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Cellnex Telecom SA (ES:CLNX)
BME:CLNX
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Cellnex Telecom SA
(BME:CLNX)
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Rating:60Neutral
Price Target:
€28.00
▲(3.13% 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 (CLNX) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€18.33B
Dividend Yield0.25%
Average Volume (3M)1.55M
Price to Earnings (P/E)―
Beta (1Y)0.48
Revenue Growth8.27%
EPS Growth34.26%
CountryES
Employees2,642
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-0.21
Shares Outstanding682,410,950
10 Day Avg. Volume1,604,263
30 Day Avg. Volume1,546,812
Financial Highlights & Ratios
PEG Ratio6.76
Price to Book (P/B)1.18
Price to Sales (P/S)4.12
P/FCF Ratio60.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€38.42Price Target Upside41.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Cellnex Telecom SA Business Overview & Revenue Model
Company DescriptionCellnex 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 MoneyCellnex 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 Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong operational and financial performance with significant growth in revenue and EBITDA, along with a clear commitment to shareholder returns. However, concerns about MNO consolidation and slowing organic growth rates present challenges. The company's strategic focus and efficiency improvements help offset these concerns.Q3-2025 Updates
Positive Updates
Revenue and EBITDA Growth
Revenues increased by 5.7% and Adjusted EBITDA rose by 6.9% for the first nine months of the year. EBITDAaL grew by 7.5%, indicating strong operating performance.
Shareholder Returns
Commitment to return EUR 1 billion to shareholders by the end of 2026, including EUR 500 million in dividends and EUR 500 million in share buybacks.
Operational Efficiency
Operational efficiency programs resulted in a 150 basis points improvement in EBITDA after lease margin, expanding to 60.8% from 59.3% a year ago.
Deleveraging
Leverage ratio improved from 6.6x to 6.4x, with a commitment to maintain investment-grade status and target range of 5x to 6x.
Credit Rating Affirmation
Fitch reaffirmed BBB- rating and raised the leverage threshold to 7.3x, providing greater financial headroom.
Negative Updates
MNO Consolidation Concerns
Concerns around MNO consolidation potentially impacting market share and growth, although company remains confident in resilience.
Slowing Organic Growth
Organic growth rates have slowed, with Q3 organic revenue growth at approximately 5%, partly due to price mix changes.
Mixed Revenue Impact from PoPs
Revenue contribution from new PoPs affected by a mix of anchor clients, secondary tenants, and RAN-sharing, impacting pricing.
Company Guidance
During the third quarter of fiscal year 2025, Cellnex reported strong financial performance, reaffirming its targets and demonstrating business resilience. The company achieved a 5.7% increase in revenues and a 6.9% rise in adjusted EBITDA. EBITDA after lease expanded by 7.5%, reflecting improved operational efficiency and a 150 basis points enhancement in the EBITDA after lease margin to 60.8%. Cellnex also announced a EUR 1 billion shareholder return commitment by the end of 2026, with EUR 800 million already delivered via share buybacks in 2025. The leverage ratio improved from 6.6x to 6.4x, and recurring levered free cash flow grew by 9.5% year-to-date, marking a 2.1% compound annual growth rate over the past ten quarters. The company continues to execute its strategy, focusing on long-term value creation, operational efficiency, and shareholder returns.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 | 4.23B | 4.07B | 3.80B | 3.25B | 2.44B | 1.56B |
| Gross Profit | 3.91B | 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
Negative
27.15
Price Trends
26.32
Positive
27.97
Negative
30.43
Negative
Market Momentum
0.35
Negative
51.89
Neutral
50.07
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 27.15 is above the 20-day moving average (MA) of 26.72, above the 50-day MA of 26.32, and below the 200-day MA of 30.43, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 51.89 is Neutral, neither overbought nor oversold. The STOCH value of 50.07 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | €3.29B | 6.84 | 8.84% | 5.64% | -16.98% | ― | |
72 Outperform | €985.82M | 7.12 | 16.56% | 16.98% | -1.95% | 11.63% | |
65 Neutral | €6.98B | 10.88 | 8.09% | 3.08% | 7.09% | 369.07% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | €18.33B | -121.75 | -1.18% | 0.25% | 8.27% | 34.26% | |
56 Neutral | €1.48B | 93.32 | ― | 17.21% | ― | ― |
* Real Estate Sector Average
ES:CLNX
Cellnex Telecom SA
27.15
-1.68
-5.81%
ES:COL
Inmobiliaria Colonial
5.27
0.38
7.69%
ES:MRL
MERLIN Properties SOCIMI SA
12.64
2.59
25.78%
ES:AEDAS
AEDAS Homes SA
23.95
1.73
7.80%
ES:MVC
Metrovacesa SA
9.76
2.22
29.44%
ES:YEPSA
Emperador Properties SOCIMI SA
6.30
2.10
50.00%
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.