AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
NYSE:AMT - US03027X1000 - REIT
207.45 USD
-3.67 (-1.74%)
207.214 USD
-0.24 (-0.11%)
AMT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. AMT scores excellent on profitability, but there are concerns on its financial health. 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.
In the past year AMT had a positive cash flow from operations.
Each year in the past 5 years AMT has been profitable.
AMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AMT (2.03%) is comparable to the rest of the industry.
With an excellent Return On Equity value of 34.82%, AMT belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.37%, AMT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMT is in line with the industry average of 5.07%.
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
The Profit Margin of AMT (12.60%) is comparable to the rest of the industry.
AMT's Profit Margin has declined in the last couple of years.
AMT has a better Operating Margin (45.53%) than 73.33% of its industry peers.
In the last couple of years the Operating Margin of AMT has grown nicely.
With a decent Gross Margin value of 74.37%, AMT is doing good in the industry, outperforming 63.33% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AMT is destroying value.
Compared to 1 year ago, AMT has more shares outstanding
The number of shares outstanding for AMT has been increased compared to 5 years ago.
Compared to 1 year ago, AMT has a worse debt to assets ratio.
2.2 Solvency
AMT has an Altman-Z score of 1.22. 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 1.22 is in line compared to the rest of the industry. AMT outperforms 56.67% of 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.
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.
A Debt/Equity ratio of 9.48 is on the high side and indicates that AMT has dependencies on debt financing.
AMT's Debt to Equity ratio of 9.48 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 | 9.48 | ||
| Debt/FCF | 10.02 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.85
WACC7.47%
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 in line with its industry peers.
A Quick Ratio of 0.61 indicates that AMT may have some problems paying 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
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.
AMT shows a small growth in Revenue. In the last year, the Revenue has grown by 2.24%.
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
The Earnings Per Share is expected to grow by 3.64% 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 4.50% 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-0.39%
Revenue Next 2Y2.04%
Revenue Next 3Y2.83%
Revenue Next 5Y4.5%
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.
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
AMT is valuated quite expensively with a Price/Earnings ratio of 38.92.
AMT's Price/Earnings ratio is in line with the industry average.
AMT is valuated rather expensively when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
AMT is valuated quite expensively with a Price/Forward Earnings ratio of 28.98.
AMT's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, AMT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.92 | ||
| Fwd PE | 28.98 |
4.2 Price Multiples
AMT's Enterprise Value to EBITDA is on the same level as the industry average.
AMT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.97 | ||
| EV/EBITDA | 19.82 |
4.3 Compensation for Growth
The decent profitability rating of AMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.3
EPS Next 2Y-1.58%
EPS Next 3Y0.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.17%, AMT has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.17, AMT pays less dividend than the industry average, which is at 6.02. 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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.
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-1.58%
EPS Next 3Y0.98%
207.45
-3.67 (-1.74%)
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-1.6%
Ins Owners0.06%
Ins Owner Change3.98%
Market Cap97.14B
Analysts80.71
Price Target254.26 (22.56%)
Short Float %1.17%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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)0.34%
PT rev (3m)1.94%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)-12.5%
EPS NY rev (3m)-12.96%
Revenue NQ rev (1m)1.98%
Revenue NQ rev (3m)3.24%
Revenue NY rev (1m)1.41%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.92 | ||
| Fwd PE | 28.98 | ||
| P/S | 9.47 | ||
| P/FCF | 25.97 | ||
| P/OCF | 18.52 | ||
| P/B | 26.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.82 |
EPS(TTM)5.33
EY2.57%
EPS(NY)7.16
Fwd EY3.45%
FCF(TTM)7.99
FCFY3.85%
OCF(TTM)11.2
OCFY5.4%
SpS21.91
BVpS7.93
TBVpS-50.18
PEG (NY)N/A
PEG (5Y)3.3
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 | 1.22 |
F-Score5
WACC7.47%
ROIC/WACC0.85
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-0.39%
Revenue Next 2Y2.04%
Revenue Next 3Y2.83%
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%