SBA Communications Corp - Class A
Exchange: NASDAQSector: Real EstateIndustry: REIT - Specialty
SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites throughout the Americas and in Africa, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and one of the top Real Estate Investment Trusts (REITs) by market capitalization.
Did you know?
Earnings per share grew at a 38.9% CAGR.
Current Price
$218.58
-1.18%GoodMoat Value
$320.58
46.7% undervaluedProfile
Valuation (TTM)
Market Cap$23.29B
P/E22.10
EV$33.21B
P/B—
Shares Out106.55M
P/Sales8.27
Revenue$2.82B
EV/EBITDA18.99
SBA Communications Corp - Class A (SBAC) Stock Analysis
GoodMoat Analysis
SBA Communications is a REIT that owns and leases wireless communications towers, a business with high barriers to entry and scale advantages. The stock appears to be trading at a significant discount to its estimated intrinsic value, but its low revenue growth and high leverage require careful consideration.
Read full analysis
SBA Communications Corp (SBAC) is a Real Estate Investment Trust (REIT) that owns, operates, and leases wireless communications infrastructure, primarily cell towers. Its primary moat stems from **scale privilege** and **regulatory barriers**. The tower industry has high physical and regulatory barriers to entry, and SBAC's large portfolio of over 40,000 sites creates a significant scale advantage in a market where demand for antenna space outpaces supply. This likely translates into **pricing power**, as evidenced by its high operating margin of 47.7%. Applying the GoodMoat framework, the business likely scores well on several moat criteria, easily exceeding the minimum threshold of 5 for further analysis.
Financially, the company shows strong profitability with a 37.4% profit margin and a 7.9% free cash flow yield. However, its 3.7% YoY revenue growth is low, and as a REIT with significant debt used to fund its asset base, traditional leverage and return metrics like Debt/Equity and ROE are not applicable in a standard analysis. The key consideration is valuation: at $165.15, the stock trades at a P/E of 16.7x, but the GoodMoat Target price is $320.58. This implies a potential margin of safety of approximately 94%, which falls into the 'Deeply Undervalued' band (>40%) per the framework's DCF bands. According to the Decision Framework, this passes the Valuation Gate favourably. However, the low growth rate and the capital-intensive nature of the business mean an investor must have conviction in the durability of its cash flows and its ability to manage its capital structure.
Analysis based on data as of 2024-05-15.
Market Cap$23.29B
Current Price$218.58
P/E Ratio22.10
Forward P/E—
PEG Ratio0.19
EPS$9.80
Book Value$-45.55
P/B Ratio—
SBAC Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 9.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 14.9B
Revenue
2.0B
FY19
2.1B
FY20
2.3B
FY21
2.6B
FY22
2.7B
FY23
2.7B
FY24
2.8B
FY25
Net Income
147M
FY19
24M
FY20
238M
FY21
461M
FY22
502M
FY23
750M
FY24
1.1B
FY25
SBAC 52-Week Range
$165.15
$237.50
50-Day MA: $198.52200-Day MA: $197.33
Did you know?
Earnings per share grew at a 38.9% CAGR.
SBA Communications Corp - Class A (SBAC) Financial Summary
SBA Communications Corp - Class A (SBAC) is a Real Estate company in the REIT - Specialty industry, listed on NASDAQ. The stock currently trades at $218.58 with a market capitalization of $23.29B.
Key valuation metrics include a P/E ratio of 22.10, and EPS of $9.80. The company reports a profit margin of 37.4%.
SBAC Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $23.29B |
| P/E Ratio | 22.10 |
| EPS | $9.80 |
| P/S Ratio | 8.27 |
| EV/EBITDA | 18.99 |
| Dividend Yield | 2.06% |
| Profit Margin | 37.4% |
SBAC Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $2.01B | $146.99M |
| FY20 | $2.08B | $24.10M |
| FY21 | $2.31B | $237.62M |
| FY22 | $2.63B | $461.43M |
| FY23 | $2.71B | $501.81M |
| FY24 | $2.68B | $749.54M |
| FY25 | $2.82B | $1.05B |
SBA Communications Corp - Class A (SBAC) Valuation
Based on GoodMoat's DCF model, SBA Communications Corp - Class A has a fair value estimate of $320.58. At the current price of $218.58, the stock appears 31.8% undervalued relative to our intrinsic value estimate.
SBAC Quality Indicators
SBA Communications Corp - Class A maintains a profit margin of 37.4% and an operating margin of 47.7%. The current ratio is 0.29.
About SBA Communications Corp - Class A
SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites throughout the Americas and in Africa, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and one of the top Real Estate Investment Trusts (REITs) by market capitalization.
SBAC Free Cash Flow
SBA Communications Corp - Class A generated $1.40B in trailing twelve-month free cash flow, representing an FCF yield of 6.00%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
SBAC Shares Outstanding
SBA Communications Corp - Class A has 0.11 billion shares outstanding at a share price of $218.58, giving it a market capitalization of $23.29B.