NYSE:CCI

Stock Analysis Report

Crown Castle International (REIT)

Executive Summary

Crown Castle owns, operates and leases more than 40,000 cell towers and more than 75,000 route miles of fiber supporting small cells and fiber solutions across every major U.S.

Rewards

Trading at 27.4% below its fair value

Earnings are forecast to grow 11.74% per year

Earnings grew by 86.7% over the past year

Risk Analysis

Unstable dividend track record

Significant insider selling over the past 3 months



Snowflake Analysis

Solid track record second-rate dividend payer.


Similar Companies

Share Price & News

How has Crown Castle International (REIT)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CCI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

CCI

-0.7%

US REITs

-0.3%

US Market


1 Year Return

17.0%

CCI

12.2%

US REITs

18.6%

US Market

Return vs Industry: CCI exceeded the US REITs industry which returned 12.2% over the past year.

Return vs Market: CCI underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

CCIIndustryMarket
7 Day1.3%-0.7%-0.3%
30 Day3.6%0.6%2.2%
90 Day-5.6%-0.8%5.6%
1 Year21.2%17.0%17.0%12.2%21.1%18.6%
3 Year77.4%58.3%35.2%18.3%45.6%36.2%
5 Year117.0%78.6%56.0%23.8%71.1%52.2%

Price Volatility Vs. Market

How volatile is Crown Castle International (REIT)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Crown Castle International (REIT) undervalued compared to its fair value and its price relative to the market?

27.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CCI ($135.46) is trading below our estimate of fair value ($186.68)

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


Price To Earnings Ratio

PE vs Industry: CCI is poor value based on its PE Ratio (67.9x) compared to the REITs industry average (38.8x).

PE vs Market: CCI is poor value based on its PE Ratio (67.9x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CCI is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: CCI is overvalued based on its PB Ratio (5x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Crown Castle International (REIT) forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCI's forecast earnings growth (11.7% per year) is above the savings rate (1.7%).

Earnings vs Market: CCI's earnings (11.7% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: CCI's revenue (4.3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: CCI's revenue (4.3% 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 low in 3 years time (10.8%).


Next Steps

Past Performance

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

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCI has high quality earnings.

Growing Profit Margin: CCI's current net profit margins (14.2%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: CCI's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: CCI's earnings growth over the past year (86.7%) exceeds its 5-year average (16.5% per year).

Earnings vs Industry: CCI earnings growth over the past year (86.7%) exceeded the REITs industry 8.3%.


Return on Equity

High ROE: CCI's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Crown Castle International (REIT)'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: CCI has a high level of physical assets or inventory.

Debt Coverage by Assets: CCI's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Crown Castle International (REIT)'s current dividend yield, its reliability and sustainability?

3.54%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Crown Castle International (REIT) before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: CCI's dividend (3.54%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: CCI's dividend (3.54%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.2%), CCI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CCI's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).


Next Steps

Management

What is the CEO of Crown Castle International (REIT)'s salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Jay Brown (46yo)

3.5yrs

Tenure

US$9,025,526

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 ($USD9.03M) is about average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

3.5yrs

Average Tenure

49yo

Average Age

Experienced Management: CCI's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

16.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: CCI's board of directors are seasoned and experienced ( 16 years average tenure).


Insider Trading

Insider Buying: CCI insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$901,15213 Nov 19
J. Martin
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares6,900
Max PriceUS$130.67
SellUS$1,505,97922 Oct 19
Robert Ackerman
EntityIndividual
Role
Senior Key Executive
Senior VP and COO of Towers & Small Cells
Shares10,500
Max PriceUS$143.43
SellUS$143,34016 Aug 19
Robert Collins
EntityIndividual
Role
Chief Accounting Officer
Principal Accounting Officer
Shares1,000
Max PriceUS$143.34
BuyUS$2,075,46125 Jul 19
J. Martin
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares16,300
Max PriceUS$127.35
SellUS$150,22323 May 19
Robert Collins
EntityIndividual
Role
Chief Accounting Officer
Principal Accounting Officer
Shares1,200
Max PriceUS$125.19
BuyUS$2,259,46425 Apr 19
J. Martin
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares18,350
Max PriceUS$123.35
SellUS$236,75227 Feb 19
Kenneth Simon
EntityIndividual
Role
Chief Legal Officer
Senior VP & General Counsel
Shares2,000
Max PriceUS$118.38
SellUS$300,15026 Feb 19
Michael Kavanagh
EntityIndividual
Shares2,500
Max PriceUS$120.06
BuyUS$41,28312 Feb 19
Edward Hutcheson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares350
Max PriceUS$117.95

Ownership Breakdown

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


Management Team

  • Kenneth Simon (58yo)

    Senior VP & General Counsel

    • Tenure: 3.9yrs
    • Compensation: US$3.41m
  • Jim Young (57yo)

    Senior VP & COO of Fiber

    • Tenure: 10.8yrs
    • Compensation: US$4.34m
  • Dan Schlanger (45yo)

    CFO, Senior VP & Treasurer

    • Tenure: 3.5yrs
    • Compensation: US$3.36m
  • Jay Brown (46yo)

    President

    • Tenure: 3.5yrs
    • Compensation: US$9.03m
  • Ben Lowe (41yo)

    Vice President of Corporate Finance

    • Tenure: 2.2yrs
  • Phil Kelley (46yo)

    Senior Vice President of Corporate Development & Strategy

    • Tenure: 11.3yrs
    • Compensation: US$2.89m
  • Fiona McKone

    Vice President of Communications & Marketing

    • Tenure: 0yrs
  • Bob Collins (52yo)

    Principal Accounting Officer

    • Tenure: 2.9yrs
  • Laura Nichol

    Senior Vice President of Business Support

    • Tenure: 5.6yrs
  • Bob Ackerman (67yo)

    Senior VP and COO of Towers & Small Cells

    • Tenure: 2.3yrs
    • Compensation: US$3.18m

Board Members

  • Robert Garrison (77yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: US$254.35k
  • Chap Hutcheson (73yo)

    Independent Director

    • Tenure: 20.4yrs
    • Compensation: US$249.35k
  • Ben Moreland (55yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: US$252.34k
  • Lanny Martin (73yo)

    Chairman of the Board

    • Tenure: 17.6yrs
    • Compensation: US$329.91k
  • Robert McKenzie (75yo)

    Independent Director

    • Tenure: 24.9yrs
    • Compensation: US$254.35k
  • Lee Hogan (74yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$234.95k
  • Ari Fitzgerald (56yo)

    Independent Director

    • Tenure: 17.3yrs
    • Compensation: US$239.95k
  • Cindy Christy (53yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$244.95k
  • P. Bartolo (47yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$272.34k
  • Jay Brown (46yo)

    President

    • Tenure: 3.5yrs
    • Compensation: US$9.03m

Company Information

Crown Castle International Corp. (REIT)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Crown Castle International Corp. (REIT)
  • Ticker: CCI
  • Exchange: NYSE
  • Founded: 1994
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$55.775b
  • Shares outstanding: 415.77m
  • Website: https://www.crowncastle.com

Number of Employees


Location

  • Crown Castle International Corp. (REIT)
  • 1220 Augusta Drive
  • Suite 600
  • Houston
  • Texas
  • 77057
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCINYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1998
8CWDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1998
0I4WLSE (London Stock Exchange)YesCommon StockGBUSDAug 1998
8CWETLX (Eurotlx)YesCommon StockITEURAug 1998
CCINWBAG (Wiener Boerse AG)YesCommon StockATEURAug 1998
CCI.PRANYSE (New York Stock Exchange)6.875% CON PFD AUSUSDJul 2017

Biography

Crown Castle owns, operates and leases more than 40,000 cell towers and more than 75,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. This nationwide port ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 00:19
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.