AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
NYSE:AMT - New York Stock Exchange, Inc. - US03027X1000 - REIT
We assign a fundamental rating of 5 out of 10 to AMT. AMT was compared to 28 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. AMT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AMT was profitable.
In the past year AMT had a positive cash flow from operations.
AMT had positive earnings in each of the past 5 years.
Each year in the past 5 years AMT had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.23%, AMT is doing good in the industry, outperforming 64.29% of the companies in the same industry.
AMT's Return On Equity of 55.68% is amongst the best of the industry. AMT outperforms 100.00% of its industry peers.
AMT has a better Return On Invested Capital (7.77%) than 85.71% of its industry peers.
AMT had an Average Return On Invested Capital over the past 3 years of 4.62%. This is in line with the industry average of 5.21%.
The last Return On Invested Capital (7.77%) for AMT is above the 3 year average (4.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 55.68% | ||
| ROIC | 7.77% |
ROA(3y)2.85%
ROA(5y)3.31%
ROE(3y)39.19%
ROE(5y)39.24%
ROIC(3y)4.62%
ROIC(5y)5.13%
1.3 Margins
The Profit Margin of AMT (15.36%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AMT has declined.
AMT's Operating Margin of 41.53% is fine compared to the rest of the industry. AMT outperforms 60.71% of its industry peers.
AMT's Operating Margin has improved in the last couple of years.
AMT has a Gross Margin of 73.34%. This is comparable to the rest of the industry: AMT outperforms 53.57% 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 | 41.53% | ||
| PM (TTM) | 15.36% | ||
| GM | 73.34% |
OM growth 3Y-4.82%
OM growth 5Y3.85%
PM growth 3Y-14.14%
PM growth 5Y-4.2%
GM growth 3Y-0.72%
GM growth 5Y0%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMT is still creating some value.
Compared to 1 year ago, AMT has about the same amount of shares outstanding.
The number of shares outstanding for AMT has been increased compared to 5 years ago.
AMT has a worse debt/assets ratio than last year.
2.2 Solvency
AMT has an Altman-Z score of 1.22. This is a bad value and indicates that AMT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AMT (1.22) is comparable to the rest of the industry.
AMT has a debt to FCF ratio of 10.41. This is a negative value and a sign of low solvency as AMT would need 10.41 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 10.41, AMT is doing good in the industry, outperforming 67.86% of the companies in the same industry.
A Debt/Equity ratio of 9.16 is on the high side and indicates that AMT has dependencies on debt financing.
With a Debt to Equity ratio value of 9.16, AMT is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.16 | ||
| Debt/FCF | 10.41 | ||
| Altman-Z | 1.22 |
ROIC/WACC1.08
WACC7.22%
2.3 Liquidity
AMT has a Current Ratio of 0.48. This is a bad value and indicates that AMT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.48, AMT is doing worse than 78.57% of the companies in the same industry.
AMT has a Quick Ratio of 0.48. This is a bad value and indicates that AMT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AMT (0.48) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 223.53% over the past year.
AMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.80% yearly.
Looking at the last year, AMT shows a quite strong growth in Revenue. The Revenue has grown by 19.33% in the last year.
The Revenue has been growing by 8.42% on average over the past years. This is quite good.
EPS 1Y (TTM)223.53%
EPS 3Y-5.68%
EPS 5Y2.8%
EPS Q2Q%-29.37%
Revenue 1Y (TTM)19.33%
Revenue growth 3Y11.49%
Revenue growth 5Y8.42%
Sales Q2Q%-10.51%
3.2 Future
AMT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.56% yearly.
Based on estimates for the next years, AMT will show a small growth in Revenue. The Revenue will grow by 2.94% on average per year.
EPS Next Y61.34%
EPS Next 2Y45.93%
EPS Next 3Y30.87%
EPS Next 5Y20.56%
Revenue Next Year-4.9%
Revenue Next 2Y-3.38%
Revenue Next 3Y-0.39%
Revenue Next 5Y2.94%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
AMT is valuated quite expensively with a Price/Earnings ratio of 38.37.
AMT's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of AMT to the average of the S&P500 Index (28.29), we can say AMT is valued slightly more expensively.
AMT is valuated quite expensively with a Price/Forward Earnings ratio of 28.05.
Based on the Price/Forward Earnings ratio, AMT is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
AMT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.37 | ||
| Fwd PE | 28.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMT is valued a bit cheaper than 64.29% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.92 | ||
| EV/EBITDA | 15.74 |
4.3 Compensation for Growth
AMT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AMT may justify a higher PE ratio.
A more expensive valuation may be justified as AMT's earnings are expected to grow with 30.87% in the coming years.
PEG (NY)0.63
PEG (5Y)13.71
EPS Next 2Y45.93%
EPS Next 3Y30.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.41%, AMT has a reasonable but not impressive dividend return.
AMT's Dividend Yield is slightly below the industry average, which is at 4.78.
AMT's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
The dividend of AMT is nicely growing with an annual growth rate of 15.44%!
AMT has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)15.44%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
151.55% of the earnings are spent on dividend by AMT. This is not a sustainable payout ratio.
AMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP151.55%
EPS Next 2Y45.93%
EPS Next 3Y30.87%
AMERICAN TOWER CORP
NYSE:AMT (1/21/2025, 8:04:00 PM)
After market: 189.93 0 (0%)189.93
-0.46 (-0.24%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.4%
Inst Owner Change-0.12%
Ins Owners0.06%
Ins Owner Change-2.91%
Market Cap88.75B
Analysts79.26
Price Target242.64 (27.75%)
Short Float %1.08%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend6.33
Dividend Growth(5Y)15.44%
DP151.55%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.61%
Min EPS beat(2)-44.01%
Max EPS beat(2)20.79%
EPS beat(4)2
Avg EPS beat(4)-23.84%
Min EPS beat(4)-81.08%
Max EPS beat(4)20.79%
EPS beat(8)3
Avg EPS beat(8)-45.93%
EPS beat(12)6
Avg EPS beat(12)-15.38%
EPS beat(16)9
Avg EPS beat(16)-9.36%
Revenue beat(2)1
Avg Revenue beat(2)-3.85%
Min Revenue beat(2)-9.43%
Max Revenue beat(2)1.73%
Revenue beat(4)3
Avg Revenue beat(4)-1.68%
Min Revenue beat(4)-9.43%
Max Revenue beat(4)1.73%
Revenue beat(8)6
Avg Revenue beat(8)-0.66%
Revenue beat(12)9
Avg Revenue beat(12)-0.31%
Revenue beat(16)12
Avg Revenue beat(16)0.03%
PT rev (1m)-1.27%
PT rev (3m)0.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-27.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.52%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-5.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.37 | ||
| Fwd PE | 28.05 | ||
| P/S | 6.72 | ||
| P/FCF | 24.92 | ||
| P/OCF | 16.96 | ||
| P/B | 24.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.74 |
EPS(TTM)4.95
EY2.61%
EPS(NY)6.77
Fwd EY3.57%
FCF(TTM)7.62
FCFY4.01%
OCF(TTM)11.2
OCFY5.9%
SpS28.25
BVpS7.79
TBVpS-50.5
PEG (NY)0.63
PEG (5Y)13.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 55.68% | ||
| ROCE | 9.83% | ||
| ROIC | 7.77% | ||
| ROICexc | 8.08% | ||
| ROICexgc | 16.43% | ||
| OM | 41.53% | ||
| PM (TTM) | 15.36% | ||
| GM | 73.34% | ||
| FCFM | 26.99% |
ROA(3y)2.85%
ROA(5y)3.31%
ROE(3y)39.19%
ROE(5y)39.24%
ROIC(3y)4.62%
ROIC(5y)5.13%
ROICexc(3y)4.78%
ROICexc(5y)5.32%
ROICexgc(3y)10.53%
ROICexgc(5y)11.33%
ROCE(3y)5.85%
ROCE(5y)6.49%
ROICexcg growth 3Y-3.63%
ROICexcg growth 5Y-7.34%
ROICexc growth 3Y-4.17%
ROICexc growth 5Y-2.89%
OM growth 3Y-4.82%
OM growth 5Y3.85%
PM growth 3Y-14.14%
PM growth 5Y-4.2%
GM growth 3Y-0.72%
GM growth 5Y0%
F-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.16 | ||
| Debt/FCF | 10.41 | ||
| Debt/EBITDA | 4.24 | ||
| Cap/Depr | 69.96% | ||
| Cap/Sales | 12.66% | ||
| Interest Coverage | 3.86 | ||
| Cash Conversion | 66.49% | ||
| Profit Quality | 175.68% | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.22 |
F-Score7
WACC7.22%
ROIC/WACC1.08
Cap/Depr(3y)57.71%
Cap/Depr(5y)56.73%
Cap/Sales(3y)16.11%
Cap/Sales(5y)14.85%
Profit Quality(3y)144.81%
Profit Quality(5y)149.84%
High Growth Momentum
Growth
EPS 1Y (TTM)223.53%
EPS 3Y-5.68%
EPS 5Y2.8%
EPS Q2Q%-29.37%
EPS Next Y61.34%
EPS Next 2Y45.93%
EPS Next 3Y30.87%
EPS Next 5Y20.56%
Revenue 1Y (TTM)19.33%
Revenue growth 3Y11.49%
Revenue growth 5Y8.42%
Sales Q2Q%-10.51%
Revenue Next Year-4.9%
Revenue Next 2Y-3.38%
Revenue Next 3Y-0.39%
Revenue Next 5Y2.94%
EBIT growth 1Y54.61%
EBIT growth 3Y6.12%
EBIT growth 5Y12.59%
EBIT Next Year107.76%
EBIT Next 3Y29.83%
EBIT Next 5Y20.63%
FCF growth 1Y135.18%
FCF growth 3Y0.87%
FCF growth 5Y0.62%
OCF growth 1Y64.05%
OCF growth 3Y6.76%
OCF growth 5Y4.73%