Crown Castle (CCI) AI Stock Analysis

• Market Cap: $44.84B
• Dividend Yield: 6.12%
• Average Volume (3M): 3.29M
• Price to Earnings (P/E): 33.8
• Beta (1Y): 0.25
• Revenue Growth: -12.57%
• EPS Growth: -375.80%
• Country: US
• Employees: 3,900
• Sector: Real Estate
• Sector Strength: 68
• Industry: REIT - Specialty
• EPS (TTM): -1.07
• Shares Outstanding: 435,458,800
• 10 Day Avg. Volume: 3,181,153
• 30 Day Avg. Volume: 3,294,848
• PEG Ratio: 0.49
• Price to Book (P/B): -36.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.34
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 2.92
• Enterprise Value/Gross Profit: 16.22
• Enterprise Value/Ebitda: 18.68
• 1Y Price Target: $113.69
• Price Target Upside: 10.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

Crown Castle's overall stock score reflects a challenging financial position with negative profitability and high leverage, offset by positive cash flow and strategic realignment efforts. Technical indicators are mixed, and valuation metrics are pressured by recent losses. The earnings call and corporate events provide some optimism with strategic initiatives aimed at improving financial health and shareholder value. The high dividend yield remains a notable point for income-focused investors despite reduced payouts.

Positive Factors

Capital Allocation

The company has announced a dividend rebase and a $3.0bn share buyback program, making it more of a capital allocation story.

Financial Performance

Q1 AFFOps of $1.10 beat consensus/BMOe of $1.02/$1.03, benefitting from better margins and lower interest expense and maintenance capex.

Strategic Positioning

The conclusion of CCI’s fiber solutions business strategic review with sale of the business unit to EQT and Zayo for $8.5bn is expected to improve the company's footing.

Negative Factors

Dividend Reduction

The dividend has been rebased to $4.25 per share annualized, reflecting a ~30% cut compared to the previous dividend.

Growth Prospects

There is a risk of CCI's organic growth prospects falling behind its largest tower competitor, AMT, by 50-150 bps in 2026, including the dilution from recurring annual Sprint churn.

Leadership Changes

The recent CEO termination was a surprise.

Crown Castle Business Overview & Revenue Model

Company Description

Crown Castle owns, operates and leases more than 40,000 cell towers and approximately 80,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology and wireless service - bringing information, ideas and innovations to the people and businesses that need them. For more information on Crown Castle, please visit www.crowncastle.com.

How the Company Makes Money

Crown Castle makes money by leasing space on its communication infrastructure assets, such as cell towers, small cells, and fiber networks, to wireless carriers and other customers. The company's primary revenue stream is generated through long-term leasing agreements that provide predictable and recurring cash flows. Crown Castle's business model involves acquiring or constructing infrastructure and then leasing it to multiple tenants, which maximizes the utilization of its assets and increases profitability. Additionally, Crown Castle benefits from strategic partnerships with major wireless carriers, which help to secure long-term contracts and expand its customer base. The company's revenue is also positively influenced by the growing demand for wireless data and the expansion of 5G networks, which drive the need for enhanced infrastructure.

Crown Castle Financial Statement Overview

Summary

Crown Castle faces significant financial challenges, including negative profitability metrics and high leverage. The income statement shows declining revenues and worsening margins, while the balance sheet indicates insolvency with negative equity. Despite these issues, the company maintains positive cash flow from operations, providing a degree of financial flexibility. Nevertheless, the overall financial health of the company is concerning, particularly due to leverage and profitability issues.

Income Statement

Crown Castle's income statement shows significant challenges, with negative EBIT and net income in the latest TTM period. Gross profit margin remains high at approximately 77.4%, but the net profit margin is deeply negative, indicating profitability issues. Revenue has seen a decline compared to previous years, with a TTM revenue of $5.988 billion compared to $6.568 billion in 2024. The negative EBIT and EBITDA margins further underline operational inefficiencies.

Balance Sheet

The balance sheet reveals financial instability, with negative stockholders' equity of -$1.253 billion in the latest TTM, indicating insolvency issues. The debt-to-equity ratio is not calculable due to negative equity, pointing to significant leverage risks. Total assets have decreased slightly, while total liabilities exceed total assets, raising concerns about financial health. The equity ratio is unfavorable, highlighting potential risks in the company's capital structure.

Cash Flow

Cash flow analysis shows some resilience, with positive operating cash flow of $2.614 billion in the TTM period. However, free cash flow has decreased slightly from the previous period. The operating cash flow to net income ratio is strong due to the negative net income, indicating that cash operations are still generating funds despite reported losses. The free cash flow to net income ratio is similarly skewed by negative net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.99B	6.57B	6.98B	6.99B	6.34B	5.84B
	Gross Profit
4.63B	4.72B	5.00B	4.92B	4.35B	3.89B
	EBIT
-2.96B	-2.94B	2.37B	2.46B	2.02B	1.60B
	EBITDA
-2.69B	-1.24B	4.20B	4.17B	3.67B	3.19B
	Net Income Common Stockholders
-4.68B	-3.90B	1.50B	1.68B	1.10B	1.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
234.00M	119.00M	105.00M	156.00M	292.00M	232.00M
	Total Assets
31.76B	32.74B	38.53B	38.92B	39.04B	38.77B
	Total Debt
29.68B	29.61B	28.81B	27.96B	27.01B	25.42B
	Net Debt
29.44B	29.49B	28.71B	27.80B	26.72B	25.18B
	Total Liabilities
33.01B	32.87B	32.15B	31.47B	30.78B	29.31B
	Stockholders Equity
-1.25B	-133.00M	6.38B	7.45B	8.26B	9.46B
Cash Flow		Free Cash Flow
1.67B	1.72B	1.70B	1.57B	1.50B	1.43B
	Operating Cash Flow
2.61B	2.94B	3.13B	2.88B	2.73B	3.06B
	Investing Cash Flow
-1.16B	-1.22B	-1.52B	-1.35B	-1.33B	-1.74B
	Financing Cash Flow
-1.85B	-1.71B	-1.65B	-1.67B	-1.31B	-1.27B

Crown Castle Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 102.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCI, the sentiment is Positive. The current price of 102.98 is below the 20-day moving average (MA) of 103.03, above the 50-day MA of 101.75, and above the 200-day MA of 100.42, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 48.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCI.

Crown Castle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBAC	74 Outperform	$25.31B	30.85	-14.67%	1.74%	-0.29%	47.83%
AMT	65 Neutral	$99.89B	54.76	80.05%	3.07%	-6.05%	-11.75%
Sector *	60 Neutral	$2.82B	10.29	0.31%	8508.26%	5.91%	-17.42%
UNIT	55 Neutral	$1.14B	17.70	-3.72%	3.23%	2.44%	305.26%
CCI	50 Neutral	$44.84B	33.81	-198.54%	6.12%	-12.57%	-375.80%

Crown Castle Corporate Events

Crown Castle Reports Q1 2025 Results, Maintains Outlook

Crown Castle Inc. reported its first-quarter 2025 results, maintaining its full-year outlook despite a decline in site rental revenues and adjusted EBITDA compared to the previous year. The company is focusing on maximizing shareholder value by transitioning to a pure-play tower business following the sale of its small cells and fiber solutions businesses. This strategic move aims to position Crown Castle as the only public pure-play tower company in the U.S., which is considered the best market for tower ownership. The company also announced a revised capital allocation framework, including a reduction in annualized dividends, to enhance financial flexibility and strengthen its balance sheet.

Spark’s Take on CCI Stock

According to Spark, TipRanks’ AI Analyst, CCI is a Neutral.

Crown Castle’s overall stock score reflects significant financial challenges, including declining revenue and negative equity. However, positive cash flow, strategic corporate actions, and technical momentum provide some support. The high dividend yield offers a potential attraction for investors, although caution is warranted due to overbought technical conditions and anticipated churn impacts.

To see Spark’s full report on CCI stock, click here.

Crown Castle CEO Steven Moskowitz Resigns from Board

On April 10, 2025, Steven J. Moskowitz, the former President and CEO of Crown Castle Inc., resigned from the company’s Board of Directors, effective immediately.

Spark’s Take on CCI Stock

According to Spark, TipRanks’ AI Analyst, CCI is a Neutral.

Crown Castle’s overall stock score reflects significant financial challenges, including declining revenue and negative equity. However, positive cash flow, strategic corporate actions, and technical momentum provide some support. The high dividend yield offers a potential attraction for investors, although caution is warranted due to overbought technical conditions and anticipated churn impacts.

To see Spark’s full report on CCI stock, click here.

Crown Castle Appoints Sunit Patel as CFO

Crown Castle announced the appointment of Sunit Patel as Executive Vice President and Chief Financial Officer, effective April 1, 2025. Patel, who previously served on the company’s Board of Directors, brings over 30 years of experience in telecommunications, energy, and technology. His appointment comes as Crown Castle positions itself as the only pure-play, publicly traded U.S. tower company following a recent divestiture. Patel’s extensive background in senior finance roles is expected to bolster Crown Castle’s strategic direction and operational efficiency.

Crown Castle Appoints Katherine Motlagh to Board

On March 17, 2025, Crown Castle announced the appointment of Katherine Motlagh to its Board of Directors, effective immediately. With extensive experience in finance and telecommunications, Motlagh is expected to contribute significantly as the company transitions to a pure-play tower business, enhancing its strategic positioning in the industry.

Crown Castle Sells Fiber Segment for $8.5 Billion

On March 13, 2025, Crown Castle announced the sale of its Fiber segment to EQT and Zayo for $8.5 billion, marking the conclusion of a strategic review. This move positions Crown Castle as the only pure-play, publicly-traded U.S. tower company, allowing it to focus on enhancing shareholder value through increased capital efficiency and a new capital allocation framework, including a $3.0 billion share repurchase program. The transaction is expected to close in the first half of 2026, with proceeds aimed at repaying debt and funding share repurchases, maintaining an investment-grade credit rating.

Crown Castle Reschedules Financial Results Release

On March 12, 2025, Crown Castle announced the rescheduling of its fourth quarter and full year 2024 financial results release and conference call to March 13, 2025, due to the demands of a strategic review of its Fiber segment. This adjustment reflects the company’s ongoing efforts to explore strategic alternatives, potentially impacting its operations and market positioning.

Crown Castle Approves 2025 EMT Incentive Plan

On February 26, 2025, Crown Castle’s Board of Directors approved the 2025 EMT Annual Incentive Plan, designed to motivate the executive management team through cash incentives tied to performance goals. The plan allows for potential earnings based on corporate financial performance, but does not guarantee awards, with the Compensation and Human Capital Committee retaining the right to modify the plan. Additionally, the Board amended the company’s By-laws to reduce the period from 120 to 90 days for calling a special meeting of stockholders, effective immediately.

Crown Castle Declares Quarterly Cash Dividend

On February 26, 2025, Crown Castle announced that its Board of Directors declared a quarterly cash dividend of $1.565 per common share, payable on March 31, 2025, to stockholders of record as of March 14, 2025. This decision reflects the company’s ongoing commitment to returning value to shareholders and maintaining its position as a leading provider of communications infrastructure in the U.S.

Crown Castle Announces Board Changes Ahead of 2025 Meeting

On February 20, 2025, Crown Castle Inc. announced that non-employee directors Ari Fitzgerald and Cindy Christy will not stand for re-election at the company’s 2025 annual stockholders’ meeting scheduled for May 21, 2025. Both directors will continue to serve until the meeting, indicating a forthcoming change in the company’s board composition, which may impact its governance and strategic direction.