August 14, 2025 a 07:46 am
SBAC: Dividend Analysis - SBA Communications Corporation
SBA Communications Corporation, a leading player in the communications sector, demonstrates a modest dividend yield with a track record of consistent growth over the past few years. The company's dividend profile suggests potential for long-term growth, contingent upon maintaining its operational stability and financial health.
📊 Overview
SBA Communications is a prominent entity in the communications industry, marked by its steady dividend payout and robust market presence.
| Aspect | Details |
|---|---|
| Sector | Communications |
| Dividend yield | 1.96% |
| Current dividend per share | 3.94 USD |
| Dividend history | 7 years |
| Last cut or suspension | None |
📉 Dividend History
The historical dividend performance of SBA Communications highlights stability and incremental growth, important for investors seeking reliable income.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 3.33 |
| 2024 | 3.92 |
| 2023 | 3.40 |
| 2022 | 2.84 |
| 2021 | 2.32 |
📈 Dividend Growth
Understanding the dividend growth is crucial as it reflects the company's ability to enhance shareholder returns through increased payouts.
| Time | Growth |
|---|---|
| 3 years | 19.11% |
| 5 years | 39.58% |
The average dividend growth is 39.58% over 5 years. This shows moderate but steady dividend growth.
🚀 Payout Ratio
The payout ratios are essential for determining how much of the company's earnings are distributed to shareholders and how much is retained for growth.
| Key figure | Ratio |
|---|---|
| EPS-based | 48.28% |
| Free cash flow-based | 39.85% |
With an EPS payout ratio of 48.28% and a free cash flow payout ratio of 39.85%, SBA Communications maintains a balanced approach in distributing its profits, supporting future growth potential.
🗒️ Cashflow & Capital Efficiency
Analyzing cash flow and capital efficiency provides insights into the company's operational success and long-term sustainability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.04% | 4.76% | 3.65% |
| Earnings Yield | 3.42% | 1.83% | 1.52% |
| CAPEX to Operating Cash Flow | 17.32% | 15.33% | 16.27% |
| Stock-based Compensation to Revenue | 2.78% | 3.24% | 3.79% |
| Free Cash Flow / Operating Cash Flow Ratio | 82.91% | 84.67% | 83.73% |
SBA's cash flow metrics indicate a strong ability to convert sales into cash flow, which is pivotal for supporting ongoing dividend payments and capital expenditures.
⚖️ Balance Sheet & Leverage Analysis
Understanding leverage and balance sheet strength helps gauge the company's financial stability and risk profile.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | -3.08 | -2.80 | -2.88 |
| Debt-to-Assets | 1.38 | 1.42 | 1.43 |
| Debt-to-Capital | 1.48 | 1.56 | 1.53 |
| Net Debt to EBITDA | 10.59 | 8.38 | 8.97 |
| Current Ratio | 1.10 | 0.36 | 0.69 |
| Quick Ratio | 1.10 | 0.36 | 0.63 |
| Financial Leverage | -2.23 | -1.97 | -2.01 |
The negative debt-to-equity suggests high leveraging, but the stable current and quick ratios provide a cushion against liquidity challenges.
📊 Fundamental Strength & Profitability
Financial ratios relevant to profitability and fundamental strength are not only indicators of current performance but also provide insights into the company's ability to generate returns on shareholders' investments.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | -14.67% | -9.70% | -8.75% |
| Return on Assets | 6.56% | 4.93% | 4.36% |
| Net Profit Margin | 27.97% | 18.51% | 17.52% |
| EBIT Margin | 44.79% | 36.32% | 35.15% |
| EBITDA Margin | 54.84% | 62.73% | 63.64% |
| Gross Profit Margin | 78.29% | 76.61% | 74.61% |
Despite a negative return on equity, SBA's persistent gross margins along with high EBITDA margins signal operational efficiency and cost management effectiveness.
🔍 Price Development
📊 Dividend Scoring System
| Criteria | Score | Visual |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 3 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 28/40
✅ Rating
SBA Communications Corporation maintains a moderate dividend profile with consistent growth, making it a viable option for long-term income-focused investors. However, its leverage is a consideration, requiring vigilant financial management moving forward.