NasdaqGS:SBAC

Stock Analysis Report

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Executive Summary

SBA Communications Corporation is a first choice provider and leading owner and operator of wireless communications infrastructure in North, Central, and South America and South Africa. More Details


Snowflake Analysis

Moderate growth potential unattractive dividend payer.


Similar Companies

Share Price & News

How has SBA Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SBAC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SBAC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-2.5%

SBAC

-1.1%

US REITs

-3.6%

US Market


1 Year Return

-3.8%

SBAC

-0.3%

US REITs

36.5%

US Market

Return vs Industry: SBAC underperformed the US REITs industry which returned -0.3% over the past year.

Return vs Market: SBAC underperformed the US Market which returned 36.4% over the past year.


Shareholder returns

SBACIndustryMarket
7 Day-2.5%-1.1%-3.6%
30 Day-5.0%3.1%2.7%
90 Day-11.2%4.6%7.5%
1 Year-3.1%-3.8%4.4%-0.3%39.5%36.5%
3 Year68.4%66.9%35.3%18.8%53.5%43.6%
5 Year166.6%164.2%44.8%15.5%117.5%93.2%

Long-Term Price Volatility Vs. Market

How volatile is SBA Communications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SBA Communications undervalued compared to its fair value and its price relative to the market?

3.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBAC ($255.13) is trading below our estimate of fair value ($264.3)

Significantly Below Fair Value: SBAC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SBAC is poor value based on its PE Ratio (1180.5x) compared to the US REITs industry average (46.4x).

PE vs Market: SBAC is poor value based on its PE Ratio (1180.5x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: SBAC is poor value based on its PEG Ratio (33.4x)


Price to Book Ratio

PB vs Industry: SBAC has negative assets, so we can't compare its PB Ratio to the US REITs industry average.


Next Steps

Future Growth

How is SBA Communications forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

35.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBAC's forecast earnings growth (35.4% per year) is above the savings rate (2%).

Earnings vs Market: SBAC's earnings (35.4% per year) are forecast to grow faster than the US market (20.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SBAC's revenue (5.1% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: SBAC's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SBAC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has SBA Communications performed over the past 5 years?

18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBAC has a large one-off loss of $58.5M impacting its December 31 2020 financial results.

Growing Profit Margin: SBAC's current net profit margins (1.2%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: SBAC has become profitable over the past 5 years, growing earnings by 18.9% per year.

Accelerating Growth: SBAC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SBAC had negative earnings growth (-83.4%) over the past year, making it difficult to compare to the REITs industry average (-6.1%).


Return on Equity

High ROE: SBAC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is SBA Communications's financial position?


Financial Position Analysis

Short Term Liabilities: SBAC has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SBAC has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SBAC has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SBAC's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: SBAC's debt is not well covered by operating cash flow (10.1%).

Interest Coverage: SBAC's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

What is SBA Communications's current dividend yield, its reliability and sustainability?

0.91%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SBAC's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: SBAC's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (3.77%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SBAC has been paying a dividend for less than 10 years.

Growing Dividend: SBAC's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.4%), SBAC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SBAC's dividends in 3 years are forecast to be well covered by earnings (31.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.0yrs

Average management tenure


CEO

Jeff Stoops (61 yo)

19.08yrs

Tenure

US$10,156,251

Compensation

Mr. Jeffrey A. Stoops, also known as Jeff, has been the Chief Executive Officer and President of SBA Communications Corporation (REIT) and SBA Communications Corp. since January 1, 2002 and April 2000 resp...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD10.16M) is about average for companies of similar size in the US market ($USD10.55M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Bernstein
Founder & Independent Chairman32.08yrsUS$368.27k0.094%
$ 26.3m
Jeffrey Stoops
President19.08yrsUS$10.16m0.68%
$ 189.8m
Brendan Cavanagh
Executive VP & CFO12.42yrsUS$4.10m0.043%
$ 11.9m
Thomas Hunt
Executive VP13.75yrsUS$4.26m0.11%
$ 30.0m
Jason Silberstein
Executive Vice President of Site Leasing12yrsUS$3.29m0.011%
$ 3.0m
Kurt Bagwell
Executive VP & President of International10.33yrsUS$4.31m0.042%
$ 11.8m
Mark Ciarfella
Executive Vice President of Operations7.08yrsno data0.017%
$ 4.7m
Brian Lazarus
Senior VP & Chief Accounting Officer12.42yrsno data0.017%
$ 4.7m
Dipan Patel
Executive Vice President of Strategy2yrsno data0.00032%
$ 89.3k
Jorge Grau
Chief Information Officer & Senior VP15.08yrsno datano data
David Porte
Senior Vice President of International Strategy & Business Development2.75yrsno datano data
Michelle Eisner
Senior VP & Chief Human Resources Officer2.33yrsno datano data

12.0yrs

Average Tenure

55.5yo

Average Age

Experienced Management: SBAC's management team is seasoned and experienced (12 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Bernstein
Founder & Independent Chairman32.08yrsUS$368.27k0.094%
$ 26.3m
Jeffrey Stoops
President19.08yrsUS$10.16m0.68%
$ 189.8m
Kevin Beebe
Independent Director11.33yrsUS$268.27k0.012%
$ 3.3m
Brian Carr
Independent Director16.75yrsUS$268.27k0.0032%
$ 900.9k
Jack Langer
Lead Independent Director7.08yrsUS$308.27k0.014%
$ 3.9m
Duncan Cocroft
Independent Director16.5yrsUS$288.27k0.062%
$ 17.3m
Mary Shio Chan
Independent Director5.75yrsUS$268.27k0.0026%
$ 714.0k
Fidelma Russo
Independent Director1.08yrsno datano data
George Krouse
Independent Director11.33yrsUS$278.27k0.0096%
$ 2.7m

11.3yrs

Average Tenure

61yo

Average Age

Experienced Board: SBAC's board of directors are seasoned and experienced ( 11.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SBA Communications Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SBA Communications Corporation
  • Ticker: SBAC
  • Exchange: NasdaqGS
  • Founded: 1989
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$27.892b
  • Shares outstanding: 109.32m
  • Website: https://www.sbasite.com

Number of Employees


Location

  • SBA Communications Corporation
  • 8051 Congress Avenue
  • Boca Raton
  • Florida
  • 33487
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBACNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJun 1999
4SBDB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 1999
0KYZLSE (London Stock Exchange)YesClass A Common StockGBUSDJun 1999
SBAC *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNJun 1999
S1BA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 5 REPR 1 COMBRBRLJan 2020

Biography

SBA Communications Corporation is a first choice provider and leading owner and operator of wireless communications infrastructure in North, Central, and South America and South Africa. By “Building Better...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/01 00:06
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.