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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on CCI

Crown Castle Inc.'s recent performance has been negatively impacted by customer concentration and high interest expenses. The company's Q3 results were affected by these challenges despite its strong portfolio of wireless communication infrastructure assets. A 32% dividend cut and strategic reset after divesting its fiber segment have also contributed to the negative performance. Additionally, the company's high debt and reliance on interest rate cuts limit its upside potential. Institutional investors, such as IFP Advisors Inc, have also trimmed their holdings in the company.

1.c. Company Highlights

2. Crown Castle's Q3 Earnings: A Closer Look

Crown Castle reported solid third-quarter results, with its tower business performing well, driven by 5.2% organic growth, or $52 million, excluding Sprint cancellations and a $5 million timing-related uplift. However, site rental revenues, adjusted EBITDA, and AFFO were negatively impacted by an unfavorable $51 million from Sprint cancellations, a $39 million reduction in non-cash straight-line revenues, and a $17 million decrease in non-cash amortization of prepaid rent. The company's EPS came in at $0.74, below analyst estimates of $1.04. Revenue growth was muted, with analysts estimating a 2.1% growth rate for next year.

Publication Date: Oct -23

📋 Highlights
  • Q3 Organic Growth:: Tower business delivered 5.2% organic growth ($52M) excluding Sprint cancellations and $5M timing uplift.
  • Full-Year 2025 Outlook:: Raised guidance by $10M in site rental revenue, $30M in adjusted EBITDA, and $40M in AFFO despite $107M total negative impacts from Sprint, straight-line revenue, and amortization.
  • Capital Allocation:: Plans $150M–$250M annual net capex, 75–80% dividend payout ratio aligned with AFFO (excluding prepaid rent amortization), and $10M boost in full-year straight-line revenue from leasing.
  • Efficiency & Automation:: Ongoing cost savings from systems upgrades, process automation, and $5M one-time Q3 benefit; expects long-term benefits post-fiber sale and ground lease buyouts.
  • Market Positioning:: Maintains 4–5% organic growth target, 5% DISH revenue contribution, and focus on US tower leadership with no international expansion plans.

Financial Performance

The company's financial performance was mixed, with site rental revenues being impacted by Sprint cancellations and changes in non-cash straight-line revenues. Adjusted EBITDA and AFFO were also affected, but the company has increased its full-year 2025 outlook, with increases of $10 million to site rental revenues, $30 million to adjusted EBITDA, and $40 million to AFFO. The updated outlook suggests that the company is on track to meet its growth expectations.

Valuation Metrics

To understand what's priced into Crown Castle's stock, we can look at its valuation metrics. The company's P/S Ratio is 7.85, indicating that investors are willing to pay $7.85 for every dollar of revenue generated. The Dividend Yield is 5.38%, which is attractive for income-seeking investors. Additionally, the Free Cash Flow Yield is 5.63%, suggesting that the company is generating sufficient cash to support its dividend payments.

Operational Highlights

Crown Castle is focused on becoming a best-in-class US tower company, with a strategy that includes investing in systems to improve asset information quality and accessibility, streamlining and automating processes, and driving efficiencies across the business. The company expects to drive attractive risk-adjusted returns and has a balanced capital allocation framework that prioritizes predictable returns of capital to shareholders.

Growth Opportunities

The company is excited about the growth opportunities ahead, with a focus on maximizing revenue from its existing tower base and exploring potential opportunities for ancillary services, such as shared power systems. Chris Hillebrandt, the new CEO, shared his perspective on the growth opportunities, efficiency gains, and the relationship with EchoStar, stating that the company expects to be paid for the terms of the agreement with EchoStar, which runs through 2036.

3. NewsRoom

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Crown Castle to Present at the UBS Global Media and Communications Conference

Dec -01

Source: globenewswire.com

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Stock Market Live December 1: S&P 500 (VOO) Sinks Amidst Crypto Selloff

Dec -01

Source: 247wallst.com

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Here Are Monday’s Top Wall Street Analyst Research Calls: Archer Aviation, Beta Technologies, Carvana, Chevron, MPLX, Toast, Zscaler and More

Dec -01

Source: 247wallst.com

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CCI tells Delhi court Apple trying to delay antitrust probe over penalty law

Dec -01

Source: invezz.com

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Doves Take The Wheel

Nov -30

Source: seekingalpha.com

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A Fed Divided

Nov -23

Source: seekingalpha.com

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Crown Castle Inc. $CCI Holdings Trimmed by Bahl & Gaynor Inc.

Nov -23

Source: defenseworld.net

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Crown Castle Inc. $CCI Shares Bought by Avantax Advisory Services Inc.

Nov -19

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.50%)

6. Segments

Towers

Expected Growth: 6.5%

Increasing demand for mobile data and 5G network deployment drives growth. Crown Castle's extensive tower portfolio and strategic fiber assets position it for steady expansion in the US wireless infrastructure market, driven by carrier investments in network upgrades and expansions.

Fiber

Expected Growth: 6.5%

Growing demand for high-speed connectivity, 5G network deployments, and increasing adoption of cloud services drive growth. Crown Castle's extensive fiber-optic infrastructure positions it to capitalize on these trends, with a forecast CAGR of 6.5% driven by increasing demand for reliable and high-capacity connectivity solutions.

7. Detailed Products

Fiber Solutions

Crown Castle's fiber solutions provide a comprehensive suite of fiber optic infrastructure, including dark fiber, lit fiber, and fiber-to-the-tower solutions. This enables customers to access high-speed data transmission and improve network performance.

Cell Towers

Crown Castle's cell towers provide a critical infrastructure component for wireless carriers, enabling them to transmit and receive signals to and from mobile devices. The towers support a range of wireless technologies, including 2G, 3G, 4G, and 5G.

Small Cell Solutions

Crown Castle's small cell solutions provide a compact, low-power alternative to traditional cell towers. These solutions are designed to provide targeted coverage and capacity in areas with high demand, such as urban centers or public venues.

Network Services

Crown Castle's network services provide a range of solutions to support wireless carriers, including site acquisition, construction, and maintenance services. This enables carriers to focus on their core business while leveraging Crown Castle's expertise in network infrastructure.

8. Crown Castle Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Crown Castle Inc. operates in the wireless infrastructure industry, providing cell towers and other communication infrastructure to wireless carriers. The threat of substitutes is relatively low as the demand for wireless connectivity is high and there are limited alternatives for wireless carriers to provide reliable and widespread coverage.

Bargaining Power Of Customers

Crown Castle Inc.'s customers are primarily wireless carriers, which have a moderate level of bargaining power. While they are major customers, Crown Castle has a diversified customer base and a significant market share, which limits the bargaining power of individual customers.

Bargaining Power Of Suppliers

Crown Castle Inc. has a large and diversified supplier base, which reduces the bargaining power of individual suppliers. Additionally, the company has a significant market share and scale, which allows it to negotiate favorable terms with suppliers.

Threat Of New Entrants

The threat of new entrants in the wireless infrastructure industry is high due to the growing demand for wireless connectivity and the increasing need for communication infrastructure. However, Crown Castle Inc. has a significant market share and a well-established presence, which makes it challenging for new entrants to compete.

Intensity Of Rivalry

The wireless infrastructure industry is highly competitive, with a few major players competing for market share. Crown Castle Inc. competes with companies such as American Tower Corporation and SBA Communications Corporation, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 100.45%
Debt Cost 4.30%
Equity Weight -0.45%
Equity Cost 8.97%
WACC 4.27%
Leverage -22265.41%

11. Quality Control: Crown Castle Inc. passed 3 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

Stock-Card
VICI Properties

A-Score: 7.6/10

Value: 5.0

Growth: 7.7

Quality: 8.1

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

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Gaming and Leisure Properties

A-Score: 6.4/10

Value: 3.8

Growth: 4.4

Quality: 6.5

Yield: 10.0

Momentum: 3.5

Volatility: 10.0

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Crown Castle

A-Score: 5.9/10

Value: 7.3

Growth: 2.3

Quality: 5.6

Yield: 8.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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American Tower

A-Score: 5.2/10

Value: 1.8

Growth: 4.8

Quality: 5.5

Yield: 7.0

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

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Iron Mountain

A-Score: 5.2/10

Value: 4.7

Growth: 4.1

Quality: 4.2

Yield: 7.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

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Equinix

A-Score: 4.4/10

Value: 0.9

Growth: 6.0

Quality: 4.6

Yield: 4.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

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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

89.28$

Current Price

89.28$

Potential

-0.00%

Expected Cash-Flows