NASDAQ:SBAC
$35.27
(3/19 4:00PM)
-1.8%
| Open | $36 |
Mkt Cap | $4.2 Billion |
| High | $36.04 |
52Wk High | $37.12 |
| Low | $35.23 |
52Wk Low | $21.87 |
| Volume | 1.0 Million |
Avg Vol 10D | 1.2 Million |
SBAC Revenue
As a value investing shop, we are interested in seeing how SBAC's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 8.27x and the low end of the range at 3.67x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for SBAC of 7.68x is high enough compared with historical norms of SBAC to cause some concern. The current Price to Sales per share is near the upper end of the historical range. In our eyes, this is a negative factor because it is more likely that it will return to the normal range than continue rising outside of the range. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 28% merely to return SBAC to its historical average.
SBAC Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. SBAC is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 9 years of cash earnings levels for SBAC to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 53.69 and a 27.03 low over the same period.
Now that SBAC’s current price is $36.26 and its Price to Cash Earnings ratio is 33.27, we are very positive on its outlook from the cash earnings perspective. In fact, SBAC is now trading a full 18% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why SBAC has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
SBAC Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. As far as our investing methodology goes, it is not necessary to pay a dividend in order to get a favorable rating, so as for right now SBAC gets a neutral rating for the dividend portion of the model. As you can see, we are not receiving historical dividend information from our data provider on SBAC at this time.
News on SBAC From the Pundits on Mad Money
The latest news on Mad Money in regards to SBAC came through on RazorWire recently.
The crowd at The Motley Fool does not like SBAC and believes that it will Underperform. We consider SBAC as Undervalued at the current price of $36.31. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SBAC has been less covered in the news compared to the rest of our universe of stocks.
“… Without mour towers like those of american tower, amt, crown castle, cci and favorite sba communication, SBAC, the children's dreams will be thwarted by drop calls. …”
News Developing on Mad Money for SBAC
The latest news from Mad Money on SBAC is available through Ockham's news analytics platform RazorWire.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see SBA Communications Corporation underperforming. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, SBA Communications Corporation has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on SBAC, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… That's right, american tower, crown castle, and for the more conservative investors, a smaller one, SBAC. These stocks have run up big since I recommended them. …”
See Who is Talking About News from SBAC on Countdown to the Closing Bell
The latest news from Countdown to the Closing Bell on SBAC is available through Ockham's news analytics platform RazorWire.
The crowd at The Motley Fool does not like SBAC and believes that it will Underperform. We consider SBAC as Undervalued at the current price of $35.09. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SBAC has been less covered in the news compared to the rest of our universe of stocks.
“… But I think the sector I mentioned earlier the telekom -- telecom towers I mentioned SBAC. Also look at amt and cci I like them for the whole year space to be in. > > …”
SBA Communications Corporation Cash Flow Generation Covered by Squawk Box
The latest cash flow information from SBAC was covered on Squawk Box recently, and investors should be interested in anything that affects their ability to generate cash.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SBAC has been less covered in the news compared to the rest of our universe of stocks. We consider SBAC as Undervalued at the current price of $34.07. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The crowd at The Motley Fool does not like SBAC and believes that it will Underperform.
“… You said SBA COMMUNICATIONS and american to youer? > > sba is mid-cap and american is big. > > web md, another name you mentioned as an area where you see something that ... …”
It's Been a Month or More Since Mad Money Discussed SBA Communications Corporation
After a month of relative quiet from SBAC, they have appeared back in the news.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, SBA Communications Corporation has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on SBAC, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see SBA Communications Corporation underperforming.
“… SBA COMMUNICATIONS, ceragon and harris for speculators. Every time you read a story about att not being able to meet demand, I want you to think of one of those stocks. …”
SBAC and Cash Flow Covered on Mad Money
Generating cash flow is a goal for any company as well all know cash is king. Cash flow and SBA Communications Corporation were discussed recently on Mad Money.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SBAC has been less covered in the news compared to the rest of our universe of stocks. We consider SBAC as Undervalued at the current price of $32.79. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The crowd at The Motley Fool does not like SBAC and believes that it will Underperform.
“… And here SBAC blew it away. It posted 27% year-over-year they're bringing in. It's real because theythored a $250 million stock repurchase plan. . …”
Slow Month for News Out of SBAC But Mad Money Mentions Them
It's been at least a month since we noticed any major news coverage of SBAC, so the story in Mad Money may get the ball rolling.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see SBA Communications Corporation underperforming. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, SBA Communications Corporation has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on SBAC, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… SBA COMMUNICATIONS is up 29%. This is a smaller tower name that we got from brian ashenburg, he's got the terrific break-out newsletter, chairman. I think there is upside left. …”
SBA Communications Corporation (SBAC) Discussed on CNBC's Mad Money
SBA Communications Corporation is in the news. Find out how this impacts SBAC trading on Ockham Research.
That verizon campaign is about is not having enough towers. We have been recommending amt. And the stock of the SBA COMMUNICATIONS. That's from brian, who writes the newsletter. You need sba or american tower if you think this problem is not going away. Robert in florida. >> caller: good evening jim.
“… obert in florida. >> caller: good evening jim. …”
SBA Communications Corporation (SBAC) Discussed on CNBC's Mad Money
SBA Communications Corporation is in the news. Find out how this impacts SBAC trading on Ockham Research.
But we've been able to buy towers that can provide a return for our shareholders. So smart acquisition and new build growth has really fuelled SBAC's success. >> you tell us be careful of companies that have too much then there's a company you like SBAC that recently raised $750 in debt where I talked about they're only going to raise $500 million. Can you explain why that's not that dangerous given all the money you take in? >> well, it's given us a tremendous liquidity position. We're sitting between cash on hand and a credit facility and generated cash flows of $700 million over the next 12 months. We're in a great position. We wanted to tap the credit markets to get ahead of the refinancing as the market opened up and we're very successful and happy with the way that turned the old adage, you take some and available to you. >> we had the ceo on the other growth of rural america. Particularly given the fact that
“… hat recently raised $750 in debt where I talked about they're only going to raise $500 million. Can you explain why that's not that dangerous given all the money you take in? >> well, it's given us a tremendous liquidity position. We're sitting between cash on hand and a credit facility and generated cash flows of $700 million over the next 12 months. We're in a great position. We wanted to tap the credit markets to get ahead of the refinancing as the market opened up and we're very successful and happy with the way that turned the old adage, you take some and available to you. >> we had the ceo on the other growth of rural america. Particularly given the fact that …”
SBA Communications Corporation (SBAC) Discussed on CNBC's Mad Money
SBA Communications Corporation is in the news. Find out how this impacts SBAC trading on Ockham Research.
I got this one from my friend brian ashenberg. He's hitting the ball out of the I like that. Secular growth trends can trump a lot of negativity which is why I think you should be in this SBAC owns towers. It also has a business consulting one and building new once. Great place to be given, right now that all of the major carries are investing. Sprint, which is the worst of the bunch is leasing new sites at&t is building out thousands of new towers to deal with all of the stress on its network created by, you getsed it, the iphone. T-mobile expected to start 3g network. Ltd netyork, first half of 2010. With at&t and metro pcs and even kramsera nonfave clearwires ramping up the what does that mean for a tower company like SBAC? Once you have a tower you can lease it out to more than concarrier. Hey can stick the new antenna up. Right now the company has an average. But sbca sees this moving between 3 and 10 tours. Which means it could make additional money at very little cost. Was upbeat. Management said activity levels should improve through the end the year and through 2010. Is looking to make smaller looking to make smaller acquisitions around the we've seen a lot of smaller acquisitions and takeovers lately. The $7.2 million that's been earmarked in rural areas. SBAC has a higher portion training areas. 38% for american tower, 28% for crown castle. SBAC only has 8,000 towers. American tower and crown castle have 20,000. The larger ones may be more stable. But it takes less to move the needle I wanted to get the ceo. It's jeffrey stoops. Welcome to "mad money." please call me jeff. >> I will. The first thing I want to say is this -- you heard me and I know you watch the show. Am I too bullish on the notion that we are early on in the innings of the smart phone -- the bull market i'm talking about? There, jim. We are very early from a baseball analogy. Early innings, smart phones still have a long way to gop. Over. Take off. Then there's dreaming video, all that will require a lot more infrastructure for wireless. >> now, your company is not as
“… g new once. Great place to be given, right now that all of the major carries are investing. Sprint, which is the worst of the bunch is leasing new sites at&t is building out thousands of new towers to deal with all of the stress on its network created by, you getsed it, the iphone. T-mobile expected to start 3g network. Ltd netyork, first half of 2010. With at&t and metro pcs and even kramsera nonfave clearwires ramping up the what does that mean for a tower company like SBAC? Once you have a tower you can lease it out to more than concarrier. Hey can stick the new antenna up. Right now the company has an average. But sbca sees this moving between 3 and 10 tours. Which means it could make additional money at very little cost. Was upbeat. Management said activity levels should improve through the end the year and through 2010. Is looking to make smaller looking to make smaller acquisitions around the we've seen a lot of smaller acquisitions and takeovers lately. The $7.2 million that's been earmarked in rural areas. SBAC has a higher portion training areas. 38% for american tower, 28% for crown castle. SBAC only has 8,000 towers. American tower and crown castle have 20,000. The larger ones may be more stable. But it takes less to move the needle I wanted to get the ceo. It's jeffrey stoops. Welcome to "mad money." please call me jeff. >> I will. The first thing I want to say is this -- you heard me and I know you watch the show. Am I too bullish on the notion that we are early on in the innings of the smart phone -- the bull market i'm talking about? There, jim. We are very early from a baseball analogy. Early innings, smart phones still have a long way to gop. Over. Take off. Then there's dreaming video, all that will require a lot more infrastructure for wireless. >> now, your company is not as …”