Cellnex Telecom SA (CLNX) AI Stock Analysis

• Market Cap: $17.45B
• Dividend Yield: 0.24%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: 8.27%
• EPS Growth: 34.26%
• Country: ES
• Employees: 2,642
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.22
• Shares Outstanding: 682,410,950
• 10 Day Avg. Volume: 1,567,953
• 30 Day Avg. Volume: 1,375,714
• PEG Ratio: 6.76
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 4.12
• P/FCF Ratio: 60.63
• Enterprise Value/Market Cap: 2.40
• Enterprise Value/Revenue: 10.23
• Enterprise Value/Gross Profit: 8.50
• Enterprise Value/Ebitda: 11.11
• 1Y Price Target: $40.11
• Price Target Upside: 60.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -0.14
• Revenue Forecast (FY): $4.00B

• Rating: 60 Neutral
• Price Target: €28.00 ▲(12.18% Upside)

Cellnex Telecom SA's overall stock score is driven by strong financial performance and positive earnings call highlights, including revenue and EBITDA growth. However, technical analysis indicates bearish momentum, and valuation metrics are concerning due to a negative P/E ratio and low dividend yield. The company's strategic focus on operational efficiency and shareholder returns provides some optimism, but challenges in profitability and market conditions remain significant risks.

Positive Factors

Revenue Growth

Consistent revenue and EBITDA growth indicate strong market demand and effective business strategy, supporting long-term financial health.

Operational Efficiency

Improved operational efficiency enhances profitability and competitiveness, ensuring sustainable growth and shareholder value.

Cash Flow Generation

Strong cash flow generation provides financial flexibility for investments and debt management, supporting long-term strategic goals.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Net Profitability Challenges

Persistent net losses indicate challenges in achieving profitability, which could affect long-term financial stability and investor confidence.

MNO Consolidation Concerns

MNO consolidation may reduce market opportunities and revenue potential, posing a risk to growth and market position.

Cellnex Telecom SA Business Overview & Revenue Model

Company Description

Cellnex Telecom, S.A. operates infrastructure for wireless telecommunication in Austria, Denmark, Spain, France, Ireland, Italy, the Netherlands, Poland, Portugal, the United Kingdom, Sweden, and Switzerland. It operates through three segments: Telecom Infrastructure Services, Broadcasting Networks, and Network Services and Others. The company offers co-location services in its infrastructure for mobile operators to install telecommunications and wireless broadcasting equipment; distributed antenna system and small cells, a network of spatially separated antenna nodes connected to a common source through transport medium that provides wireless services. It also provides broadcasting network services, including digital terrestrial television (DTT), hybrid DTT, satellite DTT services, and premium DTT services; FM and digital radio services; and internet media services, such as online multiscreen video solutions, online business support solutions, and content distribution services. In addition, it offers data transportation services comprising satellite transportation, digital terrestrial circuits, Amazon direct connect, and internet throughput services; security and control services, which include security and emergency networks, terminals, forest fire early warning systems, and control centers; and smart communication networks, including wireless broadband, irrigation management services in rural settings, and Internet of Things services. Further, it offers smart services for city management; engineering/consulting, and operation and maintenance services; and constructs and operates optic fiber telecommunications. The company serves mobile network operators, broadcasters, and administrations. The company was formerly known as Abertis Telecom Terrestre, S.A.U. and changed its name to Cellnex Telecom, S.A. in April 2015. Cellnex Telecom, S.A. was incorporated in 2008 and is headquartered in Madrid, Spain.

How the Company Makes Money

Cellnex Telecom generates revenue primarily through leasing its telecommunications infrastructure to mobile network operators and other service providers. The company operates a long-term leasing model, where it provides access to its extensive network of towers and small cells on a rental basis. This recurring revenue model is supported by multi-year contracts that ensure stable cash flow. Additionally, Cellnex earns revenue from deploying new sites and upgrading existing infrastructure, as well as providing ancillary services like maintenance and management. The company has also entered strategic partnerships and acquisitions, expanding its portfolio and market reach, which further enhances its earnings potential.

Cellnex Telecom SA Financial Statement Overview

Summary

Cellnex Telecom SA exhibits strong revenue growth and efficient cash flow management. However, challenges in achieving net profitability and high leverage levels could impact future financial stability. The company's operational efficiency and positive cash flow trends provide a solid foundation, but careful management of debt and expenses will be crucial for long-term sustainability.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.09B	4.07B	3.80B	3.25B	2.44B	1.56B
Gross Profit	4.92B	3.66B	3.40B	2.89B	54.13M	123.94M
EBITDA	3.77B	2.72B	3.03B	2.48B	1.71B	1.13B
Net Income	274.92M	-28.04M	-297.22M	-297.06M	-362.54M	-135.43M
Balance Sheet
Total Assets	42.65B	43.67B	44.37B	44.26B	41.80B	24.07B
Cash, Cash Equivalents and Short-Term Investments	1.46B	1.08B	1.29B	1.04B	3.93B	4.65B
Total Debt	21.89B	21.44B	21.51B	20.97B	18.47B	11.15B
Total Liabilities	28.36B	28.34B	29.22B	29.07B	25.96B	15.14B
Stockholders Equity	13.10B	14.16B	13.94B	14.22B	14.21B	8.02B
Cash Flow
Free Cash Flow	0.00	276.24M	-126.00M	-739.37M	-380.26M	32.00M
Operating Cash Flow	0.00	2.31B	2.07B	1.83B	1.14B	791.65M
Investing Cash Flow	0.00	-1.18B	-1.59B	-5.95B	-13.90B	-5.90B
Financing Cash Flow	0.00	-1.29B	-205.59M	1.22B	12.08B	7.43B

Cellnex Telecom SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 24.96 is below the 20-day moving average (MA) of 25.95, below the 50-day MA of 27.67, and below the 200-day MA of 31.21, indicating a bearish trend. The MACD of -0.66 indicates Negative momentum. The RSI at 30.58 is Neutral, neither overbought nor oversold. The STOCH value of 51.24 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AENA	80 Outperform	€35.64B	17.27	―	4.16%	9.47%	6.30%
ITX	78 Outperform	€147.47B	25.06	35.19%	2.61%	4.74%	4.43%
ACS	70 Outperform	€19.06B	21.68	19.75%	2.59%	25.47%	7.63%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CLNX	60 Neutral	$17.45B	―	-1.18%	0.24%	8.27%	34.26%
TEF	49 Neutral	€21.05B	-8.95	-0.90%	7.63%	-7.15%	-79.58%

Cellnex Telecom SA Corporate Events

Cellnex Telecom Reports Steady Growth Amid Expansion

Cellnex Telecom (OTC) is a prominent European operator in the telecommunications infrastructure sector, specializing in wireless telecommunications and broadcasting tower management across multiple countries.