SBAC - Embedded Expectations Analysis - 2018 06 12
SBA Communications Corporation (SBAC:USA) currently trades near recent highs relative to UAFRS-based (Uniform) Earnings, with a 34.2x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about EBITDA, new contracts, and industry trendsSpecifically, management may lack confidence in the sustainability of revenue improvements in their Services business, as well as adjusted EBITDA improvements overall. Furthermore, they may lack confidence in expectations for FirstNet activity to increase throughout the year as a result of AT&T's amendment applications, and may have concerns about their ability to put new agreements in place. Additionally, they may be concerned about the structure of their recent Millicom deal, particularly in terms of the 811 sites under contract they are purchasing in El Salvador, and may be exaggerating the extent to which all four major U.S. wireless carriers will be engaged in active investment during 2018
SBA Communications is a holding company. Through its subsidiaries, the company is an owner and operator of wireless communications infrastructure, including tower structures, rooftops, and other structures that support antennas used for wireless communications. The company's operations are in the U.S. and its territories. In its site leasing business, the company leases antenna space to wireless service providers on towers that the company owns or operates and manages rooftop and tower sites for property owners under various contractual arrangements. In its site development business, the company assists wireless service providers in developing and maintaining their own wireless service networks.
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