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. While CCI is still in line with the averages on profitability rating, there are concerns on its financial health. CCI does not seem to be growing, but still is valued expensively. Finally CCI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CCI had positive earnings in the past year.
CCI had a positive operating cash flow in the past year.
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
With a Return On Assets value of -14.73%, CCI is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
CCI has a Return On Invested Capital of 6.16%. This is in the better half 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 3 year average ROIC (5.58%) for CCI is below the current ROIC(6.16%), indicating increased profibility in the last year.
| 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
CCI has a Operating Margin (37.49%) which is comparable to the rest of the industry.
CCI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 72.43%, CCI is in line with its industry, outperforming 53.33% of the companies in the same industry.
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.
CCI has more shares outstanding than it did 1 year ago.
CCI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CCI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.30, we must say that CCI is in the distress zone and 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.
With a decent Debt to FCF ratio value of 11.93, CCI is doing good in the industry, outperforming 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.93 | ||
| Altman-Z | 0.3 |
ROIC/WACC0.83
WACC7.41%
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 worse Quick ratio (0.37) than 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.
CCI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.57%.
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)-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
CCI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.42% yearly.
CCI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.61% yearly.
EPS Next Y-67.6%
EPS Next 2Y9.18%
EPS Next 3Y10.99%
EPS Next 5Y18.42%
Revenue Next Year-35.81%
Revenue Next 2Y-18.67%
Revenue Next 3Y-12.16%
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
Based on the Price/Earnings ratio of 160.81, the valuation of CCI can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CCI indicates a slightly more expensive valuation: CCI is more expensive than 73.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CCI to the average of the S&P500 Index (26.60), we can say CCI is valued expensively.
A Price/Forward Earnings ratio of 35.68 indicates a quite expensive valuation of CCI.
CCI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, CCI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 160.81 | ||
| Fwd PE | 35.68 |
4.2 Price Multiples
CCI's Enterprise Value to EBITDA ratio is in line with the industry average.
CCI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CCI is cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.94 | ||
| EV/EBITDA | 18.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)38.28
EPS Next 2Y9.18%
EPS Next 3Y10.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.21%, CCI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.67, CCI pays a better dividend. On top of this CCI pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CCI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.2%
Div Incr Years9
Div Non Decr Years10
5.3 Sustainability
The earnings of CCI are negative and hence is the payout ratio. CCI will probably not be able to sustain this dividend level.
CCI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-58.38%
EPS Next 2Y9.18%
EPS Next 3Y10.99%
102.92
-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 Owners94.64%
Inst Owner Change4%
Ins Owners0.09%
Ins Owner Change0.9%
Market Cap44.81B
Analysts70.4
Price Target115.8 (12.51%)
Short Float %1.35%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
Yearly Dividend6.28
Dividend Growth(5Y)5.2%
DP-58.38%
Div Incr Years9
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)2.55%
PT rev (3m)3.76%
EPS NQ rev (1m)93.61%
EPS NQ rev (3m)-11.2%
EPS NY rev (1m)-8.7%
EPS NY rev (3m)-71.15%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-34.83%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)-34.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 160.81 | ||
| Fwd PE | 35.68 | ||
| P/S | 7.48 | ||
| P/FCF | 21.94 | ||
| P/OCF | 15.01 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.59 |
EPS(TTM)0.64
EY0.62%
EPS(NY)2.88
Fwd EY2.8%
FCF(TTM)4.69
FCFY4.56%
OCF(TTM)6.86
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
WACC7.41%
ROIC/WACC0.83
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-67.6%
EPS Next 2Y9.18%
EPS Next 3Y10.99%
EPS Next 5Y18.42%
Revenue 1Y (TTM)-12.57%
Revenue growth 3Y1.18%
Revenue growth 5Y2.65%
Sales Q2Q%-35.34%
Revenue Next Year-35.81%
Revenue Next 2Y-18.67%
Revenue Next 3Y-12.16%
Revenue Next 5Y-4.61%
EBIT growth 1Y-7.04%
EBIT growth 3Y4.02%
EBIT growth 5Y7.43%
EBIT Next Year28.03%
EBIT Next 3Y12.56%
EBIT Next 5Y12.56%
FCF growth 1Y31.38%
FCF growth 3Y4.73%
FCF growth 5Y21.84%
OCF growth 1Y2.05%
OCF growth 3Y2.57%
OCF growth 5Y1.75%