SBA Communications (SBAC) Hits New Lifetime High

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 SBA Communications ( SBAC) 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 $103.8 million.
  • SBAC has traded 11,280 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 11 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 976,400 shares per day over the past 30 days. SBA has a market cap of $14.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.62 and a short float of 8.9% with 10.26 days to cover. Shares are up 23.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates SBA Communications as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and robust revenue 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:
  • Powered by its strong earnings growth of 75.00% and other important driving factors, this stock has surged by 48.33% 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. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, SBA COMMUNICATIONS CORP continued to lose money by earning -$0.45 versus -$1.50 in the prior year. This year, the market expects an improvement in earnings (-$0.04 versus -$0.45).
  • The gross profit margin for SBA COMMUNICATIONS CORP is currently very high, coming in at 71.98%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -2.46% is in-line with 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 73.6% when compared to the same quarter one year prior, rising from -$35.90 million to -$9.47 million.
  • The debt-to-equity ratio is very high at 43.06 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.19, which clearly demonstrates the inability to cover short-term cash needs.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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