CROWN CASTLE INC (CCI) Stock Fundamental Analysis
NYSE:CCI - New York Stock Exchange, Inc. - US22822V1017 - REIT - Currency: USD
CCI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. There are concerns on the financial health of CCI while its profitability can be described as average. CCI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CCI had positive earnings in the past year.
In the past year CCI had a positive cash flow from operations.
CCI had positive earnings in 4 of the past 5 years.
In the past 5 years CCI always reported a positive cash flow from operatings.
1.2 Ratios
CCI has a Return On Assets of -14.73%. This is amonst the worse of the industry: CCI underperforms 90.00% of its industry peers.
CCI's Return On Invested Capital of 6.16% is fine compared to the rest of the industry. CCI outperforms 73.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CCI is in line with the industry average of 5.28%.
The last Return On Invested Capital (6.16%) for CCI is above the 3 year average (5.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.73% | ||
| ROE | N/A | ||
| ROIC | 6.16% |
ROA(3y)-1.24%
ROA(5y)0.33%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.58%
ROIC(5y)5.04%
1.3 Margins
The Operating Margin of CCI (37.49%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CCI has grown nicely.
CCI has a Gross Margin of 72.43%. This is comparable to the rest of the industry: CCI outperforms 53.33% of its industry peers.
CCI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.49% | ||
| PM (TTM) | N/A | ||
| GM | 72.43% |
OM growth 3Y2.8%
OM growth 5Y4.66%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.59%
GM growth 5Y1.86%
2. Health
2.1 Basic Checks
CCI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CCI has more shares outstanding
Compared to 5 years ago, CCI has more shares outstanding
CCI has a worse debt/assets ratio than last year.
2.2 Solvency
CCI has an Altman-Z score of 0.30. This is a bad value and indicates that CCI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CCI (0.30) is worse than 86.67% of its industry peers.
CCI has a debt to FCF ratio of 11.93. This is a negative value and a sign of low solvency as CCI would need 11.93 years to pay back of all of its debts.
CCI has a better Debt to FCF ratio (11.93) than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.93 | ||
| Altman-Z | 0.3 |
ROIC/WACC0.84
WACC7.34%
2.3 Liquidity
A Current Ratio of 0.37 indicates that CCI may have some problems paying its short term obligations.
CCI has a worse Current ratio (0.37) than 76.67% of its industry peers.
CCI has a Quick Ratio of 0.37. This is a bad value and indicates that CCI is not financially healthy enough and could expect problems in meeting its short term obligations.
CCI has a Quick ratio of 0.37. This is in the lower half of the industry: CCI underperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for CCI have decreased strongly by -80.00% in the last year.
Measured over the past 5 years, CCI shows a small growth in Earnings Per Share. The EPS has been growing by 4.20% on average per year.
Looking at the last year, CCI shows a very negative growth in Revenue. The Revenue has decreased by -12.57% in the last year.
The Revenue has been growing slightly by 2.65% on average over the past years.
EPS 1Y (TTM)-80%
EPS 3Y-3.22%
EPS 5Y4.2%
EPS Q2Q%-250.7%
Revenue 1Y (TTM)-12.57%
Revenue growth 3Y1.18%
Revenue growth 5Y2.65%
Sales Q2Q%-35.34%
3.2 Future
Based on estimates for the next years, CCI will show a very strong growth in Earnings Per Share. The EPS will grow by 20.03% on average per year.
The Revenue is expected to decrease by -4.61% on average over the next years.
EPS Next Y-65.58%
EPS Next 2Y9.43%
EPS Next 3Y11.42%
EPS Next 5Y20.03%
Revenue Next Year-35.67%
Revenue Next 2Y-18.56%
Revenue Next 3Y-12.01%
Revenue Next 5Y-4.61%
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 accelerating.
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 160.81 indicates a quite expensive valuation of CCI.
Based on the Price/Earnings ratio, CCI is valued a bit more expensive than 70.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CCI to the average of the S&P500 Index (27.45), we can say CCI is valued expensively.
Based on the Price/Forward Earnings ratio of 35.51, the valuation of CCI can be described as expensive.
CCI's Price/Forward Earnings ratio is in line with the industry average.
CCI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 160.81 | ||
| Fwd PE | 35.51 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CCI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CCI indicates a somewhat cheap valuation: CCI is cheaper than 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.94 | ||
| EV/EBITDA | 18.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)38.28
EPS Next 2Y9.43%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
CCI has a Yearly Dividend Yield of 4.24%, which is a nice return.
CCI's Dividend Yield is slightly below the industry average, which is at 5.88.
Compared to an average S&P500 Dividend Yield of 2.42, CCI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
5.2 History
The dividend of CCI has a limited annual growth rate of 5.20%.
CCI has paid a dividend for at least 10 years, which is a reliable track record.
CCI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.2%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
CCI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
CCI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-58.38%
EPS Next 2Y9.43%
EPS Next 3Y11.42%
102.92
-0.25 (-0.24%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.42%
Inst Owner Change4.1%
Ins Owners0.09%
Ins Owner Change0.9%
Market Cap44.82B
Analysts71.54
Price Target115.84 (12.55%)
Short Float %1.58%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
Yearly Dividend6.28
Dividend Growth(5Y)5.2%
DP-58.38%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-116.33%
Min EPS beat(2)-231.25%
Max EPS beat(2)-1.41%
EPS beat(4)2
Avg EPS beat(4)-56.15%
Min EPS beat(4)-231.25%
Max EPS beat(4)4.08%
EPS beat(8)3
Avg EPS beat(8)-29.97%
EPS beat(12)5
Avg EPS beat(12)-19.83%
EPS beat(16)9
Avg EPS beat(16)-13.62%
Revenue beat(2)1
Avg Revenue beat(2)0.26%
Min Revenue beat(2)-0.42%
Max Revenue beat(2)0.95%
Revenue beat(4)2
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-0.42%
Max Revenue beat(4)0.95%
Revenue beat(8)2
Avg Revenue beat(8)-0.38%
Revenue beat(12)4
Avg Revenue beat(12)-0.27%
Revenue beat(16)7
Avg Revenue beat(16)-0.09%
PT rev (1m)0.03%
PT rev (3m)5.9%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)94.53%
EPS NY rev (1m)6.25%
EPS NY rev (3m)-11.61%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-34.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 160.81 | ||
| Fwd PE | 35.51 | ||
| P/S | 7.48 | ||
| P/FCF | 21.94 | ||
| P/OCF | 15.01 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.58 |
EPS(TTM)0.64
EY0.62%
EPS(NY)2.9
Fwd EY2.82%
FCF(TTM)4.69
FCFY4.56%
OCF(TTM)6.85
OCFY6.66%
SpS13.75
BVpS-2.88
TBVpS-16.93
PEG (NY)N/A
PEG (5Y)38.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.73% | ||
| ROE | N/A | ||
| ROCE | 7.79% | ||
| ROIC | 6.16% | ||
| ROICexc | 6.17% | ||
| ROICexgc | 7.84% | ||
| OM | 37.49% | ||
| PM (TTM) | N/A | ||
| GM | 72.43% | ||
| FCFM | 34.12% |
ROA(3y)-1.24%
ROA(5y)0.33%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.58%
ROIC(5y)5.04%
ROICexc(3y)5.6%
ROICexc(5y)5.07%
ROICexgc(3y)8.46%
ROICexgc(5y)7.89%
ROCE(3y)7.06%
ROCE(5y)6.39%
ROICexcg growth 3Y4.12%
ROICexcg growth 5Y6.36%
ROICexc growth 3Y10.73%
ROICexc growth 5Y11.31%
OM growth 3Y2.8%
OM growth 5Y4.66%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.59%
GM growth 5Y1.86%
F-Score5
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.93 | ||
| Debt/EBITDA | 6.15 | ||
| Cap/Depr | 63.82% | ||
| Cap/Sales | 15.73% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 80.22% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 0.3 |
F-Score5
WACC7.34%
ROIC/WACC0.84
Cap/Depr(3y)76.08%
Cap/Depr(5y)80.8%
Cap/Sales(3y)19.25%
Cap/Sales(5y)20.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-80%
EPS 3Y-3.22%
EPS 5Y4.2%
EPS Q2Q%-250.7%
EPS Next Y-65.58%
EPS Next 2Y9.43%
EPS Next 3Y11.42%
EPS Next 5Y20.03%
Revenue 1Y (TTM)-12.57%
Revenue growth 3Y1.18%
Revenue growth 5Y2.65%
Sales Q2Q%-35.34%
Revenue Next Year-35.67%
Revenue Next 2Y-18.56%
Revenue Next 3Y-12.01%
Revenue Next 5Y-4.61%
EBIT growth 1Y-7.04%
EBIT growth 3Y4.02%
EBIT growth 5Y7.43%
EBIT Next Year28.08%
EBIT Next 3Y11.89%
EBIT Next 5Y12.55%
FCF growth 1Y31.38%
FCF growth 3Y4.73%
FCF growth 5Y21.84%
OCF growth 1Y2.05%
OCF growth 3Y2.57%
OCF growth 5Y1.75%