Crown Castle (CCI) AI Stock Analysis

• Market Cap: $43.97B
• Dividend Yield: 6.2%
• Average Volume (3M): 4.07M
• Price to Earnings (P/E): 33.8
• Beta (1Y): 0.42
• Revenue Growth: -5.92%
• EPS Growth: -359.56%
• Country: US
• Employees: 3,900
• Sector: Real Estate
• Sector Strength: 68
• Industry: REIT - Specialty
• EPS (TTM): -8.97
• Shares Outstanding: 435,433,780
• 10 Day Avg. Volume: 3,771,836
• 30 Day Avg. Volume: 4,066,087
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.05
• Price to Cash Flow (P/CF): 13.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $110.07
• Price Target Upside: 12.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

Crown Castle's overall stock score reflects significant financial challenges, including declining revenue and negative equity. However, positive cash flow, strategic corporate actions, and technical momentum provide some support. The high dividend yield offers a potential attraction for investors, although caution is warranted due to overbought technical conditions and anticipated churn impacts.

Positive Factors

Business Strategy

The conclusion of CCI’s fiber solutions business strategic review with sale of the business unit to EQT and Zayo for $8.5bn is expected to improve the company's footing.

Shareholder Returns

CCI announced the implementation of a $3.0bn share buyback program.

Negative Factors

Financial Performance

CCI reported 4Q24 results below BofA and Street estimate.

Leadership Changes

The leadership transition adds uncertainty, and valuation has already largely re-rated.

Crown Castle Business Overview & Revenue Model

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.

How the Company Makes Money

Crown Castle makes money by leasing space on its communication infrastructure assets, such as cell towers, small cells, and fiber networks, to wireless carriers and other customers. The company's primary revenue stream is generated through long-term leasing agreements that provide predictable and recurring cash flows. Crown Castle's business model involves acquiring or constructing infrastructure and then leasing it to multiple tenants, which maximizes the utilization of its assets and increases profitability. Additionally, Crown Castle benefits from strategic partnerships with major wireless carriers, which help to secure long-term contracts and expand its customer base. The company's revenue is also positively influenced by the growing demand for wireless data and the expansion of 5G networks, which drive the need for enhanced infrastructure.

Crown Castle Financial Statement Overview

Summary

Crown Castle is facing significant financial challenges, with a decline in revenue and a shift to net losses. The balance sheet shows negative equity and excessive leverage, indicating potential solvency issues, despite positive cash flow.

Income Statement

The income statement shows significant challenges. Revenue decreased from the previous period by approximately 5.9%, and the company has shifted from a net income of $1.5 billion in 2023 to a net loss of $3.9 billion in 2024. Gross profit margin is strong at 100%, but the substantial drop in EBIT and EBITDA margins into negative territory indicates severe profitability issues.

Balance Sheet

The balance sheet reveals a precarious position with negative stockholders' equity of -$133 million in 2024, down from $6.38 billion in 2023, indicating a significant deterioration. The debt-to-equity ratio is concerning, as equity is negative, indicating excessive leverage. Total liabilities exceed total assets, suggesting potential solvency issues.

Cash Flow

Cash flow analysis shows some resilience with positive operating cash flow of $2.94 billion in 2024, and free cash flow of $1.72 billion, a slight improvement from the previous year. However, the operating cash flow to net income ratio is distorted due to the net loss, highlighting concerns about underlying earnings quality.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.57B	6.98B	6.99B	6.34B	5.84B
	Gross Profit
6.57B	5.00B	4.92B	4.35B	3.89B
	EBIT
-2.94B	2.37B	2.46B	2.02B	1.60B
	EBITDA
-1.24B	4.20B	4.17B	3.67B	3.19B
	Net Income Common Stockholders
-3.90B	1.50B	1.68B	1.10B	1.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
119.00M	105.00M	156.00M	292.00M	232.00M
	Total Assets
32.74B	38.53B	38.92B	39.04B	38.77B
	Total Debt
29.61B	28.81B	27.96B	27.01B	25.42B
	Net Debt
29.49B	28.71B	27.80B	26.72B	25.18B
	Total Liabilities
32.87B	32.15B	31.47B	30.78B	29.31B
	Stockholders Equity
-133.00M	6.38B	7.45B	8.26B	9.46B
Cash Flow		Free Cash Flow
1.72B	1.70B	1.57B	1.50B	1.43B
	Operating Cash Flow
2.94B	3.13B	2.88B	2.73B	3.06B
	Investing Cash Flow
-1.22B	-1.52B	-1.35B	-1.33B	-1.74B
	Financing Cash Flow
-1.71B	-1.65B	-1.67B	-1.31B	-1.27B

Crown Castle Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 98.21
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCI, the sentiment is Negative. The current price of 98.21 is below the 20-day moving average (MA) of 101.97, above the 50-day MA of 94.94, and below the 200-day MA of 99.70, indicating a bearish trend. The MACD of 3.10 indicates Positive momentum. The RSI at 64.57 is Neutral, neither overbought nor oversold. The STOCH value of 66.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCI.

Crown Castle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLR	75 Outperform	$46.29B	85.26	2.98%	3.55%	1.42%	-42.07%
AMT	73 Outperform	$103.07B	45.71	91.38%	2.94%	-3.05%	51.74%
COR	73 Outperform	$53.98B	39.61	245.32%	0.76%	11.64%	-23.54%
SBAC	73 Outperform	$23.67B	31.71	-14.67%	1.84%	-1.18%	50.21%
EQIX	71 Outperform	$74.58B	90.09	6.27%	2.34%	6.84%	-17.14%
Sector *	61 Neutral	$4.26B	15.61	-3.60%	11.29%	6.17%	-21.11%
CCI	55 Neutral	$43.97B	33.81	-124.94%	6.20%	-5.92%	-359.56%

Crown Castle Corporate Events

Crown Castle Appoints Sunit Patel as CFO

Crown Castle announced the appointment of Sunit Patel as Executive Vice President and Chief Financial Officer, effective April 1, 2025. Patel, who previously served on the company’s Board of Directors, brings over 30 years of experience in telecommunications, energy, and technology. His appointment comes as Crown Castle positions itself as the only pure-play, publicly traded U.S. tower company following a recent divestiture. Patel’s extensive background in senior finance roles is expected to bolster Crown Castle’s strategic direction and operational efficiency.

Crown Castle Appoints Katherine Motlagh to Board

On March 17, 2025, Crown Castle announced the appointment of Katherine Motlagh to its Board of Directors, effective immediately. With extensive experience in finance and telecommunications, Motlagh is expected to contribute significantly as the company transitions to a pure-play tower business, enhancing its strategic positioning in the industry.

Crown Castle Sells Fiber Segment for $8.5 Billion

On March 13, 2025, Crown Castle announced the sale of its Fiber segment to EQT and Zayo for $8.5 billion, marking the conclusion of a strategic review. This move positions Crown Castle as the only pure-play, publicly-traded U.S. tower company, allowing it to focus on enhancing shareholder value through increased capital efficiency and a new capital allocation framework, including a $3.0 billion share repurchase program. The transaction is expected to close in the first half of 2026, with proceeds aimed at repaying debt and funding share repurchases, maintaining an investment-grade credit rating.

Crown Castle Reschedules Financial Results Release

On March 12, 2025, Crown Castle announced the rescheduling of its fourth quarter and full year 2024 financial results release and conference call to March 13, 2025, due to the demands of a strategic review of its Fiber segment. This adjustment reflects the company’s ongoing efforts to explore strategic alternatives, potentially impacting its operations and market positioning.

Crown Castle Approves 2025 EMT Incentive Plan

On February 26, 2025, Crown Castle’s Board of Directors approved the 2025 EMT Annual Incentive Plan, designed to motivate the executive management team through cash incentives tied to performance goals. The plan allows for potential earnings based on corporate financial performance, but does not guarantee awards, with the Compensation and Human Capital Committee retaining the right to modify the plan. Additionally, the Board amended the company’s By-laws to reduce the period from 120 to 90 days for calling a special meeting of stockholders, effective immediately.

Crown Castle Declares Quarterly Cash Dividend

On February 26, 2025, Crown Castle announced that its Board of Directors declared a quarterly cash dividend of $1.565 per common share, payable on March 31, 2025, to stockholders of record as of March 14, 2025. This decision reflects the company’s ongoing commitment to returning value to shareholders and maintaining its position as a leading provider of communications infrastructure in the U.S.

Crown Castle Announces Board Changes Ahead of 2025 Meeting

On February 20, 2025, Crown Castle Inc. announced that non-employee directors Ari Fitzgerald and Cindy Christy will not stand for re-election at the company’s 2025 annual stockholders’ meeting scheduled for May 21, 2025. Both directors will continue to serve until the meeting, indicating a forthcoming change in the company’s board composition, which may impact its governance and strategic direction.