Crown Castle Inc.
Crown Castle Inc. Fundamental Analysis
Crown Castle Inc. (CCI) shows weak financial fundamentals with a PE ratio of 34.65, profit margin of 25.13%, and ROE of -65.88%. The company generates $4.2B in annual revenue with weak year-over-year growth of -35.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CCI's fundamental strength across five key dimensions:
Efficiency Score
WeakCCI struggles to generate sufficient returns from assets.
Valuation Score
ModerateCCI shows balanced valuation metrics.
Growth Score
WeakCCI faces weak or negative growth trends.
Financial Health Score
ModerateCCI shows balanced financial health with some risks.
Profitability Score
ModerateCCI maintains healthy but balanced margins.
Key Financial Metrics
Is CCI Expensive or Cheap?
P/E Ratio
CCI trades at 34.65 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CCI's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Crown Castle Inc. at -19.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.46 times EBITDA. This is generally considered low.
How Well Does CCI Make Money?
Net Profit Margin
For every $100 in sales, Crown Castle Inc. keeps $25.13 as profit after all expenses.
Operating Margin
Core operations generate 48.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-65.88 in profit for every $100 of shareholder equity.
ROA
Crown Castle Inc. generates $3.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Crown Castle Inc. generates strong operating cash flow of $2.93B, reflecting robust business health.
Free Cash Flow
Crown Castle Inc. generates strong free cash flow of $2.73B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.25 in free cash annually.
FCF Yield
CCI converts 7.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
-19.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-12.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.66
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How CCI Stacks Against Its Sector Peers
| Metric | CCI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.65 | 23.26 | Worse (Expensive) |
| ROE | -65.88% | 703.00% | Weak |
| Net Margin | 25.13% | -37590.00% (disorted) | Strong |
| Debt/Equity | -12.86 | -20.93 (disorted) | Distorted |
| Current Ratio | 0.27 | 16.35 | Weak Liquidity |
| ROA | 3.37% | -935.00% (disorted) | Weak |
CCI outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Crown Castle Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-28.98%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-59.11%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-2.69%
Industry Style: Income, Inflation Hedge, REIT
Declining