SBACSBAC
US • —
$178.35
P/E
18.75
PEG
0.72
FCF Yield
—
Rev Growth YoY
+6.3% YoY
Gross Margin
75.2%
Health Score
5/10
D/E Ratio
16.46
Confidence
LOW
Business Snapshot
SBA Communications Corporation is a real estate investment trust (REIT) that owns and operates a portfolio of wireless communications tower sites, which it leases to wireless service providers. The company operates in the highly consolidated US tower infrastructure market alongside American Tower and Crown Castle, holding a leading but secondary position as a dedicated tower owner. With a market capitalisation that places it in the large-cap tier, the company generates revenue primarily through long-term tenant leases, providing predictable, contractually escalatory income streams. A defining characteristic of SBA Communications is its capital-intensive, fee-based business model underpinned by the structural growth in mobile data demand.
Financial Health
Gross margin stands at a strong 75.2%, indicating significant pricing power and low variable costs, while net margin of 35.7% demonstrates efficient operating leverage. However, the balance sheet is a clear area of concern, with a Debt/Equity ratio of 16.46x indicating extreme leverage, and a current ratio of 0.29x pointing to potential short-term liquidity stress...
Risk Assessment
- DEBT / LIQUIDITY — Debt/Equity of 16.46x is extremely high relative to most sectors, indicating the company is highly leveraged and sensitive to interest rate changes, while the current ratio of 0.29x suggests severe short-term liquidity risk.
- EARNINGS QUALITY — The company has beaten earnings estimates in 0 out of the last 4 quarters, raising questions about management's forecasting credibility and consistent operational performance.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- MARGINS — Return on equity is negative at -1.7%, indicating the company is destroying shareholder equity despite posting a positive net margin....
Gross margin stands at a strong 75.2%, indicating significant pricing power and low variable costs, while net margin of 35.7% demonstrates efficient operating leverage. However, the balance sheet is a clear area of concern, with a Debt/Equity ratio of 16.46x indicating extreme leverage, and a current ratio of 0.29x pointing to potential short-term liquidity stress. Free cash flow data was not available, but return on equity was negative at -1.7%, a poor sign for shareholder value creation. Overall financial health is mixed: strong margins suggest high-quality recurring earnings, but the extreme debt load and negative ROE leave limited financial flexibility and increase risk for equity holders.
- DEBT / LIQUIDITY — Debt/Equity of 16.46x is extremely high relative to most sectors, indicating the company is highly leveraged and sensitive to interest rate changes, while the current ratio of 0.29x suggests severe short-term liquidity risk. - EARNINGS QUALITY — The company has beaten earnings estimates in 0 out of the last 4 quarters, raising questions about management's forecasting credibility and consistent operational performance. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - MARGINS — Return on equity is negative at -1.7%, indicating the company is destroying shareholder equity despite posting a positive net margin.
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