AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMT - US03027X1000 - REIT
181.24 USD
+1.48 (+0.82%)
182.25 USD
+1.01 (+0.56%)
We assign a fundamental rating of 4 out of 10 to AMT. AMT was compared to 30 industry peers in the Specialized REITs industry. AMT scores excellent on profitability, but there are concerns on its financial health. AMT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AMT had positive earnings in the past year.
AMT had a positive operating cash flow in the past year.
In the past 5 years AMT has always been profitable.
In the past 5 years AMT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AMT (4.60%) is better than 73.33% of its industry peers.
The Return On Equity of AMT (74.34%) is better than 100.00% of its industry peers.
The Return On Invested Capital of AMT (6.50%) is better than 83.33% of its industry peers.
AMT had an Average Return On Invested Capital over the past 3 years of 5.18%. This is in line with the industry average of 4.77%.
The 3 year average ROIC (5.18%) for AMT is below the current ROIC(6.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 74.34% | ||
| ROIC | 6.5% |
ROA(3y)2.86%
ROA(5y)3.16%
ROE(3y)44.56%
ROE(5y)45.11%
ROIC(3y)5.18%
ROIC(5y)5.17%
1.3 Margins
With a decent Profit Margin value of 28.11%, AMT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of AMT has declined.
With a decent Operating Margin value of 45.58%, AMT is doing good in the industry, outperforming 76.67% of the companies in the same industry.
In the last couple of years the Operating Margin of AMT has grown nicely.
AMT has a better Gross Margin (74.29%) than 63.33% 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 | 45.58% | ||
| PM (TTM) | 28.11% | ||
| GM | 74.29% |
OM growth 3Y6.24%
OM growth 5Y3.81%
PM growth 3Y-6.73%
PM growth 5Y-2.21%
GM growth 3Y1.49%
GM growth 5Y1.06%
2. Health
2.1 Basic Checks
AMT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AMT has more shares outstanding than it did 1 year ago.
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
AMT has an Altman-Z score of 1.10. This is a bad value and indicates that AMT is not financially healthy and even has some risk of bankruptcy.
AMT's Altman-Z score of 1.10 is in line compared to the rest of the industry. AMT outperforms 56.67% of its industry peers.
AMT has a debt to FCF ratio of 10.09. This is a negative value and a sign of low solvency as AMT would need 10.09 years to pay back of all of its debts.
The Debt to FCF ratio of AMT (10.09) is better than 70.00% of its industry peers.
AMT has a Debt/Equity ratio of 8.82. This is a high value indicating a heavy dependency on external financing.
AMT's Debt to Equity ratio of 8.82 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 | 8.82 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.91
WACC7.16%
2.3 Liquidity
A Current Ratio of 0.59 indicates that AMT may have some problems paying its short term obligations.
With a Current ratio value of 0.59, AMT perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
AMT has a Quick Ratio of 0.59. 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 Quick ratio of 0.59 is in line compared to the rest of the industry. AMT outperforms 43.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.46% over the past year.
The Earnings Per Share has been growing by 11.80% on average over the past years. This is quite good.
AMT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.18%.
The Revenue has been growing slightly by 5.96% on average over the past years.
EPS 1Y (TTM)26.46%
EPS 3Y9.23%
EPS 5Y11.8%
EPS Q2Q%104.49%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y2.67%
Revenue growth 5Y5.96%
Sales Q2Q%7.74%
3.2 Future
AMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.38% yearly.
AMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.57% yearly.
EPS Next Y-27.96%
EPS Next 2Y-2.43%
EPS Next 3Y0.26%
EPS Next 5Y3.38%
Revenue Next Year0.32%
Revenue Next 2Y2.12%
Revenue Next 3Y2.89%
Revenue Next 5Y4.57%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.95 indicates a quite expensive valuation of AMT.
AMT's Price/Earnings ratio is a bit cheaper when compared to the industry. AMT is cheaper than 63.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, AMT is valued at the same level.
The Price/Forward Earnings ratio is 25.76, which means the current valuation is very expensive for AMT.
66.67% of the companies in the same industry are more expensive than AMT, based on the Price/Forward Earnings ratio.
AMT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.95 | ||
| Fwd PE | 25.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMT is on the same level as its industry peers.
63.33% of the companies in the same industry are more expensive than AMT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.99 | ||
| EV/EBITDA | 17.69 |
4.3 Compensation for Growth
The decent profitability rating of AMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.45
EPS Next 2Y-2.43%
EPS Next 3Y0.26%
5. Dividend
5.1 Amount
AMT has a Yearly Dividend Yield of 3.75%.
AMT's Dividend Yield is slightly below the industry average, which is at 6.15.
Compared to an average S&P500 Dividend Yield of 2.41, AMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
On average, the dividend of AMT grows each year by 12.67%, which is quite nice.
AMT has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of AMT decreased recently.
Dividend Growth(5Y)12.67%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
106.15% of the earnings are spent on dividend by AMT. This is not a sustainable payout ratio.
AMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP106.15%
EPS Next 2Y-2.43%
EPS Next 3Y0.26%
181.24
+1.48 (+0.82%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.09%
Inst Owner Change0.58%
Ins Owners0.05%
Ins Owner Change0.25%
Market Cap84.87B
Revenue(TTM)10.45B
Net Income(TTM)2.94B
Analysts80
Price Target236.69 (30.59%)
Short Float %1.06%
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend6.59
Dividend Growth(5Y)12.67%
DP106.15%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-22.02%
Min EPS beat(2)-53.6%
Max EPS beat(2)9.56%
EPS beat(4)2
Avg EPS beat(4)-7.73%
Min EPS beat(4)-53.6%
Max EPS beat(4)49.1%
EPS beat(8)4
Avg EPS beat(8)-15.78%
EPS beat(12)5
Avg EPS beat(12)-33.2%
EPS beat(16)8
Avg EPS beat(16)-13.47%
Revenue beat(2)2
Avg Revenue beat(2)0.87%
Min Revenue beat(2)0.19%
Max Revenue beat(2)1.55%
Revenue beat(4)2
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-0.33%
Max Revenue beat(4)1.55%
Revenue beat(8)5
Avg Revenue beat(8)-0.67%
Revenue beat(12)8
Avg Revenue beat(12)-3.61%
Revenue beat(16)11
Avg Revenue beat(16)-2.61%
PT rev (1m)-6.76%
PT rev (3m)-6.91%
EPS NQ rev (1m)-9.53%
EPS NQ rev (3m)-9.57%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.95 | ||
| Fwd PE | 25.76 | ||
| P/S | 8.12 | ||
| P/FCF | 22.99 | ||
| P/OCF | 16.21 | ||
| P/B | 21.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.69 |
EPS(TTM)6.26
EY3.45%
EPS(NY)7.04
Fwd EY3.88%
FCF(TTM)7.88
FCFY4.35%
OCF(TTM)11.18
OCFY6.17%
SpS22.33
BVpS8.44
TBVpS-49.22
PEG (NY)N/A
PEG (5Y)2.45
Graham Number34.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 74.34% | ||
| ROCE | 8.23% | ||
| ROIC | 6.5% | ||
| ROICexc | 6.73% | ||
| ROICexgc | 13.01% | ||
| OM | 45.58% | ||
| PM (TTM) | 28.11% | ||
| GM | 74.29% | ||
| FCFM | 35.3% |
ROA(3y)2.86%
ROA(5y)3.16%
ROE(3y)44.56%
ROE(5y)45.11%
ROIC(3y)5.18%
ROIC(5y)5.17%
ROICexc(3y)5.37%
ROICexc(5y)5.37%
ROICexgc(3y)11.15%
ROICexgc(5y)11.35%
ROCE(3y)6.56%
ROCE(5y)6.55%
ROICexgc growth 3Y7.7%
ROICexgc growth 5Y1.6%
ROICexc growth 3Y13.68%
ROICexc growth 5Y2.09%
OM growth 3Y6.24%
OM growth 5Y3.81%
PM growth 3Y-6.73%
PM growth 5Y-2.21%
GM growth 3Y1.49%
GM growth 5Y1.06%
F-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.82 | ||
| Debt/FCF | 10.09 | ||
| Debt/EBITDA | 5.13 | ||
| Cap/Depr | 76.22% | ||
| Cap/Sales | 14.77% | ||
| Interest Coverage | 3.63 | ||
| Cash Conversion | 77.09% | ||
| Profit Quality | 125.61% | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.1 |
F-Score6
WACC7.16%
ROIC/WACC0.91
Cap/Depr(3y)62.98%
Cap/Depr(5y)60.55%
Cap/Sales(3y)17.69%
Cap/Sales(5y)16.13%
Profit Quality(3y)154.82%
Profit Quality(5y)153.43%
High Growth Momentum
Growth
EPS 1Y (TTM)26.46%
EPS 3Y9.23%
EPS 5Y11.8%
EPS Q2Q%104.49%
EPS Next Y-27.96%
EPS Next 2Y-2.43%
EPS Next 3Y0.26%
EPS Next 5Y3.38%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y2.67%
Revenue growth 5Y5.96%
Sales Q2Q%7.74%
Revenue Next Year0.32%
Revenue Next 2Y2.12%
Revenue Next 3Y2.89%
Revenue Next 5Y4.57%
EBIT growth 1Y15.4%
EBIT growth 3Y9.08%
EBIT growth 5Y10%
EBIT Next Year49.02%
EBIT Next 3Y17.59%
EBIT Next 5Y13.43%
FCF growth 1Y30.25%
FCF growth 3Y2.43%
FCF growth 5Y6.03%
OCF growth 1Y9.86%
OCF growth 3Y3.15%
OCF growth 5Y7.11%
AMERICAN TOWER CORP / AMT FAQ
What is the ChartMill fundamental rating of AMERICAN TOWER CORP (AMT) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AMT.
What is the valuation status of AMERICAN TOWER CORP (AMT) stock?
ChartMill assigns a valuation rating of 4 / 10 to AMERICAN TOWER CORP (AMT). This can be considered as Fairly Valued.
Can you provide the profitability details for AMERICAN TOWER CORP?
AMERICAN TOWER CORP (AMT) has a profitability rating of 7 / 10.
How financially healthy is AMERICAN TOWER CORP?
The financial health rating of AMERICAN TOWER CORP (AMT) is 2 / 10.
What is the earnings growth outlook for AMERICAN TOWER CORP?
The Earnings per Share (EPS) of AMERICAN TOWER CORP (AMT) is expected to decline by -27.96% in the next year.