SBA's revenue declined 2.5% in the third quarter. As with its US peers, services revenue was very weak, down 36% at SBA, reflecting volatile carrier activity. Core tower leasing revenue in the US declined 3.4%, in line with the past two quarters. International leasing revenue increased 13%.
SBA’s US tower business requires minimal incremental capital to grow, generating strong free cash flow. This cash will be directly returned to shareholders through dividends and stock repurchases.
SBA carries a very heavy debt load, and rising interest expense will be a drag on the firm’s earnings as it refinances maturities at higher rates. This debt load could also cause distress if demand for tower space wanes.
Metric | SBAC | CLNX | AMT |
|---|---|---|---|
Price/Earnings (Normalized) | 21.95 | 53.60 | 25.00 |
Price/Book Value | — | 1.52 | 24.92 |
Price/Sales | 7.05 | 4.23 | 8.01 |
Price/Cash Flow | 14.18 | 7.44 | 15.44 |
Metric | SBAC | CLNX | AMT |
|---|---|---|---|
Quick Ratio | 0.16 | 0.62 | 0.31 |
Current Ratio | 0.20 | 0.62 | 0.35 |
Interest Coverage | 3.21 | −0.03 | 3.64 |
Metric | SBAC | CLNX | AMT |
|---|---|---|---|
Return on Assets (Normalized) | 8.78% | −0.55% | 5.68% |
Return on Equity (Normalized) | — | −1.87% | 97.86% |
Return on Invested Capital (Normalized) | 13.44% | 0.26% | 8.45% |
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United States