AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
USA - NYSE:AMT - US03027X1000 - REIT
182.72 USD
-7.01 (-3.69%)
182.5 USD
-0.22 (-0.12%)
We assign a fundamental rating of 4 out of 10 to AMT. AMT was compared to 30 industry peers in the Specialized REITs industry. AMT scores excellent on profitability, but 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
In the past year AMT was profitable.
AMT had a positive operating cash flow in the past year.
In the past 5 years AMT has always been profitable.
In the past 5 years AMT always reported a positive cash flow from operatings.
1.2 Ratios
AMT has a Return On Assets of 2.03%. This is comparable to the rest of the industry: AMT outperforms 53.33% of its industry peers.
AMT has a Return On Equity of 34.82%. This is amongst the best in the industry. AMT outperforms 96.67% of its industry peers.
AMT's Return On Invested Capital of 6.37% is amongst the best of the industry. AMT outperforms 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 4.79%.
The 3 year average ROIC (5.18%) for AMT is below the current ROIC(6.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 34.82% | ||
| ROIC | 6.37% |
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 (12.60%) is comparable to the rest of the industry.
AMT's Profit Margin has declined in the last couple of years.
AMT has a better Operating Margin (45.53%) than 76.67% of its industry peers.
AMT's Operating Margin has improved in the last couple of years.
The Gross Margin of AMT (74.37%) is better than 63.33% of its industry peers.
AMT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.53% | ||
| PM (TTM) | 12.6% | ||
| GM | 74.37% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
Based on the Altman-Z score of 1.10, we must say that AMT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.10, AMT is in line with its industry, outperforming 56.67% of the companies in the same industry.
The Debt to FCF ratio of AMT is 10.02, which is on the high side as it means it would take AMT, 10.02 years of fcf income to pay off all of its debts.
AMT's Debt to FCF ratio of 10.02 is fine compared to the rest of the industry. AMT outperforms 73.33% of its industry peers.
AMT has a Debt/Equity ratio of 9.48. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 9.48, AMT is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.48 | ||
| Debt/FCF | 10.02 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.88
WACC7.28%
2.3 Liquidity
AMT has a Current Ratio of 0.61. This is a bad value and indicates that AMT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.61, AMT is in line with its industry, outperforming 46.67% of the companies in the same industry.
AMT has a Quick Ratio of 0.61. 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 0.61 is in line compared to the rest of the industry. AMT outperforms 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.86% 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.
AMT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.15%.
The Revenue has been growing slightly by 5.96% on average over the past years.
EPS 1Y (TTM)45.86%
EPS 3Y9.23%
EPS 5Y11.8%
EPS Q2Q%212.36%
Revenue 1Y (TTM)1.15%
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 3.64% yearly.
AMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.50% yearly.
EPS Next Y-27.7%
EPS Next 2Y-1.93%
EPS Next 3Y0.87%
EPS Next 5Y3.64%
Revenue Next Year-0.38%
Revenue Next 2Y1.99%
Revenue Next 3Y2.81%
Revenue Next 5Y4.5%
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.
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
A Price/Earnings ratio of 25.31 indicates a quite expensive valuation of AMT.
AMT's Price/Earnings ratio is a bit cheaper when compared to the industry. AMT is cheaper than 70.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.00. AMT is around the same levels.
AMT is valuated quite expensively with a Price/Forward Earnings ratio of 25.71.
AMT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMT is cheaper than 70.00% of the companies in the same industry.
AMT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 25.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMT is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AMT is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.87 | ||
| EV/EBITDA | 18.09 |
4.3 Compensation for Growth
The decent profitability rating of AMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.14
EPS Next 2Y-1.93%
EPS Next 3Y0.87%
5. Dividend
5.1 Amount
AMT has a Yearly Dividend Yield of 3.54%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.77, AMT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.31, AMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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.
The dividend of AMT decreased recently.
Dividend Growth(5Y)12.67%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
238.27% 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.
DP238.27%
EPS Next 2Y-1.93%
EPS Next 3Y0.87%
182.72
-7.01 (-3.69%)
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 Change-0.13%
Ins Owners0.05%
Ins Owner Change-0.05%
Market Cap85.56B
Revenue(TTM)10.13B
Net Income(TTM)1.29B
Analysts80.74
Price Target243.16 (33.08%)
Short Float %1.05%
Short Ratio1.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend6.59
Dividend Growth(5Y)12.67%
DP238.27%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-44.78%
Min EPS beat(2)-53.6%
Max EPS beat(2)-35.96%
EPS beat(4)1
Avg EPS beat(4)-21.12%
Min EPS beat(4)-53.6%
Max EPS beat(4)49.1%
EPS beat(8)4
Avg EPS beat(8)-15.67%
EPS beat(12)5
Avg EPS beat(12)-29.18%
EPS beat(16)8
Avg EPS beat(16)-12.17%
Revenue beat(2)1
Avg Revenue beat(2)0.05%
Min Revenue beat(2)-0.08%
Max Revenue beat(2)0.19%
Revenue beat(4)1
Avg Revenue beat(4)-2.41%
Min Revenue beat(4)-9.43%
Max Revenue beat(4)0.19%
Revenue beat(8)5
Avg Revenue beat(8)-0.74%
Revenue beat(12)7
Avg Revenue beat(12)-3.76%
Revenue beat(16)11
Avg Revenue beat(16)-2.66%
PT rev (1m)0%
PT rev (3m)0.19%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-1.54%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-14.28%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 25.71 | ||
| P/S | 8.34 | ||
| P/FCF | 22.87 | ||
| P/OCF | 16.31 | ||
| P/B | 23.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.09 |
EPS(TTM)7.22
EY3.95%
EPS(NY)7.11
Fwd EY3.89%
FCF(TTM)7.99
FCFY4.37%
OCF(TTM)11.2
OCFY6.13%
SpS21.91
BVpS7.93
TBVpS-50.18
PEG (NY)N/A
PEG (5Y)2.14
Graham Number35.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 34.82% | ||
| ROCE | 8.07% | ||
| ROIC | 6.37% | ||
| ROICexc | 6.61% | ||
| ROICexgc | 12.9% | ||
| OM | 45.53% | ||
| PM (TTM) | 12.6% | ||
| GM | 74.37% | ||
| FCFM | 36.46% |
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-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.48 | ||
| Debt/FCF | 10.02 | ||
| Debt/EBITDA | 5.26 | ||
| Cap/Depr | 74.57% | ||
| Cap/Sales | 14.66% | ||
| Interest Coverage | 3.58 | ||
| Cash Conversion | 78.43% | ||
| Profit Quality | 289.38% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 1.1 |
F-Score5
WACC7.28%
ROIC/WACC0.88
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)45.86%
EPS 3Y9.23%
EPS 5Y11.8%
EPS Q2Q%212.36%
EPS Next Y-27.7%
EPS Next 2Y-1.93%
EPS Next 3Y0.87%
EPS Next 5Y3.64%
Revenue 1Y (TTM)1.15%
Revenue growth 3Y2.67%
Revenue growth 5Y5.96%
Sales Q2Q%7.74%
Revenue Next Year-0.38%
Revenue Next 2Y1.99%
Revenue Next 3Y2.81%
Revenue Next 5Y4.5%
EBIT growth 1Y19.68%
EBIT growth 3Y9.08%
EBIT growth 5Y10%
EBIT Next Year49.02%
EBIT Next 3Y17.59%
EBIT Next 5Y13.43%
FCF growth 1Y56.07%
FCF growth 3Y2.43%
FCF growth 5Y6.03%
OCF growth 1Y19.28%
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 -27.7% in the next year.