AMERICAN TOWER CORP (AMT)
US03027X1000 - REIT
Taking everything into account, AMT scores 5 out of 10 in our fundamental rating. AMT was compared to 28 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
AMT had positive earnings in the past year.
AMT had a positive operating cash flow in the past year.
In the past 5 years AMT has always been profitable.
AMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AMT has a better Return On Assets (3.23%) than 64.29% of its industry peers.
AMT's Return On Equity of 55.68% is amongst the best of the industry. AMT outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 7.77%, AMT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
AMT had an Average Return On Invested Capital over the past 3 years of 4.62%. This 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
With a Profit Margin value of 15.36%, AMT perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
AMT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 41.53%, AMT is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
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.
Compared to 1 year ago, AMT has about the same amount of 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 1.17. This is a bad value and indicates that AMT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.17, AMT is in line with its industry, outperforming 57.14% of the companies in the same industry.
AMT has a debt to FCF ratio of 10.41. This is a negative value and a sign of low solvency as AMT would need 10.41 years to pay back of all of its debts.
AMT has a better Debt to FCF ratio (10.41) than 67.86% 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.
AMT has a Debt to Equity ratio of 9.16. This is amonst the worse of the industry: AMT underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.16 | ||
| Debt/FCF | 10.41 | ||
| Altman-Z | 1.17 |
ROIC/WACC1.09
WACC7.14%
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.
AMT has a Current ratio of 0.48. This is in the lower half of the industry: AMT underperforms 78.57% of its industry peers.
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.
AMT's Quick ratio of 0.48 is on the low side compared to the rest of the industry. AMT is outperformed by 78.57% 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.
AMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.80% yearly.
Looking at the last year, AMT shows a quite strong growth in Revenue. The Revenue has grown by 19.33% in the last year.
Measured over the past years, AMT shows a quite strong growth in Revenue. The Revenue has been growing by 8.42% on average per year.
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 Y70.78%
EPS Next 2Y46.46%
EPS Next 3Y30.45%
EPS Next 5Y20.56%
Revenue Next Year-3.98%
Revenue Next 2Y-3.16%
Revenue Next 3Y-0.26%
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
The Price/Earnings ratio is 37.12, which means the current valuation is very expensive for AMT.
The rest of the industry has a similar Price/Earnings ratio as AMT.
Compared to an average S&P500 Price/Earnings ratio of 27.73, AMT is valued a bit more expensive.
AMT is valuated quite expensively with a Price/Forward Earnings ratio of 26.93.
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's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.12 | ||
| Fwd PE | 26.93 |
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 67.86% of the companies listed 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 60.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.1 | ||
| EV/EBITDA | 15.09 |
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.
A more expensive valuation may be justified as AMT's earnings are expected to grow with 30.45% in the coming years.
PEG (NY)0.52
PEG (5Y)13.26
EPS Next 2Y46.46%
EPS Next 3Y30.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.28%, AMT has a reasonable but not impressive dividend return.
The stock price of AMT dropped by -21.84% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
AMT's Dividend Yield is slightly below the industry average, which is at 4.53.
AMT's Dividend Yield is a higher than the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
On average, the dividend of AMT grows each year by 15.44%, which is quite nice.
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.
The dividend of AMT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP151.55%
EPS Next 2Y46.46%
EPS Next 3Y30.45%
AMERICAN TOWER CORP
NYSE:AMT (12/20/2024, 8:04:00 PM)
After market: 183.73 0 (0%)183.73
+4.33 (+2.41%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners93.24%
Inst Owner Change0.06%
Ins Owners0.38%
Ins Owner Change-2.88%
Market Cap85.86B
Analysts79.26
Price Target245.76 (33.76%)
Short Float %1.05%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Dividend Growth(5Y)15.44%
DP151.55%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-0.3%
PT rev (3m)2.75%
EPS NQ rev (1m)2.52%
EPS NQ rev (3m)12.89%
EPS NY rev (1m)-2.62%
EPS NY rev (3m)-23.18%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)-6.52%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)-5.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.12 | ||
| Fwd PE | 26.93 | ||
| P/S | 6.5 | ||
| P/FCF | 24.1 | ||
| P/OCF | 16.41 | ||
| P/B | 23.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.09 |
EPS(TTM)4.95
EY2.69%
EPS(NY)6.82
Fwd EY3.71%
FCF(TTM)7.62
FCFY4.15%
OCF(TTM)11.2
OCFY6.1%
SpS28.25
BVpS7.79
TBVpS-50.5
PEG (NY)0.52
PEG (5Y)13.26
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 | 1.17 |
F-Score7
WACC7.14%
ROIC/WACC1.09
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 Y70.78%
EPS Next 2Y46.46%
EPS Next 3Y30.45%
EPS Next 5Y20.56%
Revenue 1Y (TTM)19.33%
Revenue growth 3Y11.49%
Revenue growth 5Y8.42%
Sales Q2Q%-10.51%
Revenue Next Year-3.98%
Revenue Next 2Y-3.16%
Revenue Next 3Y-0.26%
Revenue Next 5Y2.94%
EBIT growth 1Y54.61%
EBIT growth 3Y6.12%
EBIT growth 5Y12.59%
EBIT Next Year108.29%
EBIT Next 3Y29.83%
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%