SBA COMMUNICATIONS CORP (SBAC) Stock Fundamental Analysis
NASDAQ:SBAC - Nasdaq - US78410G1040 - REIT - Currency: USD
SBAC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. SBAC scores excellent on profitability, but there are concerns on its financial health. SBAC is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years SBAC has been profitable.
SBAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.53%, SBAC belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.67%, SBAC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SBAC is above the industry average of 5.35%.
The last Return On Invested Capital (13.67%) for SBAC is above the 3 year average (10.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| 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 has a Profit Margin of 29.29%. This is in the better half 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.
With an excellent Operating Margin value of 58.62%, SBAC belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
SBAC's Operating Margin has improved in the last couple of years.
SBAC has a better Gross Margin (77.76%) than 66.67% of its industry peers.
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 | 58.62% | ||
| PM (TTM) | 29.29% | ||
| 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
SBAC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SBAC has been reduced compared to 1 year ago.
The number of shares outstanding for SBAC has been reduced compared to 5 years ago.
Compared to 1 year ago, SBAC has an improved debt to assets ratio.
2.2 Solvency
SBAC has an Altman-Z score of 0.75. This is a bad value and indicates that SBAC is not financially healthy and even has some risk of bankruptcy.
SBAC has a Altman-Z score (0.75) which is comparable to the rest of the industry.
The Debt to FCF ratio of SBAC is 11.04, which is on the high side as it means it would take SBAC, 11.04 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.04, SBAC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.75 |
ROIC/WACC1.92
WACC7.11%
2.3 Liquidity
SBAC has a Current Ratio of 0.69. 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 Current ratio of 0.69. This is comparable to the rest of the industry: SBAC outperforms 56.67% of its industry peers.
A Quick Ratio of 0.69 indicates that SBAC may have some problems paying its short term obligations.
SBAC has a Quick ratio of 0.69. This is comparable to the rest of the industry: SBAC outperforms 56.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
SBAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.20%, which is quite impressive.
The Earnings Per Share has been growing by 40.01% 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 -0.29%.
Measured over the past years, SBAC shows a small growth in Revenue. The Revenue has been growing by 5.87% on average per year.
EPS 1Y (TTM)70.2%
EPS 3Y48.25%
EPS 5Y40.01%
EPS Q2Q%122.54%
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 17.70% on average per year.
Based on estimates for the next years, SBAC will show a small growth in Revenue. The Revenue will grow by 5.43% on average per year.
EPS Next Y28.36%
EPS Next 2Y15.78%
EPS Next 3Y12.6%
EPS Next 5Y17.7%
Revenue Next Year2.06%
Revenue Next 2Y3.52%
Revenue Next 3Y3.72%
Revenue Next 5Y5.43%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.74, SBAC can be considered very expensive at the moment.
SBAC's Price/Earnings ratio is a bit cheaper when compared to the industry. SBAC is cheaper than 63.33% of the companies in the same industry.
SBAC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.75.
With a Price/Forward Earnings ratio of 25.88, SBAC can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, SBAC is valued a bit cheaper than 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.49, SBAC is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.74 | ||
| Fwd PE | 25.88 |
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 73.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SBAC is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.11 | ||
| EV/EBITDA | 20.63 |
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.
The excellent profitability rating of SBAC may justify a higher PE ratio.
A more expensive valuation may be justified as SBAC's earnings are expected to grow with 12.60% in the coming years.
PEG (NY)0.98
PEG (5Y)0.69
EPS Next 2Y15.78%
EPS Next 3Y12.6%
5. Dividend
5.1 Amount
SBAC has a Yearly Dividend Yield of 1.84%.
With a Dividend Yield of 1.84, SBAC pays less dividend than the industry average, which is at 5.76. 93.33% of the companies listed in the same industry pay a better dividend than SBAC!
SBAC's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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
SBAC pays out 55.71% of its income as dividend. 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.
DP55.71%
EPS Next 2Y15.78%
EPS Next 3Y12.6%
240.74
-2.66 (-1.09%)
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 Change0.03%
Ins Owners0.74%
Ins Owner Change7.93%
Market Cap26.01B
Analysts77.6
Price Target254.24 (5.61%)
Short Float %2.6%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend3.93
Dividend Growth(5Y)39.51%
DP55.71%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.49%
Min EPS beat(2)-23.81%
Max EPS beat(2)44.8%
EPS beat(4)2
Avg EPS beat(4)-0.93%
Min EPS beat(4)-28.52%
Max EPS beat(4)44.8%
EPS beat(8)4
Avg EPS beat(8)-0.01%
EPS beat(12)4
Avg EPS beat(12)-6.43%
EPS beat(16)6
Avg EPS beat(16)0.21%
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)0.58%
PT rev (3m)-3.84%
EPS NQ rev (1m)1.31%
EPS NQ rev (3m)-1.89%
EPS NY rev (1m)2.54%
EPS NY rev (3m)-3.48%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.74 | ||
| Fwd PE | 25.88 | ||
| P/S | 9.68 | ||
| P/FCF | 23.11 | ||
| P/OCF | 19.39 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.63 |
EPS(TTM)8.68
EY3.61%
EPS(NY)9.3
Fwd EY3.86%
FCF(TTM)10.42
FCFY4.33%
OCF(TTM)12.42
OCFY5.16%
SpS24.86
BVpS-46.01
TBVpS-68.26
PEG (NY)0.98
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | N/A | ||
| ROCE | 17.3% | ||
| ROIC | 13.67% | ||
| ROICexc | 14.7% | ||
| ROICexgc | 20.52% | ||
| OM | 58.62% | ||
| PM (TTM) | 29.29% | ||
| 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 | 250 | ||
| Cash Conversion | 73.22% | ||
| Profit Quality | 143.01% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.75 |
F-Score6
WACC7.11%
ROIC/WACC1.92
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)70.2%
EPS 3Y48.25%
EPS 5Y40.01%
EPS Q2Q%122.54%
EPS Next Y28.36%
EPS Next 2Y15.78%
EPS Next 3Y12.6%
EPS Next 5Y17.7%
Revenue 1Y (TTM)-0.29%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%0.97%
Revenue Next Year2.06%
Revenue Next 2Y3.52%
Revenue Next 3Y3.72%
Revenue Next 5Y5.43%
EBIT growth 1Y27.75%
EBIT growth 3Y23.01%
EBIT growth 5Y19.96%
EBIT Next Year26.33%
EBIT Next 3Y11.53%
EBIT Next 5Y10.52%
FCF growth 1Y4.29%
FCF growth 3Y1.57%
FCF growth 5Y6.29%
OCF growth 1Y2.85%
OCF growth 3Y3.91%
OCF growth 5Y6.59%