AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
NYSE:AMT - New York Stock Exchange, Inc. - US03027X1000 - REIT - Currency: USD
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 has an excellent profitability rating, but there are concerns on its financial health. AMT is valied quite expensively at the moment, while it does show a decent growth rate.
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'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.
The Average Return On Invested Capital over the past 3 years for AMT 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
The Profit Margin of AMT (21.62%) is better than 66.67% of its industry peers.
AMT's Profit Margin has declined in the last couple of years.
The Operating Margin of AMT (45.47%) is better than 73.33% of its industry peers.
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
AMT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AMT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AMT has more shares outstanding
Compared to 1 year ago, AMT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.40, 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 1.40, AMT is in line with its industry, outperforming 60.00% of the companies in the same industry.
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.
AMT has a Debt to FCF ratio of 9.76. This is in the better half of the industry: AMT outperforms 76.67% of its industry peers.
A Debt/Equity ratio of 9.63 is on the high side and indicates that AMT has dependencies on debt financing.
AMT has a Debt to Equity ratio of 9.63. This is amonst the worse of the industry: AMT underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.63 | ||
| Debt/FCF | 9.76 | ||
| Altman-Z | 1.4 |
ROIC/WACC1.09
WACC7.47%
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 of 0.55. This is comparable to the rest of the industry: AMT outperforms 43.33% of its industry peers.
A Quick Ratio of 0.55 indicates that AMT may have some problems paying its short term obligations.
With a Quick ratio value of 0.55, AMT perfoms like the industry average, 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.
AMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.97% yearly.
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
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
The Price/Earnings ratio is 33.73, which means the current valuation is very expensive for AMT.
Compared to the rest of the industry, the Price/Earnings ratio of AMT is on the same level as its industry peers.
AMT is valuated rather expensively when we compare the Price/Earnings ratio to 26.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 30.17, which means the current valuation is very expensive for AMT.
The rest of the industry has a similar Price/Forward Earnings ratio as AMT.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, AMT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.73 | ||
| Fwd PE | 30.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMT is valued a bit 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 | 27.05 | ||
| EV/EBITDA | 17.44 |
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)2.86
EPS Next 2Y-1.06%
EPS Next 3Y1.73%
5. Dividend
5.1 Amount
AMT has a Yearly Dividend Yield of 3.05%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 3.05, AMT pays less dividend than the industry average, which is at 5.88. 80.00% of the companies listed in the same industry pay a better dividend than AMT!
AMT's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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.
The dividend of AMT decreased 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.
The dividend of AMT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP110.85%
EPS Next 2Y-1.06%
EPS Next 3Y1.73%
NYSE:AMT (6/30/2025, 10:19:03 AM)
218.26
+0.48 (+0.22%)
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 Cap102.18B
Analysts81.43
Price Target250.92 (14.96%)
Short Float %1.11%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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 | 33.73 | ||
| Fwd PE | 30.17 | ||
| P/S | 8.05 | ||
| P/FCF | 27.05 | ||
| P/OCF | 19.27 | ||
| P/B | 28.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.44 |
EPS(TTM)6.47
EY2.96%
EPS(NY)7.23
Fwd EY3.31%
FCF(TTM)8.07
FCFY3.7%
OCF(TTM)11.33
OCFY5.19%
SpS27.11
BVpS7.55
TBVpS-49.19
PEG (NY)N/A
PEG (5Y)2.86
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 | 1.4 |
F-Score6
WACC7.47%
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%