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1. Company Snapshot

1.a. Company Description

Cellnex Telecom, S.A. operates infrastructure for wireless telecommunication in Austria, Denmark, Spain, France, Ireland, Italy, the Netherlands, Poland, Portugal, the United Kingdom, Sweden, and Switzerland.It operates through three segments: Telecom Infrastructure Services, Broadcasting Networks, and Network Services and Others.The company offers co-location services in its infrastructure for mobile operators to install telecommunications and wireless broadcasting equipment; distributed antenna system and small cells, a network of spatially separated antenna nodes connected to a common source through transport medium that provides wireless services.


It also provides broadcasting network services, including digital terrestrial television (DTT), hybrid DTT, satellite DTT services, and premium DTT services; FM and digital radio services; and internet media services, such as online multiscreen video solutions, online business support solutions, and content distribution services.In addition, it offers data transportation services comprising satellite transportation, digital terrestrial circuits, Amazon direct connect, and internet throughput services; security and control services, which include security and emergency networks, terminals, forest fire early warning systems, and control centers; and smart communication networks, including wireless broadband, irrigation management services in rural settings, and Internet of Things services.Further, it offers smart services for city management; engineering/consulting, and operation and maintenance services; and constructs and operates optic fiber telecommunications.


The company serves mobile network operators, broadcasters, and administrations.The company was formerly known as Abertis Telecom Terrestre, S.A.U. and changed its name to Cellnex Telecom, S.A. in April 2015.Cellnex Telecom, S.A. was incorporated in 2008 and is headquartered in Madrid, Spain.

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1.b. Last Insights on CLNX

Cellnex Telecom's recent performance was negatively impacted by market challenges and strategic asset rotations. The company's Q4 2024 earnings report highlighted a significant share buyback program, which is a positive for shareholders, but also revealed strategic asset rotations that may weigh on future growth. The company's strong financial performance, including robust revenue growth and improved margins, was overshadowed by these challenges. Additionally, Cellnex Telecom's announcement of a share buyback program suggests management's confidence in the company's future prospects.

1.c. Company Highlights

2. Cellnex's Strong Q3 2025 Earnings: A Resilient Business Model

Cellnex reported strong operating and financial results for the first nine months of 2025, with revenues increasing by 5.7% to a significant figure, adjusted EBITDA rising 6.9%, and EBITDAaL growing 7.5%. The company's EPS came out at €0.34, beating analyst estimates of €0.145. The results demonstrate the resilience of Cellnex's business model, driven by robust operational demand, with a 4.1% growth in Points of Presence (PoPs), and operational efficiency programs driving a 150 basis points improvement in EBITDA after lease margin, which expanded to 60.8%. As Raimon Trias highlighted, the company delivered solid momentum, with organic revenue growth of 5.7%, and adjusted EBITDA increasing by 6.9%.

Publication Date: Nov -11

📋 Highlights
  • Strong Financial Performance:: Revenues grew 5.7%, adjusted EBITDA 6.9%, and EBITDAaL 7.5% YTD 2025, with recurring levered free cash flow reaching EUR 1.3 billion.
  • Shareholder Returns Acceleration:: EUR 800 million in 2025 buybacks (5.4% yield at current prices) and EUR 1 billion total returns by 2026, including a EUR 500 million dividend growing 7.5% annually from 2026.
  • Operational Efficiency Gains:: EBITDA after lease margin expanded to 60.8% (+150 bps), driven by 4.1% PoP growth and disciplined cost management.
  • Strategic Asset Rotation:: EUR 391 million put option for French data center sale, reducing leverage to 6.4x and reinforcing focus on telecom infrastructure.
  • Consolidation Resilience:: All-or-nothing contracts and consent-driven partnerships secure Cellnex’s central role in MNO consolidation, with 1.60x customer ratio and 3,000+ new build-to-suit PoPs YTD.

Financial Performance

The company's financial performance was strong, with recurring levered free cash flow reaching €1.3 billion, keeping Cellnex on track to meet its full-year targets. The company's diversified portfolio contributed to consistent growth, with Fiber, connectivity & Housing Services delivering strong growth of over 20%, DAS, Small Cells & RAN-as-a-service growth of 0.8%, and broadcasting delivering stable growth of 1.5%. Cellnex's leverage is down from 6.6x to 6.4x, and it remains committed to its 5x to 6x target range.

Valuation Metrics

To understand what's priced into Cellnex's stock, we can look at various valuation metrics. The company's P/E Ratio stands at 66.43, EV/EBITDA is 10.18, and the Dividend Yield is 0.24%. With a Net Debt / EBITDA ratio of 5.42, the company's leverage is reflected in its valuation. The current share price has factored in the company's growth prospects, and the commitment to a €500 million dividend growing by 7.5% starting from 2026 will contribute to the dividend yield.

Operational Highlights

Cellnex delivered almost 3,000 new build-to-suit PoPs and above 2,000 net new colocations, with a customer ratio improving to 1.60x. The company's build-to-suit (BTS) programs are nearing completion, with future growth expected to come from colocation, albeit at a lower rate than in the past. The company has seen strong tower revenue growth in Italy, particularly in Q3, driven by a renewed agreement with Fastweb and Vodafone.

Consolidation and Future Outlook

Cellnex is confident in its ability to unlock further efficiency and enhance operating leverage, with a positive outlook and accelerating shareholder returns. The company views consolidation as a strategic opportunity, with long-term visibility and stability offered by its all-or-nothing contracts. With a disciplined approach to capital allocation, prioritizing accretive investments with a good return on capital, Cellnex is well-positioned to benefit from the growing need for 5G coverage and low latency.

Shareholder Returns

The company commits to €800 million in shareholder returns through the end of 2026, representing a 5.4% yield at current share prices. Cellnex's dividend policy includes a €500 million dividend growing at 7.5% per annum, with the remaining amount allocated through buybacks, depending on the share price.

3. NewsRoom

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3 European Stocks That May Be Undervalued By Up To 46.9%

Nov -26

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European Stocks That May Be Trading Below Estimated Value In July 2025

Jul -02

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European Stocks That May Be Priced Below Their Estimated Intrinsic Values

Jun -03

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Cellnex Telecom SA (CLNXF) Q1 2025 Earnings Call Highlights: Strong Organic Growth Amid ...

May -10

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Cellnex Net Loss Widens on Layoff Costs

May -09

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European Value Stocks Estimated Below Intrinsic Worth May 2025

May -01

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Market Chatter: DigitalBridge, Phoenix Tower Show Interest in Cellnex Telecom's Swiss Unit

Apr -01

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Cellnex Telecom SA (CLNXF) Q4 2024 Earnings Call Highlights: Strong Financial Performance and ...

Feb -27

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.77%)

6. Segments

Towers

Expected Growth: 7.0%

Cellnex Telecom's tower growth is driven by increasing demand for mobile data, 5G rollout, and infrastructure needs. The company's expansion in Europe and strategic acquisitions fuel growth. With a strong track record of execution, Cellnex is well-positioned to benefit from telecom operators' focus on infrastructure, driving 7.0% growth.

Das, Small Cells and Ran As A Service

Expected Growth: 8.5%

Das, Small Cells and Ran As A Service growth of 8.5% driven by increasing demand for neutral host infrastructure, 5G rollout, and edge computing. Cellnex's strategic focus on these areas, coupled with its expanding footprint in Europe, positions the company to capitalize on rising telco capex and growing need for efficient, scalable network solutions.

Broadcast

Expected Growth: 4.0%

Cellnex Telecom's growth is driven by increasing demand for wireless infrastructure, 5G network rollout, and expanding broadcasting services. The company's strategic acquisitions and partnerships have also contributed to its growth. With a strong presence in Europe, Cellnex is well-positioned to benefit from the ongoing digital transformation and growing need for connectivity.

Fiber, Connectivity and Housing Services

Expected Growth: 6.5%

Cellnex Telecom's growth (6.5%) is driven by increasing demand for fiber and connectivity services, fueled by 5G rollout and IoT adoption. Expansion of housing services, including co-location and data center solutions, also contributes to growth. Strong demand for telecommunications infrastructure and Cellnex's strategic acquisitions further support this growth trajectory.

Pass-through Revenues

Expected Growth: 3.5%

Pass-through revenues from Cellnex Telecom, S.A. grew 3.5% due to increased demand for telecom infrastructure services, driven by 5G deployment, expanding network coverage, and rising co-location services. This growth is also attributed to the company's strategic acquisitions and partnerships, enhancing its presence in European markets.

7. Detailed Products

Telecommunications Infrastructure

Cellnex Telecom, S.A. provides telecommunications infrastructure services, including the deployment, operation, and maintenance of cell towers, antennas, and other network infrastructure.

DAS and Small Cells

Cellnex Telecom, S.A. offers Distributed Antenna Systems (DAS) and small cells solutions to enhance indoor and outdoor wireless coverage and capacity.

Fiber Optic Networks

Cellnex Telecom, S.A. provides fiber optic network infrastructure services, including the deployment and maintenance of fiber optic cables and related equipment.

Edge Computing

Cellnex Telecom, S.A. offers edge computing solutions to reduce latency and improve performance for applications that require real-time processing and low latency.

Private Networks

Cellnex Telecom, S.A. provides private network solutions for industries such as manufacturing, logistics, and healthcare, enabling secure and reliable communication between devices and systems.

IoT Services

Cellnex Telecom, S.A. offers IoT services, including device management, data analytics, and security solutions, to support the growing number of connected devices.

8. Cellnex Telecom, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Cellnex Telecom, S.A. operates in a niche market with high barriers to entry, reducing the threat of substitutes. However, the increasing adoption of 5G and IoT technologies may lead to new substitutes in the future.

Bargaining Power Of Customers

Cellnex Telecom, S.A. has a diverse customer base, including major telecom operators, which reduces the bargaining power of individual customers. Additionally, the company's long-term contracts with customers provide stability and reduce the risk of customer switching.

Bargaining Power Of Suppliers

Cellnex Telecom, S.A. relies on a few large suppliers for its infrastructure and equipment needs. While the company has some bargaining power due to its scale, suppliers may still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The telecom infrastructure industry has high barriers to entry, including significant capital expenditures and regulatory hurdles. This reduces the threat of new entrants and allows Cellnex Telecom, S.A. to maintain its market position.

Intensity Of Rivalry

The telecom infrastructure industry is highly competitive, with several established players competing for market share. Cellnex Telecom, S.A. faces intense rivalry from companies such as American Tower, SBA Communications, and others, which may lead to pricing pressure and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 58.18%
Debt Cost 5.55%
Equity Weight 41.82%
Equity Cost 7.25%
WACC 6.26%
Leverage 139.14%

11. Quality Control: Cellnex Telecom, S.A. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 4.0

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Yield: 3.1

Momentum: 7.0

Volatility: 10.0

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Quality: 7.0

Yield: 5.6

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Quality: 3.6

Yield: 6.9

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Volatility: 6.7

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Cellnex Telecom

A-Score: 4.4/10

Value: 4.7

Growth: 7.4

Quality: 4.7

Yield: 0.0

Momentum: 2.0

Volatility: 7.3

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Yield: 5.6

Momentum: 0.5

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

25.5$

Current Price

25.5$

Potential

-0.00%

Expected Cash-Flows