CROWN CASTLE INC (CCI) Stock Fundamental Analysis
NYSE:CCI - New York Stock Exchange, Inc. - US22822V1017 - REIT - Currency: USD
Overall CCI gets a fundamental rating of 3 out of 10. We evaluated CCI against 30 industry peers in the Specialized REITs industry. CCI has a medium profitability rating, but doesn't score so well on its financial health evaluation. CCI has a expensive valuation and it also scores bad on growth.
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.
Of the past 5 years CCI 4 years were profitable.
CCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CCI has a worse Return On Assets (-14.66%) than 90.00% of its industry peers.
CCI's Return On Invested Capital of 6.30% is fine compared to the rest of the industry. CCI outperforms 73.33% of its industry peers.
CCI had an Average Return On Invested Capital over the past 3 years of 5.58%. This is in line with the industry average of 5.15%.
The 3 year average ROIC (5.58%) for CCI is below the current ROIC(6.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.66% | ||
| ROE | N/A | ||
| ROIC | 6.3% |
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
CCI has a Operating Margin of 40.94%. This is comparable to the rest of the industry: CCI outperforms 60.00% of its industry peers.
CCI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 72.89%, CCI is in line with its industry, outperforming 53.33% of the companies in the same industry.
In the last couple of years the Gross Margin of CCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.94% | ||
| PM (TTM) | N/A | ||
| GM | 72.89% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CCI is destroying value.
CCI has more shares outstanding than it did 1 year ago.
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 0.24. 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 (0.24) is worse than 83.33% of its industry peers.
The Debt to FCF ratio of CCI is 10.14, which is on the high side as it means it would take CCI, 10.14 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.14, CCI is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.14 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.85
WACC7.37%
2.3 Liquidity
A Current Ratio of 0.28 indicates that CCI may have some problems paying its short term obligations.
With a Current ratio value of 0.28, CCI is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.28 indicates that CCI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.28, CCI is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
CCI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.26%.
CCI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.20% yearly.
Looking at the last year, CCI shows a very negative growth in Revenue. The Revenue has decreased by -17.95% in the last year.
Measured over the past years, CCI shows a small growth in Revenue. The Revenue has been growing by 2.65% on average per year.
EPS 1Y (TTM)-73.26%
EPS 3Y-3.22%
EPS 5Y4.2%
EPS Q2Q%15.52%
Revenue 1Y (TTM)-17.95%
Revenue growth 3Y1.18%
Revenue growth 5Y2.65%
Sales Q2Q%-34.81%
3.2 Future
CCI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.23% yearly.
The Revenue is expected to decrease by -4.68% on average over the next years.
EPS Next Y-66.71%
EPS Next 2Y9.24%
EPS Next 3Y11.44%
EPS Next 5Y20.23%
Revenue Next Year-35.49%
Revenue Next 2Y-18.48%
Revenue Next 3Y-11.84%
Revenue Next 5Y-4.68%
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
Based on the Price/Earnings ratio of 140.82, the valuation of CCI can be described as expensive.
Based on the Price/Earnings ratio, CCI is valued a bit more expensive than 73.33% of the companies in the same industry.
CCI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.76.
The Price/Forward Earnings ratio is 35.60, which means the current valuation is very expensive for CCI.
CCI's Price/Forward Earnings ratio is in line with the industry average.
CCI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 140.82 | ||
| Fwd PE | 35.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CCI indicates a slightly more expensive valuation: CCI is more expensive than 66.67% of the companies listed in the same industry.
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 | 18.68 | ||
| EV/EBITDA | 20.05 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)33.52
EPS Next 2Y9.24%
EPS Next 3Y11.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.21%, CCI is a good candidate for dividend investing.
CCI's Dividend Yield is slightly below the industry average, which is at 6.03.
Compared to an average S&P500 Dividend Yield of 2.36, CCI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
The dividend of CCI has a limited annual growth rate of 5.20%.
CCI has been paying a dividend for at least 10 years, so it has a reliable track record.
CCI has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of CCI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-54.2%
EPS Next 2Y9.24%
EPS Next 3Y11.44%
102.8
-0.06 (-0.06%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.02%
Inst Owner Change-2.52%
Ins Owners0.09%
Ins Owner Change0.17%
Market Cap44.77B
Analysts72.31
Price Target120.37 (17.09%)
Short Float %1.08%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend6.28
Dividend Growth(5Y)5.2%
DP-54.2%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-75.75%
Min EPS beat(2)-172.34%
Max EPS beat(2)20.85%
EPS beat(4)2
Avg EPS beat(4)-37.2%
Min EPS beat(4)-172.34%
Max EPS beat(4)20.85%
EPS beat(8)4
Avg EPS beat(8)-19.88%
EPS beat(12)5
Avg EPS beat(12)-13.2%
EPS beat(16)9
Avg EPS beat(16)-9.25%
Revenue beat(2)2
Avg Revenue beat(2)0.95%
Min Revenue beat(2)0.95%
Max Revenue beat(2)0.95%
Revenue beat(4)3
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-0.42%
Max Revenue beat(4)0.95%
Revenue beat(8)3
Avg Revenue beat(8)-0.2%
Revenue beat(12)4
Avg Revenue beat(12)-0.22%
Revenue beat(16)7
Avg Revenue beat(16)-0.05%
PT rev (1m)3.91%
PT rev (3m)3.95%
EPS NQ rev (1m)1.35%
EPS NQ rev (3m)-14.25%
EPS NY rev (1m)0%
EPS NY rev (3m)2.75%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-34.94%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 140.82 | ||
| Fwd PE | 35.6 | ||
| P/S | 8.26 | ||
| P/FCF | 18.68 | ||
| P/OCF | 14.68 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.05 |
EPS(TTM)0.73
EY0.71%
EPS(NY)2.89
Fwd EY2.81%
FCF(TTM)5.5
FCFY5.35%
OCF(TTM)7
OCFY6.81%
SpS12.45
BVpS-3.17
TBVpS-17.13
PEG (NY)N/A
PEG (5Y)33.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.66% | ||
| ROE | N/A | ||
| ROCE | 7.98% | ||
| ROIC | 6.3% | ||
| ROICexc | 6.32% | ||
| ROICexgc | 8.1% | ||
| OM | 40.94% | ||
| PM (TTM) | N/A | ||
| GM | 72.89% | ||
| FCFM | 44.19% |
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-Score4
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.14 | ||
| Debt/EBITDA | 6.4 | ||
| Cap/Depr | 53.48% | ||
| Cap/Sales | 12.04% | ||
| Interest Coverage | 2.38 | ||
| Cash Conversion | 88.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 0.24 |
F-Score4
WACC7.37%
ROIC/WACC0.85
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)-73.26%
EPS 3Y-3.22%
EPS 5Y4.2%
EPS Q2Q%15.52%
EPS Next Y-66.71%
EPS Next 2Y9.24%
EPS Next 3Y11.44%
EPS Next 5Y20.23%
Revenue 1Y (TTM)-17.95%
Revenue growth 3Y1.18%
Revenue growth 5Y2.65%
Sales Q2Q%-34.81%
Revenue Next Year-35.49%
Revenue Next 2Y-18.48%
Revenue Next 3Y-11.84%
Revenue Next 5Y-4.68%
EBIT growth 1Y-1.68%
EBIT growth 3Y4.02%
EBIT growth 5Y7.43%
EBIT Next Year29.08%
EBIT Next 3Y12.38%
EBIT Next 5Y11.92%
FCF growth 1Y31.65%
FCF growth 3Y4.73%
FCF growth 5Y21.84%
OCF growth 1Y-6.64%
OCF growth 3Y2.57%
OCF growth 5Y1.75%