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Cellnex Telecom SA (ES:CLNX)
BME:CLNX

Cellnex Telecom SA (CLNX) AI Stock Analysis

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Cellnex Telecom SA

(BME:CLNX)

Rating:60Neutral
Price Target:
€35.00
▲(6.16%Upside)
The overall score is primarily influenced by strong financial performance in terms of revenue growth and cash flow management, but it is considerably weighed down by profitability challenges and high leverage. Technical indicators suggest a cautious outlook, and valuation metrics highlight issues with profitability and income generation.

Cellnex Telecom SA (CLNX) vs. iShares MSCI Spain ETF (EWP)

Cellnex Telecom SA Business Overview & Revenue Model

Company DescriptionCellnex Telecom SA (CLNX) is a leading European operator of wireless telecommunications and broadcasting infrastructure. The company specializes in providing services related to the deployment and management of telecommunications towers, broadcast networks, and other related infrastructure necessary for mobile and digital connectivity. With operations spanning across multiple countries in Europe, Cellnex plays a crucial role in facilitating communication services, enhancing network coverage, and supporting the digital transformation of industries.
How the Company Makes MoneyCellnex Telecom generates revenue primarily through long-term contracts with mobile network operators (MNOs), broadcasters, and other communication service providers. Its business model focuses on leasing space on its extensive network of telecommunications towers and infrastructure. The company benefits from stable and recurring revenue streams as it provides essential infrastructure that enables MNOs to expand their network coverage without having to invest heavily in their own infrastructure. Additionally, Cellnex has been actively pursuing strategic acquisitions and partnerships to expand its portfolio and geographical reach, further enhancing its revenue potential. Its earnings are also bolstered by its involvement in the development of new technologies, such as 5G networks, which require advanced infrastructure solutions.

Cellnex Telecom SA Earnings Call Summary

Earnings Call Date:May 09, 2025
(Q4-2024)
|
% Change Since: -4.43%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and strategic achievements, including significant contract renegotiations, asset disposals, and shareholder remuneration initiatives. However, challenges related to interest costs, tax impacts, and slower co-location growth were noted. Overall, the positive aspects significantly outweigh the challenges.
Q4-2024 Updates
Positive Updates
Strong Financial Performance
Revenues increased by 7.3%, EBITDA by 8.8%, and recurring levered free cash flow by 16.2% for Fiscal Year 2024. EBITDA margin improved from 59% to 61%, marking consistent growth for seven quarters in a row.
Successful Contract Renegotiations
Mutually beneficial contract renegotiations with major clients like Vodafone and VMO2 in the UK, and MasOrange in Spain, securing long-term business and extending strategic partnerships.
Asset Rotation and Capital Structure Management
Successful asset disposals in the Nordics, Ireland, and Austria, achieving investment-grade rating by S&P nine months ahead of schedule, and reducing leverage from 7.7 to 6.4 over 24 months.
Shareholder Remuneration
Announced an €800 million share buyback program, starting a sustainable shareholder return policy, with potential for further returns if more asset disposals occur.
Operational Excellence Initiatives
Integration of IT systems, increased automation, and productivity improvements led to higher customer satisfaction and all-time high Net Promoter Scores.
Negative Updates
Interest Costs and Tax Impact on Cash Flow
Higher interest costs and taxes expected in 2025, impacting free cash flow despite strong recurring levered free cash flow and adjusted EBITDA growth.
Challenges in Meeting Co-location Growth
Co-location growth slowed to 2.4% in 2024, with softer performance in the second half of the year due to decreased contributions from DG's rollout in Portugal and Iliad in Italy.
Company Guidance
During the conference call for Cellnex's full-year results, the leadership team provided detailed guidance and numerous metrics highlighting their strategic initiatives and financial performance for 2024. They emphasized a strong focus on long-term value protection, operational excellence, asset rotation, and capital structure management. Key achievements included reaching investment-grade status from S&P nine months ahead of schedule, a leverage ratio reduction from 7.7 to 6.4 over the past two years, and a successful €800 million share buyback program. Financial performance was robust, with organic revenue growth of 7.3%, EBITDA growth of 8.8%, and recurring levered free cash flow growth of 16.2%. The company also maintained an EBITDA margin of 61% and improved customer satisfaction metrics. Looking ahead, Cellnex reiterated its 2025 and medium-term objectives, signaling confidence in its business model and market position.

Cellnex Telecom SA Financial Statement Overview

Summary
Cellnex Telecom SA shows strong revenue growth and efficient cash flow management. However, persistent net losses and high leverage levels pose financial risks. Operational efficiency is evident with healthy EBITDA margins and positive cash flow trends.
Income Statement
68
Positive
Cellnex Telecom SA has shown a strong revenue growth trajectory over the years, with a 7% increase in 2024 compared to 2023. Despite consistent revenue growth, the company has faced challenges in achieving profitability, as indicated by negative net income over multiple periods. The gross profit margin has improved, reaching 100% in 2024, highlighting cost management efficiencies. However, the net profit margin remains negative due to significant financial and operational expenses. EBITDA margins are healthy at 66.9% in 2024, suggesting robust operational performance despite net losses.
Balance Sheet
65
Positive
The balance sheet reflects a high debt-to-equity ratio of 1.51 in 2024, indicating significant leverage, which may pose financial risks. The equity ratio is relatively stable at 32.4%, showing a balanced asset structure. Return on equity remains negative due to persistent net losses, which could be a concern for shareholders. The company's high asset base supports its expansive operations, but the reliance on debt financing could impact financial flexibility.
Cash Flow
75
Positive
Cellnex's operating cash flow has steadily increased, reaching €2.3 billion in 2024, reflecting strong operational cash generation. Free cash flow turned positive in 2024, indicating improved cash management and capital expenditure control. The operating cash flow to net income ratio is robust, demonstrating the company's ability to generate cash despite accounting losses. However, free cash flow to net income ratios have fluctuated due to varying capital expenditures and net income challenges.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.16B4.07B3.80B3.25B2.44B1.56B
Gross Profit
1.50B591.99M3.40B65.70M54.13M123.94M
EBIT
57.80M196.82M374.07M140.16M-62.42M70.19M
EBITDA
2.58B2.72B3.03B2.48B1.71B1.13B
Net Income Common Stockholders
-522.87M-28.04M-297.22M-312.94M-375.07M-150.74M
Balance SheetCash, Cash Equivalents and Short-Term Investments
494.05M1.08B1.29B1.04B3.93B4.65B
Total Assets
43.67B43.67B44.37B44.26B41.80B24.07B
Total Debt
21.17B21.44B21.51B20.97B18.47B11.15B
Net Debt
20.68B20.36B20.22B19.93B14.54B6.50B
Total Liabilities
28.83B28.34B29.22B29.07B25.96B15.14B
Stockholders Equity
13.66B14.16B13.94B14.22B14.21B8.02B
Cash FlowFree Cash Flow
1.17B276.24M-126.00M-739.37M-380.26M32.00M
Operating Cash Flow
1.17B2.31B2.07B1.83B1.14B791.65M
Investing Cash Flow
0.00-1.18B-1.59B-5.95B-13.90B-5.90B
Financing Cash Flow
0.00-1.29B-205.59M1.22B12.08B7.43B

Cellnex Telecom SA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price32.97
Price Trends
50DMA
33.68
Negative
100DMA
33.03
Negative
200DMA
33.31
Negative
Market Momentum
MACD
-0.08
Positive
RSI
42.30
Neutral
STOCH
16.39
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:CLNX, the sentiment is Negative. The current price of 32.97 is below the 20-day moving average (MA) of 33.54, below the 50-day MA of 33.68, and below the 200-day MA of 33.31, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 42.30 is Neutral, neither overbought nor oversold. The STOCH value of 16.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:CLNX.

Cellnex Telecom SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
€34.56B17.5023.95%3.43%11.50%12.30%
ESITX
79
Outperform
€142.30B24.2333.03%2.90%6.22%6.69%
ESACS
64
Neutral
€14.69B17.4416.48%2.89%16.50%7.64%
61
Neutral
$2.83B10.720.40%6.10%5.80%-21.26%
60
Neutral
$23.26B-0.24%0.28%16.42%84.46%
ESTEF
54
Neutral
€25.93B-0.55%5.29%-1.34%-181.23%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:CLNX
Cellnex Telecom SA
32.97
1.39
4.39%
ES:ITX
Inditex
45.72
0.46
1.02%
ES:ACS
Actividades de Construccion y Servicios SA
56.35
18.55
49.07%
ES:TEF
Telefonica
4.59
0.68
17.31%
ES:AENA
Aena SA
230.40
53.75
30.43%

Cellnex Telecom SA Corporate Events

Cellnex Telecom Completes €800 Million Share Buyback Program
May 16, 2025

Cellnex Telecom S.A. has concluded its share buyback program, reaching a maximum monetary amount of 800 million euros with the acquisition of 24,064,404 shares, representing 3.41% of its share capital. This initiative aims to reduce the company’s share capital through the amortization of acquired shares, aligning with market regulations and decisions made by the Board of Directors and approved by the Ordinary General Shareholders’ Meeting.

The most recent analyst rating on (ES:CLNX) stock is a Buy with a EUR41.00 price target. To see the full list of analyst forecasts on Cellnex Telecom SA stock, see the ES:CLNX Stock Forecast page.

Cellnex Telecom Announces Key Leadership Appointments
May 14, 2025

Cellnex Telecom SA has announced significant changes in its leadership structure following its Ordinary General Shareholders’ Meeting. The company has appointed Mr. Luis Mañas Antón as an independent director and a member of the Appointments, Remuneration, and Sustainability Committee, while Mr. Xavier Pujol Tobeña has been named the new General Secretary and Secretary of the Board of Directors. These appointments are expected to enhance the company’s governance and strategic oversight, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (ES:CLNX) stock is a Buy with a EUR41.00 price target. To see the full list of analyst forecasts on Cellnex Telecom SA stock, see the ES:CLNX Stock Forecast page.

Cellnex Telecom Secures €750 Million Bond Issuance to Bolster Operations
May 12, 2025

Cellnex Telecom SA has announced the successful pricing of a 750 million euro bond issuance through its subsidiary, Cellnex Finance Company S.A.U. The bonds, which are part of the company’s Euro Medium Term Note Programme, are aimed at qualified investors and will mature in May 2032 with a 3.5% annual coupon. This strategic financial move is expected to reduce the effective annual cost by over 10 basis points due to hedging instruments and will support the company’s general corporate purposes, potentially strengthening its market position and operational capabilities.

The most recent analyst rating on (ES:CLNX) stock is a Buy with a EUR41.00 price target. To see the full list of analyst forecasts on Cellnex Telecom SA stock, see the ES:CLNX Stock Forecast page.

Cellnex Telecom Advances Share Buyback Program
May 12, 2025

Cellnex Telecom S.A. has announced the execution of a share buyback program, purchasing a total of 1,135,920 shares between May 5 and May 8, 2025, at a weighted average price of 35.24 euros per share. This buyback is part of a larger program, with the company having acquired 23,626,533 shares to date, representing approximately 98% of the maximum investment amount announced earlier, indicating a strong commitment to returning value to shareholders and potentially enhancing its market position.

The most recent analyst rating on (ES:CLNX) stock is a Buy with a EUR41.00 price target. To see the full list of analyst forecasts on Cellnex Telecom SA stock, see the ES:CLNX Stock Forecast page.

Cellnex Telecom Approves Major Dividend and Share Capital Reduction
May 9, 2025

Cellnex Telecom S.A. held its Ordinary General Shareholders’ Meeting for 2025, where key resolutions were adopted. The meeting approved the company’s financial statements for 2024, including a significant dividend distribution plan of up to €1,037.5 million from the share premium reserve, to be paid between 2025 and 2027. Additionally, a share capital reduction of up to €10 million was approved through the amortization of up to 40 million shares, enhancing shareholder value and optimizing the company’s capital structure.

Cellnex Telecom Marks 10th Anniversary with Growth-Focused Strategy
May 9, 2025

Cellnex Telecom held its 2025 Shareholders’ Meeting, marking the 10th anniversary of its stock market debut, and announced a shift from a consolidation phase to a growth-focused stage. The company emphasized capital efficiency, shareholder returns, and strategic growth opportunities, with plans for significant investment over the next three years. Key developments include a share buyback program, the appointment of a new independent director, and strong financial results for 2024, showcasing improved profitability and organic growth. The company aims to maintain its investment-grade credit rating while focusing on customer service and shareholder profitability.

Cellnex Telecom Reports Strong Q1 2025 Growth and Reaffirms 2025 Outlook
May 9, 2025

Cellnex Telecom reported strong organic growth in the first quarter of 2025, with revenues increasing by 6.3% to 964 million euros and EBITDAaL rising by 8.7% to 566 million euros. Despite geopolitical uncertainties and the impact of tariffs, the company remains optimistic about its 2025 outlook, maintaining its revenue and EBITDA forecasts. The sale of its Irish business and a significant share buyback program have been notable financial activities, while the company’s commitment to climate change has been recognized by its inclusion in the CDP ‘A List’ and the Financial Times’ Climate Leaders Europe list.

Cellnex Telecom Announces Dividend Distribution from Share Premium Reserve
May 8, 2025

Cellnex Telecom SA has announced a dividend distribution of 11,824,922.47 euros, equating to 0.0167 euros per share, as part of its Shareholder Remuneration Policy. This decision, made by the Board of Directors, will see the dividend paid from the share premium reserve, with adjustments based on treasury stock levels due to a buyback program. The payment date is set for June 18, 2025, with CaixaBank, S.A. acting as the paying agent.

Cellnex Telecom Advances Share Buyback Program
Apr 30, 2025

Cellnex Telecom SA has executed a series of transactions as part of its ongoing share buyback program, purchasing over 2 million shares between April 22 and April 25, 2025. This buyback is part of a larger initiative, with the company having acquired over 20 million shares to date, representing 83% of the maximum investment amount announced earlier. The buyback program aims to enhance shareholder value and optimize the company’s capital structure.

Cellnex Telecom to Announce Q1 2025 Results and Host Investor Call
Apr 25, 2025

Cellnex Telecom SA announced it will release its first quarter 2025 financial results on May 9, 2025, before the market opens. The company will also host a teleconference for analysts and institutional investors to discuss the results, indicating an effort to maintain transparency and engagement with key stakeholders.

Cellnex Telecom Announces 2025 Shareholders Meeting and Strategic Financial Plans
Apr 4, 2025

Cellnex Telecom SA has announced the convening of its Ordinary General Meeting of Shareholders, scheduled for May 8, 2025, with a second call on May 9, 2025, if necessary. The meeting will address key agenda items including the approval of financial statements, management reports, and a proposal for dividend distribution. The company is also considering a reduction in share capital through the amortization of its own shares, indicating strategic financial maneuvers to optimize shareholder value.

Cellnex Telecom Executes Share Buyback Program
Mar 17, 2025

Cellnex Telecom SA has announced the execution of a share buyback program, purchasing a total of 2,856,200 shares at a weighted average price of 32.82 Euros between March 10 and March 14, 2025. This move, managed by Citigroup Global Markets Europe AG and Goldman Sachs Bank Europe SE, is part of a strategic initiative to enhance shareholder value and reflects the company’s confidence in its market position and future growth prospects.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.