SBA COMMUNICATIONS CORP (SBAC)
US78410G1040 - REIT
Taking everything into account, SBAC scores 5 out of 10 in our fundamental rating. SBAC was compared to 28 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SBAC was profitable.
In the past year SBAC had a positive cash flow from operations.
In the past 5 years SBAC has always been profitable.
In the past 5 years SBAC always reported a positive cash flow from operatings.
1.2 Ratios
SBAC has a Return On Assets of 4.93%. This is amongst the best in the industry. SBAC outperforms 82.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.26%, SBAC belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SBAC is above the industry average of 5.06%.
The 3 year average ROIC (9.47%) for SBAC is below the current ROIC(11.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.93% | ||
| ROE | N/A | ||
| ROIC | 11.26% |
ROA(3y)3.9%
ROA(5y)2.7%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.47%
ROIC(5y)8.41%
1.3 Margins
SBAC has a Profit Margin of 18.50%. This is in the better half of the industry: SBAC outperforms 60.71% of its industry peers.
SBAC's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 41.11%, SBAC is doing good in the industry, outperforming 64.29% of the companies in the same industry.
SBAC's Operating Margin has improved in the last couple of years.
SBAC has a Gross Margin of 77.41%. This is in the better half of the industry: SBAC outperforms 67.86% 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 | 41.11% | ||
| PM (TTM) | 18.5% | ||
| GM | 77.41% |
OM growth 3Y7.45%
OM growth 5Y5.67%
PM growth 3Y151.96%
PM growth 5Y48.69%
GM growth 3Y0.12%
GM growth 5Y0.67%
2. Health
2.1 Basic Checks
SBAC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SBAC has about the same amount of shares outstanding.
SBAC has less shares outstanding than it did 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 0.30, we must say that SBAC is in the distress zone and has some risk of bankruptcy.
SBAC has a worse Altman-Z score (0.30) than 89.29% of its industry peers.
The Debt to FCF ratio of SBAC is 9.42, which is on the high side as it means it would take SBAC, 9.42 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SBAC (9.42) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.42 | ||
| Altman-Z | 0.3 |
ROIC/WACC1.41
WACC8%
2.3 Liquidity
SBAC has a Current Ratio of 0.36. This is a bad value and indicates that SBAC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SBAC (0.36) is worse than 82.14% of its industry peers.
A Quick Ratio of 0.36 indicates that SBAC may have some problems paying its short term obligations.
The Quick ratio of SBAC (0.36) is worse than 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.50% over the past year.
SBAC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 62.25% yearly.
Looking at the last year, SBAC shows a small growth in Revenue. The Revenue has grown by 2.96% in the last year.
The Revenue has been growing slightly by 7.76% on average over the past years.
EPS 1Y (TTM)9.5%
EPS 3Y43.2%
EPS 5Y62.25%
EPS growth Q2Q7.45%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y9.19%
Revenue growth 5Y7.76%
Revenue growth Q2Q-1.61%
3.2 Future
SBAC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.47% yearly.
Based on estimates for the next years, SBAC will show a small growth in Revenue. The Revenue will grow by 4.23% on average per year.
EPS Next Y14.74%
EPS Next 2Y17.2%
EPS Next 3Y13.26%
EPS Next 5Y25.47%
Revenue Next Year-0.97%
Revenue Next 2Y1.09%
Revenue Next 3Y1.97%
Revenue Next 5Y4.23%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 42.05, the valuation of SBAC can be described as expensive.
SBAC's Price/Earnings is on the same level as the industry average.
SBAC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.06.
A Price/Forward Earnings ratio of 36.65 indicates a quite expensive valuation of SBAC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SBAC is on the same level as its industry peers.
SBAC is valuated expensively when we compare the Price/Forward Earnings ratio to 20.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.05 | ||
| Fwd PE | 36.65 |
4.2 Price Multiples
SBAC's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SBAC is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.03 | ||
| EV/EBITDA | 17.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SBAC does not grow enough to justify the current Price/Earnings ratio.
SBAC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SBAC's earnings are expected to grow with 13.26% in the coming years.
PEG (NY)2.85
PEG (5Y)0.68
EPS Next 2Y17.2%
EPS Next 3Y13.26%
5. Dividend
5.1 Amount
SBAC has a Yearly Dividend Yield of 2.11%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.11, SBAC pays less dividend than the industry average, which is at 4.98. 92.86% of the companies listed in the same industry pay a better dividend than SBAC!
Compared to an average S&P500 Dividend Yield of 2.41, SBAC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
5.2 History
SBAC has been paying a dividend for over 5 years, so it has already some track record.
SBAC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
SBAC pays out 73.74% of its income as dividend. This is not a sustainable payout ratio.
DP73.74%
EPS Next 2Y17.2%
EPS Next 3Y13.26%
SBA COMMUNICATIONS CORP
NASDAQ:SBAC (5/2/2024, 3:30:02 PM)
After market: 193.87 0 (0%)193.87
+4.75 (+2.51%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.05 | ||
| Fwd PE | 36.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.85
PEG (5Y)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.93% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.11% | ||
| PM (TTM) | 18.5% | ||
| GM | 77.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)9.5%
EPS 3Y43.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.96%
Revenue growth 3Y9.19%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y