SBA Communications logged a 0.7% change during today's morning session, and is now trading at a price of $219.01 per share.
SBA Communications returned losses of -7.4% last year, with its stock price reaching a high of $258.76 and a low of $183.64. Over the same period, the stock underperformed the S&P 500 index by -40.2%. AThe company's 50-day average price was $237.0. SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. Based in Boca Raton, FL, the Large-Cap Real Estate company has 1,787 full time employees. SBA Communications has offered a 1.7% dividend yield over the last 12 months.
The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,866 | $2,015 | $2,083 | $2,309 | $2,633 | $2,712 |
| Operating Margins | 28% | 28% | 30% | 34% | 35% | 34% |
| Net Margins | 3% | 7% | 1% | 10% | 18% | 19% |
| Net Income (M) | $47 | $147 | $24 | $238 | $461 | $502 |
| Net Interest Expense (M) | $377 | $387 | $352 | $361 | $348 | $397 |
| Depreciation & Amort. (M) | $269 | $282 | $287 | $272 | $274 | $272 |
| Diluted Shares (M) | 117 | 115 | 113 | 111 | 109 | 109 |
| Earnings Per Share | $0.41 | $1.28 | $0.21 | $2.14 | $4.22 | $4.61 |
| EPS Growth | n/a | 212.2% | -83.59% | 919.05% | 97.2% | 9.24% |
| Avg. Price | $156.98 | $212.67 | $281.97 | $309.97 | $325.88 | $215.35 |
| P/E Ratio | 382.88 | 163.59 | 1281.68 | 142.84 | 76.32 | 46.41 |
| Free Cash Flow (M) | $701 | $816 | $997 | $1,056 | $1,071 | $1,308 |
| CAPEX (M) | $150 | $154 | $129 | $134 | $214 | $237 |
| EV / EBITDA | 35.69 | 40.1 | 46.02 | 43.49 | 39.95 | 30.12 |
| Total Debt (M) | $10,880 | $10,857 | $11,120 | $12,327 | $12,892 | $12,967 |
| Net Debt / EBITDA | 13.2 | 12.42 | 11.74 | 11.34 | 10.63 | 10.67 |
| Current Ratio | 0.31 | 0.32 | 0.77 | 1.0 | 0.69 | 0.36 |
SBA Communications has growing revenues and increasing reinvestment in the business and exceptional EPS growth. Additionally, the company's financial statements display generally positive cash flows and decent operating margins with a stable trend. However, the firm suffers from not enough current assets to cover current liabilities because its current ratio is 0.36 and a highly leveraged balance sheet.
SBA Communications's Valuation Is in Line With Its Sector Averages:
SBA Communications has a trailing twelve month P/E ratio of 37.4, compared to an average of 31.12 for the Real Estate sector. Based on its EPS guidance of $9.17, the company has a forward P/E ratio of 25.8. According to the 55.9% compound average growth rate of SBA Communications's historical and projected earnings per share, the company's PEG ratio is 0.67. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 22.3%. On this basis, the company's PEG ratio is 1.67. This suggests that these shares are overvalued.
SBA Communications Has an Average Rating of Buy:
The 16 analysts following SBA Communications have set target prices ranging from $225.0 to $300.0 per share, for an average of $260.56 with a buy rating. The company is trading -15.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.
SBA Communications has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 100.4% of the company's shares, and the insider ownership rate stands at 0.83%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 16% stake in the company is worth $3,823,451,954.
