SBA Communications (SBAC) AI Stock Analysis

• Market Cap: $21.03B
• Dividend Yield: 2.23%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.12
• Revenue Growth: 4.82%
• EPS Growth: 25.24%
• Country: US
• Employees: 1,720
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): 2.20
• Shares Outstanding: 106,546,870
• 10 Day Avg. Volume: 1,441,977
• 30 Day Avg. Volume: 1,107,358
• PEG Ratio: 0.59
• Price to Book (P/B): -4.31
• Price to Sales (P/S): 8.21
• P/FCF Ratio: 19.89
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 11.87
• Enterprise Value/Gross Profit: 15.76
• Enterprise Value/Ebitda: 18.09
• 1Y Price Target: $229.30
• Price Target Upside: 16.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 8.3
• Revenue Forecast (FY): $2.80B

• Rating: 67 Neutral
• Price Target: $210.00 ▲(6.38% Upside)

SBA Communications' overall stock score is driven by strong earnings call highlights and reasonable valuation. However, financial performance is constrained by high leverage and negative equity, and technical indicators suggest a neutral market stance. The positive sentiment from strategic agreements and an investment-grade rating supports the stock's outlook.

Positive Factors

Strategic Acquisitions

The acquisition of Millicom sites enhances SBA's strategic positioning in Central America, expanding its market presence and growth potential.

Long-term Lease Agreements

The long-term lease agreement with Verizon secures stable, recurring revenue and strengthens SBA's position in the wireless infrastructure market.

Credit Rating Upgrade

The credit rating upgrade to investment-grade reflects stable cash flows and enhances SBA's financial flexibility, reducing borrowing costs.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting SBA's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Equity

Negative equity can strain SBA's financial health, impacting its ability to attract investment and sustain long-term growth.

Sprint-related Churn

Sprint-related churn represents a significant revenue loss, affecting SBA's financial performance and highlighting challenges in customer retention.

SBA Communications Business Overview & Revenue Model

Company Description

SBA Communications Corporation is a first choice provider and leading owner and operator of wireless communications infrastructure in North, Central, and South America and South Africa. By Building Better Wireless, SBA generates revenue from two primary businesses site leasing and site development services. The primary focus of the Company is the leasing of antenna space on its multi-tenant communication sites to a variety of wireless service providers under long-term lease contracts. For more information please visit: www.sbasite.com.

How the Company Makes Money

SBA Communications generates revenue primarily through long-term leases of tower space to wireless carriers, such as AT&T, Verizon, and T-Mobile. The company earns recurring rental income from its extensive portfolio of towers, which includes both traditional towers and other structures like rooftops and utility poles. Additional revenue streams come from site development services, where SBA assists in the construction and installation of wireless infrastructure. Significant factors contributing to its earnings include the growing demand for mobile data, the expansion of 5G technology, and strategic partnerships with major telecom operators, which facilitate a steady influx of new leasing contracts and renewal agreements.

SBA Communications Financial Statement Overview

Summary

SBA Communications demonstrates strong profitability and cash flow generation, but faces challenges with high leverage and negative equity. While revenue growth is modest, the company maintains robust margins, indicating operational efficiency. The high debt levels and negative equity are significant risks that could impact financial stability.

Income Statement

SBA Communications shows strong profitability with a consistent EBIT and EBITDA margin above 56% and 65% respectively in TTM. The net profit margin improved to 32.3% in TTM, indicating enhanced profitability. However, revenue growth is modest at 2.38% in TTM, suggesting limited expansion. The gross profit margin has slightly decreased compared to previous years, indicating potential cost pressures.

Balance Sheet

The company has a high debt-to-equity ratio of -2.998 in TTM, reflecting significant leverage and negative equity, which poses financial risk. Return on equity is negative, indicating inefficiencies in generating returns from shareholders' equity. Despite these challenges, the company maintains a stable asset base.

Cash Flow

Operating cash flow remains strong, with a high operating cash flow to net income ratio of 0.898 in TTM. Free cash flow growth is positive at 1.7% in TTM, showing improved cash generation. However, the free cash flow to net income ratio has slightly decreased, indicating potential challenges in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.79B	2.68B	2.71B	2.63B	2.31B	2.08B
Gross Profit	2.10B	2.07B	2.08B	1.94B	1.74B	1.59B
EBITDA	1.83B	1.79B	1.79B	1.68B	1.51B	1.39B
Net Income	856.97M	749.54M	501.81M	461.43M	237.62M	24.10M
Balance Sheet
Total Assets	11.26B	11.42B	10.18B	10.59B	9.80B	9.16B
Cash, Cash Equivalents and Short-Term Investments	430.31M	444.38M	209.59M	145.04M	368.06M	308.56M
Total Debt	15.02B	15.76B	14.46B	15.17B	14.52B	13.43B
Total Liabilities	14.51B	16.47B	15.31B	15.83B	15.07B	13.97B
Stockholders Equity	-4.93B	-5.11B	-5.17B	-5.28B	-5.28B	-4.82B
Cash Flow
Free Cash Flow	1.08B	1.11B	1.31B	1.10B	1.06B	997.47M
Operating Cash Flow	1.30B	1.33B	1.54B	1.32B	1.19B	1.13B
Investing Cash Flow	-749.90M	-809.31M	-468.25M	-1.39B	-1.42B	-446.37M
Financing Cash Flow	-340.63M	645.74M	-1.02B	-167.47M	339.26M	-469.02M

SBA Communications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 197.40
• 50DMA: Positive
• 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 SBAC, the sentiment is Positive. The current price of 197.4 is above the 20-day moving average (MA) of 194.82, above the 50-day MA of 195.08, and below the 200-day MA of 214.79, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 68.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBAC.

SBA Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQIX	79 Outperform	$80.45B	75.02	7.72%	2.30%	5.36%	-1.68%
SBAC	67 Neutral	$21.03B	24.85	―	2.23%	4.82%	25.24%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AMT	65 Neutral	$83.37B	28.40	77.38%	3.78%	-5.33%	163.89%
IRM	59 Neutral	$29.81B	188.63	―	3.06%	10.88%	51.13%
UNIT	57 Neutral	$1.49B	1.28	―	―	38.93%	952.55%
CCI	46 Neutral	$38.24B	―	-276.36%	5.85%	-26.56%	-369.24%

SBA Communications Corporate Events

SBA Communications Reports Strong Q3 2025 Results

SBA Communications Corporation is a prominent independent owner and operator of wireless communications infrastructure, including towers and distributed antenna systems, with a significant presence in the Americas and Africa. The company is a part of the S&P 500 and operates as a Real Estate Investment Trust (REIT).

SBA Communications’ Earnings Call: Positive Outlook Amid Challenges

The recent earnings call for SBA Communications painted a generally optimistic picture, as the company reported surpassing its internal projections and announced an increase in full-year guidance. This positive sentiment was bolstered by successful strategic acquisitions, despite some challenges in international markets and the strategic decision to exit the Canadian market.

SBA Communications Reports Strong Q2 2025 Results

SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure, including towers and distributed antenna systems, primarily serving the telecommunications industry across the Americas and Africa.