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Radius Global Infrastructure, Inc.NasdaqGM:RADI Stock Report

Market Cap US$1.6b
Share Price
n/a
My Fair Value
n/a
1Y30.0%
7D0.2%
1D
Portfolio Value
​
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Radius Global Infrastructure, Inc.

NasdaqGM:RADI Stock Report

Market Cap: US$1.6b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Radius Global Infrastructure (RADI) Stock Overview

Radius Global Infrastructure, Inc., together with its subsidiaries, operates as an aggregator of rental streams underlying wireless and other communications infrastructure sites through the acquisition of real property interests and contractual rights in Italy, the United Kingdom, the United States, other Eurozone countries, and internationally. More details

RADI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance0/6
Financial Health3/6
Dividends0/6

Rewards

Trading at 78% below our estimate of its fair value

Revenue is forecast to grow 20.9% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years


RADI Community Fair Values

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Radius Global Infrastructure, Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Radius Global Infrastructure
Historical stock prices
Current Share PriceUS$15.00
52 Week HighUS$15.18
52 Week LowUS$7.97
Beta0.58
1 Month Change0.54%
3 Month Change0.74%
1 Year Change29.98%
3 Year Change80.72%
5 Year Changen/a
Change since IPO61.29%

Recent News & Updates

Recent updates

Seeking Alpha • Oct 13

Radius Global Infrastructure: Sale Likely Off, Stock Now On Sale

Summary In early May it was reported that Radius was considering a sale of the company. The financing environment has weakened and it is unlikely Radius will be sold near-term. Shares are now trading about 30% below where they were prior to sale rumors. The implied cap rate is now roughly 6.5%. With inflation top of mind, investors should find comfort knowing that the vast bulk of Radius's leases have CPI linked escalators. Assuming a 4.5% cap rate, Radius shares look to have a fair value of $16+ per share, offering long-term shareholders the opportunity to nearly double their investment. Radius Global Infrastructure (RADI) shares have been on a wild ride thus far in 2022. Early in the year, the stock sold off along with the broad decline in the market before rebounding strongly in May as sale rumors emerged sent shares surging. Now five months have passed since sale rumors broke and the deal financing environment has significantly deteriorated making a near-term sale unlikely. With shares having fallen 40% in the past month alone, I believe that RADI is an interesting opportunity for shareholders with a long term time horizon. What is Radius Global Infrastructure? RADI is an aggregator and lessor of the land which sits under cell phone towers primarily in the US, Europe, UK, Australia and Brazil. It typically acquires the land from families or mom and pop operators under both purchase and long term lease contracts (see below). It leases the land to creditworthy tower operators like American Tower (AMT) or Cellnex (CLLNY) in Europe. Escalators, Countries (Company Presentation) Why is Radius out of favor? There are no shortage of reasons that RADI shares have performed poorly including: Seemingly aborted sales process High debt levels - this is mitigated by VERY stable cash flow, limited near term maturities, currency matching, and fixed low interest rates REITs (note: RADI is not a REIT but is very REIT-like) have been decimated thus far in 2022 falling over 30% year to date Radius is a former SPAC - most SPACs have proven to be terrible investments for investors. While RADI is tremendously cash generative, the company expenses site acquisitions costs (in my perfect world this would run through the investing section of the cash flow statement), making investment analysis a bit more cumbersome. Currency - As shown above, RADI earns most of its revenue in Europe/UK and these currencies have weakened materially versus the dollar. Fortunately management had the foresight to borrow in EUR and GBP to match its revenue exposure. Why should investors be interested in Radius Global Infrastructure? A. The company owns/ has long-term rights to critical infrastructure assets which is leased to creditworthy tenants (tower operators and in some cases national telecoms) contracted under long term leases. There is no economic sensitivity - these leases will be paid rain or shine. B. In addition to having highly certain cash flows from creditworthy counter parties, ~70% these cash flows are CPI linked. Essentially, RADI is akin to a very high grade, inflation linked bond.
Seeking Alpha • Aug 08

Radius Global Infrastructure GAAP EPS of -$0.20 beats by $0.50, revenue of $32.57M misses by $1.65M

Radius Global Infrastructure press release (NASDAQ:RADI): Q2 GAAP EPS of -$0.20 beats by $0.50. Revenue of $32.57M (+30.4% Y/Y) misses by $1.65M.
Seeking Alpha • May 10

Radius: Will Possibly Be Acquired By American Tower Or Crown Castle

Radius Global Infrastructure acquires and owns land, fiber, and data center assets which it then leases to tower companies and others. The company has grown revenues rapidly as a result of growing its asset base. Returns on invested capital have also improved but are nonetheless still on the negative side, not conjuring well with an economic environment where interest rates are rising amid recession risks. This may have motivated the management to explore the sale option, aware that with investment-grade tenants and their rental income benefiting from a high level of inflation protection, there would not be a shortage of potential suitors. Out of these, it is most probable that Radius will be acquired by tower companies, and, investors are cautioned that current market optimism for the stock is because of a potential acquisition.
Seeking Alpha • Mar 10

Buy Radius: The Highest Growth And Lowest Risk In Communications Infrastructure

RADI's small size ($1.4bn market cap) puts RADI in a position to pursue almost perpetual growth in a fragmented market (RADI owns 6.2k sites vs. >5mn sites worldwide). I estimate that RADI's cash earnings will grow by a CAGR of 17.3% over the next five as mobile data consumption is expected to grow 20-30% annually through 2026. RADI's ground lease equity carries the lowest risk in the communications capital stack and has WA rent escalators that are nearly double that of traditional net lease REITs. As the US is experiencing the highest inflation level of the last 40 years, 78% of RADI's rental cash flows are protected by floating leases that are based on CPI or a similar inflation metric. Given strong industry tailwinds and high barriers to replicate RADI's strategy, RADI's current 19% discount to its intrinsic value provides a low risk point of entry.

Shareholder Returns

RADIUS TelecomUS Market
7D0.2%-0.5%1.6%
1Y30.0%2.5%28.2%

Return vs Industry: RADI exceeded the US Telecom industry which returned -11.9% over the past year.

Return vs Market: RADI exceeded the US Market which returned 13.8% over the past year.

Price Volatility

Is RADI's price volatile compared to industry and market?
RADI volatility
RADI Average Weekly Movement0.5%
Telecom Industry Average Movement8.0%
Market Average Movement7.2%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.0%

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

Volatility Over Time: RADI's weekly volatility has decreased from 6% to 0% over the past year.

About the Company

FoundedEmployeesCEOWebsite
2010398Bill Berkmanwww.radiusglobal.com

Radius Global Infrastructure, Inc., together with its subsidiaries, operates as an aggregator of rental streams underlying wireless and other communications infrastructure sites through the acquisition of real property interests and contractual rights in Italy, the United Kingdom, the United States, other Eurozone countries, and internationally. The company purchases the right to receive future rental payments generated from an existing ground, rooftop, and other communications infrastructure lease; and acquires the rental streams by way of a purchase of a real property interest in the land underlying the wireless tower, antennae, and other essential communications infrastructure, including easements, usufructs, leasehold, and sub-leasehold interests or fee simple interests, as well as purchases contractual interests, such as an assignment of rents, in conjunction with the property interest or as a stand-alone right. It also provides other digital infrastructure sites.

Radius Global Infrastructure, Inc. Fundamentals Summary

How do Radius Global Infrastructure's earnings and revenue compare to its market cap?
RADI fundamental statistics
Market capUS$1.65b
Earnings (TTM)-US$165.86m
Revenue (TTM)US$155.98m
9.6x
P/S Ratio
-9.0x
P/E Ratio

Is RADI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
RADI income statement (TTM)
RevenueUS$155.98m
Cost of RevenueUS$8.39m
Gross ProfitUS$147.58m
Other ExpensesUS$313.44m
Earnings-US$165.86m

Last Reported Earnings

Jun 30, 2023

Next Earnings Date

n/a

Earnings per share (EPS)-1.66
Gross Margin94.62%
Net Profit Margin-106.33%
Debt/Equity Ratio265.7%

How did RADI perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/09/22 13:26
End of Day Share Price 2023/09/20 00:00
Earnings2023/06/30
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Radius Global Infrastructure, Inc. is covered by 6 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nathan CrossettBerenberg
Nathan CrossettBNP Paribas
Jonathan PetersenJefferies LLC