AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
NYSE:AMT - New York Stock Exchange, Inc. - US03027X1000 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to AMT. AMT was compared to 29 industry peers in the Specialized REITs industry. AMT has an excellent profitability rating, but there are concerns on its financial health. AMT has a correct valuation and a medium 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.
AMT had positive earnings in each of the past 5 years.
In the past 5 years AMT always reported a positive cash flow from operatings.
1.2 Ratios
AMT's Return On Assets of 3.23% is fine compared to the rest of the industry. AMT outperforms 64.29% of its industry peers.
Looking at the Return On Equity, with a value of 55.68%, AMT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AMT has a better Return On Invested Capital (7.77%) than 82.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMT is in line with the industry average of 5.41%.
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
Looking at the Profit Margin, with a value of 15.36%, AMT is in line with its industry, outperforming 46.43% of the companies in the same industry.
In the last couple of years the Profit Margin of AMT has declined.
AMT has a Operating Margin of 41.53%. This is in the better half of the industry: AMT outperforms 60.71% of its industry peers.
In the last couple of years the Operating Margin of AMT has grown nicely.
Looking at the Gross Margin, with a value of 73.34%, AMT is in line with its industry, outperforming 53.57% 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 | 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.
AMT has about the same amout of shares outstanding than it did 1 year ago.
AMT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AMT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.23, we must say that AMT is in the distress zone and has some risk of bankruptcy.
AMT's Altman-Z score of 1.23 is fine compared to the rest of the industry. AMT outperforms 64.29% of its industry peers.
The Debt to FCF ratio of AMT is 10.41, which is on the high side as it means it would take AMT, 10.41 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AMT (10.41) is better than 64.29% of its industry peers.
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 | 1.23 |
ROIC/WACC1.02
WACC7.62%
2.3 Liquidity
A Current Ratio of 0.48 indicates that AMT may have some problems paying its short term obligations.
AMT's Current ratio of 0.48 is on the low side compared to the rest of the industry. AMT is outperformed by 75.00% of its industry peers.
A Quick Ratio of 0.48 indicates that AMT may have some problems paying its short term obligations.
AMT has a worse Quick ratio (0.48) than 75.00% 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.
Measured over the past 5 years, AMT shows a small growth in Earnings Per Share. The EPS has been growing by 2.80% on average per year.
The Revenue has grown by 19.33% in the past year. This is quite good.
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
Based on estimates for the next years, AMT will show a very strong growth in Earnings Per Share. The EPS will grow by 20.56% on average per year.
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 Y37.73%
EPS Next 2Y45.17%
EPS Next 3Y31.53%
EPS Next 5Y20.56%
Revenue Next Year-5.03%
Revenue Next 2Y-3.54%
Revenue Next 3Y-0.57%
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.
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
Based on the Price/Earnings ratio of 38.70, the valuation of AMT can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as AMT.
AMT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 28.58, AMT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMT indicates a somewhat cheap valuation: AMT is cheaper than 60.71% of the companies listed in the same industry.
AMT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.7 | ||
| Fwd PE | 28.58 |
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 64.29% of the companies listed in the same industry.
AMT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.13 | ||
| EV/EBITDA | 15.86 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AMT may justify a higher PE ratio.
AMT's earnings are expected to grow with 31.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)13.82
EPS Next 2Y45.17%
EPS Next 3Y31.53%
5. Dividend
5.1 Amount
AMT has a Yearly Dividend Yield of 3.41%. Purely for dividend investing, there may be better candidates out there.
AMT's Dividend Yield is slightly below the industry average, which is at 4.50.
Compared to an average S&P500 Dividend Yield of 2.29, AMT pays a bit more dividend than the S&P500 average.
| 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 2Y45.17%
EPS Next 3Y31.53%
191.55
-0.83 (-0.43%)
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-0.29%
Ins Owners0.06%
Ins Owner Change-1.94%
Market Cap89.51B
Analysts79.29
Price Target230.16 (20.16%)
Short Float %1.22%
Short Ratio2.48
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)-5.14%
PT rev (3m)-6.63%
EPS NQ rev (1m)-5.03%
EPS NQ rev (3m)-2.64%
EPS NY rev (1m)-14.63%
EPS NY rev (3m)-21.47%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.7 | ||
| Fwd PE | 28.58 | ||
| P/S | 6.78 | ||
| P/FCF | 25.13 | ||
| P/OCF | 17.1 | ||
| P/B | 24.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.86 |
EPS(TTM)4.95
EY2.58%
EPS(NY)6.7
Fwd EY3.5%
FCF(TTM)7.62
FCFY3.98%
OCF(TTM)11.2
OCFY5.85%
SpS28.25
BVpS7.79
TBVpS-50.5
PEG (NY)1.03
PEG (5Y)13.82
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 | 1.23 |
F-Score7
WACC7.62%
ROIC/WACC1.02
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 Y37.73%
EPS Next 2Y45.17%
EPS Next 3Y31.53%
EPS Next 5Y20.56%
Revenue 1Y (TTM)19.33%
Revenue growth 3Y11.49%
Revenue growth 5Y8.42%
Sales Q2Q%-10.51%
Revenue Next Year-5.03%
Revenue Next 2Y-3.54%
Revenue Next 3Y-0.57%
Revenue Next 5Y2.94%
EBIT growth 1Y54.61%
EBIT growth 3Y6.12%
EBIT growth 5Y12.59%
EBIT Next Year107.32%
EBIT Next 3Y29.53%
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%