SBA COMMUNICATIONS CORP (SBAC) Stock Fundamental Analysis
NASDAQ:SBAC - Nasdaq - US78410G1040 - REIT - Currency: USD
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 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.
SBAC had positive earnings in each of the past 5 years.
Each year in the past 5 years SBAC had a positive operating cash flow.
1.2 Ratios
SBAC's Return On Assets of 7.81% is amongst the best of the industry. SBAC outperforms 93.33% of its industry peers.
The Return On Invested Capital of SBAC (13.67%) is better than 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 5.28%.
The 3 year average ROIC (10.28%) for SBAC is below the current ROIC(13.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | N/A | ||
| ROIC | 13.67% |
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's Profit Margin of 30.37% is fine compared to the rest of the industry. SBAC outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of SBAC has grown nicely.
SBAC's Operating Margin of 58.62% is amongst the best of the industry. SBAC outperforms 90.00% of its industry peers.
In the last couple of years the Operating Margin of SBAC has grown nicely.
SBAC's Gross Margin of 77.76% is fine compared to the rest of the industry. SBAC outperforms 66.67% of its industry peers.
SBAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.62% | ||
| PM (TTM) | 30.37% | ||
| GM | 77.76% |
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.
SBAC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SBAC has been reduced compared to 5 years ago.
The debt/assets ratio for SBAC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.69, we must say that SBAC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SBAC (0.69) is worse than 63.33% of its industry peers.
SBAC has a debt to FCF ratio of 11.04. This is a negative value and a sign of low solvency as SBAC would need 11.04 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 11.04, SBAC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.69 |
ROIC/WACC1.9
WACC7.2%
2.3 Liquidity
A Current Ratio of 0.69 indicates that SBAC may have some problems paying its short term obligations.
With a Current ratio value of 0.69, SBAC perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that SBAC may have some problems paying its short term obligations.
The Quick ratio of SBAC (0.69) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.94% over the past year.
The Earnings Per Share has been growing by 40.01% on average over the past years. This is a very strong growth
Looking at the last year, SBAC shows a decrease in Revenue. The Revenue has decreased by -0.29% in the last year.
The Revenue has been growing slightly by 5.87% on average over the past years.
EPS 1Y (TTM)42.94%
EPS 3Y48.25%
EPS 5Y40.01%
EPS Q2Q%24.65%
Revenue 1Y (TTM)-0.29%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%0.97%
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 18.38% on average per year.
The Revenue is expected to grow by 5.39% on average over the next years.
EPS Next Y24.6%
EPS Next 2Y17.3%
EPS Next 3Y12.74%
EPS Next 5Y18.38%
Revenue Next Year2.94%
Revenue Next 2Y3.79%
Revenue Next 3Y3.84%
Revenue Next 5Y5.39%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.25, SBAC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SBAC is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.31. SBAC is around the same levels.
Based on the Price/Forward Earnings ratio of 23.86, the valuation of SBAC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SBAC is valued a bit cheaper than 76.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. SBAC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.25 | ||
| Fwd PE | 23.86 |
4.2 Price Multiples
SBAC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SBAC is more expensive than 60.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SBAC is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.76 | ||
| EV/EBITDA | 19.74 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 12.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)0.78
EPS Next 2Y17.3%
EPS Next 3Y12.74%
5. Dividend
5.1 Amount
SBAC has a Yearly Dividend Yield of 1.95%.
With a Dividend Yield of 1.95, SBAC pays less dividend than the industry average, which is at 5.55. 93.33% of the companies listed in the same industry pay a better dividend than SBAC!
SBAC's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
On average, the dividend of SBAC grows each year by 39.51%, which is quite nice.
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
53.74% 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.
DP53.74%
EPS Next 2Y17.3%
EPS Next 3Y12.74%
227.83
-0.24 (-0.11%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.97%
Inst Owner Change-0.82%
Ins Owners0.7%
Ins Owner Change11.38%
Market Cap24.48B
Analysts76.8
Price Target260.23 (14.22%)
Short Float %2.83%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Yearly Dividend3.93
Dividend Growth(5Y)39.51%
DP53.74%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.99%
Min EPS beat(2)-23.81%
Max EPS beat(2)-22.17%
EPS beat(4)1
Avg EPS beat(4)-17.67%
Min EPS beat(4)-28.52%
Max EPS beat(4)3.8%
EPS beat(8)3
Avg EPS beat(8)-8.38%
EPS beat(12)3
Avg EPS beat(12)-12.01%
EPS beat(16)5
Avg EPS beat(16)-3.97%
Revenue beat(2)0
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-0.22%
Revenue beat(4)0
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)-0.22%
Revenue beat(8)0
Avg Revenue beat(8)-2.1%
Revenue beat(12)2
Avg Revenue beat(12)-1.35%
Revenue beat(16)5
Avg Revenue beat(16)-0.98%
PT rev (1m)0.72%
PT rev (3m)2.95%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)2.52%
EPS NY rev (1m)-2.93%
EPS NY rev (3m)-4.74%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.18%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.25 | ||
| Fwd PE | 23.86 | ||
| P/S | 9.11 | ||
| P/FCF | 21.76 | ||
| P/OCF | 18.25 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.74 |
EPS(TTM)7.29
EY3.2%
EPS(NY)9.55
Fwd EY4.19%
FCF(TTM)10.47
FCFY4.6%
OCF(TTM)12.49
OCFY5.48%
SpS25
BVpS-46.26
TBVpS-68.62
PEG (NY)1.27
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | N/A | ||
| ROCE | 17.3% | ||
| ROIC | 13.67% | ||
| ROICexc | 14.81% | ||
| ROICexgc | 20.75% | ||
| OM | 58.62% | ||
| PM (TTM) | 30.37% | ||
| GM | 77.76% | ||
| FCFM | 41.89% |
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%
ROICexcg growth 3Y18.17%
ROICexcg 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 Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.04 | ||
| Debt/EBITDA | 6.36 | ||
| Cap/Depr | 83.96% | ||
| Cap/Sales | 8.06% | ||
| Interest Coverage | 3.88 | ||
| Cash Conversion | 73.22% | ||
| Profit Quality | 137.93% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.69 |
F-Score6
WACC7.2%
ROIC/WACC1.9
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)42.94%
EPS 3Y48.25%
EPS 5Y40.01%
EPS Q2Q%24.65%
EPS Next Y24.6%
EPS Next 2Y17.3%
EPS Next 3Y12.74%
EPS Next 5Y18.38%
Revenue 1Y (TTM)-0.29%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%0.97%
Revenue Next Year2.94%
Revenue Next 2Y3.79%
Revenue Next 3Y3.84%
Revenue Next 5Y5.39%
EBIT growth 1Y27.75%
EBIT growth 3Y23.01%
EBIT growth 5Y19.96%
EBIT Next Year26.39%
EBIT Next 3Y11.73%
EBIT Next 5Y10.39%
FCF growth 1Y4.29%
FCF growth 3Y1.57%
FCF growth 5Y6.29%
OCF growth 1Y2.85%
OCF growth 3Y3.91%
OCF growth 5Y6.59%