AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
NYSE:AMT - New York Stock Exchange, Inc. - US03027X1000 - REIT - Currency: USD
AMT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. While AMT belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, AMT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AMT was profitable.
AMT had a positive operating cash flow in the past year.
AMT had positive earnings in each of the past 5 years.
AMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.19%, AMT is doing good in the industry, outperforming 73.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 93.80%, AMT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.42%, AMT belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AMT is in line with the industry average of 5.25%.
The last Return On Invested Capital (8.42%) for AMT is above the 3 year average (5.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.19% | ||
| ROE | 93.8% | ||
| ROIC | 8.42% |
ROA(3y)2.86%
ROA(5y)3.16%
ROE(3y)44.57%
ROE(5y)45.11%
ROIC(3y)5.23%
ROIC(5y)5.2%
1.3 Margins
The Profit Margin of AMT (24.48%) is better than 66.67% of its industry peers.
AMT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 44.39%, AMT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
AMT's Operating Margin has improved in the last couple of years.
AMT has a Gross Margin of 74.06%. This is comparable to the rest of the industry: AMT outperforms 60.00% of its industry peers.
In the last couple of years the Gross Margin of AMT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.39% | ||
| PM (TTM) | 24.48% | ||
| GM | 74.06% |
OM growth 3Y6.23%
OM growth 5Y3.81%
PM growth 3Y-6.73%
PM growth 5Y-2.22%
GM growth 3Y1.49%
GM growth 5Y1.06%
2. Health
2.1 Basic Checks
AMT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, AMT has more shares outstanding
Compared to 5 years ago, AMT has more shares outstanding
Compared to 1 year ago, AMT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that AMT is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.43, AMT is doing good in the industry, outperforming 63.33% of the companies in the same industry.
AMT has a debt to FCF ratio of 9.86. This is a negative value and a sign of low solvency as AMT would need 9.86 years to pay back of all of its debts.
AMT's Debt to FCF ratio of 9.86 is fine compared to the rest of the industry. AMT outperforms 76.67% of its industry peers.
A Debt/Equity ratio of 9.70 is on the high side and indicates that AMT has dependencies on debt financing.
AMT's Debt to Equity ratio of 9.70 is on the low side compared to the rest of the industry. AMT is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.7 | ||
| Debt/FCF | 9.86 | ||
| Altman-Z | 1.43 |
ROIC/WACC1.12
WACC7.54%
2.3 Liquidity
AMT has a Current Ratio of 0.45. This is a bad value and indicates that AMT is not financially healthy enough and could expect problems in meeting its short term obligations.
AMT's Current ratio of 0.45 is on the low side compared to the rest of the industry. AMT is outperformed by 73.33% of its industry peers.
A Quick Ratio of 0.45 indicates that AMT may have some problems paying its short term obligations.
With a Quick ratio value of 0.45, AMT is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
AMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 132.39%, which is quite impressive.
Measured over the past years, AMT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.80% on average per year.
Looking at the last year, AMT shows a quite strong growth in Revenue. The Revenue has grown by 16.31% in the last year.
The Revenue has been growing slightly by 5.97% on average over the past years.
EPS 1Y (TTM)132.39%
EPS 3Y9.23%
EPS 5Y11.8%
EPS Q2Q%1355.56%
Revenue 1Y (TTM)16.31%
Revenue growth 3Y2.67%
Revenue growth 5Y5.97%
Sales Q2Q%-8.58%
3.2 Future
AMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.55% yearly.
The Revenue is expected to grow by 4.70% on average over the next years.
EPS Next Y-12.5%
EPS Next 2Y-1.1%
EPS Next 3Y1.74%
EPS Next 5Y4.55%
Revenue Next Year-2.53%
Revenue Next 2Y1.21%
Revenue Next 3Y2.34%
Revenue Next 5Y4.7%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.13, AMT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, AMT is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
AMT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 34.43 indicates a quite expensive valuation of AMT.
AMT's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, AMT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.13 | ||
| Fwd PE | 34.43 |
4.2 Price Multiples
AMT's Enterprise Value to EBITDA ratio is in line with the industry average.
AMT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.17 | ||
| EV/EBITDA | 17.61 |
4.3 Compensation for Growth
AMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.55
EPS Next 2Y-1.1%
EPS Next 3Y1.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.15%, AMT has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.15, AMT pays less dividend than the industry average, which is at 5.17. 83.33% of the companies listed in the same industry pay a better dividend than AMT!
Compared to an average S&P500 Dividend Yield of 2.57, AMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
The dividend of AMT is nicely growing with an annual growth rate of 12.68%!
AMT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.68%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
96.93% of the earnings are spent on dividend by AMT. This is not a sustainable payout ratio.
The dividend of AMT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP96.93%
EPS Next 2Y-1.1%
EPS Next 3Y1.74%
222.66
+4.66 (+2.14%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.56%
Inst Owner Change0.01%
Ins Owners0.06%
Ins Owner Change4%
Market Cap104.23B
Analysts81.43
Price Target238.45 (7.09%)
Short Float %1.33%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend6.59
Dividend Growth(5Y)12.68%
DP96.93%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.54%
Min EPS beat(2)-44.01%
Max EPS beat(2)49.1%
EPS beat(4)3
Avg EPS beat(4)8.71%
Min EPS beat(4)-44.01%
Max EPS beat(4)49.1%
EPS beat(8)4
Avg EPS beat(8)-9.82%
EPS beat(12)7
Avg EPS beat(12)-10.09%
EPS beat(16)10
Avg EPS beat(16)-4.05%
Revenue beat(2)0
Avg Revenue beat(2)-4.88%
Min Revenue beat(2)-9.43%
Max Revenue beat(2)-0.33%
Revenue beat(4)2
Avg Revenue beat(4)-1.91%
Min Revenue beat(4)-9.43%
Max Revenue beat(4)1.73%
Revenue beat(8)6
Avg Revenue beat(8)-0.68%
Revenue beat(12)8
Avg Revenue beat(12)-0.38%
Revenue beat(16)11
Avg Revenue beat(16)-0.1%
PT rev (1m)4.65%
PT rev (3m)-1.73%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-5.58%
EPS NY rev (1m)-3.52%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.13 | ||
| Fwd PE | 34.43 | ||
| P/S | 8.04 | ||
| P/FCF | 28.17 | ||
| P/OCF | 19.7 | ||
| P/B | 30.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.61 |
EPS(TTM)7.39
EY3.32%
EPS(NY)6.47
Fwd EY2.9%
FCF(TTM)7.91
FCFY3.55%
OCF(TTM)11.3
OCFY5.08%
SpS27.69
BVpS7.23
TBVpS-48.83
PEG (NY)N/A
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.19% | ||
| ROE | 93.8% | ||
| ROCE | 10.65% | ||
| ROIC | 8.42% | ||
| ROICexc | 8.74% | ||
| ROICexgc | 17.64% | ||
| OM | 44.39% | ||
| PM (TTM) | 24.48% | ||
| GM | 74.06% | ||
| FCFM | 28.55% |
ROA(3y)2.86%
ROA(5y)3.16%
ROE(3y)44.57%
ROE(5y)45.11%
ROIC(3y)5.23%
ROIC(5y)5.2%
ROICexc(3y)5.42%
ROICexc(5y)5.4%
ROICexgc(3y)11.26%
ROICexgc(5y)11.42%
ROCE(3y)6.62%
ROCE(5y)6.59%
ROICexcg growth 3Y7.69%
ROICexcg growth 5Y1.6%
ROICexc growth 3Y13.67%
ROICexc growth 5Y2.09%
OM growth 3Y6.23%
OM growth 5Y3.81%
PM growth 3Y-6.73%
PM growth 5Y-2.22%
GM growth 3Y1.49%
GM growth 5Y1.06%
F-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.7 | ||
| Debt/FCF | 9.86 | ||
| Debt/EBITDA | 4.16 | ||
| Cap/Depr | 74.83% | ||
| Cap/Sales | 12.27% | ||
| Interest Coverage | 4.04 | ||
| Cash Conversion | 67.16% | ||
| Profit Quality | 116.65% | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.43 |
F-Score7
WACC7.54%
ROIC/WACC1.12
Cap/Depr(3y)62.98%
Cap/Depr(5y)60.55%
Cap/Sales(3y)17.05%
Cap/Sales(5y)15.74%
Profit Quality(3y)154.82%
Profit Quality(5y)153.41%
High Growth Momentum
Growth
EPS 1Y (TTM)132.39%
EPS 3Y9.23%
EPS 5Y11.8%
EPS Q2Q%1355.56%
EPS Next Y-12.5%
EPS Next 2Y-1.1%
EPS Next 3Y1.74%
EPS Next 5Y4.55%
Revenue 1Y (TTM)16.31%
Revenue growth 3Y2.67%
Revenue growth 5Y5.97%
Sales Q2Q%-8.58%
Revenue Next Year-2.53%
Revenue Next 2Y1.21%
Revenue Next 3Y2.34%
Revenue Next 5Y4.7%
EBIT growth 1Y66.23%
EBIT growth 3Y9.07%
EBIT growth 5Y10%
EBIT Next Year45.71%
EBIT Next 3Y17.08%
EBIT Next 5Y13.61%
FCF growth 1Y26.54%
FCF growth 3Y2.43%
FCF growth 5Y6.03%
OCF growth 1Y12.03%
OCF growth 3Y3.15%
OCF growth 5Y7.11%