AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
NYSE:AMT - New York Stock Exchange, Inc. - US03027X1000 - REIT - Currency: USD
Taking everything into account, AMT scores 3 out of 10 in our fundamental rating. AMT was compared to 30 industry peers in the Specialized REITs industry. AMT has a medium profitability rating, but doesn't score so well on its financial health evaluation. AMT does not seem to be growing, but still is valued 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
AMT's Return On Assets of 2.03% is in line compared to the rest of the industry. AMT outperforms 53.33% of its industry peers.
With an excellent Return On Equity value of 34.82%, AMT belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
AMT's Return On Invested Capital of 6.37% is fine compared to the rest of the industry. AMT outperforms 80.00% 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 5.20%.
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
AMT has a Profit Margin of 12.60%. This is comparable to the rest of the industry: AMT outperforms 53.33% of its industry peers.
AMT's Profit Margin has declined in the last couple of years.
The Operating Margin of AMT (45.53%) is better than 73.33% of its industry peers.
In the last couple of years the Operating Margin of AMT has grown nicely.
AMT has a Gross Margin of 74.37%. This is comparable to the rest of the industry: AMT outperforms 60.00% 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
AMT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AMT has more shares outstanding
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 1.23, we must say that AMT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AMT (1.23) is comparable to the rest of the 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.
With a decent Debt to FCF ratio value of 10.02, AMT is doing good in the industry, outperforming 76.67% of the companies in the same industry.
AMT has a Debt/Equity ratio of 9.48. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 9.48, AMT is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.48 | ||
| Debt/FCF | 10.02 | ||
| Altman-Z | 1.23 |
ROIC/WACC0.86
WACC7.39%
2.3 Liquidity
A Current Ratio of 0.61 indicates that AMT may have some problems paying its short term obligations.
AMT's Current ratio of 0.61 is in line compared to the rest of the industry. AMT outperforms 46.67% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.61, AMT is in line with its industry, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.19% over the past year.
AMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.80% yearly.
Looking at the last year, AMT shows a small growth in Revenue. The Revenue has grown by 2.24% in the last year.
The Revenue has been growing slightly by 5.96% on average over the past years.
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 5.21% yearly.
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-15.66%
EPS Next 2Y-1.01%
EPS Next 3Y1.72%
EPS Next 5Y5.21%
Revenue Next Year-1.55%
Revenue Next 2Y1.56%
Revenue Next 3Y2.59%
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
A Price/Earnings ratio of 39.19 indicates a quite expensive valuation of AMT.
AMT's Price/Earnings ratio is in line with the industry average.
AMT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.03.
AMT is valuated quite expensively with a Price/Forward Earnings ratio of 28.85.
Based on the Price/Forward Earnings ratio, AMT is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
AMT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.19 | ||
| Fwd PE | 28.85 |
4.2 Price Multiples
63.33% of the companies in the same industry are cheaper than AMT, based on the Enterprise Value to EBITDA ratio.
AMT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.15 | ||
| EV/EBITDA | 20 |
4.3 Compensation for Growth
The decent profitability rating of AMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.32
EPS Next 2Y-1.01%
EPS Next 3Y1.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.12%, AMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.90, AMT is paying slightly less dividend.
AMT's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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.
AMT has decreased its dividend 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-1.01%
EPS Next 3Y1.72%
208.9
-1.15 (-0.55%)
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 Change-0.43%
Ins Owners0.06%
Ins Owner Change3.98%
Market Cap97.82B
Analysts80.71
Price Target254.04 (21.61%)
Short Float %1.28%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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)0.98%
PT rev (3m)5.91%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)1.75%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-4%
Revenue NQ rev (1m)2.06%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.19 | ||
| Fwd PE | 28.85 | ||
| P/S | 9.53 | ||
| P/FCF | 26.15 | ||
| P/OCF | 18.65 | ||
| P/B | 26.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20 |
EPS(TTM)5.33
EY2.55%
EPS(NY)7.24
Fwd EY3.47%
FCF(TTM)7.99
FCFY3.82%
OCF(TTM)11.2
OCFY5.36%
SpS21.91
BVpS7.93
TBVpS-50.18
PEG (NY)N/A
PEG (5Y)3.32
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 | 1.23 |
F-Score5
WACC7.39%
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-15.66%
EPS Next 2Y-1.01%
EPS Next 3Y1.72%
EPS Next 5Y5.21%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y2.67%
Revenue growth 5Y5.96%
Sales Q2Q%-9.43%
Revenue Next Year-1.55%
Revenue Next 2Y1.56%
Revenue Next 3Y2.59%
Revenue Next 5Y4.37%
EBIT growth 1Y19.68%
EBIT growth 3Y9.08%
EBIT growth 5Y10%
EBIT Next Year48.58%
EBIT Next 3Y17.77%
EBIT Next 5Y13.36%
FCF growth 1Y56.07%
FCF growth 3Y2.43%
FCF growth 5Y6.03%
OCF growth 1Y19.28%
OCF growth 3Y3.15%
OCF growth 5Y7.11%