AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMT - US03027X1000 - REIT
175.57 USD
-1.15 (-0.65%)
175.57 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. AMT is not valued too expensively and it also shows a decent 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
The Return On Assets of AMT (4.60%) is better than 73.33% of its industry peers.
The Return On Equity of AMT (74.34%) is better than 100.00% of its industry peers.
AMT has a better Return On Invested Capital (6.50%) than 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 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
The Profit Margin of AMT (28.11%) is better than 66.67% of its industry peers.
AMT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 45.58%, AMT is in the better half of 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.
AMT has a better Gross Margin (74.29%) than 63.33% of its industry peers.
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
AMT has an Altman-Z score of 1.08. 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 (1.08) 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.
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.
AMT has a Debt/Equity ratio of 8.82. This is a high value indicating a heavy dependency on external 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 | 1.08 |
ROIC/WACC0.89
WACC7.31%
2.3 Liquidity
A Current Ratio of 0.59 indicates that AMT may have some problems paying 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.
A Quick Ratio of 0.59 indicates that AMT may have some problems paying its short term obligations.
The Quick ratio of AMT (0.59) is comparable to the rest of the industry.
| 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.
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%.
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
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.
AMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.57% yearly.
EPS Next Y-27.71%
EPS Next 2Y-2.82%
EPS Next 3Y0.25%
EPS Next 5Y3.38%
Revenue Next Year0.6%
Revenue Next 2Y2.11%
Revenue Next 3Y2.83%
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
The Price/Earnings ratio is 28.05, which means the current valuation is very expensive for AMT.
Based on the Price/Earnings ratio, AMT is valued a bit cheaper than 70.00% of the companies in the same industry.
AMT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
With a Price/Forward Earnings ratio of 25.16, AMT can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, AMT is valued a bit cheaper than 63.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AMT to the average of the S&P500 Index (23.13), we can say AMT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.05 | ||
| Fwd PE | 25.16 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMT indicates a somewhat cheap valuation: AMT is cheaper than 63.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.27 | ||
| EV/EBITDA | 17.38 |
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)2.38
EPS Next 2Y-2.82%
EPS Next 3Y0.25%
5. Dividend
5.1 Amount
AMT has a Yearly Dividend Yield of 3.89%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.73, AMT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.00, AMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
5.2 History
On average, the dividend of AMT grows each year by 12.67%, which is quite nice.
AMT has been paying a dividend for at least 10 years, so it has 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
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-2.82%
EPS Next 3Y0.25%
175.57
-1.15 (-0.65%)
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 Cap82.19B
Revenue(TTM)10.45B
Net Income(TTM)2.94B
Analysts80
Price Target232.13 (32.22%)
Short Float %1.3%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
Yearly Dividend6.59
Dividend Growth(5Y)12.67%
DP106.15%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-1.93%
PT rev (3m)-8.56%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-9.47%
EPS NY rev (1m)0.35%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.05 | ||
| Fwd PE | 25.16 | ||
| P/S | 7.86 | ||
| P/FCF | 22.27 | ||
| P/OCF | 15.7 | ||
| P/B | 20.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.38 |
EPS(TTM)6.26
EY3.57%
EPS(NY)6.98
Fwd EY3.98%
FCF(TTM)7.88
FCFY4.49%
OCF(TTM)11.18
OCFY6.37%
SpS22.33
BVpS8.44
TBVpS-49.23
PEG (NY)N/A
PEG (5Y)2.38
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 | 1.08 |
F-Score6
WACC7.31%
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-27.71%
EPS Next 2Y-2.82%
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 Year0.6%
Revenue Next 2Y2.11%
Revenue Next 3Y2.83%
Revenue Next 5Y4.57%
EBIT growth 1Y15.4%
EBIT growth 3Y9.08%
EBIT growth 5Y10%
EBIT Next Year49.02%
EBIT Next 3Y17.39%
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 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 28.05 and the Price/Book (PB) ratio is 20.79.
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 -27.71% in the next year.