AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMT - US03027X1000 - REIT
179.56 USD
+0.44 (+0.25%)
179.56 USD
0 (0%)
AMT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. AMT scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, AMT is valued expensive at the moment.
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.
Each year in the past 5 years AMT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AMT (4.60%) is better than 73.33% of its industry peers.
With an excellent Return On Equity value of 74.34%, AMT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 4.77%.
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
AMT has a better Profit Margin (28.11%) than 66.67% of its industry peers.
AMT's Profit Margin has declined in the last couple of years.
AMT has a better Operating Margin (45.58%) than 76.67% of its industry peers.
AMT's Operating Margin has improved in the last couple of years.
AMT has a Gross Margin of 74.29%. This is in the better half 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
With a Altman-Z score value of 1.09, AMT perfoms like the industry average, outperforming 56.67% of the companies in the same 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.
The Debt to FCF ratio of AMT (10.09) is better than 70.00% of its industry peers.
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 | 1.09 |
ROIC/WACC0.91
WACC7.18%
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.
With a Quick ratio value of 0.59, AMT perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
| 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.
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.
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-27.96%
EPS Next 2Y-2.43%
EPS Next 3Y0.26%
EPS Next 5Y3.38%
Revenue Next Year0.32%
Revenue Next 2Y2.12%
Revenue Next 3Y2.89%
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.
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
With a Price/Earnings ratio of 28.68, AMT can be considered very expensive at the moment.
AMT's Price/Earnings ratio is a bit cheaper when compared to the industry. AMT is cheaper than 63.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. AMT is around the same levels.
With a Price/Forward Earnings ratio of 25.52, AMT can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, AMT is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
AMT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 25.52 |
4.2 Price Multiples
AMT's Enterprise Value to EBITDA is on the same level as the industry average.
AMT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.78 | ||
| EV/EBITDA | 17.58 |
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-2.43%
EPS Next 3Y0.26%
5. Dividend
5.1 Amount
AMT has a Yearly Dividend Yield of 3.75%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.14, AMT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.42, AMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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.
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.
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-2.43%
EPS Next 3Y0.26%
179.56
+0.44 (+0.25%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.09%
Inst Owner Change0.58%
Ins Owners0.05%
Ins Owner Change0.25%
Market Cap84.08B
Revenue(TTM)10.45B
Net Income(TTM)2.94B
Analysts80
Price Target236.69 (31.82%)
Short Float %1.06%
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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)-6.76%
PT rev (3m)-6.91%
EPS NQ rev (1m)-9.53%
EPS NQ rev (3m)-9.57%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 25.52 | ||
| P/S | 8.04 | ||
| P/FCF | 22.78 | ||
| P/OCF | 16.06 | ||
| P/B | 21.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.58 |
EPS(TTM)6.26
EY3.49%
EPS(NY)7.04
Fwd EY3.92%
FCF(TTM)7.88
FCFY4.39%
OCF(TTM)11.18
OCFY6.23%
SpS22.33
BVpS8.44
TBVpS-49.22
PEG (NY)N/A
PEG (5Y)2.43
Graham Number34.48
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
WACC7.18%
ROIC/WACC0.91
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-27.96%
EPS Next 2Y-2.43%
EPS Next 3Y0.26%
EPS Next 5Y3.38%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y2.67%
Revenue growth 5Y5.96%
Sales Q2Q%7.74%
Revenue Next Year0.32%
Revenue Next 2Y2.12%
Revenue Next 3Y2.89%
Revenue Next 5Y4.57%
EBIT growth 1Y15.4%
EBIT growth 3Y9.08%
EBIT growth 5Y10%
EBIT Next Year49.02%
EBIT Next 3Y17.59%
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 -27.96% in the next year.