SBA COMMUNICATIONS CORP (SBAC) Stock Fundamental Analysis
NASDAQ:SBAC - Nasdaq - US78410G1040 - REIT - Currency: USD
Taking everything into account, SBAC scores 5 out of 10 in our fundamental rating. SBAC was compared to 29 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
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
SBAC's Return On Assets of 6.72% is amongst the best of the industry. SBAC outperforms 89.29% 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.
The Average Return On Invested Capital over the past 3 years for SBAC is above the industry average of 5.41%.
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
SBAC has a Profit Margin of 25.76%. This is in the better half of the industry: SBAC outperforms 71.43% 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 54.59%, SBAC belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
SBAC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 78.43%, SBAC is in the better half of the industry, outperforming 64.29% 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 | 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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SBAC has about the same amount of shares outstanding.
Compared to 5 years ago, SBAC has less shares outstanding
SBAC has a better debt/assets ratio than last year.
2.2 Solvency
SBAC has an Altman-Z score of 0.57. 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 (0.57) is worse than 75.00% of its industry peers.
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 | 0.57 |
ROIC/WACC1.78
WACC7.64%
2.3 Liquidity
A Current Ratio of 0.67 indicates that SBAC may have some problems paying its short term obligations.
The Current ratio of SBAC (0.67) is better than 60.71% of its industry peers.
SBAC has a Quick Ratio of 0.67. This is a bad value and indicates that SBAC is not financially healthy enough and could expect problems in meeting its short term obligations.
SBAC has a better Quick ratio (0.67) than 60.71% of 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.
The Earnings Per Share has been growing by 62.25% 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 -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 Y64.16%
EPS Next 2Y40.33%
EPS Next 3Y27%
EPS Next 5Y18.16%
Revenue Next Year-1.84%
Revenue Next 2Y0.11%
Revenue Next 3Y1.7%
Revenue Next 5Y4.42%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.60, which means the current valuation is very expensive for SBAC.
SBAC's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. SBAC is around the same levels.
The Price/Forward Earnings ratio is 23.46, 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 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SBAC to the average of the S&P500 Index (22.68), we can say SBAC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.6 | ||
| Fwd PE | 23.46 |
4.2 Price Multiples
64.29% of the companies in the same industry are cheaper than SBAC, based on the Enterprise Value to EBITDA ratio.
71.43% 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 | 18.74 | ||
| EV/EBITDA | 18.97 |
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 27.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)0.54
EPS Next 2Y40.33%
EPS Next 3Y27%
5. Dividend
5.1 Amount
SBAC has a Yearly Dividend Yield of 1.87%.
With a Dividend Yield of 1.87, SBAC pays less dividend than the industry average, which is at 4.50. 92.86% of the companies listed in the same industry pay a better dividend than SBAC!
Compared to an average S&P500 Dividend Yield of 2.29, SBAC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
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)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 2Y40.33%
EPS Next 3Y27%
213
+2.97 (+1.41%)
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 Change3.93%
Ins Owners0.74%
Ins Owner Change2.25%
Market Cap22.90B
Analysts78.4
Price Target251.69 (18.16%)
Short Float %1.8%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Yearly Dividend3.42
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)-2.83%
PT rev (3m)-1.43%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.6 | ||
| Fwd PE | 23.46 | ||
| P/S | 8.61 | ||
| P/FCF | 18.74 | ||
| P/OCF | 15.72 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.97 |
EPS(TTM)6.34
EY2.98%
EPS(NY)9.08
Fwd EY4.26%
FCF(TTM)11.37
FCFY5.34%
OCF(TTM)13.55
OCFY6.36%
SpS24.75
BVpS-48.13
TBVpS-71.31
PEG (NY)0.52
PEG (5Y)0.54
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 | 0.57 |
F-Score7
WACC7.64%
ROIC/WACC1.78
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 Y64.16%
EPS Next 2Y40.33%
EPS Next 3Y27%
EPS Next 5Y18.16%
Revenue 1Y (TTM)-2.26%
Revenue growth 3Y9.19%
Revenue growth 5Y7.76%
Sales Q2Q%-2.19%
Revenue Next Year-1.84%
Revenue Next 2Y0.11%
Revenue Next 3Y1.7%
Revenue Next 5Y4.42%
EBIT growth 1Y34.11%
EBIT growth 3Y17.32%
EBIT growth 5Y13.87%
EBIT Next Year77.85%
EBIT Next 3Y24.07%
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%