AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
NYSE:AMT - New York Stock Exchange, Inc. - US03027X1000 - REIT - Currency: USD
Overall AMT gets a fundamental rating of 4 out of 10. We evaluated AMT against 30 industry peers in the Specialized REITs industry. AMT scores excellent on profitability, but 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
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.
In the past 5 years AMT always reported a positive cash flow from operatings.
1.2 Ratios
AMT's Return On Assets of 4.42% is fine compared to the rest of the industry. AMT outperforms 70.00% of its industry peers.
AMT has a better Return On Equity (77.62%) than 100.00% of its industry peers.
The Return On Invested Capital of AMT (8.18%) is better than 86.67% of its industry peers.
AMT had an Average Return On Invested Capital over the past 3 years of 5.30%. This is in line with the industry average of 5.28%.
The 3 year average ROIC (5.30%) for AMT is below the current ROIC(8.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.42% | ||
| ROE | 77.62% | ||
| ROIC | 8.18% |
ROA(3y)2.86%
ROA(5y)3.16%
ROE(3y)44.57%
ROE(5y)45.11%
ROIC(3y)5.3%
ROIC(5y)5.24%
1.3 Margins
Looking at the Profit Margin, with a value of 21.62%, AMT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
AMT's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 45.47%, AMT is doing good in the industry, outperforming 73.33% of the companies in the same industry.
In the last couple of years the Operating Margin of AMT has grown nicely.
The Gross Margin of AMT (74.71%) is better 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 | 45.47% | ||
| PM (TTM) | 21.62% | ||
| GM | 74.71% |
OM growth 3Y6.37%
OM growth 5Y3.89%
PM growth 3Y-6.73%
PM growth 5Y-2.22%
GM growth 3Y1.49%
GM growth 5Y1.06%
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.
The number of shares outstanding for AMT has been increased compared to 1 year ago.
Compared to 5 years ago, AMT has more shares outstanding
AMT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that AMT is in the distress zone and has some risk of bankruptcy.
AMT has a Altman-Z score (1.41) which is in line with its industry peers.
The Debt to FCF ratio of AMT is 9.76, which is on the high side as it means it would take AMT, 9.76 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 9.76, AMT is doing good in the industry, outperforming 76.67% of the companies in the same industry.
AMT has a Debt/Equity ratio of 9.63. This is a high value indicating a heavy dependency on external financing.
AMT's Debt to Equity ratio of 9.63 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 | 9.63 | ||
| Debt/FCF | 9.76 | ||
| Altman-Z | 1.41 |
ROIC/WACC1.09
WACC7.5%
2.3 Liquidity
A Current Ratio of 0.55 indicates that AMT may have some problems paying its short term obligations.
AMT has a Current ratio (0.55) which is in line with its industry peers.
AMT has a Quick Ratio of 0.55. 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 Quick ratio, with a value of 0.55, AMT is in line with its industry, outperforming 43.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
AMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.38%, which is quite impressive.
The Earnings Per Share has been growing by 11.80% on average over the past years. This is quite good.
Looking at the last year, AMT shows a quite strong growth in Revenue. The Revenue has grown by 13.19% in the last year.
The Revenue has been growing slightly by 5.97% on average over the past years.
EPS 1Y (TTM)46.38%
EPS 3Y9.23%
EPS 5Y11.8%
EPS Q2Q%-46.94%
Revenue 1Y (TTM)13.19%
Revenue growth 3Y2.67%
Revenue growth 5Y5.97%
Sales Q2Q%-9.57%
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 5.21% on average per year.
Based on estimates for the next years, AMT will show a small growth in Revenue. The Revenue will grow by 4.37% on average per year.
EPS Next Y-15.2%
EPS Next 2Y-1.06%
EPS Next 3Y1.73%
EPS Next 5Y5.21%
Revenue Next Year-1.89%
Revenue Next 2Y1.36%
Revenue Next 3Y2.54%
Revenue Next 5Y4.37%
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
Based on the Price/Earnings ratio of 34.27, the valuation of AMT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AMT is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.45, AMT is valued a bit more expensive.
A Price/Forward Earnings ratio of 30.65 indicates a quite expensive valuation of AMT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMT indicates a somewhat cheap valuation: AMT is cheaper than 63.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. AMT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.27 | ||
| Fwd PE | 30.65 |
4.2 Price Multiples
AMT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AMT is cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.48 | ||
| EV/EBITDA | 17.68 |
4.3 Compensation for Growth
The decent profitability rating of AMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.9
EPS Next 2Y-1.06%
EPS Next 3Y1.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.99%, AMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.78, AMT's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than AMT!
Compared to an average S&P500 Dividend Yield of 2.38, AMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
The dividend of AMT is nicely growing with an annual growth rate of 12.68%!
AMT has paid a dividend for at least 10 years, which is a reliable track record.
AMT has decreased its dividend recently.
Dividend Growth(5Y)12.68%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
110.85% of the earnings are spent on dividend by AMT. This is not a sustainable payout ratio.
AMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP110.85%
EPS Next 2Y-1.06%
EPS Next 3Y1.73%
221.75
-1.08 (-0.48%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.74%
Inst Owner Change1.74%
Ins Owners0.06%
Ins Owner Change3.99%
Market Cap103.81B
Analysts81.43
Price Target250.92 (13.15%)
Short Float %1.39%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend6.59
Dividend Growth(5Y)12.68%
DP110.85%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.57%
Min EPS beat(2)-35.96%
Max EPS beat(2)49.1%
EPS beat(4)2
Avg EPS beat(4)-2.52%
Min EPS beat(4)-44.01%
Max EPS beat(4)49.1%
EPS beat(8)4
Avg EPS beat(8)-9.98%
EPS beat(12)6
Avg EPS beat(12)-16.26%
EPS beat(16)9
Avg EPS beat(16)-7.13%
Revenue beat(2)0
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-0.33%
Max Revenue beat(2)-0.08%
Revenue beat(4)1
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-9.43%
Max Revenue beat(4)1.73%
Revenue beat(8)5
Avg Revenue beat(8)-0.69%
Revenue beat(12)7
Avg Revenue beat(12)-0.49%
Revenue beat(16)11
Avg Revenue beat(16)-0.01%
PT rev (1m)0.6%
PT rev (3m)8.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.56%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-3.09%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.27 | ||
| Fwd PE | 30.65 | ||
| P/S | 8.18 | ||
| P/FCF | 27.48 | ||
| P/OCF | 19.58 | ||
| P/B | 29.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.68 |
EPS(TTM)6.47
EY2.92%
EPS(NY)7.23
Fwd EY3.26%
FCF(TTM)8.07
FCFY3.64%
OCF(TTM)11.33
OCFY5.11%
SpS27.11
BVpS7.55
TBVpS-49.19
PEG (NY)N/A
PEG (5Y)2.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.42% | ||
| ROE | 77.62% | ||
| ROCE | 10.35% | ||
| ROIC | 8.18% | ||
| ROICexc | 8.5% | ||
| ROICexgc | 16.84% | ||
| OM | 45.47% | ||
| PM (TTM) | 21.62% | ||
| GM | 74.71% | ||
| FCFM | 29.77% |
ROA(3y)2.86%
ROA(5y)3.16%
ROE(3y)44.57%
ROE(5y)45.11%
ROIC(3y)5.3%
ROIC(5y)5.24%
ROICexc(3y)5.49%
ROICexc(5y)5.44%
ROICexgc(3y)11.4%
ROICexgc(5y)11.51%
ROCE(3y)6.71%
ROCE(5y)6.64%
ROICexcg growth 3Y7.83%
ROICexcg growth 5Y1.68%
ROICexc growth 3Y13.82%
ROICexc growth 5Y2.17%
OM growth 3Y6.37%
OM growth 5Y3.89%
PM growth 3Y-6.73%
PM growth 5Y-2.22%
GM growth 3Y1.49%
GM growth 5Y1.06%
F-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.63 | ||
| Debt/FCF | 9.76 | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 73.72% | ||
| Cap/Sales | 12.01% | ||
| Interest Coverage | 4.27 | ||
| Cash Conversion | 67.64% | ||
| Profit Quality | 137.68% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 1.41 |
F-Score6
WACC7.5%
ROIC/WACC1.09
Cap/Depr(3y)62.98%
Cap/Depr(5y)60.55%
Cap/Sales(3y)17.05%
Cap/Sales(5y)15.74%
Profit Quality(3y)154.82%
Profit Quality(5y)153.41%
High Growth Momentum
Growth
EPS 1Y (TTM)46.38%
EPS 3Y9.23%
EPS 5Y11.8%
EPS Q2Q%-46.94%
EPS Next Y-15.2%
EPS Next 2Y-1.06%
EPS Next 3Y1.73%
EPS Next 5Y5.21%
Revenue 1Y (TTM)13.19%
Revenue growth 3Y2.67%
Revenue growth 5Y5.97%
Sales Q2Q%-9.57%
Revenue Next Year-1.89%
Revenue Next 2Y1.36%
Revenue Next 3Y2.54%
Revenue Next 5Y4.37%
EBIT growth 1Y47.42%
EBIT growth 3Y9.21%
EBIT growth 5Y10.09%
EBIT Next Year47.07%
EBIT Next 3Y17.75%
EBIT Next 5Y13.36%
FCF growth 1Y75.4%
FCF growth 3Y2.43%
FCF growth 5Y6.03%
OCF growth 1Y29.22%
OCF growth 3Y3.15%
OCF growth 5Y7.11%