AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMT - US03027X1000 - REIT
174.8 USD
+0.29 (+0.17%)
174.8 USD
0 (0%)
Taking everything into account, AMT scores 4 out of 10 in our fundamental rating. AMT was compared to 30 industry peers in the Specialized REITs industry. While AMT has a great profitability rating, there are quite some 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.
Each year in the past 5 years AMT had a positive operating cash flow.
1.2 Ratios
AMT has a better Return On Assets (4.60%) than 73.33% of its industry peers.
AMT has a better Return On Equity (74.34%) than 100.00% of its industry peers.
AMT's Return On Invested Capital of 6.50% is amongst the best of the industry. AMT outperforms 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 4.78%.
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
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.
Looking at the Gross Margin, with a value of 74.29%, AMT is in the better half of 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.
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.
Compared to 1 year ago, AMT has a worse debt to assets ratio.
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.
AMT's Altman-Z score of 1.07 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.
Looking at the Debt to FCF ratio, with a value of 10.09, AMT is in the better half of 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'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 | 1.07 |
ROIC/WACC0.89
WACC7.33%
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.
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.
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%.
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.
Based on estimates for the next years, AMT will show a small growth in Revenue. The Revenue will grow by 4.57% on average per year.
EPS Next Y-27.72%
EPS Next 2Y-2.66%
EPS Next 3Y0.25%
EPS Next 5Y3.38%
Revenue Next Year0.55%
Revenue Next 2Y2.14%
Revenue Next 3Y2.85%
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
With a Price/Earnings ratio of 27.92, AMT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of AMT indicates a somewhat cheap valuation: AMT is cheaper than 70.00% of the companies listed in the same industry.
AMT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
AMT is valuated rather expensively with a Price/Forward Earnings ratio of 24.96.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMT indicates a somewhat cheap valuation: AMT is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AMT to the average of the S&P500 Index (24.03), we can say AMT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.92 | ||
| Fwd PE | 24.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMT is valued a bit cheaper than 63.33% of the companies in the same industry.
AMT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AMT is cheaper than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.17 | ||
| EV/EBITDA | 17.24 |
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)2.37
EPS Next 2Y-2.66%
EPS Next 3Y0.25%
5. Dividend
5.1 Amount
AMT has a Yearly Dividend Yield of 3.90%. Purely for dividend investing, there may be better candidates out there.
AMT's Dividend Yield is slightly below the industry average, which is at 5.78.
AMT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
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.
AMT has decreased its dividend 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.
AMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP106.15%
EPS Next 2Y-2.66%
EPS Next 3Y0.25%
174.8
+0.29 (+0.17%)
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 Target233.42 (33.54%)
Short Float %1.28%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
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)-4%
PT rev (3m)-8.05%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-9.32%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-2.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.92 | ||
| Fwd PE | 24.96 | ||
| P/S | 7.83 | ||
| P/FCF | 22.17 | ||
| P/OCF | 15.63 | ||
| P/B | 20.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.24 |
EPS(TTM)6.26
EY3.58%
EPS(NY)7
Fwd EY4.01%
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
WACC7.33%
ROIC/WACC0.89
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-27.72%
EPS Next 2Y-2.66%
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 Year0.55%
Revenue Next 2Y2.14%
Revenue Next 3Y2.85%
Revenue Next 5Y4.57%
EBIT growth 1Y15.4%
EBIT growth 3Y9.08%
EBIT growth 5Y10%
EBIT Next Year48.96%
EBIT Next 3Y17.44%
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 3 / 10 to AMERICAN TOWER CORP (AMT). This can be considered as Overvalued.
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 -27.72% in the next year.