SBA Communications Corporation (SBAC) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: SBA Communications Corporation

Updated on October 2, 2026 · accounts published on August 3, 2026

Reading of October 2, 2026: A highly profitable REIT with widening margins and a heavy debt load

SBA Communications trades at 12.6× fiscal 2025 FFO, below the 15.0× to 20.0× range seen as healthy for REITs, after a 16 % drop in 12 months.

• Is SBA Communications expensive or cheap? At 12.6× fiscal 2025 FFO, SBA Communications trades below the 15.0× to 20.0× range typical of a healthy REIT.
• How is the business doing? Operating margin reached 51 % over the last 12 months, far above the 32 % average of fiscal 2014 to 2025.
• How strong is the balance sheet? Net debt stands at 6.8× EBITDA in fiscal 2025, above the 6.0× ceiling considered acceptable for a REIT.
• What to expect from the next earnings? Analysts expect EPS of $2.09 when SBA Communications reports on November 2, 2026, and 28 of 42 rate it a buy.
• Does FFO cover the dividend, and at what multiple does the stock trade? FFO covered the dividend 2.8× in fiscal 2025, far above the 1.1× minimum, while the stock trades at 12.6× FFO.

Is SBA Communications expensive or cheap?

For a REIT, start with price to FFO. At 12.6× fiscal 2025 FFO of $12.55 per share, the stock sits below the 15.0× to 20.0× band considered healthy for the sector. Two other measures point the same way: a free cash flow yield of 7.1 % over the last 12 months and an EV/EBITDA of 15.2×. The shares are down 16 % over the last year and trade 28 % below their 52-week high of $223.75. The P/E has ranged from 17.2 to 283.9 over the past decade. That swing shows how little it says here, because depreciation distorts reported earnings.

How is the business doing?

Profitability has stepped up clearly. The operating margin of 51 % over the last 12 months compares with 49 % in fiscal 2025 and a 32 % average across fiscal 2014 to 2025. The business now keeps far more of each dollar of revenue than it did through most of the decade. Growth is steady rather than spectacular: revenue rose 5.1 % over the last 12 months. Modest top-line growth combined with a rising margin means more of each new dollar of revenue is reaching operating profit, which is the healthier way to grow.

How strong is the balance sheet?

Debt is the weak point. Net debt of 6.8× EBITDA in fiscal 2025 exceeds the 6.0× limit that passes for a REIT and sits well above the 5.0× mark considered excellent. Total debt equals 132 % of assets, more than double the 60 % ceiling seen as healthy, so borrowings exceed the book value of everything on the balance sheet. Shareholders get some comfort from the dividend side. In fiscal 2025 the payout used 37 % of operating cash flow, well under the 80 % threshold, and the dividend per share has risen for 6 consecutive years.

What to expect from the next earnings?

The next report arrives on November 2, 2026, with consensus EPS of $2.09 for the quarter, up from the $1.87 delivered on August 3, 2026. That last result beat the $1.85 estimate by 1.1 %. Still, the company has topped EPS forecasts in only 3 of the last 8 quarters, so beats are not routine. Expectations are stable: the 2026 EPS consensus has held at $7.70 over the last 17 days among 9 analysts, and revenue estimates have barely moved. Of 42 analysts, 28 recommend buying, 13 recommend holding and none recommend selling.

Does FFO cover the dividend, and at what multiple does the stock trade?

In a REIT, EPS and the P/E mislead because property depreciation pushes reported earnings down. Funds from operations, and how well they cover the dividend, are the better yardsticks. FFO reached $12.55 per share in fiscal 2025 and covered the payout 2.8×, against a healthy threshold of 1.1×. That leaves ample room behind a dividend yielding 3.1 % over the last 12 months. At 12.6× FFO, the price sits under the usual 15.0× to 20.0× range, so the market pays less for each dollar of FFO than the sector norm. That discount comes alongside the leverage described above.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.