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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Sba Communications Corporation (XNAS:SBAC) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
SBAC
Name:
SBA Communications Corporation (XNAS:SBAC)
Sector:
286.47M
Industry:
REIT�Specialty
CEO:
Mr. Jeffrey Stoops
Total Employees:
1,596
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is 14.06% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF SBA COMMUNICATIONS CORPORATION(SBAC) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND REIT�SPECIALTY INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
318.21
One Month Price Target:
$319.01
Six Month Price Target :
$323.03
Likely Price in One Year's Time:
Ticker:
$327.85
Likely Trading Range Today Under (Normal Volatility)
$317.29
Price Upper limit ($) :
$319.55
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$304.76
This week:
$288.13
This month :
$258.05
Other Primary facts
Market Cap:
34.33B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
107.88M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
12.43%
-8.93%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$380.61
$351.77
$255.81
$284.65
Medium risk (<10%) entry points
Buy Call
Sell Call
$342.39
Buy Put:
Sell Put:
$336.23
$293.95
$300.19
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
SBAC
Sharpe Ratio:
2.70%
Comparison:
SBAC, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 37.01% higher than the industry
& ratio is 18.61% higher than the market/S&P 500 average
Average Returns/Yield of
SBAC
Daily returns:
0.07%
Weekly returns:
0.33%
Monthly returns:
1.31%
Yearly returns:
14.77%
Comparison of returns:
Average annual returns/yield (last 3 years) is 6.20% above industry average
Classification:
SBAC, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.86
Statistical test of Returns:
SBAC has not yielded statistically significant higher returns when compared to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.09%
Weekly Volatility:
4.67%
Monthly Volatility:
9.35%
Yearly Volatility:
32.38%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.49%
Volatility in last five trading days has been -28.78% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.23%
Weekly VaR:
-9.45%
Monthly VaR:
-18.91%
How Much Can the price of
SBAC
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-16%
Worst case (decline):
-65.50%
This translates to price declining to:
$267.39
This translates to price declining to:
$109.79
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
SBAC is a 33.45% riskier investment compared to the market/S&P 500 & is 14.32% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -25.56% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
SBAC
Beta in relation to market/S&P 500--0.45
Expected beta in 1 year's time:
0.519
Expected beta in 3 year's time:
0.734
Unlevered (debt free) Beta:
-0.347
Beta in relation to Nasdaq (XNAS):
0.636
Beta in relation to all global stocks::
0.665
Beta Comparison & Analysis
Beta of competitors/peers::
0.991
Beta is -54.52% lower than peers
Average Industry Beta:
0.954
Beta is -52.72% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
0.094
Alpha is 85.67% above industry average alpha yield
Alpha is 601% higher than market/& is unsustainably high
Analysis of Cost of Capital of
SBAC
Equity cost of capital:
0.062
Equity cost of capital is -35.57% below industry mean WACC
Unlevered (without debt) cost of capital:
-4.80%
Before-tax cost of debt:
2.62%
After-tax cost of debt:
2.07%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.07%
WACC is -98.29% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$22.06
Revenue growth rate per share of (3Y):
-6.37
Annual revenue growth rate is 67.02% above the industry average
EPS:
$3.96
Expected Annual growth rate of EPS (3Y):
18.07%
Expected future EPS growth rate is -32.85% lower than the REIT�Specialty industry
Free cash flow (FCF) per share:
$9.69
-
-
Debt per share
$135.88
EBITDA per share
$14.80
Valuation Analysis Today of
SBAC
P/E Ratio:
98.59
P/E Ratio of Competitors/Peers:
114.46
P/E ratio is -13.87% lower than main peers & is 18.61% higher than the industry
Stock price/value with industry average P/E ratio: $329.14
SBAC is -3.32% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
14.42
Price to sales ratio is 98.11% above the industry mean
P/B (Price to book value ratio):
-6.37
Price to free cash flow: 32.83
Price to free cash flow ratio is 12.97% higher than the industry
Net income growth rate (3Y):
419.79%
Net income growth rate is 56.87% higher than the average industry net income growth rate
Dividend Analysis
Dividend payout rate: 17.55%
Dividend yeild: 0.81%
Previous Dividend: $0.71
Previous adjusted dividend: $0.71
Previous Dividend: $2.58
Expected next dividend best case: $0.80
Expected next dividend worst case: $0.62
Average dividend payment (long-term): $0.54
Average dividend increase/decrease (growth rate) % per period: 7.28%
Expected next dividend payment date: 09/12/2022
Expected next dividend record date: 17/08/2022
Expected next dividend declaration date: 25/07/2022
Previous dividend payment date: 14/06/2022
Previous dividend record date: 19/05/2022
Previous dividend declaration date: 25/04/2022
Dividend History:
2022-05-18--$0.71
2021-11-17--$0.58
2021-05-19--$0.58
2022-03-09--$0.71
2021-08-25--$0.58
2021-03-09--$0.58
Dividend growth rate is -85.87% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
-270.19%
Net debt to equity ratio:
-270.46%
Debt to assets ratio:
144.53%
Net debt to assets ratio:
144.67%
Debt-to-asset ratio is 87.73% above industry average
Ability to repay debt:
Interest coverage ratio:
4.07
Interest coverage ratio is -22.76% less than industry average
Looking forward:
Debt growth rate:
0.00%
-
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.604
Statistical significance of correlation:
SBAC has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.604
Stock price is -0.02% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.604
Correlation of price movement with Nasdaq (^IXIC):
0.008
Covariance of price movement with the market:
0.01
Kurtosis
3.811
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.42
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
SBAC
Gross Profit Margin Ratio:
304%
Operating Profit Margin Ratio:
34.70%
Operating profit margin is 91.95% higher than the industry
Net Profit Margin Ratio:
304%
Effective Tax Rate:
14.85%
Effective tax rate is 39.19% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
-8.07%
Return on equity (ROE) is -144.07% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
4.32%
Return on assets (ROA) is -15.49% lower than the industry
Financial Leverage:
-2.2x
Current Ratio:
0.84
Current ratio is -52.14% below industry average
Cash Conversion Cycle (days):
1
Cash conversion cycle is -97.68% below industry average
The remaining useful life of property plant & equipment is: 26.0 years
Stock based compensation to net income ratio:
5.65%
In-depth Efficiency Analysis
Revenue generated per employee:
1.5M
Each employee generates -81% less revenue than industry average revenue per employee
EBITDA generated per employee:
1.0M
Each employee generates -85% less EBITDA than industry average revenue per employee
Profit generated per employee:
274.4K
Each employee generates -91% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
179.5K
Each employee generates -87% less free cash flow than industry average revenue per employee
Assets/Capital per employee
6.0M
Each employee generates -87% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
SBAC
COSTAR GROUP, INC. (XNAS:CSGP)
BPY
BROOKFIE PPTY PRT CL A SRS 1 PRF UNT (XNAS:BPYPP)
LAMAR ADVERTISING COMPANY (XNAS:LAMR)
CYRUSONE INC. (XNAS:CONE)
Gaming and Leisure Properties, Inc. (XNAS:GLPI)
AGNC INVESTMENT CORP. (XNAS:AGNCM)
AGNC INVESTMENT CORP. (XNAS:AGNCN)
AGNC INVESTMENT CORP. (XNAS:AGNC)
Current Analyst Ratings
Strong buy�13%
Buy�46%
Hold�25%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
2.38B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
568.64M
1.81B
-
-
230.55M
-
691.33M
921.88M
5.32M
391.89M
690.60M
1.60B
825.70M
437.99M
514.01M
76.34M
437.99M
Statement of Cash Flow
Date:
Period:
174.32M
Differed Income Tax :
34.26M
Stock Based Compensation :
24.75M
Change in Working Capital :
- 12774.00K
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
- 84382.00K
Net Cash Provided by Operating Activities:
324.48M
Investments in PP&E:
-
Net Acquisitions:
- 215181.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
263.57M
-
263.57M
169.61M
-
106.24M
539.42M
6.05B
-
-
-
-
638.41M
9.60B
-
10.14B
40.58M
278.45M
-
195.55M
125.71M
640.29M
14.66B
232.80M
14.89B
-
15.53B
1.08M
- 7523696.00K
- 591364.0K
2.69B
March 31, 2022 at 6:00:00 AM
1.49B
- 5425147.00K
10.11B
-
14.94B
14.7B
-
- 40700.00K
- 255881.00K
-
-
- 431667.00K
- 76873.00K
324.79M
- 183750.00K
15.96M
- 99188.00K
336.44M
435.63M
324.48M
- 38008.00K
286.47M
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
SBAC
2023
2024
2025
2026
2027
$329.49
$467.70
$481.87
$496.47
$511.51