AMERICAN TOWER CORP (AMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMT - US03027X1000 - REIT
181.27 USD
+0.03 (+0.02%)
181.26 USD
-0.01 (-0.01%)
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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AMT was profitable.
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's Return On Assets of 4.60% is fine compared to the rest of the industry. AMT outperforms 73.33% of its industry peers.
Looking at the Return On Equity, with a value of 74.34%, AMT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AMT has a better Return On Invested Capital (6.50%) than 83.33% 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 4.77%.
The last Return On Invested Capital (6.50%) for AMT is above the 3 year average (5.18%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 28.11%, AMT is doing good in 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.
In the last couple of years the Operating Margin of AMT has grown nicely.
The Gross Margin of AMT (74.29%) is better than 63.33% of its industry peers.
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
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
Compared to 5 years ago, AMT has more shares outstanding
The debt/assets ratio for AMT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that AMT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AMT (1.10) is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 10.09, AMT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
A Debt/Equity ratio of 8.82 is on the high side and indicates that AMT has dependencies on debt financing.
AMT has a worse Debt to Equity ratio (8.82) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.82 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.91
WACC7.18%
2.3 Liquidity
AMT has a Current 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.
Looking at the Current ratio, with a value of 0.59, AMT is in line with its industry, outperforming 43.33% of the companies in the same industry.
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
AMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.46%, which is quite impressive.
AMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.80% yearly.
The Revenue has been growing slightly by 4.18% in the past 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)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.
AMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.57% yearly.
EPS Next Y-27.96%
EPS Next 2Y-2.43%
EPS Next 3Y0.26%
EPS Next 5Y3.38%
Revenue Next Year0.32%
Revenue Next 2Y2.12%
Revenue Next 3Y2.89%
Revenue Next 5Y4.57%
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.
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 28.96.
Based on the Price/Earnings ratio, AMT is valued a bit cheaper than 63.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. AMT is around the same levels.
A Price/Forward Earnings ratio of 25.76 indicates a quite expensive valuation of AMT.
AMT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMT is cheaper than 66.67% of the companies in the same industry.
AMT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.96 | ||
| Fwd PE | 25.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMT is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, AMT is valued a bit cheaper than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23 | ||
| EV/EBITDA | 17.69 |
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)2.45
EPS Next 2Y-2.43%
EPS Next 3Y0.26%
5. Dividend
5.1 Amount
AMT has a Yearly Dividend Yield of 3.75%. Purely for dividend investing, there may be better candidates out there.
AMT's Dividend Yield is slightly below the industry average, which is at 6.15.
Compared to an average S&P500 Dividend Yield of 2.40, AMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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
106.15% 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.
DP106.15%
EPS Next 2Y-2.43%
EPS Next 3Y0.26%
181.27
+0.03 (+0.02%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.09%
Inst Owner Change0.58%
Ins Owners0.05%
Ins Owner Change0.25%
Market Cap84.88B
Revenue(TTM)10.45B
Net Income(TTM)2.94B
Analysts80
Price Target236.69 (30.57%)
Short Float %1.06%
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend6.59
Dividend Growth(5Y)12.67%
DP106.15%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-22.02%
Min EPS beat(2)-53.6%
Max EPS beat(2)9.56%
EPS beat(4)2
Avg EPS beat(4)-7.73%
Min EPS beat(4)-53.6%
Max EPS beat(4)49.1%
EPS beat(8)4
Avg EPS beat(8)-15.78%
EPS beat(12)5
Avg EPS beat(12)-33.2%
EPS beat(16)8
Avg EPS beat(16)-13.47%
Revenue beat(2)2
Avg Revenue beat(2)0.87%
Min Revenue beat(2)0.19%
Max Revenue beat(2)1.55%
Revenue beat(4)2
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-0.33%
Max Revenue beat(4)1.55%
Revenue beat(8)5
Avg Revenue beat(8)-0.67%
Revenue beat(12)8
Avg Revenue beat(12)-3.61%
Revenue beat(16)11
Avg Revenue beat(16)-2.61%
PT rev (1m)-6.76%
PT rev (3m)-6.91%
EPS NQ rev (1m)-9.53%
EPS NQ rev (3m)-9.57%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.96 | ||
| Fwd PE | 25.76 | ||
| P/S | 8.12 | ||
| P/FCF | 23 | ||
| P/OCF | 16.21 | ||
| P/B | 21.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.69 |
EPS(TTM)6.26
EY3.45%
EPS(NY)7.04
Fwd EY3.88%
FCF(TTM)7.88
FCFY4.35%
OCF(TTM)11.18
OCFY6.17%
SpS22.33
BVpS8.44
TBVpS-49.22
PEG (NY)N/A
PEG (5Y)2.45
Graham Number34.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 74.34% | ||
| ROCE | 8.23% | ||
| ROIC | 6.5% | ||
| ROICexc | 6.73% | ||
| ROICexgc | 13.01% | ||
| OM | 45.58% | ||
| PM (TTM) | 28.11% | ||
| GM | 74.29% | ||
| FCFM | 35.3% |
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%
ROICexgc growth 3Y7.7%
ROICexgc 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-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.82 | ||
| Debt/FCF | 10.09 | ||
| Debt/EBITDA | 5.13 | ||
| Cap/Depr | 76.22% | ||
| Cap/Sales | 14.77% | ||
| Interest Coverage | 3.63 | ||
| Cash Conversion | 77.09% | ||
| Profit Quality | 125.61% | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.1 |
F-Score6
WACC7.18%
ROIC/WACC0.91
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)26.46%
EPS 3Y9.23%
EPS 5Y11.8%
EPS Q2Q%104.49%
EPS Next Y-27.96%
EPS Next 2Y-2.43%
EPS Next 3Y0.26%
EPS Next 5Y3.38%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y2.67%
Revenue growth 5Y5.96%
Sales Q2Q%7.74%
Revenue Next Year0.32%
Revenue Next 2Y2.12%
Revenue Next 3Y2.89%
Revenue Next 5Y4.57%
EBIT growth 1Y15.4%
EBIT growth 3Y9.08%
EBIT growth 5Y10%
EBIT Next Year49.02%
EBIT Next 3Y17.59%
EBIT Next 5Y13.43%
FCF growth 1Y30.25%
FCF growth 3Y2.43%
FCF growth 5Y6.03%
OCF growth 1Y9.86%
OCF growth 3Y3.15%
OCF growth 5Y7.11%
AMERICAN TOWER CORP / AMT FAQ
What is the ChartMill fundamental rating of AMERICAN TOWER CORP (AMT) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AMT.
What is the valuation status of AMERICAN TOWER CORP (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.
How financially healthy is AMERICAN TOWER CORP?
The financial health rating of AMERICAN TOWER CORP (AMT) is 2 / 10.
What is the earnings growth outlook for AMERICAN TOWER CORP?
The Earnings per Share (EPS) of AMERICAN TOWER CORP (AMT) is expected to decline by -27.96% in the next year.