AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMT - US03027X1000 - REIT
178.75 USD
+1.8 (+1.02%)
178.947 USD
+0.2 (+0.11%)
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 has a decent growth rate and is not valued too expensively.
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.
- Each year in the past 5 years AMT has been profitable.
- Each year in the past 5 years AMT had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.60%, AMT is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- The Return On Equity of AMT (74.34%) is better than 100.00% of its industry peers.
- The Return On Invested Capital of AMT (6.50%) is better than 83.33% of its industry peers.
- AMT had an Average Return On Invested Capital over the past 3 years of 5.18%. This is in line with the industry average of 4.86%.
- The 3 year average ROIC (5.18%) for AMT is below the current ROIC(6.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 74.34% | ||
| ROIC | 6.5% |
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
- Looking at the Profit Margin, with a value of 28.11%, 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.
- The Operating Margin of AMT (45.58%) is better than 76.67% of its industry peers.
- AMT's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 74.29%, AMT is in the better half of the industry, outperforming 63.33% 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 | 45.58% | ||
| PM (TTM) | 28.11% | ||
| GM | 74.29% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AMT is destroying value.
- AMT has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for AMT has been increased compared to 5 years ago.
- The debt/assets ratio for AMT is higher compared to a year ago.
2.2 Solvency
- AMT has an Altman-Z score of 1.08. This is a bad value and indicates that AMT is not financially healthy and even has some risk of bankruptcy.
- AMT's Altman-Z score of 1.08 is in line compared to the rest of the industry. AMT outperforms 56.67% of its industry peers.
- AMT has a debt to FCF ratio of 10.09. This is a negative value and a sign of low solvency as AMT would need 10.09 years to pay back of all of its debts.
- AMT has a Debt to FCF ratio of 10.09. This is in the better half of the industry: AMT outperforms 70.00% of its industry peers.
- A Debt/Equity ratio of 8.82 is on the high side and indicates that AMT has dependencies on debt financing.
- AMT has a Debt to Equity ratio of 8.82. This is in the lower half of the industry: AMT underperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.82 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.86
WACC7.58%
2.3 Liquidity
- A Current Ratio of 0.59 indicates that AMT may have some problems paying its short term obligations.
- AMT has a Current ratio of 0.59. This is comparable to the rest of the industry: AMT outperforms 43.33% of its industry peers.
- AMT has a Quick Ratio of 0.59. This is a bad value and indicates that AMT is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of AMT (0.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 26.46% 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 4.18%.
- AMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.96% yearly.
EPS 1Y (TTM)26.46%
EPS 3Y9.23%
EPS 5Y11.8%
EPS Q2Q%104.49%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y2.67%
Revenue growth 5Y5.96%
Sales Q2Q%7.74%
3.2 Future
- The Earnings Per Share is expected to grow by 3.38% on average over the next years.
- Based on estimates for the next years, AMT will show a small growth in Revenue. The Revenue will grow by 4.57% on average per year.
EPS Next Y-27.71%
EPS Next 2Y-2.82%
EPS Next 3Y0.25%
EPS Next 5Y3.38%
Revenue Next Year0.6%
Revenue Next 2Y1.99%
Revenue Next 3Y2.74%
Revenue Next 5Y4.57%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- With a Price/Earnings ratio of 28.55, AMT can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, AMT is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of AMT to the average of the S&P500 Index (27.21), we can say AMT is valued inline with the index average.
- A Price/Forward Earnings ratio of 25.61 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 70.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, AMT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.55 | ||
| Fwd PE | 25.61 |
4.2 Price Multiples
- AMT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AMT is cheaper than 63.33% of the companies in the same industry.
- 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 | 22.67 | ||
| EV/EBITDA | 17.39 |
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)2.42
EPS Next 2Y-2.82%
EPS Next 3Y0.25%
5. Dividend
5.1 Amount
- AMT has a Yearly Dividend Yield of 3.84%. Purely for dividend investing, there may be better candidates out there.
- AMT's Dividend Yield is slightly below the industry average, which is at 5.51.
- Compared to an average S&P500 Dividend Yield of 1.81, AMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
5.2 History
- On average, the dividend of AMT grows each year by 12.67%, which is quite nice.
- 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
- AMT pays out 106.15% of its income as dividend. 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.
DP106.15%
EPS Next 2Y-2.82%
EPS Next 3Y0.25%
AMERICAN TOWER CORP / AMT FAQ
What is the fundamental rating for AMT stock?
ChartMill assigns a fundamental rating of 4 / 10 to AMT.
What is the valuation status for AMT stock?
ChartMill assigns a valuation rating of 4 / 10 to AMERICAN TOWER CORP (AMT). This can be considered as Fairly Valued.
Can you provide the profitability details for AMERICAN TOWER CORP?
AMERICAN TOWER CORP (AMT) has a profitability rating of 7 / 10.
What are the PE and PB ratios of AMERICAN TOWER CORP (AMT) stock?
The Price/Earnings (PE) ratio for AMERICAN TOWER CORP (AMT) is 28.55 and the Price/Book (PB) ratio is 21.17.
Can you provide the expected EPS growth for AMT stock?
The Earnings per Share (EPS) of AMERICAN TOWER CORP (AMT) is expected to decline by -27.71% in the next year.