The tower business model is extremely attractive, providing strong recurring cash flow based on long-term contracts and direct exposure to surging wireless data demand as carriers add new cell sites to their networks.
SBA's management clearly understands the value of its towers. Rather than sign multiple master lease agreements with the carriers, guaranteeing future revenue but limiting upside, SBA has pushed to maximize rents as the carriers need additional space.
Nearly 40% of SBA's towers are in international markets, increasing diversification and adding growth potential. Read more
The four major U.S. carriers account for about three quarters of SBA's leasing revenue. A major disruption in spending among these carriers, potentially resulting from the merger of Sprint and T-Mobile, would seriously hamper growth.
SBA carries the highest leverage in the industry, leaving its share price heavily exposed to unexpected changes in tower demand. Also, if interest rates begin to rise again, SBA will be hit harder than its peers.
The firm's exposure to emerging markets adds foreign exchange risk, exposure to economic volatility, and regulatory uncertainty. Read more
Steven Bernstein founded SBA in 1989 and has served as chairman since. President and CEO Jeffrey Stoops has been with SBA since 1997, including a stint as CFO from 1998 to 2000; he assumed the CEO role from Bernstein in 2002 and immediately faced SBA's Read more
SBA Communications is a leading independent owner and operator of wireless communications towers in the United States, Brazil, Puerto Rico, Canada, and Central America. Read more