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%)
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 belongs to the best of the industry regarding profitability, 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.
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
Looking at the Return On Assets, with a value of 4.60%, AMT is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
AMT's Return On Equity of 74.34% is amongst the best of the industry. AMT outperforms 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 4.77%.
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
AMT's Profit Margin of 28.11% is fine compared to the rest of the industry. AMT outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of AMT has declined.
The Operating Margin of AMT (45.58%) is better 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.
AMT has more shares outstanding than it did 1 year ago.
AMT has more shares outstanding than it did 5 years ago.
AMT has a worse debt/assets ratio than last year.
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.
The Altman-Z score of AMT (1.09) is comparable to the rest of the industry.
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.
AMT has a better Debt to FCF ratio (10.09) 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.
Looking at the Debt to Equity ratio, with a value of 8.82, AMT is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.82 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.91
WACC7.18%
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.
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.
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
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%.
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
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
With a Price/Earnings ratio of 28.68, AMT can be considered very expensive at the moment.
63.33% of the companies in the same industry are more expensive than AMT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.45. AMT is around the same levels.
AMT is valuated quite expensively with a Price/Forward Earnings ratio of 25.52.
AMT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMT is cheaper than 63.33% of the companies in the same industry.
AMT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 25.52 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.78 | ||
| EV/EBITDA | 17.54 |
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)2.43
EPS Next 2Y-2.43%
EPS Next 3Y0.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.71%, AMT has a reasonable but not impressive dividend return.
AMT's Dividend Yield is slightly below the industry average, which is at 6.26.
Compared to an average S&P500 Dividend Yield of 2.45, AMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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.
AMT has decreased its dividend 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.
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 Change0.54%
Ins Owners0.05%
Ins Owner Change0.48%
Market Cap84.08B
Revenue(TTM)10.45B
Net Income(TTM)2.94B
Analysts80
Price Target243.16 (35.42%)
Short Float %1.06%
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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)-4.22%
PT rev (3m)-4.28%
EPS NQ rev (1m)-8.62%
EPS NQ rev (3m)-8.61%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)-14.59%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)1.9%
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 | 17.54 |
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.