SBA Communications Corp (SBAC) stock analysis

P/E below its 5-year median

SBA Communications's P/E of 20.5 is below its own 5-year median of 45.6.

P/E below the industry

SBA Communications's P/E of 20.5 is below the Miscellaneous Investing median of 26.3.

EV/EBITDA below its 5-year median

SBA Communications's EV/EBITDA of 19.3 is below its 5-year median of 21.8.

P/S above the industry

SBA Communications's price-to-sales of 7.07 is above the Miscellaneous Investing median of 4.14 (book value is negative, so we use sales).

Trading below fair value

The share price of $190.03 is below our fair value estimate of $221.64.

Margin of safety under 20%

The price is 14.3% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 2.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 32.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 15.0% over the last twelve months, against a 5-year average of 113% a year.

Growing slower than the industry

Revenue grew 2.3% over the last twelve months; the Miscellaneous Investing median is 4.6%.

Guidance raised

SBA Communications raised its Full Year 2026 AFFO outlook on Nov 2, 2026.

Gross margin slipping

Gross margin was 75.7% over the last twelve months, against 76.1% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 15.5%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 113% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 34.5% over the last twelve months, against a 5-year average of 22.3%.

Net margin above the industry

SBA Communications's net margin of 34.5% is above the Miscellaneous Investing median of 10.3%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 10.1% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.20 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.13; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

SBA Communications paid dividends worth 3.2% of the share price over the last twelve months.

Yield below Treasuries

The 3.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; SBA Communications yields 3.2%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 52.5% of net income.

Covered by free cash flow

Dividends take 49.2% of free cash flow.