SBAC - Embedded Expectations Analysis - 2019 07 01
SBA Communications Corp. (SBAC:USA) currently trades at recent highs relative to UAFRS-based (Uniform) Earnings, with a 40.0x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about share repurchases and operating leverage, domestic leasing revenue growth, and their customer mix.Specifically, management may lack confidence in their ability to sustain Brazilian performance and continue meeting lease churn guidance. Moreover, they may be concerned about their ability to sustain industry-leading AFFO performance and share repurchases, and about their ability to effectively manage leverage. Furthermore, they may lack confidence in their ability to sustain domestic leasing revenue growth, and may have concerns about business uncertainty and their customer mix. Finally, they may be exaggerating the strength of the services business, the service contribution of DISH, and importance of 4G technology.
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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