NasdaqGS:SBAC

Stock Analysis Report

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.

Rewards

Trading at 7.8% below its fair value

Earnings are forecast to grow 21.57% per year

Earnings grew by 209.8% over the past year

Risk Analysis

No risks detected for SBAC from our risk checks.


Snowflake Analysis

Solid track record with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

21.3%

SBAC

20.4%

US REITs

12.5%

US Market


1 Year Return

32.1%

SBAC

-19.8%

US REITs

-12.7%

US Market

Return vs Industry: SBAC exceeded the US REITs industry which returned -19.8% over the past year.

Return vs Market: SBAC exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

SBACIndustryMarket
7 Day21.3%20.4%12.5%
30 Day-1.4%-19.3%-14.7%
90 Day8.5%-24.5%-21.5%
1 Year32.7%32.1%-16.8%-19.8%-10.9%-12.7%
3 Year119.6%118.6%-0.8%-12.9%12.6%5.4%
5 Year117.7%116.8%12.1%-10.8%31.9%17.5%

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?

7.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBAC ($261.38) is trading below our estimate of fair value ($283.62)

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 (200.6x) compared to the REITs industry average (24.1x).

PE vs Market: SBAC is poor value based on its PE Ratio (200.6x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SBAC is poor value based on its PEG Ratio (9.3x)


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 14 analysts?

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBAC's forecast earnings growth (21.6% per year) is above the savings rate (1.7%).

Earnings vs Market: SBAC's earnings (21.6% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: SBAC's revenue (6.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SBAC's revenue (6.1% 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?

56.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBAC has high quality earnings.

Growing Profit Margin: SBAC's current net profit margins (7.3%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: SBAC has become profitable over the past 5 years, growing earnings by 56% per year.

Accelerating Growth: SBAC's earnings growth over the past year (209.8%) exceeds its 5-year average (56% per year).

Earnings vs Industry: SBAC earnings growth over the past year (209.8%) exceeded the REITs industry 5%.


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? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SBAC has a high level of physical assets or inventory.

Debt Coverage by Assets: SBAC has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SBAC is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: SBAC is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: SBAC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SBAC has a sufficient allowance for bad loans.

Low Risk Liabilities: SBAC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SBAC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SBAC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SBAC has an appropriate level of bad loans.


Next Steps

Dividend

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

0.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SBAC's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: SBAC's dividend (0.71%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

Stable Dividend: SBAC is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: SBAC is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SBAC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SBAC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

11.5yrs

Average management tenure


CEO

Jeff Stoops (60yo)

18.17s

Tenure

US$9,101,986

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 ($USD9.10M) is about average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Stoops
President18.17yrsUS$9.10m0.72% $211.0m
Brendan Cavanagh
Executive VP & CFO11.5yrsUS$3.61m0.043% $12.5m
Thomas Hunt
Executive VP12.83yrsUS$3.82m0.15% $43.9m
Jason Silberstein
Executive Vice President of Site Leasing11yrsUS$3.05m0.011% $3.1m
Kurt Bagwell
Executive VP & President of International9.42yrsUS$3.88m0.044% $13.0m
Mark Ciarfella
Executive Vice President of Operations6.17yrsno data0.017% $4.9m
Brian Lazarus
Senior VP & Chief Accounting Officer11.5yrsno data0.017% $4.9m
Jorge Grau
Chief Information Officer & Senior VP14.17yrsno datano data
William Bates
Vice President of Business Development18.33yrsno datano data
Jo Rutherford
Chief Human Resources Officer and Senior Vice President6.17yrsno datano data

11.5yrs

Average Tenure

54yo

Average Age

Experienced Management: SBAC's management team is seasoned and experienced (11.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Stoops
President18.17yrsUS$9.10m0.72% $211.0m
Steven Bernstein
Founder & Chairman31.17yrsUS$312.96k0.092% $26.9m
Kevin Beebe
Independent Director10.42yrsUS$233.80k0.011% $3.3m
Brian Carr
Independent Director15.83yrsUS$233.80k0.0026% $754.8k
Jack Langer
Lead Independent Director6.17yrsUS$273.80k0.013% $3.9m
Duncan Cocroft
Independent Director15.58yrsUS$253.80k0.062% $18.2m
Mary Shio Chan
Independent Director4.83yrsUS$233.80k0.0021% $626.1k
Fidelma Russo
Independent Director0.17yrno datano data
George Krouse
Independent Director10.42yrsUS$243.80k0.0089% $2.6m

10.4yrs

Average Tenure

60yo

Average Age

Experienced Board: SBAC's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SBAC insiders have only sold shares 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$29.256b
  • Shares outstanding: 111.93m
  • 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 Wireless,” SBA generates revenue from two primary businesses – site leasing and site development services. The primary focus of the Company is the leasing of antenna space on its multi-tenant communication sites to a variety of wireless service providers under long-term lease contracts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 00:56
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.