SBA COMMUNICATIONS CORP (SBAC) Stock Fundamental Analysis
NASDAQ:SBAC - US78410G1040 - REIT
222.87 USD
+1.98 (+0.9%)
222.87 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SBAC. SBAC was compared to 30 industry peers in the Specialized REITs industry. SBAC scores excellent on profitability, but there are 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.
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
SBAC has a better Return On Assets (8.16%) than 93.33% of its industry peers.
SBAC's Return On Invested Capital of 13.27% is amongst the best of the industry. SBAC outperforms 100.00% of its industry peers.
SBAC had an Average Return On Invested Capital over the past 3 years of 10.28%. This is significantly above the industry average of 5.15%.
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 Profit Margin of 32.25%. This is in the better half of the industry: SBAC outperforms 76.67% of its industry peers.
In the last couple of years the Profit Margin of SBAC has grown nicely.
The Operating Margin of SBAC (57.54%) is better than 90.00% of its industry peers.
SBAC's Operating Margin has improved in the last couple of years.
The Gross Margin of SBAC (76.94%) is better 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SBAC is creating value.
Compared to 1 year ago, SBAC has less 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
SBAC has an Altman-Z score of 0.60. This is a bad value and indicates that SBAC is not financially healthy and even has some risk of bankruptcy.
SBAC's Altman-Z score of 0.60 is on the low side compared to the rest of the industry. SBAC is outperformed by 70.00% 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.
Looking at the Debt to FCF ratio, with a value of 11.78, SBAC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.78 | ||
| Altman-Z | 0.6 |
ROIC/WACC1.85
WACC7.16%
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.
Looking at the Current ratio, with a value of 0.37, SBAC is doing worse than 73.33% of the companies in the same industry.
SBAC has a Quick 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.
SBAC has a Quick ratio of 0.37. This is in the lower half of the industry: SBAC underperforms 73.33% 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.
The Revenue has been growing slightly by 1.82% in the past year.
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)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
Based on estimates for the next years, SBAC will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.10% on average per year.
The Revenue is expected to grow by 4.73% on average over the next years.
EPS Next Y23.64%
EPS Next 2Y16.81%
EPS Next 3Y12.25%
EPS Next 5Y17.1%
Revenue Next Year3.05%
Revenue Next 2Y3.79%
Revenue Next 3Y3.83%
Revenue Next 5Y4.73%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 28.32, which means the current valuation is very expensive for SBAC.
Based on the Price/Earnings ratio, SBAC is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.24, SBAC is valued at the same level.
A Price/Forward Earnings ratio of 23.54 indicates a rather expensive valuation of SBAC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SBAC indicates a somewhat cheap valuation: SBAC is cheaper than 76.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SBAC to the average of the S&P500 Index (35.82), we can say SBAC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.32 | ||
| Fwd PE | 23.54 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than SBAC, based on the Enterprise Value to EBITDA ratio.
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 | 22.55 | ||
| EV/EBITDA | 19.64 |
4.3 Compensation for Growth
SBAC's 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 12.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.2
PEG (5Y)0.71
EPS Next 2Y16.81%
EPS Next 3Y12.25%
5. Dividend
5.1 Amount
SBAC has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.05, SBAC pays less dividend than the industry average, which is at 6.03. 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 | 2.05% |
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
SBAC pays out 51.48% 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.
DP51.48%
EPS Next 2Y16.81%
EPS Next 3Y12.25%
222.87
+1.98 (+0.9%)
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%
Ins Owners0.7%
Ins Owner Change6.62%
Market Cap23.95B
Analysts76.15
Price Target263.61 (18.28%)
Short Float %1.73%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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)1.17%
PT rev (3m)2.02%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)2.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)2.75%
Revenue NQ rev (3m)4.37%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.32 | ||
| Fwd PE | 23.54 | ||
| P/S | 8.79 | ||
| P/FCF | 22.55 | ||
| P/OCF | 18.65 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.64 |
EPS(TTM)7.87
EY3.53%
EPS(NY)9.47
Fwd EY4.25%
FCF(TTM)9.88
FCFY4.43%
OCF(TTM)11.95
OCFY5.36%
SpS25.36
BVpS-45.96
TBVpS-69.97
PEG (NY)1.2
PEG (5Y)0.71
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 | 250 | ||
| Cash Conversion | 70.12% | ||
| Profit Quality | 120.83% | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 0.6 |
F-Score6
WACC7.16%
ROIC/WACC1.85
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 2Y16.81%
EPS Next 3Y12.25%
EPS Next 5Y17.1%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%5.83%
Revenue Next Year3.05%
Revenue Next 2Y3.79%
Revenue Next 3Y3.83%
Revenue Next 5Y4.73%
EBIT growth 1Y16.46%
EBIT growth 3Y23.01%
EBIT growth 5Y19.96%
EBIT Next Year26.72%
EBIT Next 3Y11.51%
EBIT Next 5Y9.67%
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%