10Y annualized return is
positive but below market average
at 1.8% per year
CCI has met or exceeded earnings expectations in
some
recent quarters (6/10)
Strong Gross Profit Margin
Solid Return on Equity
Strong Operating Profit Margin
Decent Net Profit Margin
Positive Interest Coverage Ratio
Strong Operating Performance
Market Demand and Positioning
Operational Improvements and Technology Adoption
Growth in Fiber and Small Cell Segments
Strategic Review and Potential Value Creation
High Price-to-Earnings Ratio
Elevated Price-to-Sales Ratio
High Debt Levels
Low Current and Quick Ratios
Cancellations Impact on Small Cell Business
Net Income Outlook Adjustment
Uncertainty in Strategic Review Timeline
Dependence on Carrier Capital Budgets
Crown Castle demonstrates a solid business model with strong operational performance amid growing demand for data services. However, challenges in the small cell segment and uncertainties in strategic decisions may temper future prospects. Overall, the company is well-positioned for growth but needs to navigate operational challenges and market dynamics carefully.
Analysis Date: October 16, 2024
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Crown Castle Inc. is a company that provides the buildings and connections needed for cell phone service and internet. They own and manage over 40,000 tall towers and a large network of fiber lines across the United States. This helps cities and communities stay connected by allowing people and businesses to access important information and technology easily. In simple terms, Crown Castle makes sure that your phone and internet work smoothly wherever you are.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
REITs finished the first quarter of 2025 in the red (-3.36%) with a brutal -4.92% average total return in March. Large cap (-2.04%) and mid cap REITs ...
Crown Castle is selling its fiber division for $8.5 billion to refocus on its 40,000 cell towers, boosting investor confidence and stock price. The sa...
US equity markets steadied this past week while bond markets rallied as investors parsed a surprisingly solid slate of economic data and a decent star...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
CCI: No Graham value data available
Margin of Safety
Gap between intrinsic value and market price
CCI: No margin of safety data available
Graham Criteria Checklist
Benjamin Graham's value investing checklist for CCI
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (-11.25)
P/B ratio ≤ 1.5 (-330.27)
Current ratio ≥ 2.0 (0.50x)
Long-term debt < Net current assets (-26.41x)
Margin of safety
CCI does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
-92.58%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
79.40%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
-59.42%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
The return on equity of 21.01% demonstrates a strong ability to generate profits from shareholders' equity, indicating effective management.
With an operating profit margin of 32.91%, the company effectively manages its operating expenses relative to its revenue.
A net profit margin of 18.63% indicates good profitability after all expenses, taxes, and costs are deducted.
With a debt-to-equity ratio of 5.60, the company is highly leveraged, which can increase financial risk and reduce financial stability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
-222.65x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.50x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
An interest coverage ratio of 2.45 indicates that the company can comfortably meet its interest obligations, suggesting good earnings relative to its debt.
Current and quick ratios are both below 1 (0.54), indicating potential liquidity issues, as the company may struggle to cover short-term liabilities.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Crown Castle reported solid operating and financial performance across its tower and fiber businesses, reaffirming its full-year 2024 outlook for adjusted EBITDA and AFFO. The company expects consolidated organic revenue growth of approximately 5% for 2024, driven by 4.5% growth in towers and 10% growth in small cells.
The company benefits from ongoing demand for wireless and broadband connections, with wireless data usage in the U.S. surpassing 100 trillion megabytes in 2023, reflecting a 36% year-over-year increase. This highlights Crown Castle's strategic positioning in a growing market.
Crown Castle is implementing digitization initiatives like drone technology for tower portfolio visualization, aiming to enhance project management and customer service. These operational improvements are expected to drive profitability and operational efficiency.
The cancellation of approximately 7,000 small cell nodes due to high deployment costs reflects challenges in their small cell strategy, indicating potential risks in future revenue generation from this segment.
The company lowered its 2024 net income outlook due to anticipated asset write-offs in the small cell business, which may affect investor confidence in immediate profitability.
Crown Castle's revised operational strategy focuses on maximizing financial returns and market share within its existing fiber and small cell footprints. The company anticipates continued growth driven by increasing data demand from AI and other emerging technologies.
The ongoing strategic review may lead to partnerships, divestitures, or growth opportunities that could unlock additional value for shareholders, indicating a proactive approach to business optimization.
The lack of clarity regarding the timeline and outcomes of the strategic review introduces uncertainty, which may impact investor sentiment and company direction.
Future growth is heavily reliant on carrier capital spending for network densification and upgrades, which can be unpredictable and influenced by external market conditions.