SBA Communications Corp (SBAC, Financial) is a leading player in the Real Estate Investment Trusts (REITs) industry. As of August 1, 2023, the company's stock price stands at $229.24, with a market capitalization of $24.84 billion. The stock has seen a gain of 4.7% today, despite a slight dip of -0.94% over the past four weeks. In this article, we will delve into the company's GF Score and its various components to provide a comprehensive analysis of its performance and potential.
GF Score Analysis
The GF Score is a stock performance ranking system developed by GuruFocus. It uses five aspects of valuation, which have been found to be closely correlated to the long-term performances of stocks. SBAC's GF Score is 85 out of 100, indicating good outperformance potential. This score is calculated based on five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. Let's delve into each of these components.
Financial Strength Analysis
The Financial Strength rank measures the robustness of a company's financial situation. SBAC's Financial Strength rank is 2 out of 10, indicating a relatively weak financial position. This is based on its interest coverage of 2.43, a high debt to revenue ratio of 5.62, and a low Altman Z score of 0.42.
Profitability Rank Analysis
The Profitability Rank assesses a company's profitability and its likelihood of maintaining it. SBAC scores a high 9 out of 10 in this category, indicating strong profitability. This is supported by its impressive Operating Margin of 37.99%, a decent Piotroski F-Score of 6, and a consistent profitability trend over the past 10 years.
Growth Rank Analysis
The Growth Rank measures a company's revenue and profitability growth. SBAC scores a perfect 10 out of 10, indicating robust growth. This is reflected in its 5-year revenue growth rate of 10.30% and 3-year revenue growth rate of 11.10%.
GF Value Rank Analysis
The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth. SBAC's GF Value Rank is 8 out of 10, suggesting a fair valuation.
Momentum Rank Analysis
The Momentum Rank assesses a stock's price performance. SBAC's Momentum Rank is 4 out of 10, indicating moderate momentum in its stock price.
Competitor Analysis
When compared to its main competitors in the REITs industry, SBAC holds its ground with a GF Score of 85. Weyerhaeuser Co (WY, Financial) has a GF Score of 84, Iron Mountain Inc (IRM, Financial) scores 72, and Gaming and Leisure Properties Inc (GLPI, Financial) has a GF Score of 76. This comparative analysis suggests that SBAC is a strong contender in its industry.
In conclusion, despite its weak financial strength, SBAC's strong profitability, robust growth, fair valuation, and moderate momentum contribute to its good outperformance potential. Investors should keep a close eye on this stock.
