SBA Communications (SBAC) AI Stock Analysis

• Market Cap: $23.41B
• Dividend Yield: 1.92%
• Average Volume (3M): 750.27K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.27
• Revenue Growth: 1.82%
• EPS Growth: 71.39%
• Country: US
• Employees: 1,720
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Specialty
• EPS (TTM): 2.09
• Shares Outstanding: 107,379,010
• 10 Day Avg. Volume: 973,097
• 30 Day Avg. Volume: 750,271
• PEG Ratio: 0.59
• Price to Book (P/B): -4.29
• Price to Sales (P/S): 8.19
• P/FCF Ratio: 19.82
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 13.80
• Enterprise Value/Gross Profit: 18.98
• Enterprise Value/Ebitda: 22.40
• 1Y Price Target: $255.87
• Price Target Upside: 17.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 71 Outperform
• Price Target: $243.00 ▲(11.47% Upside)

SBA Communications' overall stock score is driven by strong earnings call performance and moderate valuation. The company's financial performance shows profitability but is offset by high financial leverage risks. The positive earnings call, with increased guidance and strategic acquisitions, significantly boosts the score, while the valuation remains attractive for income investors.

Positive Factors

Earnings and Financial Performance

SBAC reported upside 2Q25 results and raised 2025 revenue, EBITDA and AFFO/share guidance.

Investment Grade Rating

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 Activity

U.S. activity levels continue to improve with the sixth consecutive quarter of increased bookings.

Negative Factors

Carrier Consolidation

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

Churn and Rate Headwinds

SBAC lowered its 2025 International net organic growth guidance due to higher churn.

Interest Rates and FX Headwinds

Near-term growth is subdued with minimal domestic leasing growth, elevated churn, and interest rate and FX headwinds.

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 revenue and profit growth, with solid cash flow generation. However, high financial leverage and negative equity present risks to financial stability. Continued focus on debt management and operational efficiencies will be crucial for sustaining growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.72B	2.68B	2.71B	2.63B	2.31B	2.08B
Gross Profit	1.98B	2.10B	2.08B	1.96B	1.76B	1.61B
EBITDA	1.68B	1.47B	1.70B	1.68B	1.51B	1.39B
Net Income	878.59M	749.54M	501.81M	461.43M	237.62M	24.10M
Balance Sheet
Total Assets	10.77B	11.42B	10.18B	10.59B	9.80B	9.16B
Cash, Cash Equivalents and Short-Term Investments	275.27M	444.38M	209.59M	143.71M	367.28M	308.56M
Total Debt	14.81B	15.76B	14.46B	15.17B	14.52B	13.43B
Total Liabilities	14.21B	16.47B	15.31B	15.83B	15.07B	13.97B
Stockholders Equity	-4.94B	-5.11B	-5.17B	-5.28B	-5.28B	-4.82B
Cash Flow
Free Cash Flow	1.06B	1.11B	1.31B	1.10B	1.06B	997.47M
Operating Cash Flow	1.28B	1.33B	1.54B	1.32B	1.19B	1.13B
Investing Cash Flow	-945.49M	-809.31M	-468.25M	-1.39B	-1.42B	-446.37M
Financing Cash Flow	-326.74M	645.74M	-1.02B	-167.47M	339.26M	-469.02M

SBA Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 217.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBAC, the sentiment is Negative. The current price of 217.99 is below the 20-day moving average (MA) of 228.33, below the 50-day MA of 229.95, and below the 200-day MA of 219.72, indicating a bearish trend. The MACD of -3.42 indicates Positive momentum. The RSI at 36.85 is Neutral, neither overbought nor oversold. The STOCH value of 19.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBAC.

SBA Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQIX	78 Outperform	$77.05B	77.07	7.54%	2.27%	5.74%	-6.58%
SBAC	71 Outperform	$23.41B	26.79	-14.67%	1.92%	1.82%	71.39%
AMT	64 Neutral	$95.81B	74.28	66.09%	3.25%	-9.52%	-48.20%
IRM	63 Neutral	$27.22B	671.16	-35.81%	3.26%	10.72%	-81.96%
Sector *	63 Neutral	$6.82B	13.38	-0.62%	7.30%	3.67%	-27.09%
UNIT	56 Neutral	$1.61B	28.40	-3.72%	2.82%	1.95%	353.63%
CCI	52 Neutral	$45.19B	33.81	-234.10%	5.63%	-17.95%	-398.78%

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.