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 scores excellent on profitability, but there are concerns on its financial health. AMT is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years AMT always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.42%, AMT is doing good in the industry, outperforming 70.00% of the companies in the same industry.
The Return On Equity of AMT (77.62%) is better than 100.00% of its industry peers.
AMT's Return On Invested Capital of 8.18% is amongst the best of the industry. AMT outperforms 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 last Return On Invested Capital (8.18%) for AMT is above the 3 year average (5.30%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 21.62%, 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.
Looking at the Operating Margin, with a value of 45.47%, AMT is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
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.
AMT's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AMT is creating some value.
Compared to 1 year ago, AMT has more shares outstanding
Compared to 5 years ago, AMT has more shares outstanding
AMT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.37, 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 1.37, AMT is in line with its industry, outperforming 60.00% of the companies in the same industry.
AMT has a debt to FCF ratio of 9.76. This is a negative value and a sign of low solvency as AMT would need 9.76 years to pay back of all of its debts.
The Debt to FCF ratio of AMT (9.76) is better than 76.67% of its industry peers.
AMT has a Debt/Equity ratio of 9.63. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AMT (9.63) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.63 | ||
| Debt/FCF | 9.76 | ||
| Altman-Z | 1.37 |
ROIC/WACC1.07
WACC7.62%
2.3 Liquidity
AMT has a Current Ratio of 0.55. 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 (0.55) which is in line with its industry peers.
AMT has a Quick Ratio of 0.55. 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 Quick ratio (0.55) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.38% 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.
The Revenue has grown by 13.19% in the past year. This is quite good.
Measured over the past years, AMT shows a small growth in Revenue. The Revenue has been growing by 5.97% on average per year.
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
The Earnings Per Share is expected to grow by 5.21% 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 4.37% on average per year.
EPS Next Y-15.21%
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
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
AMT is valuated quite expensively with a Price/Earnings ratio of 32.89.
AMT's Price/Earnings is on the same level as the industry average.
AMT is valuated rather expensively when we compare the Price/Earnings ratio to 26.53, which is the current average of the S&P500 Index.
AMT is valuated quite expensively with a Price/Forward Earnings ratio of 29.42.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, AMT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.89 | ||
| Fwd PE | 29.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMT indicates a somewhat cheap valuation: AMT is cheaper than 66.67% of the companies listed in the same industry.
AMT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.38 | ||
| EV/EBITDA | 17.13 |
4.3 Compensation for Growth
The decent profitability rating of AMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.79
EPS Next 2Y-1.06%
EPS Next 3Y1.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.07%, AMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.62, AMT's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than AMT!
Compared to an average S&P500 Dividend Yield of 2.39, AMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
The dividend of AMT is nicely growing with an annual growth rate of 12.68%!
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)12.68%
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.
AMT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP110.85%
EPS Next 2Y-1.06%
EPS Next 3Y1.73%
212.83
+0.29 (+0.14%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.56%
Inst Owner Change1.74%
Ins Owners0.06%
Ins Owner Change3.99%
Market Cap99.63B
Analysts81.43
Price Target251.03 (17.95%)
Short Float %1.32%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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)0.65%
PT rev (3m)10.17%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)1.91%
EPS NY rev (1m)-3.49%
EPS NY rev (3m)-6.51%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.89 | ||
| Fwd PE | 29.42 | ||
| P/S | 7.85 | ||
| P/FCF | 26.38 | ||
| P/OCF | 18.79 | ||
| P/B | 28.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.13 |
EPS(TTM)6.47
EY3.04%
EPS(NY)7.23
Fwd EY3.4%
FCF(TTM)8.07
FCFY3.79%
OCF(TTM)11.33
OCFY5.32%
SpS27.11
BVpS7.55
TBVpS-49.19
PEG (NY)N/A
PEG (5Y)2.79
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 | 1.37 |
F-Score6
WACC7.62%
ROIC/WACC1.07
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-15.21%
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%