SBA Communications (SBAC) AI Stock Analysis

• Market Cap: $25.72B
• Dividend Yield: 1.75%
• Average Volume (3M): 640.58K
• Price to Earnings (P/E): 31.7
• Beta (1Y): 0.26
• Revenue Growth: -0.29%
• EPS Growth: 47.83%
• Country: US
• Employees: 1,720
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Specialty
• EPS (TTM): 1.77
• Shares Outstanding: 107,451,775
• 10 Day Avg. Volume: 601,244
• 30 Day Avg. Volume: 640,580
• PEG Ratio: 6.28
• Price to Book (P/B): -4.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.82
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 3.62
• Enterprise Value/Gross Profit: 19.18
• Enterprise Value/Ebitda: 5.56
• 1Y Price Target: $256.58
• Price Target Upside: 7.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 70 Outperform
• Price Target: $253.00 ▲(5.70%Upside)

SBA Communications' strong financial performance and positive earnings call guidance are offset by high financial leverage and valuation concerns. The technical analysis suggests a stable trend, but the stock's high P/E ratio limits its attractiveness. Key strengths include revenue growth and solid cash flow, with strategic capital management providing a positive outlook despite some operational challenges.

Positive Factors

Financial Strategy

SBAC intends to pursue an investment grade rating, which will allow it to add term, easier access to capital, and lower rates over time.

Leasing Revenue

SBAC's bookings have increased, and leasing revenue should ramp due to TMUS's regulatory requirement builds and increased rural activity from VZ.

Share Repurchase

SBAC's balance sheet is in a position to continue buying back shares, even as it prepares to close the Millicom acquisition.

Negative Factors

Churn and Rate Headwinds

SBAC faces nearer-term churn and rate headwinds, with growth subdued through 2027.

International Business Challenges

SBAC's international business growth may be hindered by elevated churn in Latin America due to carrier consolidation in Brazil.

Sprint Churn Impact

Sprint churn is expected to remain high for SBAC, posing a headwind to organic domestic revenue.

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 leasing antenna space on its wireless communications towers and other infrastructure to wireless service providers. The company enters into long-term lease agreements with customers, providing a stable and recurring revenue stream. Additionally, SBAC engages in site development services, which include designing and constructing wireless infrastructure for clients, further enhancing its revenue. Key revenue streams include monthly lease payments from tenants and fees from site development projects. The company's growth is supported by the increasing demand for data and wireless communication services, as well as strategic partnerships and contracts with major telecommunications companies.

SBA Communications Financial Statement Overview

Summary

SBA Communications demonstrates strong revenue growth and cash flow generation. However, high financial leverage and negative equity present risks, requiring attention to debt management and operational efficiencies.

Income Statement

SBA Communications has shown consistent revenue growth with a notable increase in net income. The gross profit margin remains strong at 80.87% for TTM, indicating efficient cost management. However, the EBIT and EBITDA margins have slightly decreased, suggesting room for operational improvement.

Balance Sheet

The company exhibits a high debt-to-equity ratio due to negative stockholders' equity, which raises concerns about financial leverage and stability. The equity ratio is negative, indicating high leverage, but the return on equity is positive due to strong net income performance.

Cash Flow

The operating cash flow is robust and aligns well with net income, demonstrating effective cash generation. The free cash flow has shown modest growth, supporting the company's ability to fund operations and investments, though fluctuations in financing cash flow may impact future flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68B	2.71B	2.63B	2.31B	2.08B
Gross Profit	2.10B	2.08B	1.96B	1.76B	1.61B
EBITDA	1.84B	1.70B	1.68B	1.51B	1.39B
Net Income	749.54M	501.81M	461.43M	237.62M	24.10M
Balance Sheet
Total Assets	11.42B	10.18B	10.59B	9.80B	9.16B
Cash, Cash Equivalents and Short-Term Investments	189.84M	209.59M	143.71M	367.28M	308.56M
Total Debt	15.76B	14.46B	15.17B	14.52B	13.43B
Total Liabilities	16.47B	15.31B	15.83B	15.07B	13.97B
Stockholders Equity	-5.11B	-5.17B	-5.28B	-5.28B	-4.82B
Cash Flow
Free Cash Flow	1.11B	1.31B	1.10B	1.06B	997.47M
Operating Cash Flow	1.33B	1.54B	1.32B	1.19B	1.13B
Investing Cash Flow	-809.31M	-468.25M	-1.39B	-1.42B	-446.37M
Financing Cash Flow	645.74M	-1.02B	-167.47M	339.26M	-469.02M

SBA Communications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 239.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 239.35 is above the 20-day moving average (MA) of 233.83, above the 50-day MA of 231.09, and above the 200-day MA of 220.56, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 56.54 is Neutral, neither overbought nor oversold. The STOCH value of 75.95 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	71 Outperform	$78.31B	83.18	7.08%	2.24%	6.36%	-3.54%
SBAC	70 Outperform	$25.72B	31.68	-14.67%	1.75%	-0.29%	47.83%
UNIT	69 Neutral	$1.33B	20.67	-3.72%	2.64%	2.44%	305.26%
AMT	66 Neutral	$108.77B	59.63	80.05%	3.55%	-6.05%	-11.75%
IRM	66 Neutral	$29.30B	242.02	-35.81%	3.68%	11.04%	-37.29%
CCI	65 Neutral	$48.01B	33.81	-198.54%	6.64%	-12.57%	-375.80%
Sector *	64 Neutral	$6.88B	17.50	-1.92%	7.08%	4.62%	-25.61%

SBA Communications Corporate Events

SBA Communications Holds Annual Shareholders Meeting

On May 23, 2025, SBA Communications Corporation held its Annual Meeting of Shareholders, where key decisions were made. Shareholders voted to elect three director nominees, ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the 2025 fiscal year, and approved the compensation of the Company’s named executive officers. These decisions are expected to impact the company’s governance and financial oversight positively.

The most recent analyst rating on (SBAC) stock is a Hold with a $230.00 price target. To see the full list of analyst forecasts on SBA Communications stock, see the SBAC Stock Forecast page.