SBA COMMUNICATIONS CORP (SBAC) Stock Fundamental Analysis
USA - NASDAQ:SBAC - US78410G1040 - REIT
197.4 USD
+2.65 (+1.36%)
197.4 USD
0 (0%)
Overall SBAC gets a fundamental rating of 5 out of 10. We evaluated SBAC against 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 is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years SBAC has always been profitable.
In the past 5 years SBAC always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.16%, SBAC belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
SBAC has a Return On Invested Capital of 13.27%. This is amongst the best in the industry. SBAC outperforms 100.00% 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 4.81%.
The last Return On Invested Capital (13.27%) for SBAC is above the 3 year average (10.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | N/A | ||
| ROIC | 13.27% |
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 Profit Margin of 32.25%. This is in the better half of the industry: SBAC outperforms 76.67% of its industry peers.
In the last couple of years the Profit Margin of SBAC has grown nicely.
SBAC has a better Operating Margin (57.54%) than 90.00% of its industry peers.
SBAC's Operating Margin has improved in the last couple of years.
The Gross Margin of SBAC (76.94%) is better than 66.67% 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 | 57.54% | ||
| PM (TTM) | 32.25% | ||
| GM | 76.94% |
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) well above the Cost of Capital (WACC), SBAC is creating value.
Compared to 1 year ago, SBAC has less shares outstanding
SBAC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SBAC has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.50, we must say that SBAC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.50, SBAC is doing worse than 73.33% of the companies in the same industry.
The Debt to FCF ratio of SBAC is 11.78, which is on the high side as it means it would take SBAC, 11.78 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SBAC (11.78) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.78 | ||
| Altman-Z | 0.5 |
ROIC/WACC1.92
WACC6.9%
2.3 Liquidity
A Current Ratio of 0.37 indicates that SBAC may have some problems paying its short term obligations.
The Current ratio of SBAC (0.37) is worse than 73.33% of its industry peers.
A Quick Ratio of 0.37 indicates that SBAC may have some problems paying its short term obligations.
SBAC has a worse Quick ratio (0.37) than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
SBAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.98%, which is quite impressive.
The Earnings Per Share has been growing by 40.01% on average over the past years. This is a very strong growth
The Revenue has decreased by -1.18% in the past year.
The Revenue has been growing slightly by 5.87% on average over the past years.
EPS 1Y (TTM)20.98%
EPS 3Y48.25%
EPS 5Y40.01%
EPS Q2Q%-8.33%
Revenue 1Y (TTM)-1.18%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%9.7%
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 9.22% on average per year.
Based on estimates for the next years, SBAC will show a small growth in Revenue. The Revenue will grow by 4.24% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
SBAC is valuated quite expensively with a Price/Earnings ratio of 25.74.
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 25.83, SBAC is valued at the same level.
A Price/Forward Earnings ratio of 21.53 indicates a rather expensive valuation of SBAC.
Based on the Price/Forward Earnings ratio, SBAC is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
SBAC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.74 | ||
| Fwd PE | 21.53 |
4.2 Price Multiples
SBAC's Enterprise Value to EBITDA is on the same level as the industry average.
70.00% 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 | 19.96 | ||
| EV/EBITDA | 18.25 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of SBAC 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 2.28%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.28, SBAC pays less dividend than the industry average, which is at 6.28. 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 2.37, SBAC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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.
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
51.48% of the earnings are spent on dividend by SBAC. 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.
DP51.48%
EPS Next 2Y14.93%
EPS Next 3Y10.3%
197.4
+2.65 (+1.36%)
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-0.58%
Ins Owners0.7%
Ins Owner Change0.04%
Market Cap21.20B
Revenue(TTM)2.68B
Net Income(TTM)878.69M
Analysts75.2
Price Target244.16 (23.69%)
Short Float %1.72%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
Yearly Dividend3.93
Dividend Growth(5Y)39.51%
DP51.48%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.69%
Min EPS beat(2)-22.17%
Max EPS beat(2)-3.21%
EPS beat(4)1
Avg EPS beat(4)-11.35%
Min EPS beat(4)-23.81%
Max EPS beat(4)3.8%
EPS beat(8)2
Avg EPS beat(8)-15.09%
EPS beat(12)3
Avg EPS beat(12)-9.74%
EPS beat(16)4
Avg EPS beat(16)-10.27%
Revenue beat(2)1
Avg Revenue beat(2)0.24%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)2.11%
Revenue beat(4)1
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)2.11%
Revenue beat(8)1
Avg Revenue beat(8)-1.62%
Revenue beat(12)2
Avg Revenue beat(12)-1.34%
Revenue beat(16)5
Avg Revenue beat(16)-0.9%
PT rev (1m)-4.94%
PT rev (3m)-7.38%
EPS NQ rev (1m)0.71%
EPS NQ rev (3m)-0.41%
EPS NY rev (1m)0.39%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)2.94%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.74 | ||
| Fwd PE | 21.53 | ||
| P/S | 7.78 | ||
| P/FCF | 19.96 | ||
| P/OCF | 16.51 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.25 |
EPS(TTM)7.67
EY3.89%
EPS(NY)9.17
Fwd EY4.64%
FCF(TTM)9.89
FCFY5.01%
OCF(TTM)11.96
OCFY6.06%
SpS25.37
BVpS-45.99
TBVpS-70.02
PEG (NY)1.05
PEG (5Y)0.64
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | N/A | ||
| ROCE | 16.79% | ||
| ROIC | 13.27% | ||
| ROICexc | 13.67% | ||
| ROICexgc | 19.11% | ||
| OM | 57.54% | ||
| PM (TTM) | 32.25% | ||
| GM | 76.94% | ||
| FCFM | 38.97% |
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 | 11.78 | ||
| Debt/EBITDA | 6.41 | ||
| Cap/Depr | 84.35% | ||
| Cap/Sales | 8.16% | ||
| Interest Coverage | 3.79 | ||
| Cash Conversion | 70.12% | ||
| Profit Quality | 120.83% | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 0.5 |
F-Score6
WACC6.9%
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)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)-1.18%
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 1Y16.46%
EBIT growth 3Y23.01%
EBIT growth 5Y19.96%
EBIT Next Year26.98%
EBIT Next 3Y10.88%
EBIT Next 5Y8.83%
FCF growth 1Y-10.26%
FCF growth 3Y1.57%
FCF growth 5Y6.29%
OCF growth 1Y-9.52%
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 51.48%.