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. While AMT belongs to the best of the industry regarding profitability, 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
In the past year AMT was profitable.
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
Looking at the Return On Assets, with a value of 4.42%, AMT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
AMT has a better Return On Equity (77.62%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 8.18%, AMT belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
AMT had an Average Return On Invested Capital over the past 3 years of 5.30%. This is in line with the industry average of 5.28%.
The 3 year average ROIC (5.30%) for AMT is below the current ROIC(8.18%), indicating increased profibility in the last year.
| 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
AMT has a Profit Margin of 21.62%. This is in the better half of the industry: AMT outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of AMT has declined.
The Operating Margin of AMT (45.47%) is better 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 74.71%, AMT is doing good in the industry, outperforming 63.33% of the companies in the same industry.
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 | 45.47% | ||
| 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
AMT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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 1.44, we must say that AMT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.44, AMT perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Debt to FCF ratio of AMT is 9.76, which is on the high side as it means it would take AMT, 9.76 years of fcf income to pay off all of its debts.
AMT has a better Debt to FCF ratio (9.76) than 76.67% of its industry peers.
A Debt/Equity ratio of 9.63 is on the high side and indicates that AMT has dependencies on debt 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 | 1.44 |
ROIC/WACC1.07
WACC7.62%
2.3 Liquidity
A Current Ratio of 0.55 indicates that AMT may have some problems paying its short term obligations.
With a Current ratio value of 0.55, AMT perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
A Quick Ratio of 0.55 indicates that AMT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.55, AMT is in line with its industry, outperforming 43.33% of the companies in the same industry.
| 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.
AMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.80% yearly.
AMT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.19%.
The Revenue has been growing slightly by 5.97% on average over the past years.
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
Based on estimates for the next years, AMT will show a small growth in Earnings Per Share. The EPS will grow by 5.21% on average per year.
The Revenue is expected to grow by 4.37% on average over the next years.
EPS Next Y-15.66%
EPS Next 2Y-1.01%
EPS Next 3Y1.72%
EPS Next 5Y5.21%
Revenue Next Year-1.77%
Revenue Next 2Y1.41%
Revenue Next 3Y2.53%
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
A Price/Earnings ratio of 35.01 indicates a quite expensive valuation of AMT.
The rest of the industry has a similar Price/Earnings ratio as AMT.
When comparing the Price/Earnings ratio of AMT to the average of the S&P500 Index (27.46), we can say AMT is valued slightly more expensively.
A Price/Forward Earnings ratio of 31.28 indicates a quite expensive valuation of AMT.
AMT's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, AMT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.01 | ||
| Fwd PE | 31.28 |
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 63.33% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.07 | ||
| EV/EBITDA | 17.96 |
4.3 Compensation for Growth
The decent profitability rating of AMT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.97
EPS Next 2Y-1.01%
EPS Next 3Y1.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.98%, AMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.63, AMT is paying slightly less dividend.
AMT's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
The dividend of AMT is nicely growing with an annual growth rate of 12.68%!
AMT has paid a dividend for at least 10 years, which is 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-1.01%
EPS Next 3Y1.72%
226.5
+1.73 (+0.77%)
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-0.37%
Ins Owners0.06%
Ins Owner Change4.02%
Market Cap106.03B
Analysts81.43
Price Target253.39 (11.87%)
Short Float %1.39%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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)0.94%
PT rev (3m)6.26%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)3.79%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-4%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.01 | ||
| Fwd PE | 31.28 | ||
| P/S | 8.36 | ||
| P/FCF | 28.07 | ||
| P/OCF | 20 | ||
| P/B | 30 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.96 |
EPS(TTM)6.47
EY2.86%
EPS(NY)7.24
Fwd EY3.2%
FCF(TTM)8.07
FCFY3.56%
OCF(TTM)11.33
OCFY5%
SpS27.11
BVpS7.55
TBVpS-49.19
PEG (NY)N/A
PEG (5Y)2.97
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 | 1.44 |
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-15.66%
EPS Next 2Y-1.01%
EPS Next 3Y1.72%
EPS Next 5Y5.21%
Revenue 1Y (TTM)13.19%
Revenue growth 3Y2.67%
Revenue growth 5Y5.97%
Sales Q2Q%-9.57%
Revenue Next Year-1.77%
Revenue Next 2Y1.41%
Revenue Next 3Y2.53%
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%