The company's average rating is Buy from 14 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on SBA Communications market sentiment investors' perception of the future value of SBA Communications. Let us look at a few aspects of SBA Communications technical analysis. About
96.0% of the company shares are owned by institutional investors. SBA Communications has Price/Earnings (P/E) ratio of 205.64. The entity recorded a loss per share of
0.06. The firm last dividend was issued on the 27th of May 2020.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of SBA Communications Corp. In general, sophisticated investors focus on analyzing SBA Communications stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build SBA Communications's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of SBA Communications's intrinsic value. In addition to deriving basic predictive indicators for SBA Communications, many experienced traders also check how macroeconomic factors affect SBA Communications price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of SBA Communications' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as SBA Communications. Your research has to be compared to or analyzed against SBA Communications' peers to derive any actionable benefits. When done correctly, SBA Communications' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in SBA Communications Corp.
How important is SBA Communications's Liquidity
SBA Communications
financial leverage refers to using borrowed capital as a funding source to finance SBA Communications Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. SBA Communications financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to SBA Communications' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of SBA Communications' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between SBA Communications's total debt and its cash.
SBA Communications Gross Profit
SBA Communications Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing SBA Communications previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show SBA Communications Gross Profit growth over the last 10 years. Please check SBA Communications'
gross profit and other
fundamental indicators for more details.
Closer look at SBA Communications Semi Variance
SBA Communications has current Semi Variance of 3.63. Semi-variance provides a good measure of downside volatility for equity or a portfolio. It is similar to variance, but it only looks at periods where the returns are less than the target or average level.
Semi-variance is the square of semi-deviation. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.
Semi Variance | = | SUM(RET DEV)2 N(ZERO) |
| = | 3.63 |
| SUM | = | Summation notation |
| RET DEV | = | Actual return deviation over selected period |
| N(ZERO) | = | Number of points with returns less than zero |
Let's now compare SBA Communications Semi Variance to its closest peers:
| SBAC | 3.63 |
| LBRDK | 1.45 |
| TMUS | 3.56 |
| BA | 17.24 |
Some SBA Communications technical indicators suggest throwback
Current treynor ratio is at -0.67. SBA Communications currently demonstrates below-verage downside deviation. It has Information Ratio of -0.03 and Jensen Alpha of 0.14. However, we do advice investors to further question SBA Communications expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
The Current Takeaway on SBA Communications Investment
Whereas few other entities under the reit—specialty industry are still a bit expensive, SBA Communications may offer a potential longer-term growth to investors. All things considered, as of the 2nd of August 2020, we believe that SBA Communications is currently
fairly valued with
below average chance of distress in the next two years. Our concluding 30 days 'Buy-vs-Sell' recommendation on the company is
Cautious Hold.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of SBA Communications Corp. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com