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Crown Castle International CCI Stock Analysis – Connecting people

Crown Castle International CCI Stock Analysis:

Our everyday activities, especially now with the rapid evolution of the internet, include more and more the use of mobile phones. Mobile phones surround our lives, making the communication among people much easier and faster. Technology is what drives this world into the future and the traded securities of this sector definitely have a lot to say and a lot to promise. In particular, the future of Crown Castle International seems shiny. This is because people keep consuming more data on mobile devices.

What Crown Castle International does, is that leases space on nearly 40,000 cell-phone towers to wireless carriers, such as AT&T and Verizon. After its acquisition of Lightower, a fiber network operator primarily in the Northeast United States, Crown Castle International increased its revenues by 3.3% and increased its fiber network by approximately 60,000 route miles. The year-over-year increase in its net income between Q3 2016 and Q3 2017 reached 17%.

So now let’s use IDDA for Crown Castle International CCI stock to see if it can fit in your investment portfolio. Let’s start with the first IDDA point, the fundamentals.

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1- Fundamental Points: Crown Castle International CCI Stock

Who are they?

Crown Castle International Corp., together with its subsidiaries, owns, operates, and leases shared wireless infrastructure in the United States and Australia. The company provides towers and other structures, such as rooftops; and distributed antenna systems, a type of small cell network (small cells). It provides access, including space or capacity to its towers, small cells, and third party land interests via long-term contracts in various forms, including license, sublease, and lease agreements.In addition, the company offers network services relating to wireless infrastructure, primarily consisting of antenna installations or subsequent augmentations, as well as site development services relating to wireless infrastructure. It provides mobile telephone coverage to all of the 100 markets in the  US on behalf of service providers such as Verizon, AT&T, Sprint, and T-Mobile. In 2015, Crown Castle International ranked #166 in the S&P 500 Index.

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Their biggest competitor is American Tower Corporation, owner, and operator of wireless and broadcast communications infrastructure in several countries. American Tower Corporation is headquartered in Boston and provides customized collocation solutions through its in-building systems, outdoor distributed antenna systems and other right-of-way options, managed rooftops, and services that speed network deployment. American Tower has offices across the United States and in Argentina, Brazil, Chile, Columbia, Costa Rica, France, Germany, Ghana, India, Mexico, Nigeria, Paraguay, Peru, South Africa and Uganda.

Crown Castle’s growth is undeniable, as it can be seen by the numerous acquisitions it has made throughout the years. In particular, it acquired Global Signal Inc., NextG Networks, Quanta Fiber Networks and Lightower in 2007, 2011, 2015, 2017 respectively. Moreover, Crown Castle has entered a tower leasing agreement with T-Mobile and AT&T for 28 years, in exchange for $7.25 billion.

Jay A. Brown serves as President and CEO, as of June 2016. Robert Ackerman serves as COO and Senior Vice President in the Towers and Small Cells department. James Young serves as COO as well but in the department of Fiber. Last but not least, Daniel Schlanger serves as the CFO of the company, as of April 2016.

 

Discover the Top 7 Stocks that Kiana Prefers to Crown Castle International

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Capital points

Crown Castle International CCI stock
Price as of 11/14 $ 113.16
52 Wk Range $ 80.82 – $ 114.97
Shares Outstanding 406.28 million
Market Cap $ 45.73B
Beta 0.19
P/E (TTM) 89.82
P/B (MRQ) 5.43
Gross Profit $ 2.48 billion
ROE 6.25%
Diluted EPS 1.2530
Total Debt/Equity (MRQ) 182.35

 

As it can be seen from the Max chart of Crown Capital International CCI stock, the stock behaved as a cyclical one for the first 10-12 years of its trading (1999-2011). After 2012, one can say that the stock behaves as a growing one, having its price approximately increased by 180% since that year. Its beta is very close to zero, meaning that Crown Capital International CCI stock doesn’t fluctuate remarkably when the market does and its price volatility will not be that high. If the company keeps the same date structure of reporting earnings, possibly the next earning date will be sometime during December 2017.

 

This brings us to the second point of the IDDA,  technical analysis.

2- Technical Points: Crown Castle International CCI Stock Analysis

Since January 2017, the beginning of this year, the Crown Castle International CCI Stock has risen approximately 33%. However, this happened via many ups and downs throughout the year. As it can be observed from the 4-hour chart, the stock faced a pullback at the 23% Fibonacci retracements level in October 2016. However, the CCI Stock overcame the pullback by breaking the Ichimoku cloud and reaching a record high of $114. There is a pivot level of $110 as it can be seen from the chart, and a second one lower at $107.69 (61% Fibonacci retracement level), under which a price decrease may signal a shift to a downwards movement of the price.

Crown Castle International CCI Stock Analysis - 4-hour Chart Ichimoku Fibonacci Setup

Crown Castle International CCI Stock Analysis – 4-hour Chart Ichimoku Fibonacci Setup

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3- Market Sentiment

Viewing the short-term charts, the Crown Castle International CCI Stock has been moving upwards. The company recently acquired Lightower, expanding its fiber network dramatically. We could expect a growth of the stock in the long term, even though increases and drops may be observed throughout this journey.

The technology sector has enormous potential as long as mobile phones and internet make our lives easier and faster. The company has very high incremental margins and generates substantial cash flows, something really valuable for a REIT company. If Bill Gates owns such a stock, why shouldn’t you?

Crown Castle International CCI Stock Analysis - Monthly Chart Ichimoku Fibonacci Setup

Crown Castle International CCI Stock Analysis – Monthly Chart Ichimoku Fibonacci Setup

 

Crown Castle International CCI Stock Analysis – Investing Strategy

As the 4th point of the IDDA, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Join us for a free MasterClass to learn more.

 

For further help with your portfolio development, and if you want to chat with Kiana regarding your investments, join our investing group here. It’s so fun and you will learn a ton!

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Happy Hunting!

Anthony Pistikos

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