Crown Castle International (NYSE:CCI) - Share price, News & Analysis

Q: What is the Fair Price of CCI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CCI ($173.46) is trading below our estimate of [[fair value]] ($243.87)

CCI fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	4/6
Financial Health	1/6
Dividends	2/6

CCI Stock Overview

Crown Castle owns, operates and leases more than 40,000 cell towers and approximately 80,000 route miles of fiber supporting small cells and fiber solutions across every major U.S.

Rewards

Trading at 28.9% below our estimate of its fair value

Earnings are forecast to grow 3.55% per year

Earnings have grown 27.7% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 3.39% is not well covered by earnings

Significant insider selling over the past 3 months

Crown Castle International Competitors

Equinix

NasdaqGS:EQIX

US$62.4b

Public Storage

NYSE:PSA

US$55.2b

American Tower

NYSE:AMT

US$120.7b

SBA Communications

NasdaqGS:SBAC

US$35.0b

Price History & Performance

Summary of all time highs, changes and price drops for Crown Castle International
Historical stock prices
Current Share Price	US$173.46
52 Week High	US$209.87
52 Week Low	US$153.70
Beta	0.54
1 Month Change	-10.31%
3 Month Change	-5.66%
1 Year Change	-12.41%
3 Year Change	33.31%
5 Year Change	74.67%
Change since IPO	1,234.31%

Recent News & Updates

May 06

Why Crown Castle Is A Good Bet For Growing Income

Crown Castle is well-positioned to capitalize on the 5G investment trend, thanks to its large collection of towers, small cells, and fiber assets. This has resulted in strong growth over the past several years, translating to robust shareholder returns. Recent share price weakness presents a good opportunity to layer into this high quality name.

Shareholder Returns

	CCI	US REITs	US Market
7D	11.1%	6.3%	6.3%
1Y	-12.4%	-8.3%	-18.8%

Return vs Industry: CCI underperformed the US REITs industry which returned -8.6% over the past year.

Return vs Market: CCI exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is CCI's price volatile compared to industry and market?
CCI volatility
CCI Average Weekly Movement	4.6%
REITs Industry Average Movement	4.9%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.2%

Stable Share Price: CCI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CCI's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1994	5,000	Jay Brown	https://www.crowncastle.com

Crown Castle owns, operates and leases more than 40,000 cell towers and approximately 80,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology and wireless service - bringing information, ideas and innovations to the people and businesses that need them. For more information on Crown Castle, please visit www.crowncastle.com.

Crown Castle International Fundamentals Summary

How do Crown Castle International's earnings and revenue compare to its market cap?
CCI fundamental statistics
Market Cap	US$75.11b
Earnings (TTM)	US$1.46b
Revenue (TTM)	US$6.60b

51.5x

P/E Ratio

11.4x

P/S Ratio

Is CCI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CCI income statement (TTM)
Revenue	US$6.60b
Cost of Revenue	US$2.04b
Gross Profit	US$4.56b
Other Expenses	US$3.10b
Earnings	US$1.46b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.37
Gross Margin	69.08%
Net Profit Margin	22.10%
Debt/Equity Ratio	260.0%

How did CCI perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

88%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CCI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CCI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CCI. This is calculated by dividing CCI's market cap by their current preferred multiple.
What is CCI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$75.11b

CCI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	15.5x
Enterprise Value/EBITDA	26.9x
PEG Ratio	14.5x

Price to Earnings Ratio vs Peers

How does CCI's PE Ratio compare to its peers?

CCI PE Ratio vs Peers

The above table shows the PE ratio for CCI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	70.8x
EQIX Equinix	127x	17.7%	US$62.4b
PSA Public Storage	30.4x	5.0%	US$55.2b
AMT American Tower	45.8x	9.8%	US$120.7b
SBAC SBA Communications	79.9x	8.4%	US$35.0b
CCI Crown Castle International	51.5x	3.6%	US$75.1b

Forward PE

Price-To-Earnings vs Peers: CCI is good value based on its Price-To-Earnings Ratio (51.5x) compared to the peer average (70.8x).

Price to Earnings Ratio vs Industry

How does CCI's PE Ratio compare vs other companies in the US REITs Industry?

Price-To-Earnings vs Industry: CCI is expensive based on its Price-To-Earnings Ratio (51.5x) compared to the US REITs industry average (31.6x)

Price to Earnings Ratio vs Fair Ratio

What is CCI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CCI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	51.5x
Fair PE Ratio	45.1x

Price-To-Earnings vs Fair Ratio: CCI is expensive based on its Price-To-Earnings Ratio (51.5x) compared to the estimated Fair Price-To-Earnings Ratio (45.1x).

Share Price vs Fair Value

What is the Fair Price of CCI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CCI ($173.46) is trading below our estimate of fair value ($243.87)

Significantly Below Fair Value: CCI is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: CCI is poor value based on its PEG Ratio (14.5x)

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Future Growth

How is Crown Castle International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

3.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCI's forecast earnings growth (3.6% per year) is above the savings rate (1.9%).

Earnings vs Market: CCI's earnings (3.6% per year) are forecast to grow slower than the US market (13.9% per year).

High Growth Earnings: CCI's earnings are forecast to grow, but not significantly.

Revenue vs Market: CCI's revenue (2.4% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: CCI's revenue (2.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CCI's Return on Equity is forecast to be high in 3 years time (26.9%)

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Past Performance

How has Crown Castle International performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

27.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CCI has high quality earnings.

Growing Profit Margin: CCI's current net profit margins (22.1%) are higher than last year (16.3%).

Past Earnings Growth Analysis

Earnings Trend: CCI's earnings have grown significantly by 27.7% per year over the past 5 years.

Accelerating Growth: CCI's earnings growth over the past year (51.4%) exceeds its 5-year average (27.7% per year).

Earnings vs Industry: CCI earnings growth over the past year (51.4%) underperformed the REITs industry 69.5%.

Return on Equity

High ROE: CCI's Return on Equity (18.1%) is considered low.

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Financial Health

How is Crown Castle International's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CCI's short term assets ($1.3B) do not cover its short term liabilities ($1.8B).

Long Term Liabilities: CCI's short term assets ($1.3B) do not cover its long term liabilities ($29.2B).

Debt to Equity History and Analysis

Debt Level: CCI's net debt to equity ratio (256.1%) is considered high.

Reducing Debt: CCI's debt to equity ratio has increased from 183.2% to 260% over the past 5 years.

Debt Coverage: CCI's debt is not well covered by operating cash flow (12.9%).

Interest Coverage: CCI's interest payments on its debt are well covered by EBIT (3.4x coverage).

Balance Sheet

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Dividend

What is Crown Castle International current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.39%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CCI's dividend (3.39%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: CCI's dividend (3.39%) is low compared to the top 25% of dividend payers in the US market (4.23%).

Stability and Growth of Payments

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

Growing Dividend: CCI's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (88.1%), CCI's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (170.5%), CCI's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.4yrs

Average management tenure

CEO

Jay Brown (48 yo)

6yrs

Tenure

US$14,553,510

Compensation

Mr. Jay A. Brown is President, Chief Executive Officer and Director at CC Holdings GS V LLC and served as its Chief Financial Officer, Senior Vice President and Treasurer. Mr. Brown has been the Chief Exec...

CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD14.55M) is about average for companies of similar size in the US market ($USD13.43M).

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

Leadership Team

Experienced Management: CCI's management team is seasoned and experienced (5.4 years average tenure).

Board Members

Experienced Board: CCI's board of directors are considered experienced (6.6 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: CCI 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31