Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified SBA Communications as such a stock due to the following factors:
- SBAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $117.6 million.
- SBAC has traded 9,440 shares today.
- SBAC is trading at a new lifetime high.
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More details on SBAC:
SBA Communications Corporation owns and operates wireless communications tower structures, rooftops, and other structures that support antennas used for wireless communications in the United States and its territories, as well as in Canada, Central America, and South America. Currently there are 12 analysts that rate SBA Communications a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for SBA Communications has been 1.0 million shares per day over the past 30 days. SBA has a market cap of $13.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.65 and a short float of 8.9% with 9.85 days to cover. Shares are up 14.9% year-to-date as of the close of trading on Friday.
rates SBA Communications as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
Highlights from the ratings report include:
- SBAC's revenue growth has slightly outpaced the industry average of 2.7%. Since the same quarter one year prior, revenues rose by 10.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 105.55% and other important driving factors, this stock has surged by 32.46% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The gross profit margin for SBA COMMUNICATIONS CORP is currently very high, coming in at 71.88%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, SBAC's net profit margin of 0.40% significantly trails the industry average.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Wireless Telecommunication Services industry average, but is greater than that of the S&P 500. The net income increased by 106.3% when compared to the same quarter one year prior, rising from -$22.38 million to $1.41 million.
- The debt-to-equity ratio is very high at 17.34 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, SBAC has a quick ratio of 0.60, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- You can view the full SBA Communications Ratings Report.