Crown Castle Inc (CCI, Financial) is a leading player in the Real Estate Investment Trusts (REITs) industry. As of July 24, 2023, the company's stock price stands at $110.51, marking a 3.01% gain for the day and a 1.36% increase over the past four weeks. With a market capitalization of $47.92 billion, CCI's financial performance can be evaluated using the GF Score, a comprehensive ranking system developed by GuruFocus. The GF Score, ranging from 0 to 100, assesses a company's potential performance based on five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. CCI's GF Score is 88, indicating good outperformance potential.
Financial Strength Analysis
The Financial Strength aspect of the GF Score evaluates a company's financial stability and resilience. CCI's Financial Strength Rank is 3/10, indicating a moderate level of financial strength. This score is based on the company's interest coverage of 3.38, a debt to revenue ratio of 3.99, and an Altman Z score of 0.82. These figures suggest that CCI has a manageable debt burden but could improve its financial stability.
Profitability Rank Analysis
The Profitability Rank assesses a company's profitability and its consistency. CCI's Profitability Rank is 9/10, indicating high profitability. This score is based on an operating margin of 35.58%, a Piotroski F-Score of 7, a 5-year average operating margin trend of 7.50%, and a consistency of profitability over the past 10 years. These figures suggest that CCI has consistently maintained high profitability.
Growth Rank Analysis
The Growth Rank measures a company's revenue and profitability growth. CCI's Growth Rank is 10/10, indicating strong growth. This score is based on a 5-year revenue growth rate of 6.50%, a 3-year revenue growth rate of 5.30%, and a 5-year EBITDA growth rate of 9.00%. These figures suggest that CCI has demonstrated robust growth in both revenue and profitability.
GF Value Rank Analysis
The GF Value Rank evaluates a company's valuation based on historical multiples and future performance estimates. CCI's GF Value Rank is 8/10, suggesting that the company is reasonably valued.
Momentum Rank Analysis
The Momentum Rank assesses a company's stock price performance. CCI's Momentum Rank is 4/10, indicating moderate momentum. This score suggests that CCI's stock price performance has been relatively stable.
Competitive Analysis
CCI's main competitors in the REITs industry are Digital Realty Trust Inc (DLR, Financial), Equinix Inc (EQIX, Financial), and SBA Communications Corp (SBAC, Financial). With GF Scores of 79, 92, and 82 respectively, these competitors present a mixed picture of performance potential. Despite the competitive landscape, CCI's GF Score of 88 suggests that it has good potential for outperformance.
In conclusion, Crown Castle Inc (CCI, Financial) demonstrates good potential for outperformance, with high profitability and strong growth. However, the company could improve its financial strength and momentum. Investors should keep an eye on these aspects while considering CCI for their portfolios.
