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. SBAC scores excellent on profitability, but there are concerns on its financial health. SBAC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SBAC was profitable.
SBAC had a positive operating cash flow in the past year.
Each year in the past 5 years SBAC has been profitable.
Each year in the past 5 years SBAC had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.81%, SBAC belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
SBAC has a better Return On Invested Capital (13.67%) 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.
The Operating Margin of SBAC (58.62%) is better than 90.00% of its industry peers.
In the last couple of years the Operating Margin of SBAC has grown nicely.
Looking at the Gross Margin, with a value of 77.76%, SBAC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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.
SBAC has a better debt/assets ratio than last year.
2.2 Solvency
SBAC has an Altman-Z score of 0.71. This is a bad value and indicates that SBAC is not financially healthy and even has some risk of bankruptcy.
SBAC has a worse Altman-Z score (0.71) 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.
SBAC has a better Debt to FCF ratio (11.04) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.71 |
ROIC/WACC1.89
WACC7.22%
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.
Looking at the Current ratio, with a value of 0.69, SBAC is in line with its industry, 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.
SBAC's Quick ratio of 0.69 is in line compared to the rest of the industry. SBAC outperforms 60.00% 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 42.94%, 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)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
SBAC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.70% yearly.
SBAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.43% yearly.
EPS Next Y24.6%
EPS Next 2Y17.3%
EPS Next 3Y12.74%
EPS Next 5Y17.7%
Revenue Next Year2.9%
Revenue Next 2Y3.75%
Revenue Next 3Y3.8%
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 31.37, SBAC can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as SBAC.
SBAC is valuated rather expensively when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
SBAC is valuated rather expensively with a Price/Forward Earnings ratio of 23.94.
Based on the Price/Forward Earnings ratio, SBAC is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, SBAC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.37 | ||
| Fwd PE | 23.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBAC is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SBAC indicates a somewhat cheap valuation: SBAC is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.95 | ||
| EV/EBITDA | 20.03 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of SBAC 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)1.28
PEG (5Y)0.78
EPS Next 2Y17.3%
EPS Next 3Y12.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.94%, SBAC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.68, SBAC's dividend is way lower than its industry peers. On top of this 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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.
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
SBAC pays out 53.74% of its income as dividend. 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.
DP53.74%
EPS Next 2Y17.3%
EPS Next 3Y12.74%
NASDAQ:SBAC (5/22/2025, 2:51:06 PM)
228.66
-3.24 (-1.4%)
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 Change-0.89%
Ins Owners0.74%
Ins Owner Change8.63%
Market Cap24.70B
Analysts77.6
Price Target258.38 (13%)
Short Float %2.78%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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)1.66%
PT rev (3m)0.57%
EPS NQ rev (1m)1.79%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)-2.93%
EPS NY rev (3m)-4.74%
Revenue NQ rev (1m)1.6%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.37 | ||
| Fwd PE | 23.94 | ||
| P/S | 9.2 | ||
| P/FCF | 21.95 | ||
| P/OCF | 18.41 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.03 |
EPS(TTM)7.29
EY3.19%
EPS(NY)9.55
Fwd EY4.18%
FCF(TTM)10.42
FCFY4.55%
OCF(TTM)12.42
OCFY5.43%
SpS24.86
BVpS-46.01
TBVpS-68.26
PEG (NY)1.28
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 | 0.71 |
F-Score6
WACC7.22%
ROIC/WACC1.89
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 5Y17.7%
Revenue 1Y (TTM)-0.29%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%0.97%
Revenue Next Year2.9%
Revenue Next 2Y3.75%
Revenue Next 3Y3.8%
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%