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 post-market leader 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 $105.6 million.
- SBAC is up 5.6% today from today's close.
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More details on SBAC:
SBA Communications Corporation owns and operates wireless communications towers in the United States, Canada, Costa Rica, El Salvador, Guatemala, Nicaragua, Panama, and Brazil. Currently there are 13 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 1.1 million shares per day over the past 30 days. SBA has a market cap of $12.5 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 7.2% with 8.60 days to cover. Shares are up 6.8% year-to-date as of the close of trading on Monday.
rates SBA Communications as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. 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:
- The revenue growth greatly exceeded the industry average of 8.4%. Since the same quarter one year prior, revenues rose by 39.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 136.36% and other important driving factors, this stock has surged by 46.47% 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.
- SBA COMMUNICATIONS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SBA COMMUNICATIONS CORP reported poor results of -$1.50 versus -$1.14 in the prior year. This year, the market expects an improvement in earnings (-$0.34 versus -$1.50).
- 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 141.1% when compared to the same quarter one year prior, rising from -$52.45 million to $21.53 million.
- The debt-to-equity ratio is very high at 12.60 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, SBAC's quick ratio is somewhat strong at 1.35, demonstrating the ability to handle short-term liquidity needs.
- You can view the full SBA Communications Ratings Report.