AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMT - US03027X1000 - REIT
179.46 USD
+0.71 (+0.4%)
179.46 USD
0 (0%)
Overall AMT gets a fundamental rating of 4 out of 10. We evaluated AMT 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. AMT has a correct valuation and a medium growth rate.
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.
- 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
- AMT has a Return On Assets of 4.60%. This is in the better half of the industry: AMT outperforms 73.33% of its industry peers.
- AMT has a better Return On Equity (74.34%) 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.
- 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 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
- AMT has a better Profit Margin (28.11%) than 66.67% of its industry peers.
- In the last couple of years the Profit Margin of AMT has declined.
- AMT has a better Operating Margin (45.58%) than 76.67% of its industry peers.
- In the last couple of years the Operating Margin of AMT has grown nicely.
- With a decent Gross Margin value of 74.29%, AMT is doing good in the industry, outperforming 63.33% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AMT is destroying value.
- Compared to 1 year ago, AMT has more shares outstanding
- The number of shares outstanding for AMT has been increased compared to 5 years ago.
- The debt/assets ratio for AMT is higher compared to a year ago.
2.2 Solvency
- AMT has an Altman-Z score of 1.09. This is a bad value and indicates that AMT is not financially healthy and even has some risk of bankruptcy.
- AMT has a Altman-Z score (1.09) which is in line with 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.
- With a decent Debt to FCF ratio value of 10.09, AMT is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- A Debt/Equity ratio of 8.82 is on the high side and indicates that AMT has dependencies on debt financing.
- AMT has a Debt to Equity ratio of 8.82. This is in the lower half of the industry: AMT underperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.82 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.86
WACC7.56%
2.3 Liquidity
- A Current Ratio of 0.59 indicates that AMT may have some problems paying its short term obligations.
- AMT's Current ratio of 0.59 is in line compared to the rest of the industry. AMT outperforms 43.33% of its industry peers.
- A Quick Ratio of 0.59 indicates that AMT may have some problems paying 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
- 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.
- Looking at the last year, AMT shows a small growth in Revenue. The Revenue has grown by 4.18% in the last year.
- AMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.96% yearly.
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.
- The Revenue is expected to grow by 4.57% on average over the next years.
EPS Next Y-28.07%
EPS Next 2Y-2.64%
EPS Next 3Y0.17%
EPS Next 5Y3.38%
Revenue Next Year0.65%
Revenue Next 2Y2.1%
Revenue Next 3Y2.76%
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.
- 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
- Based on the Price/Earnings ratio of 28.67, the valuation of AMT can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of AMT indicates a somewhat cheap valuation: AMT is cheaper than 73.33% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of AMT to the average of the S&P500 Index (27.25), we can say AMT is valued inline with the index average.
- A Price/Forward Earnings ratio of 25.62 indicates a quite expensive valuation of AMT.
- AMT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMT is cheaper than 66.67% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. AMT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.67 | ||
| Fwd PE | 25.62 |
4.2 Price Multiples
- AMT's Enterprise Value to EBITDA ratio is in line with the industry average.
- 66.67% 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 | 22.76 | ||
| EV/EBITDA | 17.57 |
4.3 Compensation for Growth
- The decent profitability rating of AMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.43
EPS Next 2Y-2.64%
EPS Next 3Y0.17%
5. Dividend
5.1 Amount
- AMT has a Yearly Dividend Yield of 3.84%.
- Compared to an average industry Dividend Yield of 5.51, AMT is paying slightly less dividend.
- AMT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
5.2 History
- The dividend of AMT is nicely growing with an annual growth rate of 12.67%!
- AMT has paid a dividend for at least 10 years, which is a reliable track record.
- AMT has decreased its dividend 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-2.64%
EPS Next 3Y0.17%
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 28.67 and the Price/Book (PB) ratio is 21.25.
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 -28.07% in the next year.