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. 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
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.
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 7.81%, SBAC belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
The Return On Invested Capital of SBAC (13.67%) is better 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 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 | 7.81% | ||
| 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 has a Profit Margin of 30.37%. This is in the better half of the industry: SBAC outperforms 80.00% of its industry peers.
SBAC's Profit Margin has improved in the last couple of years.
The Operating Margin of SBAC (58.62%) is better than 90.00% of its industry peers.
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) | 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
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.
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 0.71. 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 0.71 is on the low side compared to the rest of the industry. SBAC is outperformed by 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.
The Debt to FCF ratio of SBAC (11.04) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.71 |
ROIC/WACC1.89
WACC7.23%
2.3 Liquidity
A Current Ratio of 0.69 indicates that SBAC may have some problems paying its short term obligations.
SBAC has a Current ratio (0.69) which is comparable to the rest of the industry.
SBAC has a Quick 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 Quick ratio of 0.69. This is comparable 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
The Earnings Per Share has grown by an impressive 42.94% over the past year.
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%.
The Revenue has been growing slightly by 5.87% on average over the past years.
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
The Earnings Per Share is expected to grow by 18.38% on average over the next years. This is quite good.
Based on estimates for the next years, SBAC will show a small growth in Revenue. The Revenue will grow by 5.39% on average per year.
EPS Next Y23.6%
EPS Next 2Y16.94%
EPS Next 3Y12.33%
EPS Next 5Y18.38%
Revenue Next Year2.9%
Revenue Next 2Y3.8%
Revenue Next 3Y3.83%
Revenue Next 5Y5.39%
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 31.39, SBAC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SBAC indicates a somewhat cheap valuation: SBAC is cheaper than 63.33% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. SBAC is around the same levels.
SBAC is valuated rather expensively with a Price/Forward Earnings ratio of 24.11.
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.
SBAC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.39 | ||
| Fwd PE | 24.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBAC is valued a bit more expensive than the industry average as 63.33% of the companies are valued more cheaply.
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 | 21.85 | ||
| EV/EBITDA | 20.01 |
4.3 Compensation for Growth
SBAC's 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.
A more expensive valuation may be justified as SBAC's earnings are expected to grow with 12.33% in the coming years.
PEG (NY)1.33
PEG (5Y)0.78
EPS Next 2Y16.94%
EPS Next 3Y12.33%
5. Dividend
5.1 Amount
SBAC has a Yearly Dividend Yield of 1.90%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.90, SBAC pays less dividend than the industry average, which is at 5.77. 90.00% of the companies listed in the same industry pay a better dividend than SBAC!
Compared to an average S&P500 Dividend Yield of 2.37, SBAC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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.
The dividend of SBAC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.74%
EPS Next 2Y16.94%
EPS Next 3Y12.33%
228.8
-3.99 (-1.71%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.97%
Inst Owner Change-0.01%
Ins Owners0.7%
Ins Owner Change11.54%
Market Cap24.58B
Analysts76.8
Price Target260.55 (13.88%)
Short Float %2.16%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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)0.84%
PT rev (3m)2.51%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)1.74%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)-1.26%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.39 | ||
| Fwd PE | 24.11 | ||
| P/S | 9.15 | ||
| P/FCF | 21.85 | ||
| P/OCF | 18.32 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.01 |
EPS(TTM)7.29
EY3.19%
EPS(NY)9.49
Fwd EY4.15%
FCF(TTM)10.47
FCFY4.58%
OCF(TTM)12.49
OCFY5.46%
SpS25
BVpS-46.26
TBVpS-68.62
PEG (NY)1.33
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
WACC7.23%
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 Y23.6%
EPS Next 2Y16.94%
EPS Next 3Y12.33%
EPS Next 5Y18.38%
Revenue 1Y (TTM)-0.29%
Revenue growth 3Y5.09%
Revenue growth 5Y5.87%
Sales Q2Q%0.97%
Revenue Next Year2.9%
Revenue Next 2Y3.8%
Revenue Next 3Y3.83%
Revenue Next 5Y5.39%
EBIT growth 1Y27.75%
EBIT growth 3Y23.01%
EBIT growth 5Y19.96%
EBIT Next Year26.39%
EBIT Next 3Y11.73%
EBIT Next 5Y10.39%
FCF growth 1Y4.29%
FCF growth 3Y1.57%
FCF growth 5Y6.29%
OCF growth 1Y2.85%
OCF growth 3Y3.91%
OCF growth 5Y6.59%