Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
SBA Communications had a gross margin of 75.64% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
SBA Communications Gross Margin % Related Terms
SBA Communications Gross Margin % Historical Data
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The historical data trend for SBA Communications's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:4SB vs WY, LAMR, GLPI: Gross Margin % Comparison
For the REIT - Specialty subindustry, SBA Communications's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SBA Communications Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, SBA Communications's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SBA Communications's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
SBA Communications (STU:4SB) has a Gross Margin % of 75.64% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SBA Communications and its competitors. This is near median its historical median of 75.50. Over the past decade, SBA Communications' Gross Margin % has ranged from 74.17 to 78.29. According to the industry distribution chart, SBA Communications ranks #256 out of 680 companies in the REITs industry, placing it in the top 37.6%.
Is SBA Communications' Gross Margin % too high?
SBA Communications' current Gross Margin % of 75.64% is near median its 10-year median of 75.50. Over the past 10 years, this metric has ranged from a low of 74.17 to a high of 78.29. The REITs industry median Gross Margin % is 69.61. SBA Communications' value of 75.64% is 8.7% above this industry median. Based on the distribution chart, SBA Communications ranks #256 out of 680 companies in the REITs industry, which is above the industry midpoint. Overall, SBA Communications has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does SBA Communications' Gross Margin % compare to WY and LAMR?
According to the REITs industry distribution chart, SBA Communications ranks #256 out of 680 companies for Gross Margin %. This puts SBA Communications in the upper half of its industry. The industry median Gross Margin % is 69.61. SBA Communications' value of 75.64% is 8.7% above this benchmark. Historically, SBA Communications' own Gross Margin % has ranged from 74.17 to 78.29 over the past decade. While the company's 10-year median is 75.50 vs. the industry median of 69.61, SBA Communications has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a REITs company?
The median Gross Margin % among REITs companies is 69.61, based on 680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SBA Communications's current Gross Margin % of 75.64% is 8.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on SBA Communications and its competitors. For the REITs industry, the median Gross Margin % is 69.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SBA Communications's current Gross Margin % is 75.64%, which is near median its own 10-year median of 75.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SBA Communications stock overvalued right now?
SBA Communications (STU:4SB) has a current Gross Margin % of 75.64%. The stock's GF Value™ is €203.57, compared to a current price of €154.00 — trading 24.4% below its estimated fair value. The current Gross Margin % is 75.64%, which is near median its 10-year median of 75.50 and 8.7% above the REITs industry median of 69.61. SBA Communications' overall GF Score™ is 83/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For SBA Communications (STU:4SB), the current Gross Margin % is 75.64% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SBA Communications (STU:4SB) Overvalued in 2026?
Based on GuruFocus' analysis, SBA Communications stock appears to be undervalued.
The current stock price of €154.00 is trading 24.4% below its estimated GF Value™ of €203.57.
Key valuation signals for STU:4SB:
Gross Margin %: 75.64% (near median its 10-year median of 75.50)
GF Value™: €203.57 vs. price of €154.00 (24.4% below fair value)
Industry Position: 8.7% above the REITs median (#256 of 680)
No single metric tells the full story. See the STU:4SB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SBA Communications owns a portfolio of about 46,000 wireless towers throughout North America, South America, and Africa. It leases space on its towers to wireless service providers, who install equipment to support their wireless networks. The company has a very concentrated customer base, with most revenue in each market generated by the top three or four mobile carriers. It owns more than 17,000 towers in the US, which account for about 70% of leasing revenue. Internationally, SBA's largest markets are Brazil and Guatemala, where it owns roughly 12,000 and 5,000 towers, respectively. SBA operates as a real estate investment trust.
83GF Score
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