AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMT - US03027X1000 - REIT
183.2 USD
+4.34 (+2.43%)
183.2 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 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AMT was profitable.
AMT had a positive operating cash flow in the past year.
Each year in the past 5 years AMT has been profitable.
AMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AMT has a better Return On Assets (4.60%) than 73.33% of its industry peers.
The Return On Equity of AMT (74.34%) is better than 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.
The Average Return On Invested Capital over the past 3 years for AMT is in line with the industry average of 4.78%.
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
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.
AMT's Profit Margin has declined in the last couple of years.
AMT's Operating Margin of 45.58% is fine compared to the rest of the industry. AMT outperforms 76.67% of its industry peers.
AMT's Operating Margin has improved in the last couple of years.
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
AMT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, AMT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that AMT is in the distress zone and has some risk of bankruptcy.
AMT has a Altman-Z score (1.09) which is comparable to the rest of the industry.
The Debt to FCF ratio of AMT is 10.09, which is on the high side as it means it would take AMT, 10.09 years of fcf income to pay off 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 has a worse Debt to Equity ratio (8.82) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.82 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.89
WACC7.33%
2.3 Liquidity
AMT has a Current 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 has a Current ratio of 0.59. This is comparable to the rest of the industry: AMT outperforms 43.33% of its industry peers.
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 has a Quick ratio (0.59) which is in line with 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.
Measured over the past years, AMT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.80% on average per year.
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
The Earnings Per Share is expected to grow by 3.38% on average over the next years.
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
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 29.27 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.
The average S&P500 Price/Earnings ratio is at 26.34. AMT is around the same levels.
Based on the Price/Forward Earnings ratio of 26.16, the valuation of AMT can be described as expensive.
Based on the Price/Forward Earnings ratio, AMT is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, AMT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.27 | ||
| Fwd PE | 26.16 |
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.
AMT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.24 | ||
| EV/EBITDA | 17.52 |
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)2.48
EPS Next 2Y-2.66%
EPS Next 3Y0.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.80%, AMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.05, AMT is paying slightly less dividend.
AMT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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-2.66%
EPS Next 3Y0.25%
183.2
+4.34 (+2.43%)
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 Cap85.77B
Revenue(TTM)10.45B
Net Income(TTM)2.94B
Analysts80
Price Target233.42 (27.41%)
Short Float %1.26%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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)-8.2%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)-9.1%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-2.05%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.27 | ||
| Fwd PE | 26.16 | ||
| P/S | 8.2 | ||
| P/FCF | 23.24 | ||
| P/OCF | 16.38 | ||
| P/B | 21.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.52 |
EPS(TTM)6.26
EY3.42%
EPS(NY)7
Fwd EY3.82%
FCF(TTM)7.88
FCFY4.3%
OCF(TTM)11.18
OCFY6.1%
SpS22.33
BVpS8.44
TBVpS-49.23
PEG (NY)N/A
PEG (5Y)2.48
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 | 1.09 |
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.