AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMT - US03027X1000 - REIT
174.8 USD
-0.77 (-0.44%)
175 USD
+0.2 (+0.11%)
Overall AMT gets a fundamental rating of 4 out of 10. We evaluated AMT against 30 industry peers in the Specialized REITs industry. AMT has an excellent profitability rating, but there are concerns on its financial health. AMT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AMT had positive earnings in the past year.
In the past year AMT had a positive cash flow from operations.
Each year in the past 5 years AMT has been profitable.
Each year in the past 5 years AMT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.60%, AMT is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
AMT has a Return On Equity of 74.34%. This is amongst the best in the industry. AMT outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 6.50%, AMT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMT is in line with the industry average of 4.86%.
The last Return On Invested Capital (6.50%) for AMT is above the 3 year average (5.18%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 28.11%, AMT is in the better half of 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's Gross Margin of 74.29% is fine compared to the rest of the industry. AMT outperforms 63.33% of its industry peers.
AMT's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AMT is destroying value.
The number of shares outstanding for AMT has been increased compared to 1 year ago.
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 1.07. This is a bad value and indicates that AMT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.07, AMT perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
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 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.82 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.87
WACC7.47%
2.3 Liquidity
A Current Ratio of 0.59 indicates that AMT may have some problems paying its short term obligations.
The Current ratio of AMT (0.59) is comparable to the rest of the 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.
The Quick ratio of AMT (0.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
AMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.46%, which is quite impressive.
AMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.80% yearly.
AMT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.18%.
Measured over the past years, AMT shows a small growth in Revenue. The Revenue has been growing by 5.96% on average per year.
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
Based on estimates for the next years, AMT will show a small growth in Earnings Per Share. The EPS will grow by 3.38% on average per year.
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-27.71%
EPS Next 2Y-2.82%
EPS Next 3Y0.25%
EPS Next 5Y3.38%
Revenue Next Year0.6%
Revenue Next 2Y2.11%
Revenue Next 3Y2.83%
Revenue Next 5Y4.57%
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 decreasing.
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
A Price/Earnings ratio of 27.92 indicates a quite expensive valuation of AMT.
Based on the Price/Earnings ratio, AMT is valued a bit cheaper than 70.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of AMT to the average of the S&P500 Index (26.60), we can say AMT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 25.05, the valuation of AMT can be described as expensive.
63.33% of the companies in the same industry are more expensive than AMT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AMT to the average of the S&P500 Index (23.23), we can say AMT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.92 | ||
| Fwd PE | 25.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMT indicates a somewhat cheap valuation: AMT is cheaper than 63.33% of the companies listed in the same industry.
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 | 22.17 | ||
| EV/EBITDA | 17.3 |
4.3 Compensation for Growth
The decent profitability rating of AMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.37
EPS Next 2Y-2.82%
EPS Next 3Y0.25%
5. Dividend
5.1 Amount
AMT has a Yearly Dividend Yield of 3.89%.
Compared to an average industry Dividend Yield of 5.73, AMT is paying slightly less dividend.
AMT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
5.2 History
The dividend of AMT is nicely growing with an annual growth rate of 12.67%!
AMT has been paying a dividend for at least 10 years, so it has 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
AMT pays out 106.15% of its income as dividend. 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.
DP106.15%
EPS Next 2Y-2.82%
EPS Next 3Y0.25%
174.8
-0.77 (-0.44%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.98%
Inst Owner Change0.59%
Ins Owners0.06%
Ins Owner Change0.26%
Market Cap81.83B
Revenue(TTM)10.45B
Net Income(TTM)2.94B
Analysts80
Price Target232.13 (32.8%)
Short Float %1.3%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
Yearly Dividend6.59
Dividend Growth(5Y)12.67%
DP106.15%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-1.93%
PT rev (3m)-8.56%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-9.47%
EPS NY rev (1m)0.35%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.92 | ||
| Fwd PE | 25.05 | ||
| P/S | 7.83 | ||
| P/FCF | 22.17 | ||
| P/OCF | 15.63 | ||
| P/B | 20.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.3 |
EPS(TTM)6.26
EY3.58%
EPS(NY)6.98
Fwd EY3.99%
FCF(TTM)7.88
FCFY4.51%
OCF(TTM)11.18
OCFY6.4%
SpS22.33
BVpS8.44
TBVpS-49.23
PEG (NY)N/A
PEG (5Y)2.37
Graham Number34.49
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 | 1.07 |
F-Score6
WACC7.47%
ROIC/WACC0.87
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-27.71%
EPS Next 2Y-2.82%
EPS Next 3Y0.25%
EPS Next 5Y3.38%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y2.67%
Revenue growth 5Y5.96%
Sales Q2Q%7.74%
Revenue Next Year0.6%
Revenue Next 2Y2.11%
Revenue Next 3Y2.83%
Revenue Next 5Y4.57%
EBIT growth 1Y15.4%
EBIT growth 3Y9.08%
EBIT growth 5Y10%
EBIT Next Year49.02%
EBIT Next 3Y17.39%
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 fundamental rating for AMT stock?
ChartMill assigns a fundamental rating of 4 / 10 to AMT.
What is the valuation status for 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.
What are the PE and PB ratios of AMERICAN TOWER CORP (AMT) stock?
The Price/Earnings (PE) ratio for AMERICAN TOWER CORP (AMT) is 27.92 and the Price/Book (PB) ratio is 20.7.
Can you provide the expected EPS growth for AMT stock?
The Earnings per Share (EPS) of AMERICAN TOWER CORP (AMT) is expected to decline by -27.71% in the next year.