SBA COMMUNICATIONS CORP (SBAC)
US78410G1040 - REIT
Taking everything into account, SBAC scores 4 out of 10 in our fundamental rating. SBAC was compared to 28 industry peers in the Specialized REITs industry. SBAC scores excellent on profitability, but there are concerns on its financial health. SBAC is quite expensive at the moment. It does show a decent 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's Return On Assets of 4.93% is fine compared to the rest of the industry. SBAC outperforms 78.57% of its industry peers.
SBAC has a better Return On Invested Capital (11.26%) than 96.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SBAC is above the industry average of 5.05%.
The last Return On Invested Capital (11.26%) for SBAC is above the 3 year average (9.47%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 18.50%, SBAC is doing good in the industry, outperforming 60.71% of the companies in the same industry.
In the last couple of years the Profit Margin of SBAC has grown nicely.
SBAC's Operating Margin of 41.11% is fine compared to the rest of the industry. SBAC outperforms 64.29% of its industry peers.
SBAC's Operating Margin has improved in the last couple of years.
The Gross Margin of SBAC (77.41%) is better than 67.86% of its industry peers.
SBAC's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SBAC is creating some value.
Compared to 1 year ago, SBAC has about the same amount of shares outstanding.
Compared to 5 years ago, SBAC has less shares outstanding
Compared to 1 year ago, SBAC has an improved debt to assets ratio.
2.2 Solvency
SBAC has an Altman-Z score of 0.33. This is a bad value and indicates that SBAC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SBAC (0.33) is worse than 85.71% of its industry peers.
The Debt to FCF ratio of SBAC is 9.43, which is on the high side as it means it would take SBAC, 9.43 years of fcf income to pay off all of its debts.
SBAC has a better Debt to FCF ratio (9.43) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.43 | ||
| Altman-Z | 0.33 |
ROIC/WACC1.29
WACC8.75%
2.3 Liquidity
A Current Ratio of 0.36 indicates that SBAC may have some problems paying 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.
SBAC's Quick ratio of 0.36 is on the low side compared to the rest of the industry. SBAC is outperformed by 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
SBAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.50%, which is quite good.
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
The Earnings Per Share is expected to grow by 25.47% on average over the next years. This is a very strong growth
SBAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.23% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 42.41, 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 rather expensive valuation when compared to the S&P500 average which is at 24.80.
The Price/Forward Earnings ratio is 36.96, which means the current valuation is very expensive for SBAC.
The rest of the industry has a similar Price/Forward Earnings ratio as SBAC.
The average S&P500 Price/Forward Earnings ratio is at 21.27. SBAC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.41 | ||
| Fwd PE | 36.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBAC is valued a bit more expensive than 60.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SBAC is valued cheaper than 89.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.17 | ||
| EV/EBITDA | 18.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SBAC has a very decent 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)2.88
PEG (5Y)0.68
EPS Next 2Y17.2%
EPS Next 3Y13.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.91%, SBAC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.83, SBAC's dividend is way lower than its industry peers. On top of this 92.86% of the companies listed in the same industry pay a better dividend than SBAC!
Compared to the average S&P500 Dividend Yield of 2.40, SBAC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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 (4/19/2024, 11:37:27 AM)
195.52
-0.43 (-0.22%)
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 Cap21.14B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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Revenue beat(2)
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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 | 42.41 | ||
| Fwd PE | 36.96 | ||
| 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)2.88
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