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SBA Communications Corp Class A SBAC

Morningstar Rating
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Stock XNAS Rating as of
$199.04 +2.28 (1.16%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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Reduced Carrier Spending in the Near Term Doesn’t Diminish SBA’s Attractive Tower Business

Matthew Dolgin

SBA focuses exclusively on towers and has some geographic diversification, and we like that it’s now taking a more measured approach to financial leverage, and, in our view, taking a better approach to capital allocation. We like its business and think it will continue to grow at a decent clip without requiring much incremental investment for organic growth.

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Price vs Fair Value

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SBAC is trading at a 21% discount.
Price
$196.80
Fair Value
$333.00
Uncertainty
Medium
1-Star Price
$467.60
5-Star Price
$128.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Carrier investment in towers will have to continue as mobile data usage continues to grow rapidly. Greater use of the Internet of Things, 5G, and video content should keep this trend in place for years to come.

Bears

High financial leverage could become problematic if the company were to face an industry downturn or a less favorable economic environment.

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Trading Information

Previous Close Price
$196.76
Day Range
$195.92–199.38
52-Week Range
$185.54–263.01
Bid/Ask
$198.81 / $199.10
Market Cap
$21.54 Bil
Volume/Avg
67,723 / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
37.90
Price/Sales
7.90
Dividend Yield (Trailing)
1.79%
Dividend Yield (Forward)
1.99%
Total Yield
2.26%

Company Profile

SBA Communications owns and operates almost 40,000 cell towers throughout North America, South America, and Africa. It leases space on its towers to wireless service providers, who install equipment on the towers to support their wireless networks. The company has a very concentrated customer base, with most revenue in each market being generated by just the top few mobile carriers. The company owns more than 17,000 towers in the U.S., which accounted for about 70% of the company’s total revenue in 2023. Internationally, SBA’s greatest presence is in Brazil, where it operates roughly 10,000 towers. SBA operates as a real estate investment trust, or REIT.
Sector
Real Estate
Industry
REIT - Specialty
Stock Style Box
Mid Growth
Total Number of Employees
1,787
Website
https://www.sbasite.com

Competitors

Valuation

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Metric
SBAC
AMT
CCI
Price/Earnings (Normalized)
 37.9033.8623.03
Price/Book Value
 —18.996.79
Price/Sales
 7.907.175.98
Price/Cash Flow
 14.4814.4312.03
Price/Earnings
SBAC
AMT
CCI

Financial Strength

Metric
SBAC
AMT
CCI
Quick Ratio
 0.300.420.27
Current Ratio
 0.360.510.40
Interest Coverage
 2.221.992.84
Quick Ratio
SBAC
AMT
CCI

Profitability

Metric
SBAC
AMT
CCI
Return on Assets (Normalized)
 8.37%4.50%4.56%
Return on Equity (Normalized)
 —60.17%25.50%
Return on Invested Capital (Normalized)
 12.89%7.01%7.24%
Return on Assets
SBAC
AMT
CCI
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REIT - Specialty Industry Comparables

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Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
AMT
American Tower CorpJrwcdmzJglggj$80.5 Bil
EQIX
Equinix IncDnqvnmfbzTkhrkn$70.2 Bil
DLR
Digital Realty Trust IncLgrlggvtMfrkvtq$42.4 Bil
CCI
Crown Castle IncLnznhBfnbky$41.1 Bil
WY
Weyerhaeuser CoJswjzmqVxk$22.9 Bil
IRM
Iron Mountain IncYzxzqmcqHsyhd$22.2 Bil
GLPI
Gaming and Leisure Properties Inc—Bwsc$11.7 Bil
RYN
Rayonier IncCvchfyxfkQzwp$4.5 Bil
UNIT
Uniti Group IncXmgnyrzntDbwt$1.3 Bil

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