Sba Communications Stock Fair Value – Creative Planning Increases Stake in SBA Communications Co. by 20.4% in Q4
June 6, 2023
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SBA ($NASDAQ:SBAC) Communications Co. is a publically-traded wireless infrastructure provider headquartered in Boca Raton, Florida. The company specializes in the ownership of wireless communication towers in the United States and in international markets. This surge in ownership suggests that Creative Planning has high expectations for the future of SBA Communications Co. and its stock. It is likely that Creative Planning was attracted to SBA Communications Co.’s strong performance over the past year, which saw its stock value increase by almost 20%.
Creative Planning’s increased stake in SBA Communications Co. also indicates that they believe that the wireless infrastructure provider’s business will continue to be profitable and successful in the future. This boost in ownership suggests that investors may want to consider taking a closer look at SBA Communications Co. in order to determine if it is a good investment option.
Analysis – Sba Communications Stock Fair Value
GoodWhale recently conducted an analysis on SBA COMMUNICATIONS, and the results of our proprietary Valuation Line support the fair value of its share to be around $394.3. However, the current market price for SBA COMMUNICATIONS is trading at $224.3, which is 43.1% undervalued from the fair value. As such, this presents a great opportunity for investors to buy into SBA COMMUNICATIONS at a discounted rate. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sba Communications. More…
| Total Revenues | Net Income | Net Margin |
| 2.69k | 374.02 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sba Communications. More…
| Operations | Investing | Financing |
| 1.3k | -1.28k | -144.45 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sba Communications. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.54k | – | -48.64 |
Key Ratios Snapshot
Some of the financial key ratios for Sba Communications are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 38.0% |
| FCF Margin | ROE | ROA |
| – | – | – |
Peers
The U.S. tower industry is highly competitive with three dominant firms, SBA Communications Corp, American Tower Corp, and Crown Castle International Corp, accounting for more than 80% of the market. These firms have been in intense competition for market share since the early 1990s. The industry has seen consolidation through acquisitions and joint ventures, but the top three firms have remained the dominant players.
Equinix Inc is a newer entrant to the tower industry and has quickly become a major competitor. The company has a different business model than the traditional tower firms and focuses on providing colocation and interconnection services. Equinix has been successful in attracting major customers such as AT&T, Verizon, and Sprint.
– American Tower Corp ($NYSE:AMT)
American Tower is a leading independent owner, operator and developer of wireless and broadcast communications real estate. The company’s global portfolio includes more than 170,000 communications sites, including approximately 80,000 in the United States, approximately 70,000 in Europe, the Middle East and Africa, and approximately 20,000 in Latin America.
– Crown Castle International Corp ($NYSE:CCI)
Crown Castle International Corp is a publicly traded real estate investment trust (REIT) that owns, operates, and leases communications towers and other infrastructure in the United States. The company’s towers are used by wireless service providers to transmit voice and data traffic. Crown Castle also provides small cell solutions, which are used to increase capacity and coverage for wireless service providers. As of December 31, 2020, the company owned approximately 40,000 communications sites.
– Equinix Inc ($NASDAQ:EQIX)
Equinix, Inc. is a leading global provider of data center and interconnection solutions, with a market cap of $47.86B as of 2022. The company offers a variety of services including colocation, interconnection, and cloud exchange. Equinix operates in over 50 data centers across the globe, providing a reliable and secure platform for companies to operate their businesses. The company’s customer base includes a wide range of businesses from small businesses to large enterprises.
Summary
This investment signals that Creative Planning is bullish on the company’s performance, and could potentially benefit from the company’s future growth. Analysts believe that SBA Communications is well-positioned to capitalize on the rapidly expanding digital infrastructure sector and has a strong portfolio of towers, antennas, and other network assets. As such, investors should keep an eye on the company’s performance before making any decisions.
