AMERICAN TOWER CORP (AMT)
US03027X1000 - REIT
AMT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 28 industry peers in the Specialized REITs industry. There are concerns on the financial health of AMT while its profitability can be described as average. 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.
In the past year AMT had a positive cash flow from operations.
In the past 5 years AMT has always been profitable.
AMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.10%, AMT is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
Looking at the Return On Equity, with a value of 51.01%, AMT belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
AMT's Return On Invested Capital of 5.16% is fine compared to the rest of the industry. AMT outperforms 60.71% of its industry peers.
AMT had an Average Return On Invested Capital over the past 3 years of 4.62%. This is in line with the industry average of 5.04%.
The 3 year average ROIC (4.62%) for AMT is below the current ROIC(5.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 51.01% | ||
| ROIC | 5.16% |
ROA(3y)2.85%
ROA(5y)3.31%
ROE(3y)39.19%
ROE(5y)39.24%
ROIC(3y)4.62%
ROIC(5y)5.13%
1.3 Margins
With a Profit Margin value of 18.42%, AMT perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
AMT's Profit Margin has declined in the last couple of years.
The Operating Margin of AMT (34.91%) is worse than 60.71% of its industry peers.
AMT's Operating Margin has improved in the last couple of years.
The Gross Margin of AMT (71.08%) is comparable to the rest of the industry.
AMT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.91% | ||
| PM (TTM) | 18.42% | ||
| GM | 71.08% |
OM growth 3Y-4.82%
OM growth 5Y3.85%
PM growth 3Y-14.14%
PM growth 5Y-4.2%
GM growth 3Y-0.72%
GM growth 5Y0%
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 about the same amount of shares outstanding.
AMT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AMT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.04, 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 1.04, AMT is in line with its industry, outperforming 57.14% of the companies in the same industry.
AMT has a debt to FCF ratio of 12.26. This is a negative value and a sign of low solvency as AMT would need 12.26 years to pay back of all of its debts.
AMT's Debt to FCF ratio of 12.26 is fine compared to the rest of the industry. AMT outperforms 60.71% of its industry peers.
AMT has a Debt/Equity ratio of 8.94. This is a high value indicating a heavy dependency on external financing.
AMT has a Debt to Equity ratio of 8.94. This is amonst the worse of the industry: AMT underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.94 | ||
| Debt/FCF | 12.26 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.65
WACC7.92%
2.3 Liquidity
A Current Ratio of 0.63 indicates that AMT may have some problems paying its short term obligations.
AMT has a worse Current ratio (0.63) than 60.71% of its industry peers.
AMT has a Quick Ratio of 0.63. 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 0.63, AMT is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
AMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.00%, which is quite impressive.
The Earnings Per Share has been growing slightly by 2.80% on average over the past years.
AMT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.63%.
The Revenue has been growing by 8.42% on average over the past years. This is quite good.
EPS 1Y (TTM)75%
EPS 3Y-5.68%
EPS 5Y2.8%
EPS growth Q2Q287.5%
Revenue 1Y (TTM)3.63%
Revenue growth 3Y11.49%
Revenue growth 5Y8.42%
Revenue growth Q2Q2.42%
3.2 Future
AMT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.86% yearly.
The Revenue is expected to grow by 5.24% on average over the next years.
EPS Next Y124.35%
EPS Next 2Y52.08%
EPS Next 3Y35.56%
EPS Next 5Y17.86%
Revenue Next Year0.76%
Revenue Next 2Y-0.38%
Revenue Next 3Y1.26%
Revenue Next 5Y5.24%
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 accelerating.
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
The Price/Earnings ratio is 33.71, which means the current valuation is very expensive for AMT.
Compared to the rest of the industry, the Price/Earnings ratio of AMT is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 24.55. AMT is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 24.07, the valuation of AMT can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMT indicates a somewhat cheap valuation: AMT is cheaper than 64.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, AMT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.71 | ||
| Fwd PE | 24.07 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AMT.
AMT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.81 | ||
| EV/EBITDA | 17.68 |
4.3 Compensation for Growth
AMT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AMT has a very decent profitability rating, which may justify a higher PE ratio.
AMT's earnings are expected to grow with 35.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)12.04
EPS Next 2Y52.08%
EPS Next 3Y35.56%
5. Dividend
5.1 Amount
AMT has a Yearly Dividend Yield of 3.68%. Purely for dividend investing, there may be better candidates out there.
AMT's Dividend Yield is slightly below the industry average, which is at 4.94.
Compared to an average S&P500 Dividend Yield of 2.39, AMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
5.2 History
On average, the dividend of AMT grows each year by 15.44%, which is quite nice.
AMT has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)15.44%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
146.15% of the earnings are spent on dividend by AMT. This is not a sustainable payout ratio.
AMT's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP146.15%
EPS Next 2Y52.08%
EPS Next 3Y35.56%
AMERICAN TOWER CORP
NYSE:AMT (5/2/2024, 9:57:50 AM)
176.99
+0.15 (+0.08%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap82.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.71 | ||
| Fwd PE | 24.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.27
PEG (5Y)12.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 51.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.91% | ||
| PM (TTM) | 18.42% | ||
| GM | 71.08% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.94 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)75%
EPS 3Y-5.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y124.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.63%
Revenue growth 3Y11.49%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y