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SBA Communications
(NASDAQ:SBAC)
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Rating:62Neutral
Price Target:
$196.00
▲(4.84% Upside)
Action:Reiterated
Date:09/26/26
The score is driven primarily by solid operating profitability and free-cash-flow generation, but is held back by high leverage and negative equity that increase financial risk. The latest earnings call was constructive with raised outlook, strong margins, and improved financing flexibility, while technicals remain notably weak with the stock in a downtrend despite oversold readings. Valuation is moderately supportive with a reasonable P/E and a ~2.85% dividend yield.
Positive Factors
Recurring Leasing Model
Long-term site leases provide recurring revenue visibility, while colocation can increase revenue on existing infrastructure with comparatively limited incremental cost. This scalable model supports durable cash generation and allows carrier network expansion to benefit the portfolio over multiple years.
Negative Factors
High Leverage
Very high debt combined with persistently negative equity materially reduces financial flexibility and leaves the company more exposed to refinancing and interest costs. Although cash generation is strong, the capital structure can constrain investment choices and make downturns harder to absorb.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Leasing Model
Long-term site leases provide recurring revenue visibility, while colocation can increase revenue on existing infrastructure with comparatively limited incremental cost. This scalable model supports durable cash generation and allows carrier network expansion to benefit the portfolio over multiple years.
Read all positive factors
SBA Communications Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Segment-level operating income reveals profitability after operating expenses and overhead, indicating which lines drive core earnings, where operating leverage exists, and how costs or integration issues affect the company’s ability to convert revenue into profit.
Segment-level operating income reveals profitability after operating expenses and overhead, indicating which lines drive core earnings, where operating leverage exists, and how costs or integration issues affect the company’s ability to convert revenue into profit.
Data provided by:
The Fly
The FlySBA Communications (SBAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.60B
Dividend Yield2.63%
Average Volume (3M)1.02M
Price to Earnings (P/E)19.8
Beta (1Y)0.36
Revenue Growth5.36%
EPS Growth14.00%
CountryUS
Employees1,844
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)9.31
Shares Outstanding106,088,110
10 Day Avg. Volume1,133,741
30 Day Avg. Volume1,024,137
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 Cap1.59
Enterprise Value/Revenue10.86
Enterprise Value/Gross Profit17.00
Enterprise Value/Ebitda15.47
Forecast
1Y Price Target
$223.29Price Target Upside19.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)7.71
Revenue Forecast (FY)$2.85B
SBA Communications Business Overview & Revenue Model
Company Description
SBA Communications Corporation stands as a premier owner, operator, and provider of crucial wireless communication infrastructure across North, Central, and South America, in addition to South Africa. Guided by its mission to 'Build Better Wireles...
How the Company Makes Money
SBAC primarily makes money by leasing space on its owned (and certain managed) communications sites to wireless service providers and other wireless network operators. The company’s main revenue stream is recurring “site leasing” income generated ...
SBA Communications Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call presented a predominantly constructive view: strong operational margins, solid AFFO per share and dividend growth, successful investment-grade unsecured bond issuance and liquidity improvements, an S&P upgrade, resumed buybacks and identified multi-year tailwinds from spectrum auctions, edge compute and satellite complements. Counterbalancing these positives are elevated international churn, ongoing litigation risk, competitive pressure on U.S. new-build returns, limited near-term M&A activity, and FX/interest-rate sensitivities. Overall, the positive fundamentals, balance sheet actions, and long-term growth drivers outweigh the transitory and manageable challenges discussed.Positive Updates
AFFO and Dividend Performance
AFFO per share of $3.05 for Q2 2026; declared and paid quarterly cash dividend of $1.25 per share (paid Q2) and Board declared $1.25/share payable Sept 17, 2026 — dividend increased ~13% year-over-year and represents an annualized payout of ~41% of the midpoint of full-year AFFO guidance.
Negative Updates
Elevated International Churn
International churn remains elevated due to carrier consolidations, bankruptcies, restructurings and network rationalizations; management noted it has been a peak year and expects it to remain elevated for a while, though they believe they are nearing the end for most customers.
Read all updates
Q2-2026 Updates
Positive
Negative
AFFO and Dividend Performance
AFFO per share of $3.05 for Q2 2026; declared and paid quarterly cash dividend of $1.25 per share (paid Q2) and Board declared $1.25/share payable Sept 17, 2026 — dividend increased ~13% year-over-year and represents an annualized payout of ~41% of the midpoint of full-year AFFO guidance.
Read all positive updates
Company Guidance
Management modestly raised its 2026 outlook for site‑leasing revenue, AFFO and AFFO per share—citing higher straight‑line revenue and improved net cash interest expense—after Q2 AFFO per share of $3.05 and company‑wide tower cash‑flow margins just under 80%; Q2 new lease/amendment billings were about $9M domestic and $4M international. In July SBA issued $3.5B of unsecured investment‑grade notes ( $1.35B 2030 at ~4.87%, $1.35B 2031 at 5.15%, $800M 2033 at 5.45%; blended coupon ~5.11%, WAM ~5 years), put in a $2.5B unsecured revolver, paid down the revolver and Term Loan B, and finished the quarter with ≈$570M cash, ≈$13B total debt and pro‑forma secured vs. unsecured debt below 50%; net debt / adjusted EBITDA was 6.4x (target range 6x–7x). They assume refinancing the $1.2B November ABS at ~5.25%, expect roughly 600 new tower builds this year (99 built in Q2 vs 75 last quarter), declared/paid a $132.7M ($1.25/share) Q2 dividend and declared a $1.25/share dividend payable Sept. 17 (≈13% YoY increase; annualized ≈41% of the midpoint of full‑year AFFO), and plan to resume share buybacks in H2 while generally targeting mid‑range leverage.SBA Communications Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
34
Negative
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.87B | 2.82B | 2.68B | 2.71B | 2.63B | 2.31B |
| Gross Profit | 1.83B | 1.17B | 2.07B | 2.08B | 1.94B | 1.74B |
| EBITDA | 2.02B | 2.00B | 1.79B | 1.79B | 1.68B | 1.51B |
| Net Income | 990.71M | 1.05B | 749.54M | 501.81M | 461.43M | 237.62M |
Balance Sheet | ||||||
| Total Assets | 11.74B | 11.58B | 11.42B | 10.18B | 10.59B | 9.80B |
| Cash, Cash Equivalents and Short-Term Investments | 327.05M | 439.02M | 444.38M | 209.59M | 145.04M | 368.06M |
| Total Debt | 15.21B | 15.32B | 15.76B | 14.46B | 15.17B | 14.52B |
| Total Liabilities | 16.37B | 16.35B | 16.47B | 15.31B | 15.83B | 15.07B |
| Stockholders Equity | -4.63B | -4.85B | -5.11B | -5.17B | -5.28B | -5.28B |
Cash Flow | ||||||
| Free Cash Flow | 1.05B | 1.07B | 1.11B | 1.31B | 1.07B | 1.06B |
| Operating Cash Flow | 1.28B | 1.29B | 1.33B | 1.54B | 1.29B | 1.19B |
| Investing Cash Flow | -569.63M | -601.83M | -809.31M | -468.25M | -1.39B | -1.42B |
| Financing Cash Flow | -659.51M | -1.66B | 645.74M | -1.02B | -135.47M | 339.26M |
SBA Communications Technical Analysis
Positive
186.96
Price Trends
179.01
Positive
182.15
Positive
188.45
Negative
Market Momentum
1.63
Negative
57.77
Neutral
31.14
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 186.96 is above the 20-day moving average (MA) of 173.77, above the 50-day MA of 179.01, and below the 200-day MA of 188.45, indicating a neutral trend. The MACD of 1.63 indicates Negative momentum. The RSI at 57.77 is Neutral, neither overbought nor oversold. The STOCH value of 31.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $88.05B | 25.96 | 91.02% | 3.74% | 6.65% | 163.52% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $19.60B | 19.84 | -20.67% | 2.63% | 5.36% | 14.00% | |
58 Neutral | $36.58B | 35.82 | -40.39% | 4.94% | -15.63% | ― | |
54 Neutral | $1.23B | 1.01 | 270.16% | 21.81% | 199.70% | 2008.88% |
* Real Estate Sector Average
SBAC
SBA Communications
184.75
-8.98
-4.64%
AMT
American Tower
188.97
4.94
2.68%
CCI
Crown Castle
85.97
-7.70
-8.22%
UNIT
Uniti Group
5.07
-0.93
-15.50%
SBA Communications Corporate Events
Business Operations and StrategyPrivate Placements and Financing
SBA Communications Launches New $2.5 Billion Commercial Paper Program
Positive
Sep 25, 2026
On September 25, 2026, SBA Communications Corporation established a new commercial paper program allowing it to issue up to $2.5 billion of short-term, unsecured notes, with maturities of up to 397 days, on a private placement basis in the U.S. co...
Business Operations and StrategyPrivate Placements and Financing
SBA Communications Shifts Toward Unsecured Debt and Liquidity
Positive
Jul 24, 2026
On July 23, 2026, SBA Communications completed a $3.5 billion multi-tranche senior notes offering, issuing $1.35 billion of 4.875% notes due 2030, $1.35 billion of 5.150% notes due 2031 and $800 million of 5.450% notes due 2033. The company used t...
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.