48%
Cap/Depr(5y)24.47%
Cap/Sales(3y)7.55%
Cap/Sales(5y)7.3%
Profit Quality(3y)312.44%
Profit Quality(5y)1126.17%
High Growth Momentum
Growth
EPS 1Y (TTM)39.65%
EPS 3Y43.2%
EPS 5Y62.25%
EPS Q2Q%200%
EPS Next Y64.02%
EPS Next 2Y41.49%
EPS Next 3Y27.94%
EPS Next 5Y18.16%
Revenue 1Y (TTM)-2.26%
Revenue growth 3Y9.19%
Revenue growth 5Y7.76%
Sales Q2Q%-2.19%
Revenue Next Year-1.77%
Revenue Next 2Y0.54%
Revenue Next 3Y1.86%
Revenue Next 5Y4.42%
EBIT growth 1Y34.11%
EBIT growth 3Y17.32%
EBIT growth 5Y13.87%
EBIT Next Year77.67%
EBIT Next 3Y24.41%
EBIT Next 5Y17.8%
FCF growth 1Y10.68%
FCF growth 3Y9.45%
FCF growth 5Y13.29%
OCF growth 1Y12.47%
OCF growth 3Y11.11%
OCF growth 5Y12.67%