AMERICAN TOWER CORP (AMT)
US03027X1000 - REIT
AMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 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. AMT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AMT had positive earnings in the past year.
AMT had a positive operating cash flow in the past year.
AMT had positive earnings in each of the past 5 years.
AMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AMT has a Return On Assets of 3.23%. This is in the better half of the industry: AMT outperforms 64.29% of its industry peers.
The Return On Equity of AMT (55.68%) is better than 100.00% of its industry peers.
The Return On Invested Capital of AMT (7.77%) is better than 85.71% 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 5.21%.
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
AMT has a Profit Margin (15.36%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AMT has declined.
AMT has a better Operating Margin (41.53%) than 60.71% of its industry peers.
AMT's Operating Margin has improved in the last couple of years.
The Gross Margin of AMT (73.34%) is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AMT is 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.
AMT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that AMT is in the distress zone and has some risk of bankruptcy.
AMT has a Altman-Z score of 1.28. This is in the better half of the industry: AMT outperforms 60.71% 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.
AMT has a Debt to FCF ratio of 10.41. This is in the better half of the industry: AMT outperforms 67.86% of its industry peers.
AMT has a Debt/Equity ratio of 9.16. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 9.16, AMT is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.16 | ||
| Debt/FCF | 10.41 | ||
| Altman-Z | 1.28 |
ROIC/WACC1.08
WACC7.17%
2.3 Liquidity
AMT has a Current Ratio of 0.48. 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 Current ratio value of 0.48, AMT is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
AMT has a Quick Ratio of 0.48. 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 Quick ratio of AMT (0.48) is worse than 82.14% 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.
AMT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.33%.
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 20.86% on average per year.
The Revenue is expected to grow by 2.46% on average over the next years.
EPS Next Y75.38%
EPS Next 2Y46.86%
EPS Next 3Y30.45%
EPS Next 5Y20.86%
Revenue Next Year-4.93%
Revenue Next 2Y-3.22%
Revenue Next 3Y-0.26%
Revenue Next 5Y2.46%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 40.97, which means the current valuation is very expensive for AMT.
AMT's Price/Earnings ratio is in line with the industry average.
AMT is valuated rather expensively when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 29.57, 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 64.29% of the companies listed in the same industry.
AMT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.97 | ||
| Fwd PE | 29.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMT is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
AMT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AMT is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.6 | ||
| EV/EBITDA | 16.48 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AMT may justify a higher PE ratio.
AMT's earnings are expected to grow with 30.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)14.64
EPS Next 2Y46.86%
EPS Next 3Y30.45%
5. Dividend
5.1 Amount
AMT has a Yearly Dividend Yield of 3.37%.
AMT's Dividend Yield is slightly below the industry average, which is at 4.54.
AMT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
The dividend of AMT is nicely growing with an annual growth rate of 15.44%!
AMT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.44%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
AMT pays out 151.55% of its income as dividend. 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 2Y46.86%
EPS Next 3Y30.45%
AMERICAN TOWER CORP
NYSE:AMT (11/21/2024, 8:12:12 PM)
After market: 202.81 0 (0%)202.81
+1.93 (+0.96%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap94.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.97 | ||
| Fwd PE | 29.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.54
PEG (5Y)14.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 55.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.53% | ||
| PM (TTM) | 15.36% | ||
| GM | 73.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)223.53%
EPS 3Y-5.68%
EPS 5Y
EPS Q2Q%
EPS Next Y75.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.33%
Revenue growth 3Y11.49%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y