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Fundamental analysis: Crown Castle Inc. (CCI)

Awarener score: 6.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Excellent) and growth (Modest), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.0

  • Business growth has been almost stagnant. It's been almost average when measured against peer companies.
  • Crown Castle Inc. business trend stability is excellent. The higher the stability, the lower the risk. It looks slightly worse than rivals.

Margins score: 8.8

  • CCI profit margins -on goods and services sold- are usually excellent. They stand slightly better than rival companies.
  • Business profit on sales tends to be huge. It's similar to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain close to average when compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still slightly worse than similar companies.
  • Profits -before income taxes- are usually very good considering total sales, and remain almost average when measured against rivals.
  • Total net profit tends to be very good when confronted to sales. Company stands almost average when measured against comparable firms.

Growth score: 6.3

  • Crown Castle Inc. profit -on goods and services sold- has been growing at a normal pace. It's been in good shape compared to competitors.
  • In recent years, earnings -on operations- have been growing at a normal step, which has been slightly better than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a low pace, which compares similar to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a normal tempo. It turns to be rather normal in relation to similar stocks.
  • In past years, profits -before income taxes- grew at a good speed. It was slightly worse than rivals.
  • In the previous years, growth trend on total net profit has been good, and similar to peer companies.
  • Earnings per share have grown at a good rhythm in past years. It's been rather normal in relation to industry peers.

Miscellaneous score: 9.0

  • CCI managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been somewhat better than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.5

  • Crown Castle Inc. usually gets good returns on the resources it controls. It proves substantially worse when measured against peer firms.
  • The company normally gets hardly sufficient proceeds -on the resources directly invested in the business-. They remain in a very weak position compared to similar companies.
  • Profitability -in relation to owned resources- is usually quite good. It ranks almost average when measured against competitors.
  • In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 5.5

  • CCI usually uses a slight portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is light. It stands below average when measured against rival firms.
  • The company is usually replacing the property, plant, and equipment that gets old, keeping its operating capabilities up to date, which is encouraging in relation to industry peers.
  • In the past twelve months it paid very good dividends, considering the current stock price. It came slightly worse than competitors.
  • Dividend payments have been more or less stable in recent years. The company has behaved lacking compared to similar firms.
  • The company pays more dividends than genuine funds is usually able to generate, therefore borrowing more funds. Future payments may be at risk, especially if a downturn in business occurs. Sustainability looks mediocre against comparable companies.
  • The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains lacking compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
  • The company uses a lot more funds to reward investors than it can genuinely generate, so they're paid out of existing cash or by borrowing money, both of which will eventually reach a limit. Either business improves, or rewards won't keep at current pace. It still looks weak when measured against competitors.

Balance Sheet score: 3.4

  • Crown Castle Inc. intangible assets (like brands and goodwill) represent a huge portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be weak when measured against peer companies.
  • The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be in a very weak position compared to similar firms.
  • Most resources controlled were provided for with financial debt. Creditors have more claims on the company than shareholders. Unless the company is a financial institution that takes deposits, the situation might be very risky. It remains somewhat worse than rival firms.
  • Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks below average when measured against rivals.
  • For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's in a very weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is worse than most similar enterprises.
  • Usually, sales are on somewhat more than three months credit. It still ranks similar to peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes higher than four months from the purchase to charging customers. It happens to be well ranked against peers.
  • On average pays suppliers two months after the purchase. It ranks encouraging in relation to industry peers.
  • The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's in good shape compared to similar companies.
  • Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands slightly better than rival firms.
  • Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
  • Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks a disappointment compared to similar firms.
  • Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still somewhat worse than peer companies.

Valuation score: 4.0

  • Crown Castle Inc. looks heavily expensive in relation to profits and financial position. It happens to be below average when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated some free funds in relation to the stock price, which stands somewhat worse than similar companies.
  • In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still below average when measured against industry firms.
  • In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up close to average when compared to peer ventures.
  • The company is indebted, it should focus on loan repayment. It looks slightly worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks weak when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks in a weak position compared to rival firms.
  • The relation between the stock price and accounting book value is really high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
  • In the past twelve months, the operating business lost a little money. It happens to be substantially worse when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still in a very weak position compared to peer companies.

Total score: 6.3


CCI logos

Company at a glance: Crown Castle Inc. (CCI)

Sector, industry: Real Estate, REIT—Specialty

Market Cap: 63.12 billions

Revenues TTM: 6.75 billions

Crown Castle owns, operates and leases more than 40,000 cell towers and approximately 80,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology and wireless service - bringing information, ideas and innovations to the people and businesses that need them. For more information on Crown Castle, please visit www.crowncastle.com.

Awarener score: 6.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Excellent) and growth (Modest), and the company's inclination to return cash to the stockholders (Very good).