SBA COMMUNICATIONS CORP (SBAC) Stock Fundamental Analysis
USA - NASDAQ:SBAC - US78410G1040 - REIT
198 USD
-1.1 (-0.55%)
198.07 USD
+0.07 (+0.04%)
SBAC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 29 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.
In the past year SBAC had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 8.16%, SBAC belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
SBAC has a better Return On Invested Capital (13.27%) 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 4.79%.
The last Return On Invested Capital (13.27%) for SBAC is above the 3 year average (10.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | N/A | ||
| ROIC | 13.27% |
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 better Profit Margin (32.25%) than 75.86% 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 57.54%, SBAC belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
In the last couple of years the Operating Margin of SBAC has grown nicely.
With a decent Gross Margin value of 76.94%, SBAC is doing good in the industry, outperforming 65.52% of the companies in the same industry.
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 | 57.54% | ||
| PM (TTM) | 32.25% | ||
| GM | 76.94% |
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.
SBAC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.50, we must say that SBAC is in the distress zone and has some risk of bankruptcy.
SBAC has a worse Altman-Z score (0.50) than 75.86% of its industry peers.
SBAC has a debt to FCF ratio of 11.78. This is a negative value and a sign of low solvency as SBAC would need 11.78 years to pay back of all of its debts.
SBAC's Debt to FCF ratio of 11.78 is fine compared to the rest of the industry. SBAC outperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.78 | ||
| Altman-Z | 0.5 |
ROIC/WACC1.9
WACC6.98%
2.3 Liquidity
SBAC has a Current Ratio of 0.37. This is a bad value and indicates that SBAC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.37, SBAC is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
A Quick Ratio of 0.37 indicates that SBAC may have some problems paying its short term obligations.
SBAC has a worse Quick ratio (0.37) than 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
SBAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.03%, which is quite impressive.
Measured over the past years, SBAC shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.01% on average per year.
Looking at the last year, SBAC shows a small growth in Revenue. The Revenue has grown by 1.82% in the last year.
The Revenue has been growing slightly by 5.87% on average over the past years.
EPS 1Y (TTM)66.03%
EPS 3Y48.25%
EPS 5Y40.01%
EPS Q2Q%38.41%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%5.83%
3.2 Future
SBAC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.19% yearly.
SBAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.24% yearly.
EPS Next Y23.64%
EPS Next 2Y15.41%
EPS Next 3Y11.53%
EPS Next 5Y13.19%
Revenue Next Year5%
Revenue Next 2Y3.98%
Revenue Next 3Y3.68%
Revenue Next 5Y4.24%
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
SBAC is valuated quite expensively with a Price/Earnings ratio of 25.16.
75.86% of the companies in the same industry are more expensive than SBAC, based on the Price/Earnings ratio.
SBAC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
SBAC is valuated rather expensively with a Price/Forward Earnings ratio of 21.42.
Based on the Price/Forward Earnings ratio, SBAC is valued a bit cheaper than 75.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. SBAC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.16 | ||
| Fwd PE | 21.42 |
4.2 Price Multiples
SBAC's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SBAC is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.02 | ||
| EV/EBITDA | 18.29 |
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.
PEG (NY)1.06
PEG (5Y)0.63
EPS Next 2Y15.41%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
SBAC has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.04, SBAC's dividend is way lower than its industry peers. On top of this 89.66% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
The dividend of SBAC is nicely growing with an annual growth rate of 39.51%!
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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)39.51%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
51.48% of the earnings are spent on dividend by SBAC. This is a bit on the high side, but may be sustainable.
SBAC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP51.48%
EPS Next 2Y15.41%
EPS Next 3Y11.53%
198
-1.1 (-0.55%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.13%
Inst Owner Change0.02%
Ins Owners0.7%
Ins Owner Change0.85%
Market Cap21.26B
Analysts75.2
Price Target261.69 (32.17%)
Short Float %2.23%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend3.93
Dividend Growth(5Y)39.51%
DP51.48%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.69%
Min EPS beat(2)-22.17%
Max EPS beat(2)-3.21%
EPS beat(4)1
Avg EPS beat(4)-11.35%
Min EPS beat(4)-23.81%
Max EPS beat(4)3.8%
EPS beat(8)2
Avg EPS beat(8)-15.09%
EPS beat(12)3
Avg EPS beat(12)-9.74%
EPS beat(16)4
Avg EPS beat(16)-10.27%
Revenue beat(2)1
Avg Revenue beat(2)0.24%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)2.11%
Revenue beat(4)1
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)2.11%
Revenue beat(8)1
Avg Revenue beat(8)-1.62%
Revenue beat(12)2
Avg Revenue beat(12)-1.34%
Revenue beat(16)5
Avg Revenue beat(16)-0.9%
PT rev (1m)-0.73%
PT rev (3m)0.44%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-0.68%
EPS NY rev (1m)0%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)3.14%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.16 | ||
| Fwd PE | 21.42 | ||
| P/S | 7.8 | ||
| P/FCF | 20.02 | ||
| P/OCF | 16.56 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.29 |
EPS(TTM)7.87
EY3.97%
EPS(NY)9.24
Fwd EY4.67%
FCF(TTM)9.89
FCFY4.99%
OCF(TTM)11.96
OCFY6.04%
SpS25.37
BVpS-45.99
TBVpS-70.02
PEG (NY)1.06
PEG (5Y)0.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | N/A | ||
| ROCE | 16.79% | ||
| ROIC | 13.27% | ||
| ROICexc | 13.67% | ||
| ROICexgc | 19.11% | ||
| OM | 57.54% | ||
| PM (TTM) | 32.25% | ||
| GM | 76.94% | ||
| FCFM | 38.97% |
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 Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.78 | ||
| Debt/EBITDA | 6.41 | ||
| Cap/Depr | 84.35% | ||
| Cap/Sales | 8.16% | ||
| Interest Coverage | 3.79 | ||
| Cash Conversion | 70.12% | ||
| Profit Quality | 120.83% | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 0.5 |
F-Score6
WACC6.98%
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)66.03%
EPS 3Y48.25%
EPS 5Y40.01%
EPS Q2Q%38.41%
EPS Next Y23.64%
EPS Next 2Y15.41%
EPS Next 3Y11.53%
EPS Next 5Y13.19%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%5.83%
Revenue Next Year5%
Revenue Next 2Y3.98%
Revenue Next 3Y3.68%
Revenue Next 5Y4.24%
EBIT growth 1Y16.46%
EBIT growth 3Y23.01%
EBIT growth 5Y19.96%
EBIT Next Year26.72%
EBIT Next 3Y11.51%
EBIT Next 5Y8.83%
FCF growth 1Y-10.26%
FCF growth 3Y1.57%
FCF growth 5Y6.29%
OCF growth 1Y-9.52%
OCF growth 3Y3.91%
OCF growth 5Y6.59%