Crown Castle International Corp Stock Buy Recommendation Reiterated (CCI)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- Crown Castle International (NYSE: CCI) has been reiterated by TheStreet Ratings as a buy with a ratings score of B . The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 17.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CROWN CASTLE INTL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CROWN CASTLE INTL CORP turned its bottom line around by earning $0.52 versus -$1.16 in the prior year. This year, the market expects an improvement in earnings ($0.86 versus $0.52).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Wireless Telecommunication Services industry. The net income increased by 275.8% when compared to the same quarter one year prior, rising from $30.87 million to $116.01 million.
  • The gross profit margin for CROWN CASTLE INTL CORP is currently very high, coming in at 70.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.80% is above that of the industry average.
  • Net operating cash flow has slightly increased to $162.13 million or 3.73% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -24.86%.

Crown Castle International Corp., together with is subsidiaries, owns, operates, and leases shared wireless infrastructure primarily in the United States, Puerto Rico, and Australia. The company has a P/E ratio of 71.4, above the average telecommunications industry P/E ratio of 70.4 and above the S&P 500 P/E ratio of 17.7. Crown Castle International has a market cap of $18.14 billion and is part of the technology sector and telecommunications industry. Shares are up 39.5% year to date as of the close of trading on Wednesday.

You can view the full Crown Castle International Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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