| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 34 | 20.0x | 17.8x | Bottom tier | |
Growth | 28 | 5.4% | 7.1% | Bottom tier | |
Quality | 81 | 9.4% | 4.5% | Top tier | |
Safety | 24 | 11.2x | 2.6x | Bottom tier | |
Capital Return | 60 | 2.56% | 2.12% | Around median | |
Momentum | 37 | -16.6% | 2.9% | Bottom tier | |
Sentiment | 74 | 10 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
SBA Communications Corporation operates communications tower infrastructure and generates revenue by leasing tower sites, adding new tenants, and modifying existing customer equipment. Operating growth is tied to telecommunications companies' spending on expanding 5G coverage, deploying C-band spectrum, installing massive MIMO antennas, and increasing network density, while long-term lease agreements and rent escalators linked to price indices support international cash flows. In Q2 fiscal 2026, the company added approximately $9 million in billings from new leases and amendments in the United States and approximately $4 million internationally.
In Q2 fiscal 2026, the company reported revenue of $715.3 million, gross profit of $539.3 million, net income of $198.8 million, and earnings per share of $1.87. This equates to a gross profit margin of approximately 75.4% and a net income margin of approximately 27.8%, while AFFO per share was $3.05 and the company-wide tower cash flow margin reached just under 80%. Compared with Q1 fiscal 2026, revenue increased from $703.4 million, net income from $184.8 million, and earnings per share from $1.74.
The business mix was supported by continued international demand and growth in tower construction, while the U.S. market remained relatively weaker and customer activity did not rise above first-half fiscal 2026 levels. SBA Communications built 99 new towers during Q2 fiscal 2026, compared with 75 towers in the previous quarter, and is targeting the construction of approximately 600 sites during fiscal 2026, with most concentrated in Central America and a meaningful number in Tanzania. International growth helped offset domestic pressures, despite international churn remaining elevated due to telecommunications company mergers, bankruptcies, and network restructurings.
The analyst consensus is "Buy," with an average price target of $217.67 and a target range of $205 to $238. The average target is approximately 3% below the 52-week range high of $224.46, while the highest target exceeds that high by approximately 6%, suggesting that the bullish case requires additional growth from new towers, spectrum, and repurchases to materialize. Conversely, these targets should be weighed against debt of approximately $13 billion, leverage of 6.4 times, and an expected slowdown in the contribution from U.S. leasing during the second half of fiscal 2026.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue was $715.3 million, gross profit was $539.3 million, and net income was $198.8 million in Q2 fiscal 2026. Earnings per share reached $1.87, while AFFO per share was $3.05. The company also maintained a tower cash flow margin of just under 80% and modestly raised its full-year outlook for site leasing revenue, AFFO, and AFFO per share.
SBA Communications expects to build approximately 600 new sites during fiscal 2026, with most concentrated in Central America and a meaningful number in Tanzania. The company built 99 towers in Q2 fiscal 2026, up from 75 towers in the previous quarter. Management believes the risk-adjusted returns on these towers exceed the cost of capital in many cases from day one, but noted that U.S. construction opportunities are less attractive because competitors accept lower returns.
Management said during the August 3, 2026 call that it intends to resume share repurchases during the second half of fiscal 2026. The decision followed the issuance of $3.5 billion of notes and the repayment of the Term Loan B and the full outstanding balance on the revolving credit facility. The call stated that approximately $1.1 billion remained under the authorization, with management confirming that it expects actual repurchase activity without specifying a binding pace.
Automated analysis for informational purposes only — not investment advice.
The company ended Q2 fiscal 2026 with total debt of approximately $13 billion and leverage of 6.4 times net debt to adjusted EBITDA, within its target range of 6 to 7 times. In July 2026, it issued $3.5 billion of unsecured notes with an average coupon of 5.11%, but acknowledged that the interest-rate environment is higher than when some of the maturing debt was issued. It also assumes that the $1.2 billion ABS maturity in November 2026 will be refinanced at 5.25%.
Management estimates that U.S. edge sites potentially affected by direct-to-device satellite solutions account for no more than approximately 2% to 3% of the portfolio, but said the ultimate impact remains unresolved. Conversely, the company has held discussions with several satellite providers and believes that competing networks will require terrestrial components that could use its infrastructure. In edge computing, management believes that approximately half of the U.S. portfolio is suitable for the use cases under discussion and expects the opportunity to develop during the twelve months following the August 3, 2026 call.
