Morningstar Rating

Stock Research and Analysis

by Imari Love

Bulls Say

The firm has a portfolio of young, high-capacity towers (space for four to five telephony tenants per tower). Thus, there is low operating expense and augmentation capital expenditure per tower.
The company has historically managed liquidity well through a mixture of acquisitions and share repurchases.
The firm has operated very well amid a difficult economic backdrop. Margins are hitting all-time highs, and management is only halfway through its $300 million share-buyback initiative. Read more 

Bears Say

More than three fourths of the firm's revenue is driven by the top four wireless carriers in the U.S. Any material disruption in spending or leasing activity from AT&T, Verizon, Sprint, or T-Mobile could be problematic.
Although the firm is lowering its debt burden, it still bears the highest leverage in the industry. If interest rates begin to rise again, SBA will be hit harder than its peers.
About 6% of the firm's revenue is tied to Sprint's IDEN network, which is in the midst of being decommissioned. Read more 

Management

Steven Bernstein founded SBA in 1989 and has served as chairman since then. President and CEO Jeffrey Stoops has been with SBA since 1997, including a stint as CFO from 1998 to 2000; he assumed the role of CEO in 2002. Recently, Kurt Bagwell, formerly   Read more 

Profile

SBA Communications is a leading independent owner and operator of wireless communications towers in the United States, Puerto Rico, Canada, Central America, and now Brazil.  Read more 

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