AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
USA - NYSE:AMT - US03027X1000 - REIT
194.28 USD
+1.07 (+0.55%)
194.28 USD
0 (0%)
Taking everything into account, AMT scores 4 out of 10 in our fundamental rating. AMT was compared to 29 industry peers in the Specialized REITs industry. AMT has an excellent profitability rating, but there are concerns on its financial health. AMT has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
AMT had positive earnings in the past year.
In the past year AMT had a positive cash flow from operations.
AMT had positive earnings in each of the past 5 years.
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 51.72% of its industry peers.
AMT has a Return On Equity of 34.82%. This is amongst the best in the industry. AMT outperforms 96.55% of its industry peers.
With an excellent Return On Invested Capital value of 6.37%, AMT belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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
With a Profit Margin value of 12.60%, AMT perfoms like the industry average, outperforming 51.72% 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 45.53%, AMT is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
AMT's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 74.37%, AMT is doing good in the industry, outperforming 62.07% 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 | 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.
Compared to 1 year ago, AMT has more shares outstanding
AMT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AMT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that AMT is in the distress zone and has some risk of bankruptcy.
AMT has a Altman-Z score (1.16) which is in line with its industry peers.
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.
The Debt to FCF ratio of AMT (10.02) is better than 75.86% 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.
AMT has a worse Debt to Equity ratio (9.48) than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.48 | ||
| Debt/FCF | 10.02 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.86
WACC7.38%
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.
AMT has a Current ratio (0.61) which is comparable to the rest of the industry.
A Quick Ratio of 0.61 indicates that AMT may have some problems paying its short term obligations.
AMT has a Quick ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
AMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.19%.
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 small growth in Revenue. The Revenue has grown by 2.24% in the last year.
Measured over the past years, AMT shows a small growth in Revenue. The Revenue has been growing by 5.96% on average per year.
EPS 1Y (TTM)0.19%
EPS 3Y9.23%
EPS 5Y11.8%
EPS Q2Q%-59.37%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y2.67%
Revenue growth 5Y5.96%
Sales Q2Q%-9.43%
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.
Based on estimates for the next years, AMT will show a small growth in Revenue. The Revenue will grow by 4.50% on average per year.
EPS Next Y-26.2%
EPS Next 2Y-1.58%
EPS Next 3Y0.98%
EPS Next 5Y3.64%
Revenue Next Year-0.16%
Revenue Next 2Y2.13%
Revenue Next 3Y2.86%
Revenue Next 5Y4.5%
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
A Price/Earnings ratio of 36.45 indicates a quite expensive valuation of AMT.
AMT's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of AMT to the average of the S&P500 Index (27.41), we can say AMT is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 27.14, the valuation of AMT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMT indicates a somewhat cheap valuation: AMT is cheaper than 62.07% 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 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.45 | ||
| Fwd PE | 27.14 |
4.2 Price Multiples
AMT's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, AMT is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.32 | ||
| EV/EBITDA | 18.9 |
4.3 Compensation for Growth
The decent profitability rating of AMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.09
EPS Next 2Y-1.58%
EPS Next 3Y0.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.48%, AMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.04, AMT is paying slightly less dividend.
AMT's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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.
AMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP238.27%
EPS Next 2Y-1.58%
EPS Next 3Y0.98%
194.28
+1.07 (+0.55%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.96%
Inst Owner Change-1.59%
Ins Owners0.06%
Ins Owner Change-0.05%
Market Cap90.97B
Analysts80.74
Price Target253.87 (30.67%)
Short Float %1.23%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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)-0.07%
PT rev (3m)1.17%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.97%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)2.79%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.45 | ||
| Fwd PE | 27.14 | ||
| P/S | 8.87 | ||
| P/FCF | 24.32 | ||
| P/OCF | 17.34 | ||
| P/B | 24.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.9 |
EPS(TTM)5.33
EY2.74%
EPS(NY)7.16
Fwd EY3.68%
FCF(TTM)7.99
FCFY4.11%
OCF(TTM)11.2
OCFY5.77%
SpS21.91
BVpS7.93
TBVpS-50.18
PEG (NY)N/A
PEG (5Y)3.09
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%
ROICexcg growth 3Y7.7%
ROICexcg 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 | 1.16 |
F-Score5
WACC7.38%
ROIC/WACC0.86
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)0.19%
EPS 3Y9.23%
EPS 5Y11.8%
EPS Q2Q%-59.37%
EPS Next Y-26.2%
EPS Next 2Y-1.58%
EPS Next 3Y0.98%
EPS Next 5Y3.64%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y2.67%
Revenue growth 5Y5.96%
Sales Q2Q%-9.43%
Revenue Next Year-0.16%
Revenue Next 2Y2.13%
Revenue Next 3Y2.86%
Revenue Next 5Y4.5%
EBIT growth 1Y19.68%
EBIT growth 3Y9.08%
EBIT growth 5Y10%
EBIT Next Year48.58%
EBIT Next 3Y17.77%
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%