Sba Communications (SBAC)
NASDAQ:SBAC
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SBA Communications
(NASDAQ:SBAC)
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Rating:63Neutral
Price Target:
$222.00
▼(-0.51% Downside)
Action:Reiterated
Date:05/23/26
The score is primarily driven by strong profitability and free-cash-flow generation, but is held back by a highly leveraged capital structure with persistent negative equity. The latest earnings call was supportive due to raised guidance and strong margins, while technical signals are mixed and valuation is moderate with a modest dividend yield.
Positive Factors
Strong free cash flow generation
Sizable and recurring free cash flow (~$1.02B TTM) and operating cash flow (~$1.25B TTM) provide durable internal funding for tower builds, dividends, debt paydown and eventual buybacks. This cash profile supports capital allocation flexibility despite elevated leverage and underpins long‑term reinvestment and shareholder returns.
Negative Factors
High leverage and negative shareholders' equity
Persistent negative equity and a large debt load materially constrain financial flexibility. Negative book equity magnifies refinancing and covenant sensitivity, limits uses of leverage for growth, and raises the bar for future returns since balance sheet repair must compete with reinvestment and shareholder distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sizable and recurring free cash flow (~$1.02B TTM) and operating cash flow (~$1.25B TTM) provide durable internal funding for tower builds, dividends, debt paydown and eventual buybacks. This cash profile supports capital allocation flexibility despite elevated leverage and underpins long‑term reinvestment and shareholder returns.
Read all positive factors
SBA Communications Key Performance Indicators (KPIs)
SBA Communications (SBAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.80B
Dividend Yield2.31%
Average Volume (3M)927.15K
Price to Earnings (P/E)24.6
Beta (1Y)0.26
Revenue Growth6.27%
EPS Growth25.76%
CountryUS
Employees1,720
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)9.54
Shares Outstanding106,063,020
10 Day Avg. Volume801,898
30 Day Avg. Volume927,151
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)-4.27
Price to Sales (P/S)7.37
P/FCF Ratio19.44
Enterprise Value/Market Cap1.69
Enterprise Value/Revenue12.92
Enterprise Value/Gross Profit20.32
Enterprise Value/Ebitda17.76
Forecast
1Y Price Target
$229.15Price Target Upside2.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)7.42
Revenue Forecast (FY)$2.86B
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 p...
How the Company Makes Money
SBAC makes money primarily by leasing space on its communications sites—especially cell towers—to wireless carriers and other wireless service providers. Under these lease agreements, tenants pay recurring rent (typically under multi-year, non-can...
SBA Communications Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational and financial positives — upgraded guidance, strong ~80% tower cash flow margins, dividend growth (~13% YoY), healthy U.S. and international leasing additions, successful Millicom integration and prudent leverage management (6.6x within a 6–7x target). Key risks include elevated international churn (peaking in 2026), an ongoing EchoStar dispute with removed revenue, dependence on refinancing assumptions (including a $1.2B ABS refinance and a market-dependent inaugural investment-grade bond), and a temporary pause in buybacks while paying down revolver. On balance, the company presented more significant and actionable positives than negatives, with manageable near-term risks.Positive Updates
Upgraded Full-Year Outlook
Company increased full-year guidance for site leasing revenue, cash flow, adjusted EBITDA, AFFO and AFFO per share based on first-quarter outperformance, high straight-line revenue recognition and favorable foreign currency rates.
Negative Updates
Elevated International Churn
International churn remains elevated due to carrier consolidation, bankruptcies, restructurings and network rationalizations. Management expects 2026 to be the peak year for international churn, implying near-term pressure on international leasing revenue and renewals.
Read all updates
Q1-2026 Updates
Positive
Negative
Upgraded Full-Year Outlook
Company increased full-year guidance for site leasing revenue, cash flow, adjusted EBITDA, AFFO and AFFO per share based on first-quarter outperformance, high straight-line revenue recognition and favorable foreign currency rates.
Read all positive updates
Company Guidance
Management raised full‑year guidance for site‑leasing revenue, cash flow, adjusted EBITDA, AFFO and AFFO per share after a strong Q1 driven by high straight‑line revenue and favorable FX; Q1 company‑wide tower cash‑flow margins were ~80%, U.S. quarterly new lease/amendment billings were up ~$10M YoY and international billings up ~$4M YoY, with a moderate increase in U.S. backlog; international churn is elevated and 2026 is expected to be the peak year while prior Sprint and EchoStar churn outlooks remain unchanged; balance sheet moves included paying off $750M of ABS debt, ending the quarter with ~ $13B total debt and net leverage of 6.6x (target 6–7x), an assumption of refinancing a $1.2B November ABS maturity at 5.25%, plans to use free cash flow to pay down the revolver, and an anticipated inaugural investment‑grade bond issuance in 2026; capital allocation actions included declaring and paying a $135.2M dividend ($1.25/sh, ~13% higher YoY and annualized at ~41% of the midpoint of AFFO guidance), prioritizing revolver paydown over meaningful buybacks this quarter but expecting buybacks to be an important 2026 tool, and continued capital deployment into new builds (just over 60 towers in Central America in Q1) and accretive land purchases (Guatemala ~7x multiple).SBA Communications Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
32
Negative
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.85B | 2.82B | 2.68B | 2.71B | 2.63B | 2.31B |
| Gross Profit | 1.82B | 1.17B | 2.07B | 2.08B | 1.94B | 1.74B |
| EBITDA | 2.08B | 2.19B | 1.79B | 1.79B | 1.68B | 1.51B |
| Net Income | 1.02B | 1.05B | 749.54M | 501.81M | 461.43M | 237.62M |
Balance Sheet | ||||||
| Total Assets | 11.72B | 11.58B | 11.42B | 10.18B | 10.59B | 9.80B |
| Cash, Cash Equivalents and Short-Term Investments | 327.84M | 439.02M | 444.38M | 209.59M | 145.04M | 368.06M |
| Total Debt | 15.42B | 15.32B | 15.76B | 14.46B | 15.17B | 14.52B |
| Total Liabilities | 16.47B | 16.35B | 16.47B | 15.31B | 15.83B | 15.07B |
| Stockholders Equity | -4.75B | -4.85B | -5.11B | -5.17B | -5.28B | -5.28B |
Cash Flow | ||||||
| Free Cash Flow | 1.02B | 1.07B | 1.11B | 1.31B | 1.07B | 1.06B |
| Operating Cash Flow | 1.25B | 1.29B | 1.33B | 1.54B | 1.29B | 1.19B |
| Investing Cash Flow | -1.14B | -601.83M | -809.31M | -468.25M | -1.39B | -1.42B |
| Financing Cash Flow | -451.05M | -1.66B | 645.74M | -1.02B | -135.47M | 339.26M |
SBA Communications Technical Analysis
Neutral
223.14
Price Trends
202.17
Positive
195.26
Positive
194.99
Positive
Market Momentum
-0.80
Positive
46.36
Neutral
40.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBAC, the sentiment is Neutral. The current price of 223.14 is above the 20-day moving average (MA) of 211.31, above the 50-day MA of 202.17, and above the 200-day MA of 194.99, indicating a neutral trend. The MACD of -0.80 indicates Positive momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SBAC.
SBA Communications Risk Analysis
SBA Communications disclosed 35 risk factors in its most recent earnings report. SBA Communications reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SBA Communications Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $85.65B | 24.04 | 76.90% | 3.76% | 2.72% | 58.77% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | $21.80B | 24.63 | -20.90% | 2.31% | 6.27% | 25.76% | |
61 Neutral | $39.92B | 58.69 | -65.88% | 5.44% | -29.63% | ― | |
57 Neutral | $2.68B | -8.41 | -446.35% | ― | 149.33% | 1191.20% |
* Real Estate Sector Average
SBAC
SBA Communications
205.57
-18.66
-8.32%
AMT
American Tower
183.85
-20.47
-10.02%
CCI
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UNIT
Uniti Group
11.04
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58.48%
SBA Communications Corporate Events
Executive/Board ChangesShareholder Meetings
SBA Communications Shareholders Back Board, Pay and Auditor
Positive
May 22, 2026
On May 22, 2026, SBA Communications held its 2026 Annual Meeting of Shareholders, where investors elected three Class III directors, Steven E. Bernstein, Laurie Bowen and Amy E. Wilson, to terms running through the 2029 annual meeting. The directo...
Business Operations and StrategyExecutive/Board Changes
SBA Communications Announces Planned Retirement of U.S. Operations EVP
Neutral
Mar 27, 2026
On March 24, 2026, SBA Communications announced that Mark Ciarfella, Executive Vice President of U.S. Operations, plans to retire from his current title and roles effective December 31, 2026. Ciarfella will remain with the company as a non-executi...
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.