SBA Communications (SBAC) AI Stock Analysis

• Market Cap: $21.38B
• Dividend Yield: 2.16%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.27
• Revenue Growth: 1.82%
• EPS Growth: 71.39%
• Country: US
• Employees: 1,720
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): 2.09
• Shares Outstanding: 107,379,010
• 10 Day Avg. Volume: 1,685,504
• 30 Day Avg. Volume: 1,260,760
• 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: 1.76
• Enterprise Value/Revenue: 13.80
• Enterprise Value/Gross Profit: 18.98
• Enterprise Value/Ebitda: 22.40
• 1Y Price Target: $250.54
• Price Target Upside: 25.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 62 Neutral
• Price Target: $232.00 ▲(16.52% Upside)

SBA Communications' overall stock score is driven by a positive earnings call with increased guidance and strategic acquisitions, which offset financial leverage concerns. Technical indicators suggest caution, while valuation metrics indicate potential overvaluation.

Positive Factors

Increased Guidance

Increased guidance across key metrics reflects strong operational performance and confidence in future growth, enhancing long-term stability.

International Expansion

The Millicom acquisition strengthens SBA's strategic position in Central America, supporting long-term revenue growth and market expansion.

Credit Rating Upgrade

The credit rating upgrade to investment-grade reflects improved financial stability and access to capital, supporting sustainable growth.

Negative Factors

Financial Leverage

High financial leverage poses risks to cash flow and limits flexibility, potentially impacting long-term financial health and investment capacity.

Sprint-related Churn

Sprint-related churn impacts revenue stability, posing challenges to maintaining consistent income streams and affecting long-term growth.

Challenges in Brazil

Financial issues with Oi in Brazil increase churn risk, affecting international revenue stability and posing challenges to market presence.

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 shows strong profitability with a high gross profit margin and stable revenue growth. However, the company faces significant financial leverage challenges with negative equity and a negative debt-to-equity ratio, indicating high financial risk.

Income Statement

SBA Communications shows strong profitability with a high gross profit margin of 72.71% and a net profit margin of 31.18% for the TTM. Revenue growth is modest at 1.43%, indicating stable performance. However, the slight decline in gross profit margin from the previous year suggests potential pressure on cost management.

Balance Sheet

The company has a concerning negative stockholders' equity, leading to a negative debt-to-equity ratio, which indicates high leverage and financial risk. Return on equity is also negative, reflecting challenges in generating returns for shareholders.

Cash Flow

Operating cash flow remains robust, covering net income well with a ratio of 0.90. However, free cash flow growth is negative, which could impact future liquidity. The free cash flow to net income ratio of 0.83 suggests efficient cash generation relative to net income.

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	276.83M	444.38M	209.59M	145.04M	368.06M	308.56M
Total Debt	14.81B	15.76B	14.46B	15.17B	14.52B	13.43B
Total Liabilities	15.64B	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: 199.10
• 50DMA: Negative
• 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 Negative. The current price of 199.1 is below the 20-day moving average (MA) of 202.34, below the 50-day MA of 216.17, and below the 200-day MA of 216.46, indicating a bearish trend. The MACD of -5.34 indicates Negative momentum. The RSI at 39.53 is Neutral, neither overbought nor oversold. The STOCH value of 71.60 is Neutral, 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	73 Outperform	77.43B	77.46	7.06%	2.32%	5.74%	-6.58%
IRM	63 Neutral	29.50B	727.53	-5.39%	3.07%	10.72%	-81.96%
SBAC	62 Neutral	$21.38B	24.47	-14.67%	2.16%	1.82%	71.39%
AMT	58 Neutral	90.52B	70.17	34.82%	3.43%	-9.52%	-48.20%
UNIT	53 Neutral	1.53B	27.01	-1.43%	―	1.95%	353.63%
CCI	50 Neutral	40.76B	-11.44	335.60%	5.61%	-17.95%	-398.78%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

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.